Fixed Term Employment introduced for Apparel Manufacturing Sector

Fixed Term Employment introduced for Apparel Manufacturing Sector 

Work culture in India is getting changed day by day due to a number of factors. It can be observed in the recent days that the policies and strategies that are applied in the corporate sectors and private limited firms are now being adopted elsewhere. Its influence is spreading even more widely in the recent days where government itself is adopting policies that are motivated by the ongoing trend in the corporate world. One of such scheme that is under limelight of most media people is the Fixed Term Employment.

Fixed Term Employment introduced for Apparel Manufacturing Sector

S.NoUnknown Facts about Fixed Term EmploymentDetailed Information
1Fixed Term Employment launched forEmployees in The apparel manufacturing sector
2Fixed Term Employment launched byLabour Ministry
3Launch Date07 October 2016
4Nature of the Fixed Term Employment referred asWin-Win situation for both employer and employees
5Impact CreatedTemporary employee can get equal benefit as permanent employee

Necessity for Fixed Term Employment in apparel manufacturing sector:

At the time when the labor department introduced the scheme of Fixed Term Employment for the apparel sector, it is a question of most people in India like why they have been selected for this scheme. The implementation of Fixed Term Employment in the apparel manufacturing sector is not a policy that has been decided overnight and implemented the next day. The policy is rather more deep rooted and the decision is taken to make sure that mass of people are getting benefit out of the policy.

Uncertainty in job availability:

In the field of apparel manufacturing, it is quite difficult for the workers to make sure that they will be getting job in a regular basis. Some of the reasons why job in the apparel sector is seasonal are as below:

  • Whole of the apparel industry in India is actually working on the basis of demand, which means that people will get employment only if there are orders for the company they are working
  • Work nature of the workers in the industry is also dependent on the availability of raw materials, which is not uniform throughout the year
  • There are some occasions where companies will retain only some set of people in the work force, making it difficult for rest people to survive in the absence of job

Best aid for apparel industry workers:

The concept of Fixed Term Employment means that employer can now recruit employee on the basis of contract which is one of the best thing. The advantage of being in contract is that it is now very easy for an employee in contract to receive all benefits that are being received by a permanent employee starting from salary allowance to PF. Salary slip and other particulars of the employee will be directly taken care by the human resource department of the company that they are working.

Problems upon expiry of contract period:

There is no problem with the Fixed Term Employment until there is enough work orders and demand available for the products from the company. In case when the work orders begin to decline, it is very easy for apparel industry owners to terminate contract of an employee without any notice. There are many provisions available in the Fixed Term Employment act to fire an employee at any point of time. There is no necessity for company to pay any compensation for those employee moved from company.

In case if the period of contract naturally expires for an employee, that particular employee is considered to be out of the company until unless the management has asked that employee to extend their contract. If no information is being passed to employee through management, then they can literally consider themselves out of the company.

It is the expectation of most of the people in apparel industry that they must be paid some compensation at the time when they are being forced out of the company. Also most employees want a clear Fixed Term Employment plan that will provide best benefits.


The launch of the Fixed Term Employment by the Labour Ministry would hits mainly on textile industry, where women are highly positioned as temporary labours, now with this launch women will be able to get pay hike as per the permanent employees under the same work condition and work forms.

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