Fixed Term Employment - GS questions based on daily current affairs

1)   Which of the following is/are true regarding the Fixed Term Employment introduced in the Apparel Manufacturing Sector?

1) 70% workforce in garment industry comprises of women.
2) Currently there is no provision for employment of workers on contract basis.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation 

ANSWER: Only 1

Explanation:

  • It is one of the measures of the approved Textile package for Textile sector.
  • The measures assume significance also due to its potential for social transformation through women empowerment; since 70% of the workforce in the garment industry are women, majority of the new jobs created are likely to go to women.
  • Presently, as per Section 2 (bb)(oo) of the ID Act, the workers could be employed on contract basis for some fixed time period and the removal of such workers on termination of contract is not considered as retrenchment.
  • Hence they are not eligible for any notice period or retrenchment compensation as per the ID Act.
  • This indicates that there is an indirect provision of employment of workers for a fixed term, however the service conditions of workers engaged for definite period is not stipulated leading to different treatment for workers on fixed term employment.


2)   Which of the following are impacts of Fixed Term Employment introduced for Apparel Manufacturing Sector?

1) Flexibility to employers as per market demand
2) Better working conditions for workers
3) Shorter working hours for workers


a. 1, 3
b. 1, 2
c. 2, 3
d. All of the above
Answer  Explanation 

ANSWER: 1, 2

Explanation:

  • By proposed inclusion of the Fixed Term Workman as one of the category of workman in the classification of workman in the Industrial Employment (Standing Orders) Act, 1946 , the Ministry intends to make such workman on fixed term employment eligible for all statutory benefits available to permanent workman proportionately accordingly to the period of service rendered by him. Even though his period of employment does not extend to the qualifying period of employment required in the statute.
  • This step would ultimately benefit the workers as their working conditions would be at par with the regular permanent employees including social security and other benefits.
  • It would, on the one hand provide flexibility for employing workers as per the demands of the market and on the other hand improve the working conditions of the workers already working for some fixed tenure only by way of contracts.
  • It would also provide prescribed format of contract for engaging workers on fixed term employment, thereby avoiding any exploitation of such workers.
  • The inclusion in the IE (SO) Act would define formally the conditions of employment on which the workman would be engaged for Fixed Term.


3)   Which of the following is/are true regarding the Fixed Term Employment introduced in the Apparel Manufacturing Sector?

1) The working conditions in terms of working hours, wages, allowances and other statutory dues of a fixed term employee would be at par with permanent workmen.
2) The employer can directly hire a worker for a fixed term without mediation of any contractor.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation 

ANSWER: Both 1 and 2

Explanation:

  • The seasonal nature of Textile sector results in fluctuation of demand and hence requires flexibility in employing worker.
  • The working conditions in terms of working hours, wages, allowances and other statutory dues of a fixed term employee would be at par with permanent workmen.
  • A fixed term worker will also be eligible for all statutory benefits available to a permanent workman proportionately according to the period of service rendered by him even though his period of employment does not extend to the qualifying period of employment required in the statute.
  • The employer can directly hire a worker for a fixed term without mediation of any contractor.


4)   Which of the following is/are true regarding Fixed Term Employment?

1) It is defined as workman who is employed on contract basis for a fixed period.
2) However on the termination of fixed term employment of the workman, the workman is entitled to notice of termination.


a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
Answer  Explanation 

ANSWER: Only 1

Explanation:

  • The concept of Fixed Term Employment define the tenure of employment as well as other associated conditions of service and remunerations, which are provided to regular employees under various labour laws.
  • Fixed term employment was defined as a workman who is employed on a contract basis for a fixed period.
  • Thus the services of workman will be automatically terminated as a result of non-renewal of the contract between the employer and the workman concerned. Separation of service of a workman as a result of non-renewal of the contract of employment between the employer and workman concerned shall not be construed as termination of employment.
  • On the termination of fixed term employment of the workman the workman is not entitled to any notice or pay in lieu thereof.