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?
Correct Answer :
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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