Gig Economy and Worker Welfare

Dropshipping Model is an e-commerce fulfillment method where a retail store does not keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third-party supplier or wholesaler and has it shipped directly to the customer. The seller does not handle the physical product or manage inventory but retains control over the retail pricing, earning a profit on the margin between the wholesale cost and the retail price. Affiliate Revenue Model is incorrect because it is a performance-based marketing model where an individual or business earns a commission by promoting another company's products. The affiliate does not control the product's pricing or handle fulfillment; they merely drive traffic and sales to the actual merchant. Transaction Fee Revenue Model is incorrect because it involves a digital platform acting as an intermediary. The platform earns revenue by charging a fee or commission for enabling, processing, or executing a transaction between a buyer and a seller (e.g., payment gateways or marketplace fees). Agency Revenue Model is incorrect because it is a service-based model where an agency charges businesses for providing specialized professional services, such as digital marketing, website design, or content creation, rather than selling physical goods. Therefore, Option A is the correct answer.

Statement 1 is incorrect. After the 1991 economic liberalization, worker productivity increased both in urban and rural areas. While urban areas experienced higher growth, rural areas also saw improvements, especially with the rise in non-farm activities. Statement 2 is incorrect. The percentage share of rural areas in the workforce has steadily decreased since liberalization. This is because more people have moved to urban areas for employment in the industrial and service sectors, contributing to the growing urban workforce. Statement 3 is correct. In rural areas, the growth of the non-farm economy increased significantly. With liberalization, the diversification of rural economies into sectors like manufacturing, construction, and services grew, reducing the dependency on agriculture. Statement 4 is correct. The growth rate in rural employment decreased after 1991. While the rural economy diversified, the agricultural sector did not provide enough employment opportunities to absorb all the labor, leading to lower growth in rural employment. Hence, option B is the correct answer.

Statement 1 is not correct: The Government had launched a scheme viz Casual Labourers (Grant of Temporary Status and Regularization) Scheme of Government of India, 1993. As per the scheme, Temporary status would be conferred on all casual labourers who were in employment and who have rendered a continuous service of at least one year, which means that they must have been engaged for at least 240 days (206 days in case of offices observing 5 days week). Statement 2 is correct: The Supreme Court has decreed that casual workers are also entitled to social security benefits as stipulated in the Employees Provident Funds and Miscellaneous Provisions Act. The Court's ruling stemmed from its interpretation of Section 2(f) of the EPF Act, wherein the definition of an "employee" encompasses a broad scope, including any individual engaged directly or indirectly in connection with an establishment's work and receiving wages. A bench of the Supreme Court affirmed this viewpoint. Statement 3 is correct: The government has the authority to specify through a notification that an establishment or industry is obligated to disburse wages exclusively via its bank account.

Statement 1 is Incorrect: The Employment Policy Convention, 1964 (ILO No. 122) is one of the International Labour Organization's governance (priority) conventions. India ratified it on November 17, 1998. Statement 2 is Incorrect: The Abolition of Forced Labour Convention, 1957 (ILO No. 105) is a fundamental ILO convention. India ratified it on May 18, 2000. Statement 3 is Correct: The International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families (1990) is a UN multilateral treaty. India has neither signed nor ratified this convention. Statement 4 is Incorrect: The Geneva Convention Relative to the Protection of Civilian Persons in Time of War (1949) (also known as the Fourth Geneva Convention) was ratified by India on November 9, 1950, and implemented domestically via the Geneva Conventions Act, 1960. *(Note: The question setter likely confused this with the 1951 Refugee Convention, which was adopted in Geneva and which India has not ratified).* Statement 5 is Correct: The Convention on Reduction of Statelessness (1961) has not been signed or ratified by India. India is not a party to the 1951 Refugee Convention, the 1954 Convention on Statelessness, or this 1961 Convention. *Conclusion:* Factually, only conventions 3 and 5 have not been ratified by India. However, among the given options, there is a discrepancy as no option perfectly matches "3 and 5". Since any correct answer must include the unratified conventions 3 and 5, Option D is the only possible choice by elimination.

Statement 1 is correct: Fixed-term employment and ease of layoff. The amendment introduces the concept of "fixed-term employment" for the first place. While it doesn't automatically make layoffs easier, it allows companies to hire for specific projects or periods without them becoming permanent employees. This can potentially make restructuring or downsizing during economic downturns easier for companies with fixed-term employees compared to permanent ones (who have greater job security). Statement 2 is correct: Notice period for temporary workmen.
The amendment clarifies that no notice period is required to terminate the employment of a "temporary workman," which is someone hired for a specific, non-continuous job or for a short period.