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?
Answer & explanation
Answer: (c) Both 1 and 2
Both statements are correct. The 2018 amendment (G.S.R. 235(E), 16 March 2018) added 'fixed term employment workman' as a category for all sectors, which the Labour Ministry described as giving employers flexibility, and the standing orders, as amended, excuse notice of termination for temporary workmen.
- ✓ 1. A fixed-term workman is engaged on a written contract for a fixed period, and the amended rules say no notice or pay in lieu is due when such a contract expires without renewal. So the employer can let the engagement end at expiry instead of retrenching a permanent employee. The Labour Ministry itself stated the aim as flexibility for employers, while giving the worker the same statutory benefits as a regular worker in proportion to service.
- ✓ 2. The 2018 amendment itself (G.S.R. 235(E), para 13 of Schedule I) says no notice of termination of employment is necessary for a temporary workman, whether monthly-rated, weekly-rated or piece-rated, or for probationers and badli workmen. (Under the model orders in Schedule IA, a temporary workman with three months' service gets two weeks' notice only if terminated outside the terms of his contract.)
- • Since then The Industrial Employment (Standing Orders) Act, 1946 has since been folded into the new Labour Codes. On 21 November 2025 the Government consolidated 29 labour laws into four Labour Codes, and fixed-term employees now become eligible for gratuity after one year of service (PIB).
Remember · The 2018 amendment made fixed-term employment available in all sectors, with benefits proportionate to permanent workmen. Temporary workmen need no termination notice under the standing orders.
Sources
- PIB Year End Review 2018: Ministry of Labour & Employment (fixed term employment, G.S.R. 235(E)) ↗ “The objective of Fixed Term Employment on one hand is to provide flexibility to the employers in order to meet the challenges of globalization”
- Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018, G.S.R. 235(E), 16 March 2018, Schedule I para 13(2) (Ministry of Labour and Employment notification, republished in the Gazette of Puducherry, Internet Archive copy) ↗ “no notice of termination of employment shall be necessary in the case of temporary workman whether monthly rated, weekly rated or piece rated and probationers or badli workmen … no workman employed on fixed term employment basis as a result of non-renewal of contract or employment or on the expiry of such contract period without it being renewed, shall be entitled to any notice or pay in lieu thereof”
- PIB Backgrounder: India's Labour Reforms (21 Nov 2025) ↗ “The Government has consolidated 29 labour laws into four comprehensive Labour Codes”
Question and answer: UPSC's official GS Paper I (2019, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 1 Oct 2026 (how we verify). ·