Permanent employees cannot be converted into contracts, government warns companies - Newztezz Online


Monday, December 21, 2020

Permanent employees cannot be converted into contracts, government warns companies

The central government had amended labor laws to provide relief to companies during the Corona epidemic. 
In the wake of this, some companies have started doing their own thing and have started replacing permanent employees as contract workers under the pretext of new labor laws. At such times, the government has warned such companies that under the new law, no company will be able to replace permanently hired employees as contractor workers. At the same time, the government said the company could use the CSR fund as a special fund to help laid off employees. Also, a meeting is to be held soon regarding this new labor law.

The service rules will change soon

According to a report, the central government is going to change the service rules soon. Moreover, permanent employees cannot be replaced as contractors. At the same time, it was clarified through the draft rules of the Ministry of Labor that companies should create special funds to help laid off employees. For which there will be re-skilling. The companies have also sent their recommendations to the Ministry of Labor. It also sought clarification on the Union and Networth rule.

The meeting may take place on December 24

According to sources, the matter will be discussed at a meeting of the Labor Ministry on December 24. The Labor Code Rules may be finalized at this meeting. The meeting will also include industry, employees' associations and trade unions. The central government is planning to implement a new labor law from April 2021.

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