Jaitley hints extending fixed-term contract hiring across sectors, MSMEs say big relief

New Delhi, Feb 2 (KNN) In a major boost to improve Ease of Doing Business in the country, Finance Minister Arun Jaitley in his Budget 2018-19 speech, has extended the fixed-term contract hiring beyond apparels to all sectors. The move would allow employers to hire workers for specific projects on contract for a fixed term.

Reacting on this, Anil Bhardwaj, Secretary General of Federation of Indian Micro and Small & Medium Enterprises (FISME) said, “Extending the facility of Fix term employment to all sectors is a big labour reform which will encourage MSMEs to hire and create more employment.

Also V.K Agarwal Past President of Federation of Indian Micro and Small & Medium Enterprises (FISME) said that the announcement of extending the fixed term contract hiring provision could prove to be one of the biggest labour reform in the country.

Currently, fixed-term employment is only allowed in the apparel manufacturing sector. The cabinet had recently said it could be extended to footwear, leather and the accessories sector to help "attract large-scale investments at global scale."

The government's NITI Aayog think-tank had recommended extending fixed-term employment to all sectors beyond apparel in its three-year action plan unveiled last year

The proposed plan is expected to be rolled out via an executive order. While the industry will find the measure to be a key reform in labour laws and aid ease of doing business, it could invite opposition from political parties and workers' unions. (KNN/DA)