The new textile policy announced by the Government recently talks of a fixed term employment, fixed for a finite period, like two years at the outside. Such a fixed term employment covers all categories of workers, temporary, contract or any other kind. This legislation for the labour-intensive textile industry has features which other sectors will want to adopt and marks the first change in labour legislation.

However, trade unions have often been criticised that despite being a minuscule number in the enormous labour pool, the unorganised sector being several times larger, yet they want to keep the latter from reaping any benefits or extending some statutory protection. All employers are not necessarily exploitative, they are after all in business to make money; legislation ensures some protection for the labour not covered by trade unions with their negotiated wage hikes every three years.

Meanwhile, the concept of a fixed term employment which the textile policy mentions, takes into account the seasonality of business. Labour is thus protected with a guaranteed job for an upfront fixed term and so is the employer since wages are paid at rates comparable to permanent employees but only for the duration of the fixed term.