Benefits
- For Employers:
- Flexibility in employment, leading to more job creation.
- Can hire workers directly without going through contractors.
- Easier to manage workforce for seasonal or project-based needs.
- Not subject to rigid firing rules for permanent workers.
- For Workers:
- Get wages and allowances equal to permanent workers.
- Eligible for all statutory benefits (PF, gratuity, medical insurance).
- On the company’s payroll, ensuring direct payment.
- Can gain experience in formal sector.
Challenges
- For Workers:
- Risk that companies convert permanent workers to fixed-term.
- Potential for job insecurity after contract expiry.
- May lead to a less stable workforce.
- For Employers:
- The text does not explicitly list challenges for employers.