Punjab to allow fixed-term industrial employment

CHANDIGARH: In line with efforts being made to promote ease of doing business, the Punjab government has allowed fixed-term employment in all industrial establishments, a provision which will allow them to employee workers as and when required.
The decision fulfils long standing demand of industry for which amendments have been made in the Industrial Employment (Standing Orders) Punjab Rules, 1978. A formal notification is expected to be issued by July 13.
‘Win-win situation for employers, employees’
According to experts, the move will give a much-needed boost to small and seasonal industries, allowing them to hire workforce as per their requirements. For employing workers on a fixed term, the industrial establishments will be required to follow rules laid down by the government. Employers will be allowed to hire workers for a fixed period after entering into a written agreement. Their hours of work, wages, allowances and other benefits will be equivalent to the permanent workers.
The rules prohibit industrial establishments from converting existing permanent into fixed-term employment. Not only that, they will also be eligible for all statutory benefits — earned leave, provident fund, insurance and gratuity — available to permanent employees according to the period of service rendered by them on pro rata basis, even if the period of employment does not extend to the qualifying period of employment required in the statute.The rules prohibit industrial establishments from converting existing permanent into fixed-term employment. Once implemented, employer will not be required to give notice of termination to fixed-term employees whether on monthly or weekly pay or probationers. However, in case of a fixed-term worker who has completed three months of continuous service, a twoweek notice of intention to terminate employment has to be given, if such termination is not in accordance with the term of contract of employment.
Lauding the state government’s decision, Rahul Ahuja, chairman of the Confederation of Industry, Punjab maintained that this has been a long-pending demand. “It will be a win-win situation for both employers and employees,” said Ahuja.
Punjab additional chief secretary, department of labour, Vijay Kumar Janjua said the department has framed draft rules and these will be notified after the 30-day period of submitting objections or suggestions expires. “Fixed term employment will help in enhancing the ease of doing business and will be highly beneficial to the seasonal industry,” said Janjua.