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UPSC Prelims 2019 Q60: Indian Economy – Human Development, Poverty & Employment Schemes

UPSC Prelims 2019, General Studies Paper I · Indian Economy

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?
  1. (a) 1 only
  2. (b) 2 only
  3. (c) Both 1 and 2
  4. (d) Neither 1 nor 2

Answer: (c) Both 1 and 2

Explanation

Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018: Fixed-Term Employment

StatementClaimVerdictDetail
1Fixed-term employment makes it easier to lay off workersTRUEFixed-term employees can be hired for a specified period and their contracts end automatically without triggering retrenchment procedures under the Industrial Disputes Act. This reduces layoff friction and compliance costs.
2No notice required for termination of temporary workmanTRUEThe 2018 amendment permits termination of temporary/fixed-term workmen at end of contract without any prior notice - contract expiry is the trigger.

Both statements are correct. Answer: (c) Both 1 and 2.

Answer: (c) Both 1 and 2.

Why each option is right or wrong

Key point

Fixed-term employment (2018 amendment): Contract auto-ends at term expiry. Employer avoids IDA retrenchment process. No prior notice needed. Fixed-term worker gets same wages/benefits as permanent for the term.

Remember

Both statements are correct. Under the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, fixed-term employment provisions make it easier for firms to end employment relationships (contract auto-ends), and no prior notice of termination is necessary for a temporary workman at the end of the contract term.

Common mistakes

Exam tip

Labour code consolidation (2019-20): Industrial Employment (Standing Orders) Act 1946 was subsumed into Industrial Relations Code, 2020. Fixed-term employment is now enshrined across all sectors. Similarly Wages Code, Social Security Code, OSH Code consolidate 29 labour laws.

Sources

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