Fixed Term Employment Introduced for the Apparel Manufacturing Sector in India

October 26, 20168:32 am2277 views

Fixed term employment for the apparel manufacturing sector in India was launched this month, which would facilitate employment of workers in the industry on a fixed-term basis, considering the backdrop of seasonal nature of the sector. This would ensure same working conditions, wages and other benefits provided to a fixed-term employee, as offered to a regular employee.

Considering the seasonal nature of the textile sector, it results to fluctuation in demand and requires flexibility in employing workers.

A fixed term worker will also be eligible for all statutory benefits available to a permanent employee proportionately according 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.

The employer can directly hire worker on fixed term employment basis without mediation from any contractor. This worker employed for a short period will be offered better working and service conditions as compared to a contract worker.

See: Apparel Manufacturing has Potential to Create 1.2 Million New Jobs in India

This move is initiated to provide flexibility to the textile sector in employing workers, thus strengthening and empowering the textile and apparel sector in India. It assumes further significance due to its potential for social transformation through women empowerment.

Since 70% of the workforces in the textile industry are women, majority of jobs created are likely to go to women.

On termination of the fixed term employment of the worker, they are not entitled to any notice or pay in lieu thereof. This step will ultimately benefit workers in the textile industry, as regards social security and other benefits. While this would provide flexibility to the employers, it would also improve the working conditions of employees who are working for a fixed tenure only by way of contracts.

It also defines a prescribed format of contract for engaging workers on fixed term basis, rather than avoiding exploitation of such workers.

On a whole, this creates a “win-win” situation for both the worker and the employer, while providing flexibility for employing workers as per the demands of the market, and on the other hand it also ensures workers hired get equal benefits and working conditions as in par with the permanent employee.

Also read: Automation Hits the Textile Sector in India, No New Jobs Created

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