Insta
Workers at watch factory in Hosur. (Hemant Mishra/Mint via GettyImages)
In a significant shift from its earlier focus on job security to now job creation, the Centre has amended labour laws to encourage contract jobs and fixed-tenure jobs across all industries, reports Mint. The new laws will help companies with additional flexibility and leeway in hiring and firing employees, which would in turn help India climb up in the World Bank’s Ease of Doing Business rankings.
The changes were announced through a gazette notification on 16 March this year. Under the new rules, companies can hire workers under a contract for a fixed term. The new rules were originally introduced in 2016 for the textiles and apparel industry.
The gazette notification proposes replacing “fixed term employment workmen in apparel manufacturing sector” in the Industrial Employment (Standing Orders) Central Rules, 1946, with just “fixed term employment”.
Under the reforms, irrespective of the contract period, a termination notice will not be needed and workers will not be entitled to notice pay in the event the contract is terminated.
Fixed-term contract workers will also be eligible for pay parity and statutory benefits. Those who have been contracted for at least three consecutive months will get two weeks notice while others will receive a written notice of retrenchment.
The rules also state that employers cannot convert posts of permanent works to fixed-term contract workers, to allow labour movement and a flexible hire-and-fire policy.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest