Question 92 from UPSC CSE 2019 - Current Affairs

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?

IASCODEX · Accepted Answer

Correct Option: C. Both 1 and 2

Strategy: Look for phrases tied to labor laws—'fixed-term employment' means contracts that make it simpler for firms to let go of workers at the end of their contract, confirming Statement 1. For Statement 2, the keyword 'no notice of termination' for temporary workmen matches the standing orders, confirming its correctness. Both statements are supported by statutory changes.

Key Info: The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 amended the principal rules of 1946 to include fixed-term employment across sectors. 
- Fixed-term employment allows employers to hire workers for a specific period, often matching project timelines or production cycles. Workers hired under these contracts have the same rights as permanent workers for working hours, wages, benefits, and so on, but their contract expires at a set date or upon project completion. 
- The amendment makes it administratively easier for employers to engage and subsequently lay off workers, as services simply conclude with the contract's end, bypassing stricter retrenchment procedures. 
- Under the original and amended rules, Rule 13 specifies that no notice of termination is required for temporary workmen, whether monthly, weekly, piece-rated, probationers, or "badli" (substitute) workers. This means such employees can be terminated without formal notice, while permanent workers generally require notice or payment in lieu. 
- These reforms aimed to formalize labor flexibility, reduce unregulated contract labor, and extend benefits available to regular workers to those on fixed-term contracts, reflecting changing labor market conditions.

IASCODEX · Answer

Option A: 1 only

IASCODEX · Answer

Option B: 2 only

IASCODEX · Answer

Option D: Neither 1 nor 2