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INDIA: Fixed-Terms Contracts Now Approved for Use in Every Business Sector

Companies in every business sector in India are now allowed to offer fixed-terms employment contracts to all staff members. Previously, such contracts could be extended only to temporary staff in the apparel and textile industries. With fixed-terms contracts, employees are entitled to the same hourly rates, allowances and benefits as permanent staff.

Fixed-terms workers will not normally receive advanced notice of termination or compensation should any contract not be renewed, except for those workers in continued service for three or more months, who will then be eligible for a two-week notice period prior to termination or non-renewal of contract. Furthermore, companies cannot convert currently permanently-contracted staff into fixed-terms employees.

Content provided by Picture: HKTDC Research
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