India needs to put in place appropriate safeguards to prevent misuse of FTE

In this backdrop, the proposal to introduce fixed-term employment (FTE) in all sectors is indeed a welcome step

Much of the burden for India’s dismal job creation performance has been attributed to its rigid employment protection legislations, which make dismissal of permanent workers very onerous. Over the past 15 years, India has seen a sharp increase in contract workers, as firms have increasingly hired them to circumvent labour market rigidities. However, this has resulted in significant informalisation of the workforce, as contract workers can be fired easily, do not enjoy benefits such as health, safety, welfare and social security, and receive significantly lower wages than permanent workers.

In this backdrop, the proposal to introduce fixed-term employment (FTE) in