Q. Consider the following statements: As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
- If rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
- No notice of termination of employment shall be necessary in the case of temporary workman.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer: (c) Both 1 and 2
Notes:
- The government has notified fixed-term employment for all sectors through an amendment to the Industrial Employment (Standing Orders) Central Rules, 1946.
- Fixed-term employment for all sectors will make it easier for companies to hire-and-fire workers along with reducing the role of middlemen.
- As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, a “fixed-term employment workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period”.
- No notice of termination of employment shall be necessary in the case of a temporary workman whether monthly rated, weekly rated or piece rated and probationers or badli workmen.
Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
- The Ministry of Labour and Employment recently notified fixed term employment for all sectors.
- It was through an amendment to the Industrial Employment (Standing Orders) Central Rules, 1946.
- Highlights of the rules:
- A fixed term employment workman is engaged on the basis of a written contract of employment for a fixed period.
- The existing permanent workmen as on March 16, 2018 cannot be converted as fixed term employment thereafter.
- March 16 is the date of commencement of the amended rules.
- The notified rules provide for equal work hours, wages, allowances and other benefits as that of a permanent workman.
- These are along with all statutory benefits available to a permanent workman proportionately according to the period of service.
- This will be available even if the period of employment does not extend to the qualifying period of employment required in the statute.
- Fixed-term employees whose services are terminated on non-renewal of contract or on its expiry is not entitled to any notice or pay in lieu.
- No notice of termination of employment shall be necessary in the case of temporary workman.
- This is whether it is monthly rated, weekly rated or piece rated and probationers or badli workmen (appointed in the position of permanent workmen or temporarily absent probationers).
- Expected benefits:
- The Cabinet had earlier approved fixed-term employment for specific sectors.
- Fixed-term employment for all sectors now will make it easier for companies to hire-and-fire workers.
- It will also reduce the role of middlemen and allow companies to hire workers based on seasonal trends.
- The industries will be empowered to employ people for a fixed duration for which they have orders or assignments.
- There will be no burden of carrying extra labour force during the lean season.
- The move is further expected to promote ‘ease of doing business’.
- Concerns:
- Job creation – The move towards fixed-term employment will make it easier for companies to layoff workers.
- This could have a bearing upon job creation in the country.
- Notably, India’s unemployment rate is estimated to rise to 3.5% for 2018 from 3.4% estimated earlier.
- Labour laws – The consolidation exercise of 44 central labour laws into four major codes is still pending by the government.
- Trade Unions – Trade unions across the country have opposed the extension of fixed-term employment to all sectors.
- This is because the move could lead to a situation where only fixed-term jobs are created.
- There is a possibility that permanent employment would vanish from the industrial sector.
- Job creation – The move towards fixed-term employment will make it easier for companies to layoff workers.
