Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Government extends facility of fixed-term employment for all sectors


Mains Paper 3: Economy | Development & employment

From UPSC perspective, the following things are important:

Prelims level: Fixed-term employment, Industrial Establishment (Standing Order) 1946

Mains level: Variuos initiatives being taken to ease labour laws and doing business

More formal employment 

  1. The government has extended the facility of hiring workers on fixed-term employment to all sectors
  2. This has been done for improving the ease of doing business for players intending to hire people for completing specified projects, tasks or orders

Fixed term employment

  1. 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
  2. The fixed term employment was defined as a workman who is employed on a contract basis for a fixed period

Present status

  1. This facility was available only for the apparel manufacturing sector as per the Industrial Establishment (Standing Order) 1946

How will this amendment benefit workers?

  1. The fixed worker would be entitled to all benefits like wages, hours of work, allowances and others statutory benefits, not less than permanent workmen
  2. Services of the temporary workman shall not be terminated as punishment unless he has been given an opportunity of explaining the charges of misconduct alleged against him
  3. The employer can directly hire a worker for a fixed term without the mediation of any contractor
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