On October 7, 2016, the Central Government amended the Industrial Employment (Standing Orders) Act, 1946 (‘SO Act’) and allied rules, to permit employment on fixed terms in the apparel manufacturing sector. Pursuant to the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 (‘Amendment Rules’) notified by the Ministry of Labour and Employment, effective from March 16, 2018, all sectors covered under the SO Act have now been permitted to employ personnel on ‘fixed terms’. The Amendment Rules defined a ‘fixed term employment workman’ as ‘a workman who has been engaged on the basis of a written contract of employment for a fixed period’. However, such a ‘fixed term employment workman’ is eligible for all statutory benefits on a pro-rated basis and his hours of work, wages, allowances and other benefits cannot be less than that of a permanent workman.