Karnataka govt notifies ‘fixed-term workman’ and allows flexible hiring across industry
Karnataka govt notifies ‘fixed-term workman’ on June 30, it has made changes to the Karnataka Industrial Employment (Standing Orders) Rules 1961 to introduce fixed-term workmen (FTW) in the model standing orders.
Earlier, only the apparel manufacturing sector was allowed to hire employees on fixed-term contracts. In the notification to amend the order, “fixed-term employment in the apparel manufacturing sector” has revised to “fixed-term employment”, meaning the facility is now available to all sectors.
Fixed-term employment refers to hiring on a contractual basis for a fixed period, and automatic termination of services if the contract is not renewed.
The amendment provides flexibility for companies to hire and terminate contracts of employees and is being considered as an alternative to the contract system.
Labourers hired under FTW, their hours of work, wages, allowances and other benefits shall not be less than that of permanent workers and they will be eligible for all statutory relief and benefits as permanent workmen.