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      Question

      The Industrial Relations Code, 2020 introduces the concept of "Fixed Term Employment." Which of the following statements regarding a Fixed Term Employee under the Code is INCORRECT?

      A A fixed term employee is entitled to gratuity on a pro-rata basis if he has rendered service for at least one year Correct Answer Incorrect Answer
      B A fixed term employee shall be entitled to the same hours of work, wages, and service conditions as a permanent worker doing the same work Correct Answer Incorrect Answer
      C The employer is not required to give notice or pay compensation before the expiry of the fixed term contract Correct Answer Incorrect Answer
      D A fixed term employee automatically acquires permanent employment status upon completion of two consecutive terms of fixed term employment Correct Answer Incorrect Answer

      Solution

      Explanation:  The Industrial Relations Code, 2020 statutorily recognises Fixed Term Employment for the first time in labour law. The key features under the Code are:   Option (D) is incorrect and is therefore the right answer to this "INCORRECT" type question. There is no provision under the IR Code, 2020 that grants automatic permanent status after completing two consecutive fixed term contracts. This is a common misconception and a favourite examiner trap. Options (A), (B), and (C) are all correctly stated positions under the Code.

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