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 only

2 only

Both 1 and 2

Neither 1 nor 2

APEDIA

UPSC Prelims

2019 • 02 Jun, 2019 • Paper-1

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?

Correct Answer

Both 1 and 2

Statement 1 Analysis: This is correct. The 2018 amendment introduced 'fixed-term employment' across all sectors. Because the employment automatically terminates......

💡 Analysis & Explanation

Statement 1 Analysis ▼

This is correct. The 2018 amendment introduced 'fixed-term employment' across all sectors. Because the employment automatically terminates upon the expiry of the strictly pre-determined contract period, it technically bypasses the rigorous retrenchment (lay-off) procedures required for permanent workers, making it much easier and flexible for companies to manage workforce sizes.

Statement 2 Analysis ▼

This is correct. A specific provision in the rules stipulates that no notice of termination, nor any pay in lieu of notice, is required for fixed-term or temporary workmen at the end of their contractual term.

Conclusion ▼

Both legal provisions accurately reflect the 2018 amendment, leading to option C.

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