Is re certification of Standing Orders required to use Fixed Term Employment in company ?

Dear Seniors,

There has been a recent amendment made in the Industrial Employment (Standing Orders) Central (Amendment) Rules introducing Fixed Term Employment. To implement fixed term employment in our company:

1. Do we need to insert the term "Fixed Term Employment" in our certified standing orders and have them recertified by the Labor authorities?
2. Or will this be included by default in our factory standing order without the need for recertification as this amendment is part of central legislation? Would it hold legal validity in case of any dispute?

Kindly provide clarification.

Regards,
Mahesh Kumar

Dear Maheshkumar,

There is no possibility of the automatic application of the amended model standing orders by default to an establishment that already has certified standing orders. Since there can be no question of inconsistency between the model standing orders and the certified standing orders, the management should proceed with an amendment under Section 10(2) of the IE(SO)ACT, 1946 for the inclusion of the classification of FTC employees.

Thank you for your valuable advice.

Regards, Mahesh Kumar

Dear Mr. Mahesh Kumar,

While you initiate necessary action in line with the guidance given by the respectable Mr. Umakanthanthe regarding the amendment gazetted and referred by you, please also ensure that your employer/you incorporate the provision in Section 19 of the Sexual Harassment of Women at Workplace (P, P & R) Act 2013. This provision states that sexual harassment shall constitute an act of misconduct punishable as prescribed in the certified standing orders applicable to your establishment.

Surely, your employer would have incorporated this provision by now, yet if not, please do so now.

Kritarth Team of Special Educators,
Kritarth Consulting Pvt. Ltd
Bengaluru Centre
8.4.18

There is no provision to read into your Certified Standing Orders the amendments made in Model S.O. or the I.E.S.O. Act. So you have to incorporate it to make use of the provision. However, till that time, the fixed-term appointments are not illegal per se.

Now, whether you want to book together all the amendments in Model S.O. so far or to specifically go for this enabling provision only is a matter of choice, reckoning the process of amending the Standing Orders.

Yes, it will require re-certification if you are going to hire Fixed-Term Workmen. There is a bar for converting Permanent workmen to Fixed Term. So, it can only be for new appointees.

Dear Member,

It is absolutely necessary to amend the CSO to include the provision of FTE. Please also check whether any state rules notification has been issued in this regard. Since the amendment is made in the Central Rules, the state government should take the initiative to extend this provision to their rules. There is no automatic provision or application.

Yes, unless the company's Standing Orders provide for a separate classification for Fixed Term Workmen, the hiring cannot be done.

Fixed-term employment is allowed in the blue-collared sphere. The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (Rules) were notified by the Ministry of Labour and Employment via a notification dated 16 March 2018. Labour reforms have been introduced, with fixed-term employment now permitted across all sectors in the manufacturing field. The Industrial Employment (Standing Orders) Central Rules, 1946, have been amended by the notification. A condition has been introduced stating that no existing permanent employees can be converted to fixed-term employees.

Dear All,

I would like to join the discussion and, in my point of view, the rule of the land prevails and becomes applicable to each and every employer/employee that has been affected by the introduction of FTC. If, in case, it is not included in the CSO, I think it will make hardly any difference as the rule becomes applicable across India. Yes, State Governments should accordingly have to give notification to that effect and make it applicable in their respective states. I too agree that to be on the right side of the law, it is advisable to make changes in the CSO; however, if the union objects and does not allow the change, then what will happen? The rule of the Land Prevails, as such I think it's not an inescapable situation. CSO can continue to remain un-amended, and FTCs can be employed.

Please express yourself.

Regards,
Manish S Joshi

Dear Mr. Manish,

I don't think that the Trade Union's objection, if any in this regard can stand in the way of an amendment which is purely based on the statutory amendment to the Rules. Certainly, such an objection would be overruled. On the contrary, if the Employer tries to introduce the system of FTC Employment without amending the existing CSO, the Union's objection to that move, if any, can become valid. Therefore, I would like to reiterate the need for such an amendment to avoid unnecessary disputes in this regard.

Dear Mahesh,

If your establishment's standing order does not include provisions regarding Fixed Term Employment, then it is a wise decision to amend the same.

Thank you.

Regards,
Girish Vivalkar

Indian Labour Law and Human Resource by GIRISH JAYRAM VIVALKAR
LinkedIn: https://in.linkedin.com/in/girishvivalkar

Some fellow members seem to have a reservation that the union will object to fixed-term employment while seeking an amendment to Certified Standing Orders before the Certifying Officer. Since there is central legislation on FTE, the Certifying Officer is empowered to overrule the unions' objections and go ahead with the insertion as sought by employers. In any case, we should attempt to engage workmen on fixed-term without having suitable amendment in CSO, failing which the union will be up in arms, and you will be forced to retrace your steps fearing a major industrial relations breakdown. The law-enforcing authority may not accept your unilateral move in this regard.