Oct 10, 2016
Fixed term employment in India's apparel manufacturing sector
Oct 10, 2016
Fixed term employment has been introduced in the apparel manufacturing sector in Industrial Employment (Standing Order) Act by the Indian government. This would facilitate employment of workers in apparel manufacturing on fixed term basis and ensure same working conditions, wages and other benefits for fixed term employee in the sector as a regular employee.
The seasonal nature of textile sector results in fluctuation of demand and hence requires flexibility in employing worker, says the notification issued by the ministry of labour and employment.
By permitting fixed term employment in apparel manufacturing, the working conditions in terms of working hours, wages, allowances and other statutory dues of a fixed term employee would be at par with permanent workmen.
A fixed term worker will also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even though his period of employment does not extend to the qualifying period of employment required in the statute.
Further, the employer can directly hire a worker for a fixed term without mediation of any contractor. Likewise, any worker employed for short period will get better working and service conditions as compared to a contract worker.
The decision is expected to provide flexibility to textile sector in employing workers and hence strengthen and empower the Indian textile and apparel sector.
By inclusion of the ‘fixed term workman’ as one of the category of workman in the classification of workman in the Industrial Employment (Standing Orders) Act, 1946, the ministry intends to make such workman on fixed term employment eligible for all statutory benefits available to permanent workman proportionately accordingly to the period of service rendered by him, even though his period of employment does not extend to the qualifying period of employment required in the statute, the notification said.
It is a “win win” situation for both worker and employer as it provides flexibility for employing workers as per the demands of the market, while ensuring that worker hired gets equal benefits and working condition at par with the permanent employee.
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