UPSC Notes

Fixed-Term Employment (FTE)

PYQs

8

Articles

1

Momentum

21

Phase IFoundation

Background

Overview

FTE is a significant aspect of labour market flexibility with implications for worker rights, job security, and the informalisation of the economy. UPSC examines such policy tools and their socio-economic consequences.

Fixed-Term Employment refers to a contractual employment arrangement where an employee is hired for a specific, predetermined period, often for a particular project or season, rather than on a permanent basis, offering flexibility to employers.

Phase IIStatic core

Facts & tables

Key facts

Introduction in India

Formally introduced into India's labour law framework by the Industrial Relations Code, 2020.

Employer Flexibility

Allows employers to hire workers for a fixed duration without the complexities of permanent employment.

Worker Vulnerability

Concerns exist due to the lack of specified minimum tenure or limits on the number of contract renewals in the rules.

Risk of Informalisation

Potential for even regular positions to be converted into FTEs with unlimited renewals, leading to job insecurity and informalisation.

Reference table

Static syllabus anchors

TypeReference
Conceptual areaLabour Market Flexibility
Conceptual areaWorker Rights
Phase IIIExam lens

Prelims angle

Overview

Prelims angle: Statement-based questions

Prelims angle: Conceptual understanding

Quick revision

  • Contractual employment for a specific period.
  • Introduced by Industrial Relations Code, 2020.
  • Concerns: No minimum tenure, unlimited renewals.
  • Risk: Regular jobs becoming FTEs, job insecurity.
  • Impacts worker rights and labour market informalisation.

High-confidence PYQs

Topic timeline

Labour Market FlexibilityWorker Rights

Implementation complete, but workers still vulnerable

12 Jun 2026 · Fixed-Term Employment (FTE), formally introduced by India's Industrial Relations Code, allows hiring for a specific period. While offering flexibility, it raises concerns about worker vulnerability due to the absence of minimum tenure and potential for unlimited renewals, contributing to job insecurity and the informalisation of the workforce.

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Related topics

Current topic

Fixed-Term Employment (FTE)

Practice writing on this topic

UPSC has asked 8 linked questions on Fixed-Term Employment (FTE) in Mains. Write an answer to one — and get it evaluated.