Lok Sabha Question No. 1457 (UNSTARRED), answered on 2018-03-05
Subject: Fixed Term Employment
Ministry: COMMERCE AND INDUSTRY
Asked by: MAHEISH GIRRI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 1457. TO BE ANSWERED ON MONDAY, THE 5 TH  MARCH, 2018.

## FIXED TERM EMPLOYMENT

## 1457.  SHRI MAHEISH GIRRI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्योग म त्री

- (a) whether the Ministry has taken any steps to increase formal regularised job market in India in view of the fifth Annual Employment-Unemployment Survey (EUS) conducted between April and December 2015, which stated that 83% of the workers in India were self-employed, casual or contract workers;
- (b) if so, the details thereof and if not, the reasons therefor;
- (c) whether  the  Ministry  is  considering  to  amend  definition  of  startup  and introduce  concept  of  fixed-term  employment  in  all  sectors  to  accelerate creation of regular salaried jobs as suggested by NITI Aayog in its three year action agenda;
- (d) if so, the details thereof and the time by which it is likely to be amended; and
- (e) if not, the action plan of the Government to address the issue?

## ANSWER

## वाणिज् यवव द्योग म त्रालयमेंराज् यम त्री(श्री सी.आर.चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a) & (b): Ministry of Skill Development and Entrepreneurship (MSDE) is creating avenues for formal regularized job market from the supply side through skill standardization under  National  Sklll  Qualification  Framework (NSQF)  with  an  institutionalized  industry  connect  of  38  Sector  Skill Councils  (SSCs).  So  far  1911  job  roles  have  been  brought  under NSQF. In addition to the above, Recognition of Prior Learning (RPL) to bring informal workforce into formal labour market through recognition and certification  of  the  informally  acquired  skill  are  being  undertaken under Pradhan Mantri Kaushal Vikas Yojana (PMKVY). So far 6.5 lakh informal sector skilled workforce have been certified in 30 sectors over last 3 years. The major sectors are Construction, Textiles, Hospitality etc.

Government  has  approved  a  special  package  of  Rs.  2600  crore  for employment generation in leather & footwear sector to be implemented till 31st March, 2020. In the package, leather, footwear and accessories  sector  has  been  provided  with  special  incentives  for employment generation including introduction of fixed term employment considering the seasonal nature of the industry.

Government has also approved a special package of approx. Rs. 6000 crore  for  apparel  sector.  In  the  package,  garment  sector  has  been provided with special incentives for employment generation and fixed term employment has been introduced. Under the fixed term employment,  a  workman  will  be  considered  at  par  with  permanent workman  in  terms  of  working  hours,  allowances,  wages  and  other statutory benefits.

The  Government  will  also  contribute  12%  of  the  wages  of  the  new employees in the EPF for all the sectors for next three years. Also, the facility of fixed term employment will be extended to all sectors.

- (c) to (e): No  such  specific  proposal  to  amend  definition  of  Startups  is  under consideration presently. Ministry of Labour & Employment has published  an  intent  Notification  No.  G.S.R.  17(E)  dated  8.1.2018  for incorporating the 'Fixed Term Employment Workman' category under the  Industrial  Employment  (Standing  Orders)  Act,  1946  and  Rules made thereunder for all Sectors for inviting objections/suggestions of general  public  within  a  period  of  30  days.  This  measure  being undertaken  by  Ministry  of  Labour  and  Employment  will  benefit  the Startups as well.

*****