Fixed Term Contract [Thread 87756]

Dear Sir,
Kindly let me know under which law is it permitted to employ under fixed term contract. Also is it valid for employing people in a job of a permanent nature.
Regards
Harsh

Hi

What level of employees you are talking about?

Basically there are two categories of employees

1. Workmen as defined under the Industrual Disputes Act

2. Others who are not workmen under the ID Act

Fixed term contract can be implemented for all in category 2 provided they accept it.

Even for workmen coming in category, it i possible to have workmen for a particular term provided the job is only for that period. It is nothing to do with the Confirmation. Industrial Disputes Act provides for this while the definition for retrenchment excludes such contractual employments under Sec 2(bb)

2*[(bb) termination of the service of the workman

as a result of the non-renewal of the contract of

employment between the employer and the workman

concerned on its expiry or of such contract being

terminated under a stipulation in that behalf contained

therein;

In Coimbatore area, all textile mills follow this practice. They engage woman employyes for a fixed term and sugn 18(1) settlement specifying an amount to be paid at the time of severence say after 5 to 10 years.

This is accepted by the Govt and in Tiruppur and Coimpatore area, this is prevalent.

To answer your question, it is possible to have fixed term contract both under the Indian Contreacts Act for those who are not covered under ID Act and and under ID Act for those who are covered under ID Act.

Siva

I have doubt . In contract labour regulation and abolition act also mentioned about term contract.can i know what is the different between Indian Contracts Act and contract labour regulation and abolition act

Hi
A contract is an agreement between two parties to do or no to an act for a consideration.
This a wider definition of any contract.
1. We hire an employee on certain terms. It is a contract.
2. We take a house on rent. It is a contract
3. We sign a service agreement. It is a contract
Contract labour regulation Act is a legsilatiuon to control misuse of contract labour in industries.
1. We need to run a canteen and it requires say 100 workers. Instead of engaging employees directly, we enter into an agreement with a contractor. He in turn engages employees These employees are called Contract labour. They come under the provisions of Contravt Labour Act
2.We leave house keeping tpo a contractor. Those workers fall under this ACt.
3. BPOs employees will not fall under this category as they do take up jobs from various principals.
Am I clarifying?
Siva

Dear Mr Harshkumar
Section 2 ( oo -bb) of Industrial Disputes Act 1947 provides for it. You may employ on fixed term job contract basis and such cases will not constitute retrenchment.
Yes you may engage such appointed employees in permanent nature of jobs. However please note that this section is not applicable in the state of Uttar Pradesh.
Mohan.

Hi All,
While there is a confusion in factories it is not permitted to employ under fixed term contract employees in job of permanent nature of job, if this is the case then under what section is it so.

Hi,
We are a Malaysian company currently doing a monorail project in Mumbai.
We are hiring engineers on a 3 years contract term, do they fall under fixed term contract and the contract act you specified above?
Thank you for your input.
Regards
Gayatheri

Dear Sir,
I could not find any clause regarding Fixed term contract In contract labour act or any other acts . could please help if any where it says about this term?