The growth of industrialization has benefited nations in different ways. Still, at the same time, it has also led to the rise in the demand for a set protocol that could help in making the work streamlined for both, the workers and the employers.
Amongst the different types of industries that exist in India, some sectors like leather, textile, food, etc. do not run smoothly throughout the year because of their nature of work. In such a situation, the demand may decrease because of changes in consumer behaviour, and sometimes the demand may be on the higher side. In either of the situations, employers look for quality services from their workforce for a limited time. They also want to ensure that there is the right supply of order on time, and hence they emphasize fixed-term employment.
The fixed term employment contract benefits both the employees and employers. Besides, there is also protection of workers as they are provided statutory benefits that fall under the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018. The latter includes that wage benefits, allowances, working hours, etc. shall be equal to that of a permanent worker. All these benefits are equivalent to the period of service rendered by the worker. These conditions are mentioned in fixed term contracts that we will be discussing later in the blog.
The Fixed term contract law is quite prevalent in the industry today. Before we go ahead and understand how it benefits and its importance, it becomes important to understand how it started. It is a kind of contractual relationship between the employer and the employee that is defined for a certain period of time.
The labour laws of the nation govern these contracts. The objective of this is to ensure that the employer doesn't follow unjust practices like non-payment of wages, unjust dismissal, etc. Eventually, it creates a permanent contract, but it happens in the case when an employer decides to create a permanent contract, subject to the employer's right to terminate employment by giving a notice along with a valid reason.
Job insecurity, which is one of the drawbacks of fixed term contracts, may cause the law of a country to limit the cases and the way they use this contract. In nations where the labour laws are strict, there is a clear difference between fixed-term and long-term contracts.
When employee legislation is less protective for employees, there tends to be a lesser degree. When we talk about the Indian context, a fixed-term contract started recently. It was in the year 2018 when the government emphasized on fixed-term contract law, and employees falling under this contract were entitled to wages and benefits which the permanent employees enjoy.
As mentioned above, in some cases, fixed-term contracts lead to permanent contracts, one such example is of the United Kingdom, wherein any employee who is on a fixed-term contract for more than 4 years will automatically become a permanent employee.
There are several reasons why countries like India have emphasized fixed term employment. It is an undeniable fact that fixed term contracts offer several benefits to the employees and employers. We have enumerated a few of them below:
As an employer, you get the following benefits:
When it comes to preparing the checklist for fixed employee contracts, certain conditions may vary from one organization to another, but some of the aspects remain common. So, here we bring you a checklist of those pointers that any fixed-term employment contract must have:
In case the fixed-term contract comes to an end, then the following can happen:
There is a probability that an employer may wish to end the contract early, but this condition must be mentioned in the contract, in such a case, a minimum notice of:
All this information must be mentioned in the contracts. Hence, it becomes imperative that both employee and employer read the contract thoroughly before accepting it.
If an employee continues to work before the end date of the fixed-term contract without renewal, the implied agreement applied to extend the fixed term. If the employee continues to work for four years, then the fixed-term employee is automatically converted into a permanent employee and is subjected to all the benefits of permanent employees.
There is a probability that the employer may dismiss the employee without proper reason. Also, if the contract is not renewed on time, then it is considered as dismissal. If the fixed-term contract lasts for at least 2 years, the employer needs to give a fair reason for the same.
Well, as mentioned that fixed-term contracts are for a definite period of time, but in certain cases, the employer may wish to extend the contract. In such cases, they can work upon renewing the fixed-term contracts. Here are certain things that you need to remember:
This information explains in detail about fixed-term contracts. Indian companies are now following this contract, thus ensuring equal wages and rights to the employees.
Is there a probability that I can end the contract before the contract termination date? What are Fixed-term employees?
Before proceeding to any step, you need to check the contact and what conditions it mentions pertaining to the ending of the contract. If there is a clause in the contract that allows you to end the contract earlier, then you have to give due notice. The fixed-term employee has the right to a minimum notice:
What are Fixed-term employees?
Casual workers are those who are not a part of the permanent workforce, but they do render their services on flexible bases and meet the fluctuating demand for work. They usually work in seasonal industries like tourism, agriculture, etc. They usually work in an industry where work is sporadic.
Will I get annual leave if I become a Fixed-term employee?
As a fixed-term employee, you will get several benefits that a permanent employee enjoys. An employee's regular work as per fixed-term contract is 38 hours or more per week are considered as a full-time employee, so the benefits like annual leave, personal leave, and public holidays are applicable to them. But make sure that you do check the fixed-term contract about such conditions. Once you are in agreement with the conditions mentioned in the contract, you must go for acceptance of the same.
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