A fixed-term contract means a contract entered by the employer with each individual employee for a fixed period. This period is stipulated in the contract of employment and may be renewed after expiry depending on the requirements of a particular role.
Initially Fixed term employment was introduced in 2018 by amending the Central Rules under the Industrial Employment (Standing Orders) Act, 1946. The labour codes have taken big steps to correct the above and ensure fixed term employees receive adequate protection. Fixed-term contract workers will be entitled to all the same benefits as regular employees in the establishment, except retrenchment compensation. Companies that engage in seasonal work or get work order for a short period of time often engage casual or informal workers to get their job done.
The term fixed term employment is defined only under the Code on Social Security and Industrial Relations Code. Fixed term employee’s working hours, wages, allowances and other benefits shall not be less than that of a permanent employee doing the same work or work of a similar nature. The fixed term worker shall be eligible for gratuity if he renders service under the contract for a period of one year.
