Talk to a lawyer @499

Know The Law

BRIEF EXPLANATION ON SHORT TERM EMPLOYMENT

Feature Image for the blog - BRIEF EXPLANATION ON SHORT TERM EMPLOYMENT

Fixed-term employment or short term employment is a contract where a company or an enterprise hires an employee for a certain period. Mostly, it is for a year but can be renewed after the term expires depending on the requirement. In fixed-term employment, the employee is not on the payroll of the company. Under the fixed-term employment contract, the pay-out or the payment is fixed in advance and is not altered until the term expires. Many companies hire employees on a short basis but make them permanent after it expires. The skillset is very important and this what one sees when hires the employee. This decision is taken by the top management of the company. The workers employed for a limited period shall be useful to them as compared to contract employees. Employee shall be eligible for getting all advantages which can be found for any everlasting workman for a similar work content material. If we see into the safety of employees by the use of  statutory advantages then additionally it’s provided underneath the Industrial Employment (Standing Orders) Central ( Amendment ) Rules, 2018 that:

  • Working hours, wage benefits, allowances, gratuity and many others must be equal to that of a permanent employee.
  • All statutory benefits must be available likewise to permanent workmen proportionally in keeping with the period of services rendered by him. The employer can hire a set term worker without any involvement of the contractor.

 

In today’s era, short term employment can be said as best keeping in view the following advantages :

  1. The employer can complete the short term targets due to easy availability of Fixed-term employees. Also, the talent remains as per the time of needs.
  2. The budget planning, Resource planning, on-time delivery of goods and delivery can be easy
  3. The fixed-term employees can be able to present good quality result due to the freedom of work have been given by the employer as per contract agreement. Because of this fixed-term employment, quality can be seen in the employees and further they can be considered for permanent employment
  4. The temporary job may be exactly the job seeker wants, with a time limit for the employment commitment.
  5. It provides an income stream while the "real" job search continues.
  6. It may give the job seeker a chance to "test drive" a job, an employer, a profession, or an industry.
  7. The job seeker has an opportunity to start their career migration to a new field.
  8. It fills a gap in the experience needed for the next job.
  9. It fills or a gap in the resume's employment history
  10. Sometimes, it provides both income and benefits (health insurance, etc.)
  11. Sometimes, it opens the door to a permanent job, often referred to as "temp-to-perm." These jobs allow both the employee and the employer to see how they work together.

While all these advantages will benefit both employer and employee. To every positive thing, also have certain limitations. Let us now see the limitations of short term employment:

  1. The recruitment of Right employees for the right job at right salary becomes very difficult because in such case where the culture of fixed-term employment prevails the Human resource especially recruitment becomes time-consuming and employee retention becomes an enormous challenge for the industries/companies.
  2. A permanent contract does not end by its own and in case the employer wants to change the working staff as the fixed-term employee, it becomes very expensive and can affect the business growth
  3. Though Fixed-term employment provides flexibility for employing workmen sometimes it may not in the benefit of the organization as per market situation
  4. Temp jobs are, by definition, short term, usually less than a month, often less than a week. If you would like an extended job without making a full commitment to the employer as a "permanent" employeefreelancing or contracting are often a far better option.
  5. Many temps report feeling isolated and not well-respected by other employees. This can happen because of the corporate culture that prevails, this may not happen everywhere.
  6. Most temps are not paid top dollar for what they do unless they have a skill that is quite scarce.
  7. Depending on the agency, you may find that you have fewer benefits (sick days, paid vacation, for example).
  8. The site manager and other employees may not be particularly helpful when you are in a learning mode.

Seasonal employment is the major reason for short term employment in various companies. Legalising this has given authorities to the flexibility in hiring practices for firms, whereby they will match the number of workers with the particular requirement. Companies can cut costs during lean seasons by employing workers on fixed-term contracts.
Previously, companies would use external contractors to use short-term labour. Now, they're going to be ready to hire directly from the market, reducing intermediary costs and, more importantly, creating transparency within the employment process. Also, employers won't be required to pay instead of termination for non-renewal of the contract or expiry of the term of employment.
The law is additionally positive for workers – it enables workers to be on top of things of their employment terms and obligations, under regulated conditions.
Formalized fixed-term hires also will ease short-term unemployment within the country. Short term employment is quite possible nowadays and the period is also specified, this is because of the legalities that employer has to follow. In short term employment also we will certainly follow all the HR rules and regulations. All the benefits provided to a full-time employee will be given to short term employee too. Apart from this in India where seasonal employment is so much, it was quite important to come up with the short term employment procedure. Here in short term employment both employer and employee are aware of the employment terms and conditions. Short term employment will also make employee sure that they can work at other places post they are current employment is done.