UPSC Prelims 2019 Question:

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?

Explanation:

• • The Labour ministry issued a draft notification for the extension of fixed-term employment for all sectors through the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018. Under these rules, a fixed-term employment workman is a worker who has been employed on the basis of a written contract of employment for a fixed period of time. In most cases, it is for a year but can be renewed after the term expires depending on the requirement. In fixed-term employment, the employee is not on the payroll of the company and does not get provident fund, and some other benefits. Companies that hire employees on the basis of fixed-term employment contracts often make them permanent on the expiry of the term.
    
    
  • A workman employed on a fixed-term employment basis is not entitled to any notice or pay in case of non-renewal of contract or employment or on its expiry or if his services are terminated. This makes it easy for companies to lay off workers. So, statement 1 is correct. 
    
    

• Temporary workmen who are monthly rated, weekly rated, piece rated, probationers, and badli workmen are not entitled to notice of termination of employment. So, statement 2 is correct.
  
  

Relevance: The government has extended the facility of hiring workers on fixed term employment to all sectors for improving the ease of doing business for companies.

Therefore, option (3) is the correct answer.

Subject: Economics | Poverty and Employment