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Ministry of Textiles introduces fixed term employment for apparel manufacturing sector

Vide a notification dated October 7 of the Ministry of Labour and Employment, a Fixed Term Employment has been introduced in Apparel Manufacturing sector in Industrial Employment (Standing Order) Act. The decision would facilitate employment of workers in Apparel manufacturing on fixed term basis in the backdrop of seasonal nature of sector and would also ensure same working conditions, wages and other benefits for fixed term employee in the sector as a regular employee. It is thus win - win situation for both employer's and employees in Apparel manufacturing sector.

The Industrial Employment (Standing Orders) Act, 1946 requires employers to define conditions of employment in their industrial establishments. The item one of the schedule to the Act classifies the workman (a) Permanent (b) Temporary (c) Apprentice (d) Casual (e) Probationer (f) Badlis. The list in this schedule is not exhaustive. The nature of industrial establishments may be a factor to decide the classification of the workmen. 

The concept of Fixed Term Employment defines the tenure of employment as well as other associated conditions of service and remunerations which are provided to regular employees under various labour laws. Fixed term employment was defined as a workman who is employed on a contract basis for a fixed period. Thus the services of workman will be automatically terminated as a result of non renewal of the contract between the employer and the workman concerned. 

Separation of service of a workman as a result of non renewal of the contract of employment between the employer and workman concerned shall not be construed as termination of employment. This step would ultimately benefit the workers as their working conditions would be at par with the regular employees including social security and other benefits. It would, on the one hand provide flexibility to the employers and on the other hand improve the working conditions of the workers already working for some fixed tenure only by way of contracts. Experts say that it is a win-win situation for both worker and employer as on one side it provided flexibility for employing workers as per the demands of the market while on the other it ensures that worker hired gets equal benefits and working condition at par with the permanent employee.

 
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