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Notification under the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 - The Industrial Employment (standing Orders) Act, 1946

The Ministry of Labour and Employment (Ministry) has issued notification dated 16 March 2018 for notified rules under the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (Rules).
Highlights of the Notification:
• Earlier, fixed term employment was allowed only in the apparel manufacturing sector. The Notification, however, has amended the Industrial Employment (Standing Orders) Central Rules, 1946 to include fixed term employment across all sectors.
• The Notification clarifies that the employer of an industrial establishment shall not convert the posts of the permanent workmen existing in his industrial establishment to a fixed term employment, as on the date of the Notification.
• The term 'fixed term employment workman' has been introduced in the Rules as 'a workman who has been engaged on the basis of a written contract of employment for a fixed period, provided that, the work conditions in terms of work hours, wages, allowances, and other statutory dues of a fixed term employee would be at par with those of the permanent workmen..
• No notice of termination of employment is required in the case of temporary workman (whether monthly rated, weekly rated or piece rated and probationers or badly workmen).
• Further, no fixed term workman is entitled to any termination notice or pay in lieu thereof due to non-renewal of contract. In order to safeguard temporary workmen, it has also been clarified that the services of a temporary workman shall not be terminated as a punishment unless he has given an ample opportunity of explaining the charges of misconduct alleged against him.

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