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 ‘Fixed Term Workmen’ – A step to put Karnataka on the trajectory of high job growth

‘Fixed Term Workmen’ - A step to put Karnataka on the trajectory of high job growth

In continuation of the the reforms undertaken by the Government of Karnataka with the objective of increasing the number of jobs in the state, yet another important move i.e the recognition of the concept of ‘Fixed Term Workmen’ has been undertaken by the state under the able leadership of Shri Yeddyurappa ji.

This has been done through amendments to ‘The Karnataka Industrial Employment (Standing Orders) Rules, 1961’ through which the term ‘Fixed Term Workman’ to denote a person contracted for employment for a fixed period of time has been notified.

The primary purpose of notifying this term is to encourage investment in labor intensive industries across the state and thus create more well paying jobs. Currently, such investment is not coming into Karnataka in particular and India on the whole due to better business environment in South East Asian countries, Bangladesh and even a few African nations.

The ‘Fixed Term Workman’ will be treated on par with permanent employees in the parameters of defined hours of work, wages, allowances and all other benefits including EPF, ESIC and more. Termination will also be done based on a notice period, in accordance with the contract of employment . This is a much better version of the contract system of employment currently in force for it provides investors and industry the required flexibility in terms of providing employment while at the same time securing protections for workmen.

I am confident that the move will now provide a boost to the creation of formal jobs and reduce instances of informal hiring, often found in the labor intensive industry, thus benefiting both employers and the employees. This will speeden the revival of the economy from the COVID 19 induced slump and firmly put Karnataka on the trajectory of job growth.

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