Sunday, November 9, 2025
NSN
NTTF_mini_web_banner
SGSU-banner-1
Didac India & Skills Combined NSN Banner-01
  • Home
  • Conversations
    • Industry Conversations
    • All Conversations
  • Perspectives
    • Education
    • Emerging Technologies
    • Government Initiatives
    • Industry
    • Industrial Training Institutes (ITIs)
    • NEP 2020
    • Skill Training
  • News
    • Latest Updates
    • News Archives
    • CSR and ESG in Skill Education
    • Skill Development e-Magazine
    • NSN PDF Newsletter Archives
  • Videos
    • Explainers
    • Panel Discussions
    • Student Stories
    • Video Conversations
  • Resources
    • Apprenticeship
    • e-Books
    • Resources
    • Success Stories
  • Events
    • Workshops
  • About us
    • Our Team
    • Our Clients
    • Our Services
    • Privacy Policy
No Result
View All Result
NSN
  • Home
  • Industry Conversations
  • Perspectives
    • Education
    • Emerging Technologies
    • Government Initiatives
    • Industry
    • Industrial Training Institutes (ITIs)
    • NEP 2020
    • Skill Training
  • News
    • Latest Updates
    • News Archives
    • Skill Development e-Magazine
    • NSN PDF Newsletter Archives
  • Resources
    • Apprenticeship
    • E-books
    • Resources
    • Success Stories
  • Events
    • Workshops
  • About us
    • Our Team
    • Our Clients
    • Our Services
    • Privacy Policy
NSN
No Result
View All Result
Home Resources

Why Fixed-Term Employment is a win-win for the employer and the employee

Guest Author by Guest Author
May 24, 2018
Reading Time: 3 mins read
A A
0

Ten years ago, when Rajan and Sajid were classmates at ITI, they dreamt of starting a business and creating jobs. Today, they jointly own an electrical equipment manufacturing company in the industrial area, with employee strength of 230 workers, with 30% of them being temporary, not on their pay roll. Their company forms a part of OEM supply chain for Refrigerators, Air Conditioners and Air Coolers. Besides supplying components, few years ago they launched a unit that assembles low-cost coolers and it became an instant hit among several city dwellers.

But , Sajid who looks into the operations, has been facing capacity issues with meeting the demand during summer. With the shortage of full-time workforce, the production line gets affected and they look for contract workers who can keep the assembly line moving during the peak season. However, the quality of contractual workers, theirs skills and productivity has been a great concern since it impacts their revenue. Even though Rajan is willing to pay better wages, he hasn’t been able to attract suitable workers to fulfill the seasonal requirements, despite engaging labour contractors.

Just like Rajan and Sajid, there are many small and medium business owners who compromise with the quality of output and labour issues due mandatory compliance for regularized contract employment and associated overheads. They need flexibility in hiring employees to suit the nature of their business and at the same time, attract quality workforce through standard wages and perks.

Fixed term employment

How fixed-term employment helps the workforce

The new Labour rules introduced in March 2018 allow companies to hire fixed-term workers on contract for a stipulated period. The fixed-term workers would be entitled to all benefits such as wages, hours of work, allowances and others statutory benefits, on par with permanent workers. As per the new amendment, a contract worker who has completed 3 months of service, would be given 2 weeks notice prior to termination of employment.

Fixed-term employment is a welcome measure as it meets the vagaries of the economy besides benefiting industries that are seasonal in nature. The workers can directly apply for such jobs without depending on the middlemen. This would make the process more transparent and improves the workers’ financial stability, social security and legal documentation of employment and employee benefits.

Payment of ESI and Provident Fund

Just like the full-time employment, the new Labour rules have mandated the payment of ESI and Provident Fund to the fixed-term employees, provided they complete stipulated duration of service. This was a serious issue with the current contractual system where the labour contractors avoided any investment in the welfare of the workers. Now with the entitlement of these benefits, the fixed-term workers stand to gain in terms of financial support to cope up with employment uncertainties.

Banking and digital inclusion

Opening a bank account will not be an option anymore for the contractual workers, since they will be entitled to the benefits and regular pay only if they have a valid bank account. With Aadhaar linked schemes for digital inclusion, it is imperative that they become a part of the organized banking system and depend less on informal and risky monetary transactions. They can also avail the Pradhan Mantri Suraksha Bima Yojana Insurance scheme, thus paving a way for moving into formal sector.

Employment documentation

Contractual workers are at the mercy of their contractors for many reasons. Since their work, job role, pay, skill levels never get recorded on paper, they are at a loss when they need a proof of their work. When the work is certified formally, the workers will find the documents useful in applying for better jobs on their own without the help of middlemen.

With permanence of jobs posing many questions, today we need to re-think traditional notions of employment and accept flexible and temporary jobs as the order of the day. When legalized, fixed term employment will create more jobs; since the industry would adopt it as a means of powering project-based business or seasonal business. They don’t need to circumvent the Labour Laws to meet their requirements, just like Rajan and Sajid who favour extending most of the benefits of full time employment for their contractual workers. They have also realized that, in the long run, it is beneficial for them to attract skilled and experienced workers who are high on productivity to match the demand during the peak season.

Guest Author: Rajesh A R, Livelihoods Enablement Enthusiast and Contributor to the evolving 3E (Education, Employment, Entrepreneurship) system in India.

RelatedPosts

Transferable Skills: Why they are essential for employability and career growth

India’s Textile Industry: Policies, Skill Development and Emerging Trends

National Qualifications Register (NQR) – A unified platform for skill-based qualifications

Tags: banking and digital inclusion in informal sectorcontractual labourentrepreneurs from ITIESI provident fund for workforcefixed term employmentfixed term workersinformal sector workersITI DiplomaLabour lawsPradhan Mantri Suraksha Bima Yojana InsuranceRajesh A R Livelihoods Enablement Enthusiastseasonal employmentseasonal workforce demandtemporary employment
WhatsApp Join our WhatsApp channel for more updates:
WhatsApp Join Now!
YouTube Subscribe to our YouTube channel for more updates:
YouTube Subscribe Now!
Previous Post

Skill Development News Digest – 200518

Next Post

NSDC ties up with Temasek Foundation International and Singapore Polytechnic to set up Trainer and Assessor Academies 

Guest Author

Guest Author

Next Post
NSDC Temasek Singapore Polytechnic

NSDC ties up with Temasek Foundation International and Singapore Polytechnic to set up Trainer and Assessor Academies 

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result
samplead3 samplead1

Subscribe to our e-Magazine

Trending Topics

skilling in India (131) National Skill Development Corporation - NSDC (127) skill development news India (124) skill development (114) Ministry of Skill Development and Entrepreneurship MSDE (101) vocational education (93) Apprenticeships (86) skill development news (79) skill development programs (70) Nettur Technical Training Foundation (NTTF) (68)

Follow us

  • Don’t miss this week’s updates on skill development!  India’s skilling landscape continues to evolve with new government reforms, CSR-led initiatives, and academic collaborations shaping the future of employability.  From Telangana’s T-STEM digital platform and Kerala’s one lakh job initiative for ITI graduates to the upcoming Pradhan Mantri Kaushal Mudra Yojana (PMKMY), the focus remains clear; building a future-ready workforce.  In the CSR and academic space, organisations like Toyota, Daimler India, AMHSSC, and RedVersity, along with institutions like NIT Jalandhar and BITS Pilani, are driving innovation, entrepreneurship, and hands-on learning in skill development.  Stay updated with all the key developments in skill and education this week; read the latest NSN Newsbytes now - https://nationalskillsnetwork.in/weekly-newsbytes-from-nsn-on-skill-development-and-education-4th-november-2025/  #SkillDevelopment #Education #Employability #CSR #PMKMY #RozgarMela
  • In this conversation, Dr Madhuri Dubey, Founder and Director of the National Skills Network (NSN), spoke with Dr E. V. Ramana Reddy, Chairman of the Karnataka Skill Development Authority, about the ongoing Bengaluru Skill Summit 2025. The discussion centred on the vision, policy focus, and key initiatives that are shaping Karnataka’s skilling ecosystem.  We’re proud to join hands with the Bengaluru Skill Summit 2025 as an Association Partner! 🤝  Organised by the Government of Karnataka through the Skill Development Entrepreneurship and Livelihood Department (SDEL), Karnataka Skill Development Corporation (KSDC), Karnataka State Department of Agriculture (KSDA), and Karnataka Digital Economy Mission (KDEM), the summit will bring together leaders from government, industry, academia, and youth to power the next wave of India’s skilling revolution.  This year’s summit celebrates collaboration, innovation, and workforce transformation, shaping the future of skills in India.  Visit https://bengaluruskillsummit.com/ to know more.  Watch the full interview on our YouTube channel, link in our story highlights!  #BengaluruSkillSummit #SkillDevelopment #FutureOfWork #Innovation #Workforce2030
  • Bengaluru Skill Summit 2025 begins today!  We’re truly delighted to be part of this transformative journey as the Bengaluru Skill Summit 2025 kicks off in Bengaluru; a flagship initiative organised by the Department of Skill Development Entrepreneurship and Livelihood Department, Government of Karnataka (SDEL), Government of Karnataka, and hosted by the Karnataka Skill Development Corporation (KSDC) - ಕರ್ನಾಟಕ ಕೌಶಲ್ಯ ಅಭಿವೃದ್ಧಿ ನಿಗಮ and Karnataka Skill Development Authority (KSDA) — with the Karnataka Digital Economy Mission (KDEM).  The inaugural session, graced by Hon’ble Chief Minister of Karnataka, Shri Siddaramaiah, marked a significant beginning with the launch of the Karnataka Skill Development Policy 2.0, outlining the state’s vision for a skilled, inclusive, and innovation-driven future.  At National Skills Network (NSN), we’re happy and proud to partner with this incredible summit that brings together leaders from government, industry, academia, and youth to drive India’s workforce vision for 2030.  We look forward to being a part of conversations shaping the future of India’s workforce, exchanging ideas, sharing insights, and learning from the inspiring discussions that are shaping the future of skills, innovation, and workforce development in Karnataka and beyond.  Stay tuned for updates and highlights from the Summit.  #BengaluruSkillSummit #SkillDevelopment #Innovation #FutureOfWork
  • Join Us at Bengaluru Skill Summit 2025! 🌟  Karnataka is leading the way in shaping India’s future of work and skills. The Bengaluru Skill Summit 2025, organised by the Department of Skill Development, Entrepreneurship & Livelihood (SDEL), Karnataka Skill Development Corporation (KSDC), Karnataka State Department of Agriculture (KSDA), and Karnataka Digital Economy Mission (KDEM), is the state’s flagship platform to build a future-ready workforce.  Connect with policymakers, industry leaders, training partners, academia, youth, and international agencies to co-create strategies that transform employability, unlock global mobility, and build inclusive talent ecosystems.  💡 Why Attend:  3,000+ Participants  100+ Speakers  100+ Exhibitors  📅 Event Dates:  4 November 2025 – Inaugural Ceremony (By Invite Only)  5–6 November 2025 – Summit Open to All  📍 Venue: The Lalit Ashok, Bengaluru  Don’t miss this chance to be part of India’s largest skilling movement!  🔗 Book your FREE pass now: https://konfhub.com/checkout/bengaluru-skill-summit-2025?ticketId=56659  #BengaluruSkillSummit2025 #SkillsForFuture #FutureOfWork #Leadership #SkillDevelopment #Innovation #Upskilling #YouthEmpowerment
  • We’re excited to share that our Founder-Director, Dr. Madhuri Dubey, will be speaking at the Bengaluru Skill Summit on “Driving Skills Innovation through Collaboration” alongside Dr. Abhilasha Gaur and Dr. P.B. Kotur.  Organised by the Department of Skill Development, Entrepreneurship & Livelihood (SDEL), Government of Karnataka, and hosted by the Karnataka Skill Development Corporation (KSDC - ಕರ್ನಾಟಕ ಕೌಶಲ್ಯ ಅಭಿವೃದ್ಧಿ ನಿಗಮ) and Karnataka Skill Development Authority (KSDA) — with the Karnataka Digital Economy Mission (KDEM) as Knowledge Partner — the Summit will bring together leaders and innovators to accelerate India’s skilling and innovation agenda.  We’re excited to be part of conversations shaping the future of India’s workforce.  #BengaluruSkillSummit #SkillDevelopment #Leadership #FutureOfWork #Innovation #Upskilling #Karnataka #IndiaSkills #Workforce2030
  • State-led Skill Development Initiatives Shaping India’s Future Workforce  India’s skill ecosystem continues to evolve with powerful new initiatives shaping employability, innovation, and industry collaboration across states.  From AI integration and apprenticeship-linked degrees to entrepreneurship drives and global partnerships; every initiative reflects a growing commitment to making India’s youth future-ready.  Here’s a quick look at some of the latest developments driving transformation in skill development, education, and work-integrated learning across the country.  Click here to read more: https://nationalskillsnetwork.in/weekly-newsbytes-from-nsn-on-skill-development-and-education-28th-october-2025/  Want your state’s skill development story featured? Reach out to us at NSN!  #skilldevelopment #SkillIndia #vocationaleducation
  • Bengaluru Skill Summit 2025: Innovation, Inclusion and Future-Ready Talent  The Bengaluru Skill Summit 2025 marks a major milestone in Karnataka’s journey toward a skills-first future. In this conversation, Dr. Madhuri Dubey, Founder and Director of NSN, spoke with Mr. N N Rao, Technical Advisor, Karnataka Skill Development Authority, about the state’s Skill Development Policy 2.0 and the practical steps being taken to turn policy into measurable progress.  Watch this conversation to explore:
 ✅ Karnataka’s Skill Development Policy 2.0
 ✅ Skills-first future and employability vision for 2030
 ✅ Inclusion, innovation, and impact in skill development
 ✅ Green and digital skills for sustainable growth
 ✅ How the upcoming summit will unite government, industry, academia, and youth  Click on the link in our story highlights to watch the full video!  #BengaluruSkillSummit2025 #SkillDevelopment #Workforce2030 #FutureSkills 
#IndustryAcademia #VocationalEducation
  • Bengaluru Skill Summit 2025: Karnataka’s Skill Vision for 2030  In this conversation, Dr. Madhuri Dubey, Founder and Director of National Skills Network (NSN), spoke with Dr. E. V. Ramana Reddy, Chairman of the Karnataka Skill Development Authority on the upcoming Bengaluru Skill Summit 2025.  The discussion focused on the vision, policy focus, and key initiatives shaping Karnataka’s skilling ecosystem.  You can watch the full video via link in our story/ bio  #BengaluruSkillSummit #SkillDevelopment #FutureOfWork #Innovation #Leadership #Workforce2030 #PartnershipsForProgress
  • We’re proud to join hands with the Bengaluru Skill Summit 2025 as an Association Partner! 🤝  Organised by the Government of Karnataka, through the Skill Development Entrepreneurship and Livelihood Department, Government of Karnataka (SDEL), Karnataka Skill Development Corporation (KSDC), Karnataka State Department of Agriculture (KSDA) and Karnataka Digital Economy Mission (KDEM), the summit will bring together leaders from government, industry, academia, and youth to power the next wave of India’s skilling revolution.  This year’s summit will bring together leaders and changemakers shaping the future of India’s skilling, innovation, and workforce transformation.  🌐 3,000+ Participants
 🎤100+ Speakers
 🏢 100+ Exhibitors
 🤝25+ Media Partners  Be part of this transformative platform that unites government, industry, academia, and youth, driving India’s workforce vision for 2030.  📅 4–6 November 2025
 📍 The Lalit Ashok, Bengaluru  Visit https://bengaluruskillsummit.com/ to know more.  Register Now: https://konfhub.com/bengaluru-skill-summit-2025  #BengaluruSkillSummit | #SkillDevelopment | #FutureOfWork | #Innovation | #Leadership | #Workforce2030 | #PartnershipsForProgress

About us

National Skills Network (NSN) captures and shares the positive impact of various training, skill development and vocational education initiatives in India.

To know more about Our Team: Click here

Address

NSN Digital Solutions Pvt. Ltd.
CIN: U74999TG2020PTC147299
MSME: UDYAM-TS-09-0086473
Gachibowli, Hyderabad – 500032

Email us: contact@nationalskillsnetwork.com

Important Links

  • Conversations
  • Perspectives
  • News
  • Skill Development e-Magazine
  • Resources
  • Our Team
  • Our Clients
  • Partner with us
  • About us
  • Advertise with us
  • Content Disclaimer
  • Privacy Policy

© National Skills Network Content licensed under CC BY-ND 4.0. Commercial use requires permission.

No Result
View All Result
  • Home
  • Conversations
    • Industry Conversations
    • All Conversations
  • Perspectives
    • Education
    • Emerging Technologies
    • Government Initiatives
    • Industry
    • Industrial Training Institutes (ITIs)
    • NEP 2020
    • Skill Training
  • News
    • Latest Updates
    • News Archives
    • CSR and ESG in Skill Education
    • Skill Development e-Magazine
    • NSN PDF Newsletter Archives
  • Videos
    • Explainers
    • Panel Discussions
    • Student Stories
    • Video Conversations
  • Resources
    • Apprenticeship
    • e-Books
    • Resources
    • Success Stories
  • Events
    • Workshops
  • About us
    • Our Team
    • Our Clients
    • Our Services
    • Privacy Policy

© National Skills Network Content licensed under CC BY-ND 4.0. Commercial use requires permission.