Labour Codes: #5 Regulated Fixed Term Employments
The Code on Social Security, 2020 and Industrial Relations Code, 2020 nowrecognises and defines “Fixed Term Employment (“FTE”)” meaning the engagement of an employee on the basis of a written contract of employment for a fixed period.
Provided that:
- FTEs are entitled to wages, allowances, and working conditions at par with permanent employees performing work of similar nature.
- FTEs are eligible for all statutory benefits 2. proportionately.
- FTEs are entitled to gratuity if renders service under contract for a period of one year.
Impact of regulating FTE:
- Does away with ambiguity around engaging an employee for a fixed period.
- Provides employers an opportunity to engage resources based on work requirement.
- Provides parity in-service conditions consisting of wages, allowances, and other benefits along with that of a permanent employee.