"Workers can be hired for fixed term across sectors, says govt", 20 March 2018

The government has decided to allow fixed-term or contractual employment in all industrial sectors, a provision that until had now applied only to apparel manufacturing. The move, once implemented, will effectively provide for a hire-and-fire policy by doing away with existing retrenchment norms applicable to factory workers.

The proposed amendment, which fulfils a longstanding demand of industry, is in line with the government’s overall aim of amending labour laws to improve the ease of doing business in India.

…The move was first proposed in the Union Budget speech of finance ministry…

Trade unions, both on the left and the right, slammed the move…

A fixed-term employee[‘s]…services will be terminated as a result of non-renewal of the contract with the employer. This would not be construed as termination of employment.

The amendment also provides that fixed term worker would not be entitled to any notice or pay if his services are terminated or in case of non-renewal of the contract or expiry of the term of employment.

Further, a temporary worker who has completed three months of continuous service shall be given two weeks’ notice of the intention to terminate his employment if such termination is not in accordance with the terms of the contract. In case he has not completed three months of continuous service, he shall be informed of the reasons for termination in writing.