The correct option is 2 only.
Explanation
In the context of industrial relations and globalization, "flexibility" in labour laws refers to the relaxation of rigid regulations governing the hiring and retrenchment of employees. Multinational Corporations (MNCs) and industries advocate for this flexibility to align their workforce size with market fluctuations and production cycles.
Statement-wise Analysis:
- Statement 1 is Incorrect. Flexibility in labour laws implies moving away from mandatory permanent employment. It allows companies to bypass rigid permanent hiring requirements in favor of more fluid employment arrangements, such as fixed-term or casual contracts.
- Statement 2 is Correct. A core component of labour flexibility is the provision that allows companies to hire workers for short durations specifically to handle intense pressure of work or seasonal peaks. This enables firms to adjust their labour force dynamically based on demand.
- Statement 3 is Incorrect. The primary economic objective of labour flexibility is to reduce the cost of labour for the company. By hiring workers on a temporary basis and avoiding the overheads associated with permanent tenure (such as long-term benefits and severance pay), companies aim to lower their cost of production.
Key Takeaway:
Labour law flexibility permits the hiring of workers on short-term or contract bases to manage fluctuating demand, with the ultimate goal of reducing operational costs for the employer.