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Govt to frame sector-specific model employment contracts for industries

Move aimed at easing compliance burden for companies; experts see it as micromanagement

Somesh Jha New Delhi
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A standing order is a legally binding collective employment contract and holds significance as it contains key work-related terms and conditions

In a first, the central government is planning to frame sector-specific model standing orders to ensure companies do not have to go through the process of certification.
“We are working towards a progressive model that will ensure a significant reduction in compliance burden. The idea is to have industry-wise standing orders immediately or over a period of time,” a senior labour and employment ministry official said. The government has already begun consultations with industry executives from across sectors on framing multiple model standing orders, the official added.
At present, there are different standing orders for the manufacturing and mining sector. A standing order is a legally binding collective employment contract and holds significance as it contains key work-related terms and conditions and is meant to prevent arbitrary dismissal of employees.
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First Published: Nov 01 2020 | 2:45 PM IST

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