Indian Job Sector will witness an upsurge in fixed term employment in recent time. The government has modified labour rules and extended the facility of recruiting workers on fixed term employment to all industries.
Arun Jaitley, finance minister of the nation during his Budget speech this FY announced that the labour ministry has extended full-benefit, fixed term jobs to all the sectors of the economy. This will improve the ease of doing business for companies intending to hire people for completing specified projects, tasks or orders. A notice amending the relevant rules has been issued by Ministry of labour and employment under the Industrial Employment (Standing Orders) Act, 1946
Earlier, the fixed term contract was only applicable to apparel manufacturing sector.
The benefit of having fixed term employment is the worker will be on a contract basis for a fixed period. The worker will avail all the services and remunerations that will be provided to regular employees under various laws. The fixed term employment worker will get benefits like same defined working hours, minimum wages, allowances, and other statutory dues.
The new initiative comes with the advantage of increasing the number of formal jobs and reducing the informal hiring system. This helps in decreasing the undue burden of keep regularised contract employment, even as their labour requirements are seasonal.