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?
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2 ✓ UPSC's answer
- (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.