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Web Exclusive | August 2016

Labour caveat for textile sector

Paving way for the introduction of fixed-term employment in the textile and apparels sector, the Labour Ministry has notified changes in the rules of the Industrial Dispute Act, 1947. On August 4, 2016 the Ministry notified the changes in rules under which a fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowances and other statutory dues. These rules will be effective from the date of notification.

‘He shall also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even though his period of employment does not extend to the qualifying period of employment required in the statute,’ the notification reads. However, badli or fixed term employment workman in apparel manufacturing sector shall not be entitled to any notice or pay in lieu thereof, if his services are terminated.

One may remember that on June 22 last, the Union cabinet had approved special package for employment generation and promotion of exports in textile and apparel sector that included reforms in the Employee Provident Fund Scheme, increase in overtime cap, introducing fixed-term employment, additional incentives for the garment sector besides enhancing the duty drawback coverage.
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