The fixed term employment has been introduced in apparel manufacturing sector in Industrial Employment (Standing Order) Act through an October 7 notification of the labour ministry. The decision would help workers in apparel manufacturing by ensuring same working conditions, wages and other benefits for fixed term employee in the sector as compared to a regular employee.

The fixed term employment is 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 is for 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.

The seasonal nature of textile sector results in fluctuation of demand and hence requires flexibility in employing worker. 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 press release said.

Incidentally, an employer can directly hire a worker for a fixed term without mediation of any contractor.  The worker employed for short period will get better working and service conditions as compared to a contract worker.

The measures assume significance due also to its potential for social transformation through women empowerment since 70 percent of the workforce in the garment industry are women, majority of the new jobs created are likely to go to women.

Read the Industrial Employment (Standing Order) Act