Labour reform: Government notifies fixed-term jobs for all sectors


In line with an announcement made by finance minister Arun Jaitley in his latest Budget speech, the labour ministry has extended full-benefit, fixed-term jobs — already a feature in the labour-intensive garment and leather industries — to all sectors of the economy.
A notification to this effect, amending the relevant rules under the Industrial Employment (Standing Orders) Act, 1946, has been issued by the ministry of labour and employment.
The move would have multiple benefits: It would boost the creation of ‘formal jobs’, reduce instances of informal hiring, which continues to be the norm in the unorganised sector, and spare businesses the undue burden of keeping regularised contract employment, even as their labour requirements are seasonal. The labour market flexibility will help the manufacturing sector, on the cusp of a revival after a prolonged slump.
The facility was introduced in the garment sector in June 2016 and later, the cabinet decided to extend it to leather and footwear sectors.
Fixed term workmen will be entitled to benefits similar to the permanent workforce like EPF, ESIC, defined working hours, minimum wages, allowances and other statutory dues. “He (fixed-term workman) shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statue,” according to the notification.
Source: Financial Express

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