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 a temporary workman.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation

Statement 1 is correct

• As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, a “fixed term employment workman is a workman who has been engaged on the basis of a written contract of employment for a fixed period”. Fixed-term employment across all sectors will make it easier for companies to hire and fire workers and reduce the role of middlemen. The notified rules for fixed-term employment provide for equal work hours, wages, allowances and other benefits as those of a permanent workman, along with all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him, even if his period of employment does not extend to the qualifying period of employment required in the statute.

Statement 2 is correct

• However, no workman employed on fixed term employment basis as a result of non-renewal of contract or employment or on its expiry shall be entitled to any notice or pay in lieu thereof, if his services are terminated. No notice of termination of employment shall be necessary in the case of temporary workmen, whether monthly-rated, weekly-rated, or piece-rated, and of probationers or badli workmen.

Answer: (c) Both 1 and 2; Difficulty Level: Hard