Question Details

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?

Options

A

1 only

B

2 only

C

Both 1 and 2

D

Neither 1 nor 2

Show Answer

Correct Answer :

Option C

Both 1 and 2

Solution :

The correct option is Both 1 and 2.


Detailed Explanation:


The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, introduced several important modifications regarding fixed-term employment across all sectors:


1. Analysis of Statement 1:

Under the amended rules, fixed-term employment allows companies to hire workers for a specific duration based on contract terms. When the specified contract period expires, the employment automatically terminates without requiring statutory retrenchment compensation or complex retrenchment processes. Therefore, implementing rules for fixed-term employment makes it easier for firms/companies to lay off workers or end their engagement upon contract expiry. Thus, Statement 1 is correct.


2. Analysis of Statement 2:

According to the Industrial Employment (Standing Orders) Central Rules, a temporary workman is employed for work which is essentially of a temporary character or for a limited period. Under the standing orders rules, no notice of termination of employment (or pay in lieu of notice) is required to be given to a temporary workman unless specified by an explicit agreement. Hence, Statement 2 is correct.


Since both statements 1 and 2 are correct, the correct choice is Both 1 and 2.

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