QUES TION 13 1 points Save Ans One of the reasons many firms have chosen to use

Question

QUES TION 13 1 points Save Ans One of the reasons many firms have chosen to use temporary employees rather than rehire full time employees is that the government provides strong tax incentives to hire temporary workers O such workers usually are more loyal to the firm O workers, so there are fewer legal hassles associated with hin gle O porary workers most labor laws only apply to full-time it enables them to avoid the prohibitively high costs associated with terminating employees 1 points Save An

Explanation / Answer

Option D is correct, i.e. the companies want to avoid higher costs associated with terminating the employees. Temporary employees are generally hired for projects that are bound to end, after the end of the project the employees are made to sit on bench till the time next project arrives and hence it is always beneficial for the companies to hire such employees from a third party vendor so that the cost is as less as possible. Also, other options are incorrect because labor laws are applicable to all employees and third party temporary employees are also protected by these labor laws. Loyalty issue is also not something that we can relate to because employee on companies pay roll i.e. permanent employees are equally loyal.

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