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?

QUESTION

Medium

Economy

Prelims 2019

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?

Select an option to attempt

Explanation

Statement 1 is correct: The 2018 Amendment expanded Fixed-Term Employment (FTE) to all sectors. FTE allows an employer to hire a worker for a fixed period via a written contract. A key feature of FTE is that the "termination of service of the workman as a result of non-renewal of the contract" does not amount to retrenchment. Since retrenchment procedures (under the Industrial Disputes Act) are the primary hurdle to laying off workers in India, FTE makes it significantly easier for firms to reduce their workforce.

Statement 2 is correct: Under the Industrial Employment (Standing Orders) Central Rules, a temporary workman is defined as a person engaged for work which is of an essentially temporary nature. The rules explicitly state that no notice of termination of employment shall be necessary for such a workman. Furthermore, for Fixed-Term workers, the 2018 rules specify that no notice is required if the employment ends due to the expiry of the contract.

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