Previous Year Question
Consider the following statements:
As per the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018,
if rules for fixed-term employment are implemented, it becomes easier for the firms/companies to lay off workers.
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 only
2 only
Both 1 and 2
Neither 1 nor 2
Correct Answer: C
Detailed Solution
The Industrial Employment (Standing Orders) Central Rules were amended in 2018 to extend Fixed-Term Employment to industrial establishments across all sectors.
Statement 1 is correct.
Under Fixed-Term Employment, a worker is appointed through a written contract for a specified period. Employment may end when the contractual period expires or when the contract is not renewed.
This enables an establishment to employ workers for a particular project, seasonal requirement or time-bound assignment. Compared with permanent employment, it becomes easier for the employer to reduce the workforce when the contract expires.
However, a fixed-term worker performing the same or similar work cannot receive less favourable:
Working hours,
Wages,
Allowances, or
Other benefits
than a permanent worker. Statutory benefits were to be provided proportionately according to the period of service.
Statement 2 is correct.
Under the applicable Standing Orders, prior notice of termination was ordinarily unnecessary for a temporary workman employed on a monthly, weekly or piece-rate basis. The rule also covered probationers and badli workers.
In Fixed-Term Employment, separate termination notice is similarly unnecessary when the contract expires or is not renewed. Premature termination during the contractual period, however, remains subject to the appointment contract and applicable labour law.
Therefore, both statements are correct.