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Labour Minister favours fixed-term contractual employment
New Delhi, Nov 05: As part of the government`s agenda to usher in labour reforms, Labour Minister Sahib Singh Verma today favoured fixed term contractual employment in place of permanent jobs, saying it would generate more jobs as well as revenue for the employers in the long run.
The time period for employment could be anything between
six months to 10 years, he said at a conference on employee
relations in service sector organised by the CII industries here.
Verma said under the fixed-term contractual employment,
the employees' wages, allowances and other benefits would be
at par with that of a permanent employee. Besides, the
employee would be entitled to all statutory benefits like
provident fund and gratuity, he said.
The move would improve the work culture and productivity,
he said. "If the worker wants to continue on the job, he or
she will work better for better rewards".
He said the draft of the amendment to the contract Labour
Act to incorporate these provisions had been placed before the
cabinet for its approval to pave the way for introduction of
the bill in the Parliament.
Bureau Report