Q. Consider the following statements:- As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers
- No notice of termination of employment shall be necessary in the case of temporary workman
Which of the statements given above is/are correct? (UPSC Prelims 2019)
Answer:
Both 1 and 2
Notes: The correct answer is
[C] Both 1 and 2. The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, were introduced to provide flexibility to various sectors by extending the facility of "Fixed-term Employment" to all industries.
- Statement 1 – Correct: Under the 2018 amendment, a "fixed-term employment" workman is one who is engaged on the basis of a written contract of employment for a fixed period. This allows firms to hire workers for specific projects or seasons. Because the contract automatically expires at the end of the specified period, it becomes easier for firms to lay off or release workers without the complex procedures required for permanent employees.
- Statement 2 – Correct: According to the Industrial Employment (Standing Orders) Central Rules, a "temporary workman" is one who is engaged for work which is of an essentially temporary nature. The rules specify that no notice of termination of employment shall be necessary in the case of a temporary workman, unless otherwise provided in a specific contract of employment.
Key protections were also added in 2018: fixed-term workers are entitled to the same hours of work, wages, and statutory benefits as permanent workers. However, their services can be terminated simply by the expiry of the contract or by giving one month's notice (or pay in lieu) if the termination happens before the expiry.