Ministry of Labour & Employment vide notification has amended the Industrial Employment (Standing Orders) Central Rules 2018. The government is trying to address the issue of probable misuse by the firms.
According to the people briefed on the matter, the government is making provisions to put an end to the practice of converting the existing full-time employees into contract employees.
On February 15, the matter was discussed between the government, the representatives of 12 state governments, trade union, and industry; to exclusively include safeguard provisions.
On January 8th, 2018, the labour and employment ministry had issued a draft Industrial Employment (Standing Orders) Central (Amendment) Rules 2018. Public suggestions were being invited for long 30 days.
As per the media reports, the reception has been mixed. Presently, the industries in India hire contractual labour through contractors. As per the media reports, the process eventually leads to a hike of 25 percent to the cost of hiring. Once the law would be implemented, then the benefit would be availed by the hired fixed-term employee and not the contractor.
Concerns have been raised that after the introduction of this law, there would be more confusion and lack of clarity as the old system of hiring contractual employees through contractors will continue to exist.
Workforce employed by fixed-term employment law would be getting the same benefits as that of the permanent employee, except that employers are not urged to offer any retrenchment benefits to the workers.
Media reports suggest that government also wants to put an end to the number of renewals for the fixed-term contract for the hired worker before he or she becomes a regular.
All of the reforms being made for employment are welcomed, along with an expected increase in employment in the country.