A job at hand

A job at hand


  1. The Union Ministry of Labour has urged States to issue orders permitting fixed-term employment (FTE) across industries.

Important Facts:

Fixed-term employment

  1. Fixed-term employment is a contract in which a company or an enterprise hires an employee for a specific period of time.
  2. Under fixed-term employment, workers are entitled to statutory benefits available to a permanent worker in the same factory, including work hours, wages, and allowances.

FTE Notification:

  1. In March 2018, the Centre notified FTE under which workers will be entitled to benefits available to permanent workers.
  2. The notification does not permit conversion of permanent posts into FTE ones but is aimed at turning contract workers into FTE ones.
  3. FTEs are expected to improve working conditions in industries, boost employment and execute specific projects efficiently in sectors like infrastructure.


  1. The present FTE rules are not clearly defined. They do not mention minimum or maximum term of an FTE and the maximum permissible number of consecutive FTEs.
  2. According to informal reports, industries are reluctant to provide FTEs due to rising costs and obligations
  3. States are not bound to accept the notification as FTE has been notified by an executive order, without the Parliament ratifying it. This is because labour is a Concurrent List subject, as per which the States are bound only by a central law.


  1. In order to promote employment through FTEs, the FTE norms should be laid down in a transparent and consensual manner
  2. Labour reforms should be accompanied with better social safety net- it is important to ensure better state-funded health and educational opportunities
  3. The FTE norms should be made ratified by the parliament for universal adoption across industries and states.
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