The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018

Whereas certain draft rules further to amend the Industrial Employment (Standing Orders) Central Rules, 1946 were published, as required by sub-section (1) of Section 15 of the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), vide G.S.R. 17(E), dated the 08-01-2018, inviting objections or suggestions from the persons likely to be affected thereby on or before the expiry of a period of 30 days from the date of publication of the said notification. Now, therefore, the Central Government has, in exercise of powers conferred by Section 15 of the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), made the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, to amend the Industrial Employment (Standing Orders) Central Rules, 1946, w.e.f. 16-03-2018.

I. In the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), in Schedule, in item 1 —

• For the words “fixed term employment workmen in apparel manufacturing sector;”; the words “fixed term employment” shall be substituted;

II. In the Industrial Employment (Standing Orders) Central Rules, 1946,-

(a) After Rule 3, the following rule shall be inserted, namely:-

“(3A) No employer of an industrial establishment shall convert the posts of the permanent workmen existing in his industrial establishment on the date of commencement of the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 as fixed term employment thereafter.”.

(b) In Rule 5, for item (6A) and the entries relating thereto, the following item and entries shall be substituted, namely:-

“(6A) Number of fixed term employment workmen;”;

(c) In Schedule 1, in paragraph 2, in sub-paragraph (a), for item (3A) and the entries relating thereto, the following item and entries shall be substituted, namely:-

“(3A) fixed term employment workmen”;

(d) In Schedule 1, in paragraph 2, for sub-paragraph (h), the following sub-paragraph shall be substituted, namely:-

‘(h) A “fixed term employment workman” is a workman who has been engaged on the basis of a written contract of employment for a fixed period:

Provided that-

(a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman; and

(b) he shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute’.;

(e) In Schedule 1, in paragraph 13, for sub-paragraph (2), the following sub-paragraph shall be substituted, namely:-

“(2) Subject to the provisions of the Industrial Disputes Act, 1947 (14 of 1947),-

(i) no notice of termination of employment shall be necessary in the case of temporary workman whether monthly rated, weekly rated or piece rated and probationers or badli workmen; and

(ii) no workman employed on fixed term employment basis as a result of non-renewal of contract or employment or on the expiry of such contract period without it being renewed, shall be entitled to any notice or pay in lieu thereof, if his services are terminated:

Provided that the services of a temporary workman shall not be terminated as a punishment unless he has been given an opportunity of explaining the charges of misconduct alleged against him in the matter prescribed in paragraph 14.”;

(f) In Schedule 1A, in paragraph 3, in sub-paragraph (a), after item (iii), the following item shall be inserted, namely:-

“(iiia) fixed term employment;”;

(g) In Schedule 1A, in paragraph 3, after sub-paragraph (d), the following sub-paragraph shall be inserted, namely:-

‘(da) A “fixed term employment” workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period:

Provided that-

(a) his hours of work, wages, allowances and other benefits shall not be less than that of a permanent workman;

(b) he shall be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute.’;

(h) In Schedule 1A, in paragraph 13, for sub-paragraph (b), the following sub-paragraph shall be substituted, namely:-

“(b) Subject to the provisions of the Industrial Disputes Act, 1947 (14 of 1947),-

(i) no notice of termination of employment shall be necessary in the case of temporary and badli workmen; and

(ii) no workman employed on fixed term employment basis as a result of non-renewal of contract or employment or on the expiry of such contract period without it being renewed, shall be entitled to any notice or pay in lieu thereof, if his services are terminated:

Provided that a temporary workman, who has completed three months continuous service, shall be given two weeks notice of the intention to terminate his employment if such termination is not in accordance with the terms of the contract of his employment:

Provided further that when the services of a temporary workman, who has not completed three month’s continuous service, are terminated before the completion of the term of employment given to him, he shall be informed of the reasons for termination in writing and when the services of a badli workman are terminated before the return to work of the permanent incumbent or the expiry of his (badli’s) term of employment, he shall be informed of the reasons for such termination in writing.”.

[F.No. S-12011/1/2016-IR(PL) — G.S.R. 235(E)]

Ministry of Labour and Employment

Note :— The principal rules were published in the Gazette of India vide notification number LR 11 (37), dated the 18th December, 1946 and were lastly amended by notification G.S.R. No.976(E), dated the 07-10-2016.