IRCTC Announces Termination of Contract Workers - A Step in the Right Direction?

Case Code: CLHR077 Case Length: 5 Pages Period: - Pub Date: 2020 Teaching Note: Available

Price: Rs.150 Organization: Indian Railways Industry: Transport & Logistics Countries: India Themes: Layoff Strategy, Human Resource Planning, Collective Bargaining, Economic Slowdown

Abstract

The case “IRCTC Announces Termination of Contract Workers – A Step in the Right Direction?” focuses on the interests of contract workers who are part of the alternative work arrangements being increasingly adopted by companies. The case first describes the objectives of Indian Railways and its arm, the Indian Railway Catering and Tourism Corporation (IRCTC), to hire contract employees as part of their operations plan. The case then talks about the common reasons given by these employers for terminating the contract workers. The case touches on the concerns raised by the contract workers with regard to their termination. It ends with a look at a few policy initiatives taken up by Indian Railways to safeguard the interests of contract workers and the future plans of the railway operator to privatize operations.

Issues

• Gain awareness about the various challenges of managing contract employees
• Learn about the challenges of safeguarding the interests of contract employees
• Understand the implications and benefits of employing contract workers
• Learn about the various types of employment practices
• Gain an understanding of alternative workforce planning

Introduction

On June 25, 2020, Indian Railway Catering and Tourism Corporation (IRCTC) , the extended arm of the Indian Railways (IR) , issued a letter to all the four zonal headquarters (East in Kolkata, West in Mumbai, South in Chennai, and South Central in Secunderabad), asking them to terminate the contracts of 560 contractual employees. Before that, on May 5, 2020, the South Zone of IR terminated 368 retired employees who had been re-engaged in workshops. The termination giving 15 days’ notice was served through SMS, WhatsApp, and email. The common reason for the terminations in both cases was the need to cut down on costs owing to the termination of passenger rail services in India due to the COVID-19 pandemic.

Keywords

Contract Employment; Employer-employee relations; Employment Practices; Lay-offs; Human Resource Planning; Employee Contracts; Employee Grievance; Employment Policy; Employment Laws; Economic Slowdown; Downsizing

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