New Delhi, Oct 8 (KNN) Giving job security to the workers in the Apparel manufacturing sector, the Ministry of Labour and Employment has notified the fixed term employment in the sector in Industrial Employment (Standing Order ) Act.

“The Fixed Term Employment introduced in Apparel Manufacturing sector in Industrial Employment (Standing Order ) Act vide Notification dated 7.10.2016 of Ministry of Labour and Employment,” the Ministry of Labour and Employment said in a statement.

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 employers and employees in Apparel manufacturing sector.

The Industrial Employment (Standing Orders) Act, 1946 require 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 nature of industrial establishments may be a factor to decide the classification of the workmen. Example:- a seasonal establishment, intermittent working establishment, work of the establishment.

The Central Government can add any other matter in the schedule and in the rules under the powers given in section 15 of the Act.

The concept of Fixed Term Employment define 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.

On the termination of fixed term employment of the workman the workman is not entitled to any notice or pay in lieu thereof. However, by proposed 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.

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.

It would also provide prescribed format of contract for engaging workers on fixed term employment, thereby avoiding any exploitation of such workers. The inclusion in the IE (SO) Act would define formally the conditions of employment on which the workman would be engaged for Fixed Term.

It is a  “win win” situation for both worker and employer as at on the one side it provided flexibility for employing workers as per the demands of the market and on the other hand it ensures that worker hired gets equal benefits and working condition at par with the permanent employee. (With PIB Inputs)