UPSC CSE Prelims
Employment and Unemployment Previous Year Questions (PYQs)
Practice solved questions for Employment and Unemployment with detailed step-by-step solutions, key insights, and trend analysis for UPSC CSE PRELIMS.
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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?
Detailed Explanation:
Answer: Option 3 — Both 1 and 2
The Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 introduced significant changes to employment regulations, particularly regarding Fixed-Term Employment (FTE) and the treatment of temporary workers. Both statements correctly reflect the provisions of these amendments.
✅ Statement 1 – Correct: The 2018 Amendment expanded FTE to all sectors, allowing employers to hire workers for a fixed period via written contract. Crucially, non-renewal of FTE contracts does not constitute retrenchment under the Industrial Disputes Act, thereby making it easier for firms to lay off workers without following complex retrenchment procedures.
✅ Statement 2 – Correct: The rules explicitly state that no notice of termination of employment shall be necessary in the case of temporary workmen, who are engaged for work of an essentially temporary nature. Similarly, for Fixed-Term workers, no notice is required when employment ends due to contract expiry.
📝 Short Notes: Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018
| Aspect | Details |
|---|---|
| Year of Amendment | 2018 |
| Key Change | Extended Fixed-Term Employment (FTE) to all sectors (previously limited to apparel manufacturing) |
| Fixed-Term Employment | Worker hired for a fixed period via written contract; eligible for all statutory benefits like permanent workers (pro-rata basis) |
| Termination in FTE | Non-renewal of contract does not amount to retrenchment; no notice required at contract expiry |
| Temporary Workmen | Engaged for work of essentially temporary nature; no notice of termination required |
| Impact on Labour Flexibility | Increases ease of hiring and separation for employers; reduces procedural complexity |
| Industrial Disputes Act | Retrenchment provisions (notice, compensation) do not apply to FTE non-renewal |
Disguised unemployment generally means
Detailed Explanation:
Disguised unemployment occurs when more people are engaged in work than actually required, typically seen in agriculture where entire families work on small plots.
The key characteristic is that removal of surplus workers would not reduce total output, meaning their marginal productivity is zero.
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