The Indian Government has introduced ‘fixed-term employment’ in the apparel manufacturing sector under Industrial Employment (Standing Order) Act, 1946. This move will facilitate employment of workers in apparel manufacturing on a fixed-term basis and ensure same working conditions, wages and other benefits for fixed-term employee in the sector as a regular employee.
With the inclusion of ‘fixed term workman’ as one of the categories in the classification of workmen under the Act, the Ministry of Labour and Employment intends to include 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, a notification issued by the Ministry.
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The seasonal nature of apparel manufacturing sector results in fluctuation of demand and hence requires flexibility in employing worker, states the notification issued by the Ministry. 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.
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.
It is a win-win situation for both workers and employers 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.
