UPSC Prelims 2019 GS Paper I · Q60 / 100 Economy hard

Consider the following statements : As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 1. if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers 2. no notice of termination of employment shall be necessary in the case of temporary workman Which of the statements given above is/are correct?

  1. (a) 1 only
  2. (b) 2 only
  3. (c) Both 1 and 2 ✓ UPSC's answer
  4. (d) Neither 1 nor 2

Why the answer is (c)

• The 2018 amendment to the Industrial Employment (Standing Orders) Central Rules extended 'fixed-term employment' to all sectors: workers hired for a fixed period get the same wages and benefits as permanent workers, but their employment ends automatically on expiry without notice or retrenchment compensation.

• Statement 1 is correct: this makes it easier for firms to shed workers when contracts lapse.

• Statement 2 is correct: the rules state that no notice of termination is required for temporary workmen (and for fixed-term workers whose term ends).

• The Industrial Relations Code, 2020 later codified fixed-term employment.

• Hence both 1 and 2, option (c).

Why the other options are wrong

(a) 1 only
Statement 2 is also correct: no notice is required for temporary workmen.
(b) 2 only
Statement 1 is also correct: fixed-term rules ease layoffs.
(d) Neither 1 nor 2
Both statements are correct.

Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2019, held on 2 June 2019. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

Reading the answer is not the same as getting it right under a clock. Practise this question with UPSC's negative marking, and anything you miss goes into an error notebook until you get it right twice.

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