Summary:
The employers have been prohibited from converting existing permanent posts into fixed-term employment but they can do new hiring on contract.
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In a bid to get the economy back on track, Punjab government has now allowed all industrial establishments in the state to hire workers on fixed-term contracts of any duration.
A notification was issued by the labour department to amend the Indian Employment (Standing Orders) Punjab Rules, 1978, on Thursday to make a provision for fixed-term employment wherein workers can be hired by industrial units for any fixed duration for specific season or worker order, depending on requirement.
The changes in employment rules, which were sought by industry associations for a long time, have made after approval from the state cabinet, allowing them flexibility in hiring workforce after enter into a written contract with them.
“Their hours of work, wages, allowances and other benefits will not be less than that of a permanent employee.
They will also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him,” additional chief secretary, labour, Vijay Kumar Janjua said.
The employers have been prohibited from converting existing permanent posts into fixed-term employment but they can do new hiring on contract.
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