Proposed Notification - Hiring And Firing Made Easier?

Introduction

The Ministry of Labour and Employment has released a draft notification dated 8 January 2018 ("Notification") for stakeholder comments. The Notification, once published, aims to amend the Industrial Employment (Standing Orders) Central Rules, 1946 ("Rules"), to introduce a significant labour reform – allowing fixed term employment across all sectors. Subsequently, the states are expected to amend their rules accordingly. This move comes closely after Niti Aayog, the policy think-tank of the Government, recommended to extend the fixed-term employment to all sectors in its three-year action plan that was unveiled last year.

Highlights of the Notification:

• Currently, fixed term employment is allowed only in the apparel manufacturing sector. However, the Notification proposes an amendment to the Industrial Employment (Standing Orders) Act, 1946 to include fixed term employment across all sectors.