Labour Codes 2020: Fixed-term and permanent workers to be at par

As per the draft order for industrial establishments and mines, the remuneration of workers will be transparent and be paid within seven days of the wage period


The draft order for industrial establishments and mines by the Ministry of Labour proposes that fixed-term employment be treated equal to permanent employment. A person is a fixed-term worker if she or he has been engaged via a written employment contract with the employer for a specific period of time. The Ministry proposes that such workers should be given the same compensation as a permanent worker doing the same or similar work.

It is also suggested that the compensation for fixed-term employees be paid within seven days of the wage period, and transparency be maintained in matters regarding wages. These rules will apply to all manufacturing and mining establishments employing 300 or more workers.

The draft order proposes that fixed-term employees be provided all statutory benefits availed by a permanent worker in proportion with the period of service, even if service period falls short of the qualifying period of employment required in the statute.

The wage rates for all categories of workers will be required to be on display, either on the establishment’s website or notice board, in Hindi, English and the local language that most of the workers are comfortable with.

Industries have been in support of fixed-term employment, while the trade unions feel it does not offer any job security to workers.

Once finalised, this draft order will be part of the Industrial Relations Code Act 2020.

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