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: Fixed-term employment and ease of layoff. The amendment introduces the concept of "fixed-term employment" for the first place. While it doesn't automatically make layoffs easier, it allows companies to hire for specific projects or periods without them becoming permanent employees. This can potentially make restructuring or downsizing during economic downturns easier for companies with fixed-term employees compared to permanent ones (who have greater job security).

Statement 2 is correct: Notice period for temporary workmen. The amendment clarifies that no notice period is required to terminate the employment of a "temporary workman," which is someone hired for a specific, non-continuous job or for a short period.

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