Labour Law MCQs for Judiciary, Page 2

Judiciary Labour Law questions 26-50 of 150, with answer keys and explanations covering industrial disputes, trade unions, standing orders, wages, social security, occupational safety, and labour codes.

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Practice judiciary exam MCQs with answers and explanations across substantive law, procedure, evidence, constitutional law, and state judicial service subjects.

  • Apprentices Act 1961 - Purpose and Scope1
  • Apprentices Act 1961 - Section 18 - Status of Apprentices1
  • Building and Other Construction Workers Act 1996 - Purpose and Cess1
  • Child Labour (Prohibition and Regulation) Act 1986 - Prohibition and Amendment1
  • Code on Social Security 2020 - Aggregator and Gig Worker Contribution Mechanism1
  • Code on Social Security 2020 - Consolidation of Social Security Legislation1
  • Code on Social Security 2020 - Gig and Platform Workers1
  • Code on Social Security 2020 - Maternity Benefit Provisions Retained from the 1961 Act1
  • Code on Wages 2019 - Consolidation of Wage Legislation1
  • Code on Wages 2019 - Definition of Wages - Inclusions and Exclusions1
  • Code on Wages 2019 - Gender Neutrality in Wage Provisions1
  • Code on Wages 2019 - Section 18 - Time Period for Payment of Wages1
  • Code on Wages 2019 - Section 26 - Bonus Eligibility Wage Ceiling1
  • Code on Wages 2019 - Section 30 - Maintenance of Registers, Records, and Returns1
  • Code on Wages 2019 - Section 9 - Components of Minimum Wage1
  • Code on Wages 2019 - Universal Minimum Wage Concept1
  • Contract Labour (Regulation and Abolition) Act 1970 - Section 1 - Applicability and Purpose1
  • Contract Labour Act 1970 - Steel Authority of India Case - Automatic Absorption Question1
  • Employees Compensation Act 1923 - Section 10 - Notice and Claim1
  • Employees Compensation Act 1923 - Section 3 - Employer's Liability for Compensation1
  • Employees Compensation Act 1923 - Section 4 - Calculation of Compensation Amount1
  • Employees Provident Funds Act 1952 - Schemes Under the Act1
  • Employees Provident Funds Act 1952 - Section 1 - Applicability1
  • Employees Provident Funds Act 1952 - Section 7A - Determination of Moneys Due from Employers1
  • Employees State Insurance Act 1948 - Purpose and Scope1
  • Employees State Insurance Act 1948 - Section 38 - All Employees to be Insured1
  • Equal Remuneration Act 1976 - Section 4 - Equal Pay for Equal Work1
  • Essential Services Maintenance Act 1981 - Purpose and Effect1
  • Factories Act 1948 - Chapter III - Health Provisions1
  • Factories Act 1948 - Section 2(m) - Definition of Factory1
  • Factories Act 1948 - Section 51 to 56 - Working Hours1
  • Factories Act 1948 - Section 59 - Overtime Wages1
  • Factories Act 1948 - Section 67 - Prohibition of Employment of Young Children1
  • Factories Act 1948 - Section 79 - Annual Leave with Wages1
  • Factories Act 1948 - Section 87 - Prohibition of Employment in Dangerous Operations1
  • Industrial Disputes Act 1947 - A. Sundarambal Case - Teachers as Workmen1
  • Industrial Disputes Act 1947 - Air India v Nargesh Meerza Case - Discriminatory Service Conditions1
  • Industrial Disputes Act 1947 - Chapter VA - Lay-off Compensation under Section 25C1
  • Industrial Disputes Act 1947 - Chapter VB - Special Provisions for Large Establishments1
  • Industrial Disputes Act 1947 - Concept of Industrial Adjudication versus Ordinary Civil Adjudication1
  • Industrial Disputes Act 1947 - Deepali Gundu Surwase Case - Back Wages on Reinstatement1
  • Industrial Disputes Act 1947 - Dharangadhra Chemical Works - Control and Supervision Test1
  • Industrial Disputes Act 1947 - Essorpe Mills Case - Domestic Inquiry and Natural Justice1
  • Industrial Disputes Act 1947 - Fifth Schedule - Unfair Labour Practices by Employers1
  • Industrial Disputes Act 1947 - Fifth Schedule - Unfair Labour Practices by Workmen and Trade Unions1
  • Industrial Disputes Act 1947 - Fire Stone Tyre & Rubber Co Case - Continuous Service1
  • Industrial Disputes Act 1947 - H.R. Adyanthaya Case - Predominant Nature of Duties Test1
  • Industrial Disputes Act 1947 - Hindustan Steel Limited v Workmen - Domestic Inquiry Standards1
  • Industrial Disputes Act 1947 - J.H. Jadhav Case - Individual vs Industrial Dispute1
  • Industrial Disputes Act 1947 - Management of Chandramalai Estate - Legality vs Justifiability of Strike1
  • Industrial Disputes Act 1947 - Municipal Corporation of Delhi v Female Workers1
  • Industrial Disputes Act 1947 - Punjab Land Development Case - Section 25F Compliance1
  • Industrial Disputes Act 1947 - Section 10 - Reference of Disputes1
  • Industrial Disputes Act 1947 - Section 11A - Tribunal's Power Regarding Punishment1
  • Industrial Disputes Act 1947 - Section 12 - Duties of Conciliation Officers1
  • Industrial Disputes Act 1947 - Section 17 - Publication of Reports and Awards1
  • Industrial Disputes Act 1947 - Section 18(3) - Binding Nature of Settlement1
  • Industrial Disputes Act 1947 - Section 2(cc) - Definition of Lay-off1
  • Industrial Disputes Act 1947 - Section 2(j) - Definition of Industry - Bangalore Water Supply Test1
  • Industrial Disputes Act 1947 - Section 2(j) - Subsequent Developments - State of UP v Jai Bir Singh1
  • Industrial Disputes Act 1947 - Section 2(k) - Definition of Industrial Dispute1
  • Industrial Disputes Act 1947 - Section 2(oo) - Definition of Retrenchment1
  • Industrial Disputes Act 1947 - Section 2(p) - Definition of Settlement1
  • Industrial Disputes Act 1947 - Section 2(q) - Definition of Strike1
  • Industrial Disputes Act 1947 - Section 2(ra) - Definition of Negotiating Agent1
  • Industrial Disputes Act 1947 - Section 2(ra) - Negotiating Union under the Industrial Relations Code Contrasted with Pre-Existing Position1
  • Industrial Disputes Act 1947 - Section 2(ra) and Negotiating Agent - Historical Absence1
  • Industrial Disputes Act 1947 - Section 2(s) - Definition of Workman1
  • Industrial Disputes Act 1947 - Section 22 - Prohibition of Strikes and Lockouts in Public Utility Services1
  • Industrial Disputes Act 1947 - Section 25 - 25S Continuity of Service in Case of Transfer of Undertaking1
  • Industrial Disputes Act 1947 - Section 25 - Prohibition of Financial Aid to Illegal Strikes and Lockouts1
  • Industrial Disputes Act 1947 - Section 25-O and 25-N - Closure Permission1
  • Industrial Disputes Act 1947 - Section 25C - Disqualification from Lay-off Compensation1
  • Industrial Disputes Act 1947 - Section 25FFF - Compensation in Case of Closure1
  • Industrial Disputes Act 1947 - Section 25H - Re-employment of Retrenched Workmen1
  • Industrial Disputes Act 1947 - Section 25J - Effect of Laws Inconsistent with the Act1
  • Industrial Disputes Act 1947 - Section 25M - Restriction on Lay-off in Establishments Covered by Chapter VB1
  • Industrial Disputes Act 1947 - Section 25N - Conditions Precedent to Retrenchment in Chapter VB Establishments1
  • Industrial Disputes Act 1947 - Section 25T and 25U - Unfair Labour Practices1
  • Industrial Disputes Act 1947 - Section 2A - Individual Dispute Deemed Industrial Dispute1
  • Industrial Disputes Act 1947 - Section 31 - Penalty for Illegal Strikes and Lockouts1
  • Industrial Disputes Act 1947 - Section 33 - Conditions of Service During Pendency of Proceedings1
  • Industrial Disputes Act 1947 - Section 33A - Special Provision for Adjudication of Complaints Regarding Contravention of Section 331
  • Industrial Disputes Act 1947 - Section 33C - Recovery of Money Due from Employer1
  • Industrial Disputes Act 1947 - Section 36 - Representation of Parties1
  • Industrial Disputes Act 1947 - Section 9A - Notice of Change1
  • Industrial Disputes Act 1947 - Section 9C - Grievance Redressal Machinery1
  • Industrial Disputes Act 1947 - Syndicate Bank v K Umesh Nayak1
  • Industrial Disputes Act 1947 - T.K. Rangarajan Case - No Fundamental Right to Strike1
  • Industrial Disputes Act 1947 - Uday Narain Pandey Case - Last Come First Go Principle1
  • Industrial Disputes Act 1947 - Workmen as a Class - Representative Capacity in Industrial Disputes1
  • Industrial Disputes Act 1947 - Workmen of Dimakuchi Tea Estate Case1
  • Industrial Disputes Act 1947 - Workmen of Indian Express Newspapers Case - Closure Compensation1
  • Industrial Disputes Act 1947 - Workmen of Subong Tea Estate Case - Bonus and Customary Practice Distinguished from Statutory Bonus1
  • Industrial Disputes Act 1947 - Workmen of Sudder Office Cinchona Case - Bonus and Customary Payments1
  • Industrial Employment (Standing Orders) Act 1946 - Applicability1
  • Industrial Employment (Standing Orders) Act 1946 - Model Standing Orders1
  • Industrial Employment (Standing Orders) Act 1946 - Purpose and Scope1
  • Industrial Employment Standing Orders Act 1946 - Section 10A - Temporary Application Pending Certification1
  • Industrial Relations Code 2020 - Consolidation of Trade Union and Industrial Dispute Legislation1
  • Industrial Relations Code 2020 - Definition of Worker - Inclusion of Working Journalists and Sales Promotion Employees1
  • Industrial Relations Code 2020 - Fixed Term Employment1
  • Industrial Relations Code 2020 - Negotiating Union and Negotiating Council1
  • Industrial Relations Code 2020 - Re-Skilling Fund1
  • Industrial Relations Code 2020 - Threshold for Government Permission for Retrenchment1
  • Inter-State Migrant Workmen Act 1979 - Purpose and Registration Requirement1
  • Labour Law - Kahn Freund and Sociological Understanding of Labour Law1
  • Labour Law - Overall Significance of the National Commission on Labour Reports1
  • Maternity Benefit Act 1961 - Section 11A - Creche Facility1
  • Maternity Benefit Act 1961 - Section 12 - Dismissal During Pregnancy1
  • Maternity Benefit Act 1961 - Section 3(o) - Eligibility - Qualifying Period1
  • Maternity Benefit Act 1961 - Section 4 - Employment of Women During Certain Periods Prohibited1
  • Maternity Benefit Act 1961 - Section 5 - Duration of Maternity Benefit (2017 Amendment)1
  • Maternity Benefit Act 1961 - Section 5(3) - Commissioning and Adopting Mothers1
  • Maternity Benefit Act 1961 - Section 6 - Notice of Claim for Maternity Benefit1
  • Mines Act 1952 - Section 2(1)(j) - Definition of Mine1
  • Mines Act 1952 - Section 46 - Prohibition of Employment of Persons Below Eighteen Years Underground1
  • Mines Act 1952 - Section 7 and 8 - Notice of Opening and Closing of Mines1
  • Minimum Wages Act 1948 - Section 3 - Fixation of Minimum Rates of Wages1
  • Occupational Safety Health and Working Conditions Code 2020 - Consolidation1
  • Occupational Safety Health and Working Conditions Code 2020 - Threshold for Factory Coverage1
  • Payment of Bonus Act 1965 - Section 10 and 11 - Minimum and Maximum Bonus1
  • Payment of Bonus Act 1965 - Section 32 - Establishments Excluded from the Act1
  • Payment of Bonus Act 1965 - Section 8 - Eligibility for Bonus1
  • Payment of Gratuity Act 1972 - Calculation of Gratuity Amount1
  • Payment of Gratuity Act 1972 - Section 4 - Eligibility for Gratuity1
  • Payment of Gratuity Act 1972 - Section 4(6) - Forfeiture of Gratuity1
  • Payment of Wages Act 1936 - Section 1 - Applicability1
  • Payment of Wages Act 1936 - Section 5 - Time of Payment of Wages1
  • Payment of Wages Act 1936 - Section 7 - Authorised Deductions1
  • Plantation Labour Act 1951 - Section 2(f) - Definition of Plantation1
  • Plantation Labour Act 1951 - Welfare Provisions - Housing and Medical Facilities1
  • Sexual Harassment of Women at Workplace Act 2013 - Internal Complaints Committee1
  • Trade Unions Act 1926 - Food Corporation of India Staff Union Case1
  • Trade Unions Act 1926 - In Re Inland Steam Navigation Workers Union Case1
  • Trade Unions Act 1926 - R.S. Ruikar Case - Criminal Immunity Applied1
  • Trade Unions Act 1926 - Registrar of Trade Unions - Rangaswami Case1
  • Trade Unions Act 1926 - Rohtas Industries Staff Union Case1
  • Trade Unions Act 1926 - Section 10 - Cancellation of Registration1
  • Trade Unions Act 1926 - Section 16 - Trade Union Not to be Unlawful for Purpose of Restraint of Trade1
  • Trade Unions Act 1926 - Section 17 - Criminal Conspiracy Immunity1
  • Trade Unions Act 1926 - Section 18 - Civil Immunity1
  • Trade Unions Act 1926 - Section 2(h) - Definition of Trade Union1
  • Trade Unions Act 1926 - Section 21A - Disqualifications of Office-Bearers1
  • Trade Unions Act 1926 - Section 22 - Proportion of Office-Bearers to be Connected with the Industry1
  • Trade Unions Act 1926 - Section 4 - Minimum Requirement for Registration1
  • Trade Unions Act 1926 - Section 6 - Provisions to be Contained in Rules of a Trade Union1
  • Trade Unions Act 1926 - Section 9A - Rules to Provide for Objects on Which General Funds May Be Spent1
  • Trade Unions Act 1926 - Tamil Nadu Non-Gazetted Government Officers Union Case1
  • Unorganised Workers Social Security Act 2008 - Scope and Purpose1
Question 26HardEmployees Compensation Act 1923 - Section 10 - Notice and Claim

Under Section 10 of the Employees' Compensation Act, 1923, no claim for compensation shall be entertained by a Commissioner unless notice of the accident has been given in the manner prescribed, and the claim is preferred within a specified period. What is this general limitation period for preferring a claim, subject to the Commissioner's discretion to extend it for sufficient cause?

  1. A

    There is no limitation period of any kind under Section 10, and a claim may be preferred at any time, however distant, after the accident

  2. B

    Two years from the occurrence of the accident or, in case of death, from the date of death, subject to the Commissioner's discretion to entertain a claim even after the expiry of this period if satisfied that the failure to make the claim within the prescribed period was due to sufficient cause

  3. C

    Thirty days from the date of the accident, with absolutely no possibility of extension under any circumstances whatsoever

  4. D

    The limitation period is exactly ten years, identical in every case regardless of the nature of the claim or any explanation for delay

View answer and explanation

Correct answer: B. Two years from the occurrence of the accident or, in case of death, from the date of death, subject to the Commissioner's discretion to entertain a claim even after the expiry of this period if satisfied that the failure to make the claim within the prescribed period was due to sufficient cause

Section 10 of the Employees' Compensation Act, 1923 prescribes a limitation period of two years from the occurrence of the accident (or from the date of death, in cases of death) for preferring a claim for compensation before the Commissioner, subject to the requirement of proper notice having been given. Importantly, the section vests the Commissioner with discretion to entertain a claim even after the expiry of this two-year period where satisfied that the delay was due to sufficient cause, reflecting the protective and beneficial character of the legislation, which seeks to avoid the harsh result of a genuinely deserving claimant being denied compensation purely due to a procedural delay that may have arisen from legitimate and explicable circumstances rather than any lack of merit in the underlying claim.

Source note: Section 10, Employees Compensation Act 1923

Question 27HardIndustrial Disputes Act 1947 - Section 25FFF - Compensation in Case of Closure

Under Section 25FFF of the Industrial Disputes Act, 1947, where an undertaking is closed down for any reason whatsoever, every workman who has been in continuous service for not less than one year in that undertaking immediately before such closure is entitled to notice and compensation in accordance with which provision, subject to certain modifications applicable specifically to closure?

  1. A

    No compensation whatsoever is payable to any workman upon closure of an undertaking, regardless of the length of their service

  2. B

    The workman is entitled to notice and compensation as if he had been retrenched under Section 25F, subject to the proviso that where the closure is due to unavoidable circumstances beyond the employer's control, the compensation payable to the workman may be limited to a maximum specified amount (notwithstanding the general formula under Section 25F), reflecting a degree of relief for employers whose closure was genuinely forced by circumstances outside their control, such as situations involving natural calamity or similar unavoidable causes

  3. C

    Compensation under Section 25FFF is payable only to workmen who hold managerial or supervisory positions, with no compensation available to any other category of workman

  4. D

    Section 25FFF requires the workman to personally prove that the closure was deliberately and maliciously orchestrated by the employer before any compensation becomes payable

View answer and explanation

Correct answer: B. The workman is entitled to notice and compensation as if he had been retrenched under Section 25F, subject to the proviso that where the closure is due to unavoidable circumstances beyond the employer's control, the compensation payable to the workman may be limited to a maximum specified amount (notwithstanding the general formula under Section 25F), reflecting a degree of relief for employers whose closure was genuinely forced by circumstances outside their control, such as situations involving natural calamity or similar unavoidable causes

Section 25FFF of the Industrial Disputes Act, 1947 extends the principle of retrenchment compensation to situations involving closure of an undertaking, generally entitling a workman with one year or more of continuous service to notice and compensation calculated in the same manner as under Section 25F (retrenchment compensation). However, the section includes an important proviso applicable specifically to closure: where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation payable to the workman may be limited to a specified maximum amount, providing a degree of relief for employers facing closure due to genuinely unavoidable causes (as opposed to closure resulting from ordinary business decisions), reflecting the legislature's attempt to balance worker protection with recognition of circumstances genuinely beyond an employer's control.

Source note: Section 25FFF, Industrial Disputes Act 1947

Question 28HardIndustrial Disputes Act 1947 - Section 25N - Conditions Precedent to Retrenchment in Chapter VB Establishments

Under Section 25N of the Industrial Disputes Act, 1947, an employer in an establishment to which Chapter vb applies who intends to retrench a workman who has been in continuous service for not less than one year must, before such retrenchment:

  1. A

    No special conditions apply, and the employer may freely retrench any workman without any notice or governmental permission requirement of any kind under Section 25N

  2. B

    Serve a notice on every workman to be retrenched in the prescribed manner, and apply for prior permission of the appropriate government or specified authority, stating clearly the reasons for the intended retrenchment, with retrenchment effected without obtaining the requisite permission being deemed illegal, while permission may be granted or refused having regard to factors including the genuineness and adequacy of the reasons stated, interests of workmen, and various other relevant factors specified under the section

  3. C

    The employer's only obligation under Section 25N is to inform the workman's family members, with no requirement of governmental permission or any notice to the workman himself

  4. D

    Section 25N applies only to retrenchment occurring during a public holiday and imposes no requirement for retrenchment occurring on any ordinary working day

View answer and explanation

Correct answer: B. Serve a notice on every workman to be retrenched in the prescribed manner, and apply for prior permission of the appropriate government or specified authority, stating clearly the reasons for the intended retrenchment, with retrenchment effected without obtaining the requisite permission being deemed illegal, while permission may be granted or refused having regard to factors including the genuineness and adequacy of the reasons stated, interests of workmen, and various other relevant factors specified under the section

Section 25N of the Industrial Disputes Act, 1947 establishes the more stringent retrenchment regime applicable to larger establishments covered by Chapter VB, requiring the employer to both serve notice on the workman to be retrenched and obtain prior permission from the appropriate government or specified authority before effecting retrenchment, stating the reasons for the intended retrenchment. The government's decision on whether to grant permission takes into account factors including the genuineness and adequacy of the stated reasons, the interests of the workmen, and other relevant factors specified under the section, and retrenchment effected without the requisite permission is deemed illegal, paralleling the more rigorous permission-based approach (as opposed to the notice-and-compensation approach under Section 25F applicable to other establishments) that characterises the Chapter VB framework for larger establishments.

Source note: Section 25N, Industrial Disputes Act 1947

Question 29HardIndustrial Disputes Act 1947 - Section 31 - Penalty for Illegal Strikes and Lockouts

Under Section 26 of the Industrial Disputes Act, 1947, what penalty is prescribed for a workman who commences, continues, or otherwise acts in furtherance of, a strike which is illegal under the Act?

  1. A

    No penalty whatsoever is prescribed under the Act for participation in an illegal strike, with the only consequence being potential denial of wages for the strike period

  2. B

    Imprisonment for a term which may extend to one month, or with fine which may extend to a specified amount, or with both, reflecting the Act's recognition that participation in an illegal strike, while a serious matter warranting a penal consequence, is treated as a relatively minor offence compared to many other categories of criminal conduct, given the underlying context of a labour dispute rather than ordinary criminality

  3. C

    The mandatory and sole penalty for any illegal strike, regardless of circumstances, is capital punishment

  4. D

    The penalty under Section 26 applies exclusively to office-bearers of trade unions and has no application to ordinary workmen who merely participate in an illegal strike without holding any office

View answer and explanation

Correct answer: B. Imprisonment for a term which may extend to one month, or with fine which may extend to a specified amount, or with both, reflecting the Act's recognition that participation in an illegal strike, while a serious matter warranting a penal consequence, is treated as a relatively minor offence compared to many other categories of criminal conduct, given the underlying context of a labour dispute rather than ordinary criminality

Section 26 of the Industrial Disputes Act, 1947 prescribes a relatively modest penal consequence for workmen who commence, continue, or further an illegal strike: imprisonment for a term which may extend to one month, or fine, or both. This relatively limited penalty (compared to penalties for many other categories of offences) reflects the Act's underlying recognition that strikes, even when found to be procedurally illegal under the Act's specific requirements (such as the notice provisions of Section 22), typically arise within the context of a genuine labour dispute rather than constituting ordinary criminal conduct, and the legislature accordingly calibrated the penal consequence to reflect this distinctive context, while still maintaining some deterrent effect against non-compliance with the Act's procedural strike regulations.

Source note: Section 26, Industrial Disputes Act 1947

Question 30HardIndustrial Disputes Act 1947 - Section 25 - Prohibition of Financial Aid to Illegal Strikes and Lockouts

Under Section 25 of the Industrial Disputes Act, 1947, no person shall knowingly expend or apply any money in direct furtherance or support of:

  1. A

    Any lawful trade union activity that complies fully with all statutory requirements under the Trade Unions Act and the Industrial Disputes Act

  2. B

    Any illegal strike or lockout, prohibiting financial assistance from being knowingly provided in direct furtherance or support of a strike or lockout that is illegal under the provisions of the Act, thereby seeking to deter not only direct participants in an illegal strike or lockout but also third parties who might otherwise provide financial backing to sustain such illegal industrial action

  3. C

    Any charitable donation made to a registered trade union for purposes entirely unconnected with any strike or lockout

  4. D

    Any payment of statutory minimum wages to workmen who are not participating in any strike or lockout whatsoever

View answer and explanation

Correct answer: B. Any illegal strike or lockout, prohibiting financial assistance from being knowingly provided in direct furtherance or support of a strike or lockout that is illegal under the provisions of the Act, thereby seeking to deter not only direct participants in an illegal strike or lockout but also third parties who might otherwise provide financial backing to sustain such illegal industrial action

Section 25 of the Industrial Disputes Act, 1947 extends the Act's regulatory reach beyond direct participants in an illegal strike or lockout to also prohibit knowing financial support for such illegal industrial action. By prohibiting any person from knowingly expending or applying money in direct furtherance or support of an illegal strike or lockout, the provision seeks to deter not only the workmen or employers directly engaged in the illegal action but also third parties (such as other organisations or individuals) who might otherwise provide financial backing enabling the illegal strike or lockout to be sustained over a longer period, reinforcing the broader statutory objective of discouraging non-compliance with the Act's procedural requirements governing strikes and lockouts.

Source note: Section 25, Industrial Disputes Act 1947

Question 31HardCode on Wages 2019 - Section 18 - Time Period for Payment of Wages

The Code on Wages, 2019 retains and consolidates the time-bound wage payment principle previously found under the Payment of Wages Act, 1936. Under the Code, by when must wages generally be paid, depending on the wage period adopted by the establishment?

  1. A

    The Code abolishes entirely any requirement for timely payment of wages, leaving the timing of wage payment to the unrestricted discretion of the employer in every case

  2. B

    The Code provides time limits depending on the wage period (daily, weekly, fortnightly, or monthly) adopted by the establishment, generally requiring payment before the expiry of a prescribed number of days after the end of the relevant wage period, broadly continuing the protective timely-payment principle established under the erstwhile Payment of Wages Act, 1936, while consolidating it within the unified wage code framework

  3. C

    Under the Code, wages may only be paid once every five years, regardless of the wage period otherwise adopted by the establishment

  4. D

    The Code requires that all wages be paid exclusively in the form of physical gold or other precious metals, with cash or bank transfer payments being entirely prohibited

View answer and explanation

Correct answer: B. The Code provides time limits depending on the wage period (daily, weekly, fortnightly, or monthly) adopted by the establishment, generally requiring payment before the expiry of a prescribed number of days after the end of the relevant wage period, broadly continuing the protective timely-payment principle established under the erstwhile Payment of Wages Act, 1936, while consolidating it within the unified wage code framework

The Code on Wages, 2019 retains and consolidates the fundamental protective principle of timely wage payment that was previously addressed under the Payment of Wages Act, 1936, providing time limits for wage payment depending on the wage period (which may be fixed as daily, weekly, fortnightly, or monthly) adopted by a particular establishment, generally requiring payment within a prescribed number of days after the conclusion of the relevant wage period. This continuity in the underlying protective principle, even as the provision has been relocated and consolidated within the unified Code framework, reflects the broader codification exercise's general approach of structurally reorganising and consolidating previously separate labour statutes while substantively preserving their core protective principles for workers.

Source note: Code on Wages 2019 - Time Period for Wage Payment

Question 32HardIndustrial Disputes Act 1947 - Section 2(ra) and Negotiating Agent - Historical Absence

Prior to the enactment of the Industrial Relations Code, 2020, Indian central labour legislation, including the Industrial Disputes Act, 1947 and the Trade Unions Act, 1926, did not contain a comprehensive statutory mechanism for determining which trade union should be recognised as the exclusive 'negotiating agent' for collective bargaining where multiple unions existed within a single establishment. What was the practical consequence of this legislative gap?

  1. A

    The absence of a statutory mechanism meant that collective bargaining was entirely impossible in India before 2020, with no employer ever engaging in any form of negotiation with any trade union prior to that date

  2. B

    In the absence of a uniform central statutory recognition mechanism, the determination of which union (or unions) would engage in collective bargaining with a given employer was addressed through a patchwork of voluntary recognition practices, certain state-specific recognition legislation in some jurisdictions, the non-binding Code of Discipline evolved through tripartite consultation, and case law (such as Food Corporation of India Staff Union v.)

  3. C

    The gap was filled entirely and exclusively by direct intervention of the Supreme Court of India in every individual case, with no other mechanism playing any role whatsoever

  4. D

    There was, in fact, no legislative gap at all, and the Industrial Disputes Act, 1947 had always contained a comprehensive and uniform recognition mechanism identical to that introduced later by the 2020 Code

View answer and explanation

Correct answer: B. In the absence of a uniform central statutory recognition mechanism, the determination of which union (or unions) would engage in collective bargaining with a given employer was addressed through a patchwork of voluntary recognition practices, certain state-specific recognition legislation in some jurisdictions, the non-binding Code of Discipline evolved through tripartite consultation, and case law (such as Food Corporation of India Staff Union v.)

The practical consequence of the historical absence of a uniform central statutory recognition mechanism for collective bargaining was considerable variability and uncertainty in how trade union recognition was addressed across India prior to the Industrial Relations Code, 2020. In the absence of binding central legislation, recognition was addressed through a patchwork of voluntary recognition arrangements negotiated directly between employers and unions, certain state-specific recognition statutes that existed in some jurisdictions (filling the gap left by central legislation within their territorial scope), the non-binding Code of Discipline (evolved through tripartite consultation among government, employer, and worker representatives as a voluntary framework), and clarifying case law such as Food Corporation of India Staff Union v. Food Corporation of India, which confirmed that the Trade Unions Act, 1926 itself created no enforceable obligation on employers to recognise any particular registered union, leaving recognition largely to non-statutory or fragmented state-level mechanisms until the 2020 Code introduced a uniform central framework.

Source note: Pre-2020 Trade Union Recognition Gap; Food Corporation of India Staff Union v. Food Corporation of India AIR 1995 SC 1344

Question 33HardTrade Unions Act 1926 - Section 16 - Trade Union Not to be Unlawful for Purpose of Restraint of Trade

Under Section 16 of the Trade Unions Act, 1926, the agreement between members of a registered trade union, although it may be in restraint of trade, shall not be:

  1. A

    Treated as void or voidable merely on the ground that it is in restraint of trade, addressing the potential common law difficulty that an agreement among workmen to act collectively in matters of wages, conditions, or trade-related restraint might otherwise be vulnerable to challenge on traditional contract law grounds prohibiting agreements in restraint of trade

  2. B

    The agreement is automatically void and unenforceable in every case where it touches upon any restraint of trade, with Section 16 providing no protection whatsoever against such voidness

  3. C

    Section 16 applies only to agreements made by employers and has no application to agreements between members of a trade union of workmen

  4. D

    The protection under Section 16 is available only to unregistered trade unions, with no corresponding protection for registered trade unions

View answer and explanation

Correct answer: A. Treated as void or voidable merely on the ground that it is in restraint of trade, addressing the potential common law difficulty that an agreement among workmen to act collectively in matters of wages, conditions, or trade-related restraint might otherwise be vulnerable to challenge on traditional contract law grounds prohibiting agreements in restraint of trade

Section 16 of the Trade Unions Act, 1926 provides important protection by clarifying that an agreement between members of a registered trade union shall not be treated as void or voidable merely because it is in restraint of trade, addressing a potential common law vulnerability under traditional contract law principles, which generally treat agreements in restraint of trade with suspicion and may render them void or unenforceable absent specific justification. By immunising trade union agreements among members from this general common law principle (specifically in relation to the trade union's lawful objects), Section 16 ensures that collective arrangements regarding matters such as wages, working conditions, and coordinated trade union action are not rendered legally vulnerable purely on the basis of this traditional contract law doctrine, reinforcing the broader legislative framework supporting legitimate trade union activity.

Source note: Section 16, Trade Unions Act 1926

Question 34HardIndustrial Disputes Act 1947 - Section 25C - Disqualification from Lay-off Compensation

Under the proviso to Section 25C of the Industrial Disputes Act, 1947, a workman shall not be entitled to lay-off compensation in which circumstances?

  1. A

    There are no disqualifying circumstances whatsoever, and every laid-off workman with the requisite continuous service is unconditionally entitled to compensation in every case

  2. B

    Where the workman, instead of being laid off, is offered alternative employment in the same establishment which does not call for any special skill or previous experience and can be done by him, provided that the alternative employment would not involve any unreasonable change in conditions of service, and the workman refuses to accept such offered employment; or where the workman does not present himself at the establishment at the appointed time during normal working hours at least once a day during the period of lay-off; or where the lay-off is due to a strike or slowing down of production by workmen in another part of the establishment

  3. C

    Disqualification applies automatically to every female workman, regardless of any other circumstance or factor

  4. D

    Disqualification applies only to workmen who have completed more than twenty-five years of continuous service, with no disqualifying circumstance applicable to workmen with shorter service

View answer and explanation

Correct answer: B. Where the workman, instead of being laid off, is offered alternative employment in the same establishment which does not call for any special skill or previous experience and can be done by him, provided that the alternative employment would not involve any unreasonable change in conditions of service, and the workman refuses to accept such offered employment; or where the workman does not present himself at the establishment at the appointed time during normal working hours at least once a day during the period of lay-off; or where the lay-off is due to a strike or slowing down of production by workmen in another part of the establishment

The proviso to Section 25C of the Industrial Disputes Act, 1947 establishes specific disqualifying circumstances under which lay-off compensation is not payable, despite the general entitlement for workmen with one year or more of continuous service. These include: refusal of suitable alternative employment offered by the employer within the same establishment, not requiring special skill or experience, and not involving unreasonable changes in service conditions; failure to present oneself for work during the lay-off period at the appointed time at least once daily; and lay-off resulting from a strike or deliberate slowing down of production by workmen in another part of the establishment. These disqualifications reflect a policy balance, ensuring that lay-off compensation, while protective of genuinely affected workmen, is not payable in circumstances suggesting the workman's own conduct contributed to or is inconsistent with continued entitlement.

Source note: Proviso to Section 25C, Industrial Disputes Act 1947

Question 35HardIndustrial Disputes Act 1947 - Fifth Schedule - Unfair Labour Practices by Employers

Under the Fifth Schedule to the Industrial Disputes Act, 1947 (read with Sections 25T and 25U), which of the following is listed as an example of an unfair labour practice on the part of an employer?

  1. A

    Paying wages strictly in accordance with the minimum wage rates fixed under the Minimum Wages Act, with no deviation whatsoever from the statutorily prescribed minimum

  2. B

    To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise, form, join, or assist a trade union or to engage in concerted activities for purposes of collective bargaining or other mutual aid or protection; or to discharge or dismiss workmen by way of victimisation for their genuine trade union activities; or to discharge or discharge with notice any workman in pursuance of a recommendation made by an officer of the establishment with a view to victimise such workman for legitimate trade union activities

  3. C

    Granting bonus to employees in excess of the statutory maximum prescribed under the Payment of Bonus Act, which the Fifth Schedule treats as the sole and exclusive form of unfair labour practice applicable to employers

  4. D

    Providing welfare amenities to workmen in excess of those mandated by the Factories Act, with the Fifth Schedule treating any such excess provision as an automatic unfair labour practice

View answer and explanation

Correct answer: B. To interfere with, restrain from, or coerce, workmen in the exercise of their right to organise, form, join, or assist a trade union or to engage in concerted activities for purposes of collective bargaining or other mutual aid or protection; or to discharge or dismiss workmen by way of victimisation for their genuine trade union activities; or to discharge or discharge with notice any workman in pursuance of a recommendation made by an officer of the establishment with a view to victimise such workman for legitimate trade union activities

The Fifth Schedule to the Industrial Disputes Act, 1947 enumerates specific categories of unfair labour practices on the part of employers, including: interfering with, restraining, or coercing workmen in exercising their right to organise or join trade unions or engage in concerted activities for collective bargaining; discharging or dismissing workmen by way of victimisation for genuine trade union activities; and discharging workmen pursuant to a recommendation aimed at victimising them for legitimate trade union activities, among various other specified categories addressing employer conduct that undermines workers' freedom of association and protection against retaliatory action connected to legitimate trade union activity, complementing the broader protective scheme of the Trade Unions Act, 1926 and the Industrial Disputes Act framework as a whole.

Source note: Fifth Schedule, Sections 25T-25U, Industrial Disputes Act 1947

Question 36HardIndustrial Disputes Act 1947 - Fifth Schedule - Unfair Labour Practices by Workmen and Trade Unions

The Fifth Schedule to the Industrial Disputes Act, 1947 also identifies unfair labour practices on the part of workmen and trade unions. Which of the following is an example of such a practice?

  1. A

    The Fifth Schedule addresses unfair labour practices exclusively by employers, with no corresponding category of unfair labour practice applicable to workmen or trade unions under any circumstances

  2. B

    To advise or actively support, or instigate any strike deemed to be illegal under the Industrial Disputes Act; to coerce workmen in the exercise of their right to self-organisation or to join a union of their own choice; or to indulge in coercive activities against certification of a bargaining representative, among other specified practices

  3. C

    Merely forming a registered trade union, with the Fifth Schedule treating the act of trade union formation itself, regardless of any other conduct, as an automatic and inherent unfair labour practice

  4. D

    Filing a legitimate industrial dispute before a Labour Court or Industrial Tribunal in accordance with the procedures established under the Act, which the Fifth Schedule treats as an unfair labour practice irrespective of the merits of the underlying dispute

View answer and explanation

Correct answer: B. To advise or actively support, or instigate any strike deemed to be illegal under the Industrial Disputes Act; to coerce workmen in the exercise of their right to self-organisation or to join a union of their own choice; or to indulge in coercive activities against certification of a bargaining representative, among other specified practices

The Fifth Schedule to the Industrial Disputes Act, 1947 identifies specific categories of unfair labour practices applicable to workmen and trade unions as well, reflecting the balanced statutory recognition that both sides of the employment relationship can potentially engage in conduct undermining fair and orderly industrial relations. Examples include advising, actively supporting, or instigating a strike that is illegal under the Act; coercing workmen in their exercise of the right to self-organisation or to choose their own union freely (including coercion exercised by a rival union or its members against fellow workmen); and engaging in coercive activities directed against the proper certification process for determining a bargaining representative, among various other specified categories, ensuring the unfair labour practice framework addresses problematic conduct from multiple directions rather than being one-sidedly focused only on employer misconduct.

Source note: Fifth Schedule, Industrial Disputes Act 1947

Question 37HardIndustrial Disputes Act 1947 - Section 9C - Grievance Redressal Machinery

Section 9C of the Industrial Disputes Act, 1947 requires every industrial establishment employing twenty or more workmen to set up which mechanism for resolving individual grievances of workmen?

  1. A

    No such mechanism is required under Section 9C, and individual grievances must always be directly referred to a Labour Court or Tribunal without any prior internal process

  2. B

    A Grievance Redressal Committee, comprising equal numbers of members representing the employer and the workmen, intended to provide an internal, expeditious, and accessible mechanism for resolving individual disputes connected with a workman's employment, prior to (or potentially in lieu of) resort to the more formal external dispute resolution machinery under the Act

  3. C

    A Grievance Redressal Committee that may be composed exclusively of representatives nominated by the employer, with no requirement of any workman representation whatsoever

  4. D

    The Grievance Redressal Committee under Section 9C has the power to impose criminal penalties, including imprisonment, on any party found to be at fault in the grievance proceedings

View answer and explanation

Correct answer: B. A Grievance Redressal Committee, comprising equal numbers of members representing the employer and the workmen, intended to provide an internal, expeditious, and accessible mechanism for resolving individual disputes connected with a workman's employment, prior to (or potentially in lieu of) resort to the more formal external dispute resolution machinery under the Act

Section 9C of the Industrial Disputes Act, 1947 mandates the establishment of a Grievance Redressal Committee in every industrial establishment employing twenty or more workmen, comprising equal numbers of members representing the employer and the workmen, providing an internal, relatively informal, and accessible mechanism intended to facilitate the expeditious resolution of individual grievances connected with a workman's employment before resort is made to the more formal and time-consuming external dispute resolution machinery (such as conciliation and adjudication before Labour Courts or Tribunals) provided elsewhere under the Act, reflecting a broader policy objective of encouraging resolution of individual workplace disputes at the earliest and most accessible stage possible.

Source note: Section 9C, Industrial Disputes Act 1947

Question 38HardIndustrial Disputes Act 1947 - Section 33A - Special Provision for Adjudication of Complaints Regarding Contravention of Section 33

Under Section 33A of the Industrial Disputes Act, 1947, where an employer contravenes the provisions of Section 33 (which restricts alteration of service conditions or disciplinary action during pendency of proceedings) during the pendency of proceedings before a specified authority, the affected workman may:

  1. A

    The workman has no remedy whatsoever for such contravention, with Section 33 operating purely as an unenforceable moral guideline with no available statutory complaint mechanism

  2. B

    Make a complaint in writing in the prescribed manner to the relevant authority before which the main proceeding is pending, and on receipt of such complaint, that authority shall adjudicate upon the complaint as if it were a dispute referred to or pending before it, applying the same provisions as would apply if the dispute had been referred for adjudication, providing an efficient mechanism for addressing the contravention within the existing proceedings rather than requiring an entirely fresh and separate dispute reference

  3. C

    The workman must file an entirely separate civil suit in an ordinary civil court, with no role for any Labour Court, Tribunal, or other authority established under the Industrial Disputes Act

  4. D

    The complaint under Section 33A can only be filed by the registered trade union itself, with individual workmen having no independent right to file such a complaint

View answer and explanation

Correct answer: B. Make a complaint in writing in the prescribed manner to the relevant authority before which the main proceeding is pending, and on receipt of such complaint, that authority shall adjudicate upon the complaint as if it were a dispute referred to or pending before it, applying the same provisions as would apply if the dispute had been referred for adjudication, providing an efficient mechanism for addressing the contravention within the existing proceedings rather than requiring an entirely fresh and separate dispute reference

Section 33A of the Industrial Disputes Act, 1947 provides a specific and efficient remedial mechanism for addressing an employer's contravention of the protective restrictions under Section 33. Rather than requiring the affected workman to initiate an entirely separate and fresh dispute reference, Section 33A allows the workman to make a written complaint, in the prescribed manner, to the very authority before which the main proceeding (in connection with which the contravention occurred) is already pending. That authority is then empowered to adjudicate upon the complaint as if it were itself a dispute referred to or pending before it, applying the relevant provisions of the Act, providing a streamlined and efficient procedural mechanism for promptly addressing Section 33 violations within the context of the existing related proceedings.

Source note: Section 33A, Industrial Disputes Act 1947

Question 39HardIndustrial Disputes Act 1947 - Section 2(ra) - Negotiating Union under the Industrial Relations Code Contrasted with Pre-Existing Position

Comparing the position under the erstwhile Industrial Disputes Act, 1947 framework (without a statutory negotiating union mechanism) to the position under the Industrial Relations Code, 2020 (which introduces such a mechanism), what is the most significant practical change for collective bargaining in India?

  1. A

    There has been no practical change of any kind whatsoever between the two frameworks, with collective bargaining operating identically under both regimes

  2. B

    The Industrial Relations Code, 2020 introduces a statutory, legally defined process for determining which trade union (or combination of unions through a negotiating council) is entitled to engage in collective bargaining with the employer on behalf of the workforce, replacing the previous reliance on voluntary recognition, fragmented state-specific legislation, and the non-binding Code of Discipline, thereby providing greater legal certainty and a uniform central framework for what union recognition disputes had previously lacked

  3. C

    The Industrial Relations Code, 2020 abolished entirely the concept of collective bargaining, replacing it with a system in which the government unilaterally fixes all terms of employment without any role for trade unions whatsoever

  4. D

    The most significant change is that collective bargaining is now conducted exclusively through international arbitration tribunals located outside India, with no role for any domestic mechanism

View answer and explanation

Correct answer: B. The Industrial Relations Code, 2020 introduces a statutory, legally defined process for determining which trade union (or combination of unions through a negotiating council) is entitled to engage in collective bargaining with the employer on behalf of the workforce, replacing the previous reliance on voluntary recognition, fragmented state-specific legislation, and the non-binding Code of Discipline, thereby providing greater legal certainty and a uniform central framework for what union recognition disputes had previously lacked

The most significant practical change introduced by the Industrial Relations Code, 2020 in this area is the establishment of a statutory, legally defined process for determining trade union recognition for collective bargaining purposes, an area that had previously lacked a uniform central legislative framework and had instead been addressed through a patchwork of voluntary recognition practices, scattered state-specific legislation, and the non-binding Code of Discipline. By providing clear statutory criteria for recognition (whether through a sole negotiating union where only one union exists, a union meeting a prescribed support threshold where multiple unions exist, or a proportionally representative negotiating council where no single union meets the threshold), the Code introduces a degree of legal certainty and uniformity to collective bargaining recognition that had been notably absent under the previous central legislative framework.

Source note: Comparison of Pre-2020 Framework and Industrial Relations Code 2020 - Negotiating Union Mechanism

Question 40HardIndustrial Disputes Act 1947 - Concept of Industrial Adjudication versus Ordinary Civil Adjudication

Indian labour law jurisprudence has long emphasised a distinction between 'industrial adjudication' (as conducted by Labour Courts, Industrial Tribunals, and National Tribunals under the Industrial Disputes Act) and ordinary civil adjudication conducted by regular civil courts. What is the significance of this distinction?

  1. A

    There is no meaningful distinction whatsoever between industrial adjudication and ordinary civil adjudication, with both processes operating identically in every respect, applying identical procedural rules, and pursuing identical objectives

  2. B

    Industrial adjudication, while drawing upon many procedural elements familiar from ordinary civil litigation, has historically been understood to serve a broader function extending beyond merely determining strict legal rights based on existing contractual or statutory entitlements; industrial tribunals have, in many contexts, been understood to possess a degree of latitude to fashion outcomes having regard to considerations of social justice, fairness, and the broader objectives of industrial peace and harmony, rather than being confined purely to a strict legalistic determination of pre-existing rights as a civil court applying ordinary contract or property law principles might be

  3. C

    Industrial adjudication applies exclusively criminal law principles, with no application of any civil law concept whatsoever, distinguishing it entirely from both civil and labour-specific considerations

  4. D

    The distinction is purely a matter of which building the proceedings are physically conducted in, with no substantive difference in the legal principles, objectives, or considerations applied by the respective forums

View answer and explanation

Correct answer: B. Industrial adjudication, while drawing upon many procedural elements familiar from ordinary civil litigation, has historically been understood to serve a broader function extending beyond merely determining strict legal rights based on existing contractual or statutory entitlements; industrial tribunals have, in many contexts, been understood to possess a degree of latitude to fashion outcomes having regard to considerations of social justice, fairness, and the broader objectives of industrial peace and harmony, rather than being confined purely to a strict legalistic determination of pre-existing rights as a civil court applying ordinary contract or property law principles might be

Indian labour law jurisprudence has long recognised a significant conceptual distinction between industrial adjudication and ordinary civil adjudication. While industrial tribunals draw upon many procedural elements familiar from civil litigation (such as the recording of evidence and application of natural justice principles), industrial adjudication has historically been understood, in various contexts, to serve a function extending beyond a purely strict legalistic determination of pre-existing contractual or statutory rights, with industrial tribunals possessing some degree of latitude to fashion outcomes informed by considerations of social justice, fairness between the parties, and the broader objective of promoting industrial peace and harmony, reflecting an understanding that labour disputes often raise considerations beyond what a court applying strict private law principles (such as ordinary contract law) would typically address, though the precise scope and limits of this broader adjudicatory function have themselves been the subject of considerable judicial discussion and evolution over time.

Source note: Distinction between Industrial Adjudication and Civil Adjudication in Indian Labour Law Jurisprudence

Question 41HardApprentices Act 1961 - Section 18 - Status of Apprentices

Under Section 18 of the Apprentices Act, 1961, an apprentice undergoing apprenticeship training in a designated trade in an establishment is deemed to be:

  1. A

    A regular workman of the establishment from the very first day of training, entitled to all rights and protections available to permanent employees under the Industrial Disputes Act, 1947 and other labour legislation

  2. B

    Not a worker, and the provisions of any labour law, including the Industrial Disputes Act, 1947, shall not apply to or in relation to an apprentice or his employment, with apprenticeship being governed instead by the specific provisions of the Apprentices Act and the contract of apprenticeship rather than the general body of labour protective legislation applicable to ordinary employees

  3. C

    An independent contractor providing services to the establishment, with no employment relationship of any kind existing between the apprentice and the establishment

  4. D

    A government employee, regardless of whether the establishment providing the apprenticeship training is a private or public sector entity

View answer and explanation

Correct answer: B. Not a worker, and the provisions of any labour law, including the Industrial Disputes Act, 1947, shall not apply to or in relation to an apprentice or his employment, with apprenticeship being governed instead by the specific provisions of the Apprentices Act and the contract of apprenticeship rather than the general body of labour protective legislation applicable to ordinary employees

Section 18 of the Apprentices Act, 1961 specifically clarifies that an apprentice is not a 'worker', and the provisions of various labour enactments, including the Industrial Disputes Act, 1947 and the Factories Act, 1948 (subject to certain specified exceptions relating to health, safety, and welfare provisions that may still apply), do not apply to or in relation to an apprentice or his employment, distinguishing the apprenticeship training relationship from an ordinary employer-employee relationship governed by the general body of protective labour legislation. This distinct legal status reflects the apprenticeship's specific training-oriented purpose, governed by its own dedicated statutory framework under the Apprentices Act and the specific contract of apprenticeship, rather than the general labour law framework applicable to ordinary workers.

Source note: Section 18, Apprentices Act 1961

Question 42HardCode on Wages 2019 - Definition of Wages - Inclusions and Exclusions

The Code on Wages, 2019 provides a unified and standardised definition of 'wages' applicable across the consolidated wage code. Which components are generally included within this definition, and which are typically excluded?

  1. A

    The definition includes every conceivable payment made by an employer to an employee with absolutely no exclusions of any kind whatsoever

  2. B

    The definition generally includes basic pay, dearness allowance, and retaining allowance, while specifically excluding components such as statutory bonus payable under the Payment of Bonus Act provisions of the Code, value of house accommodation and certain other amenities, employer's contribution to pension or provident fund, conveyance allowance, house rent allowance, overtime allowance, and certain other specified categories, subject to a statutory cap (generally fifty percent) on the total amount of such excluded allowances relative to total remuneration, beyond which any excess is deemed to form part of wages

  3. C

    The definition excludes basic pay entirely, treating only allowances and bonus as constituting wages for all purposes under the Code

  4. D

    The Code applies an entirely different and unrelated definition of wages for each of the four labour codes, with no attempt at standardisation or consistency across the codification exercise

View answer and explanation

Correct answer: B. The definition generally includes basic pay, dearness allowance, and retaining allowance, while specifically excluding components such as statutory bonus payable under the Payment of Bonus Act provisions of the Code, value of house accommodation and certain other amenities, employer's contribution to pension or provident fund, conveyance allowance, house rent allowance, overtime allowance, and certain other specified categories, subject to a statutory cap (generally fifty percent) on the total amount of such excluded allowances relative to total remuneration, beyond which any excess is deemed to form part of wages

The Code on Wages, 2019 introduces a standardised and unified definition of 'wages' applicable consistently across the consolidated wage provisions, generally including basic pay, dearness allowance, and retaining allowance as core components, while specifically excluding various categories such as statutory bonus, value of house accommodation and certain amenities, employer's pension or provident fund contributions, conveyance allowance, house rent allowance, and overtime allowance, among certain other specified exclusions. Importantly, the Code introduces a statutory cap, generally set at fifty percent, on the proportion of total remuneration that can be constituted by such excluded allowances; where the excluded components exceed this threshold, the excess amount is deemed to form part of wages for relevant statutory purposes, addressing a long-standing practice of structuring compensation with a disproportionately low basic pay component (thereby minimising statutory liabilities tied to wages) by introducing this counterbalancing deeming provision.

Source note: Code on Wages 2019 - Definition of Wages

Question 43HardIndustrial Disputes Act 1947 - Section 25 - 25S Continuity of Service in Case of Transfer of Undertaking

Under Section 25FF of the Industrial Disputes Act, 1947, where the ownership or management of an undertaking is transferred from one employer to another, what is the general consequence for workmen employed in that undertaking, and what is the corresponding obligation imposed on the transferring employer?

  1. A

    The transfer of ownership or management automatically terminates the employment of all workmen with absolutely no compensation or other consequence whatsoever for the transferring employer

  2. B

    Every workman who has been in continuous service for not less than one year in the undertaking immediately before the transfer is entitled to notice and compensation in accordance with Section 25F, as if he had been retrenched, unless the transfer satisfies specified conditions (including that the service of the workman is not interrupted by the transfer, the terms and conditions of service applicable after the transfer are not less favourable, and the new employer is legally liable to pay compensation on the basis that the workman's service has been continuous and not interrupted), in which case retrenchment compensation under Section 25F is not payable since the transfer is treated as preserving continuity of employment rather than terminating it

  3. C

    Section 25FF applies only to transfers between government departments and has no application whatsoever to transfers involving private sector employers

  4. D

    The transferring employer's only obligation under Section 25FF is to notify the relevant trade union, with no notice or compensation obligation towards individual workmen under any circumstances

View answer and explanation

Correct answer: B. Every workman who has been in continuous service for not less than one year in the undertaking immediately before the transfer is entitled to notice and compensation in accordance with Section 25F, as if he had been retrenched, unless the transfer satisfies specified conditions (including that the service of the workman is not interrupted by the transfer, the terms and conditions of service applicable after the transfer are not less favourable, and the new employer is legally liable to pay compensation on the basis that the workman's service has been continuous and not interrupted), in which case retrenchment compensation under Section 25F is not payable since the transfer is treated as preserving continuity of employment rather than terminating it

Section 25FF of the Industrial Disputes Act, 1947 addresses the important question of workmen's entitlements upon transfer of ownership or management of an undertaking. The general rule entitles a workman with one year or more of continuous service to notice and compensation as if retrenched, treating the transfer as effectively terminating the previous employment relationship. However, the section carves out an important exception preserving continuity of employment (and thus not triggering this compensation obligation) where specified conditions are satisfied, namely uninterrupted service, no less favourable terms and conditions after transfer, and the new employer's legal liability to treat service as continuous, reflecting a policy preference for preserving employment continuity through genuine business transfers wherever workmen's substantive interests are adequately protected by the new employer, rather than mandating retrenchment-style compensation in every transfer scenario regardless of the actual impact on the workman's employment.

Source note: Section 25FF, Industrial Disputes Act 1947

Question 44HardIndustrial Disputes Act 1947 - Workmen of Subong Tea Estate Case - Bonus and Customary Practice Distinguished from Statutory Bonus

Indian labour jurisprudence addressing tea plantation and similar estate-based industries has on occasion examined claims for bonus or similar payments based on long-established estate custom, separate from the statutory bonus framework. What general analytical approach do courts apply in evaluating whether a customary payment claim of this kind, arising in such estate-based industrial contexts, should be recognised as legally enforceable?

  1. A

    Courts refuse to examine any factual evidence whatsoever regarding the existence or terms of an alleged industrial custom, treating all such claims as automatically and inherently unenforceable regardless of the evidence presented

  2. B

    Courts examine whether the alleged custom or usage is ancient (or at least sufficiently long-established), certain and definite in its terms, uniformly and consistently observed without significant variation or interruption, and reasonable, applying an analytical framework broadly analogous to that used in evaluating customs as a source of law more generally in Indian jurisprudence, while also considering the specific industrial relations context and the distinction between a genuinely binding customary practice and a merely occasional or discretionary employer gesture

  3. C

    Courts recognise any single instance of payment, however isolated or exceptional, as conclusively establishing a binding and permanently enforceable industrial custom with no further inquiry required

  4. D

    The concept of industrial custom has no application whatsoever to bonus or similar payment claims in tea plantation or other estate-based industries, with the Payment of Bonus Act constituting the sole conceivable basis for any bonus claim in such industries

View answer and explanation

Correct answer: B. Courts examine whether the alleged custom or usage is ancient (or at least sufficiently long-established), certain and definite in its terms, uniformly and consistently observed without significant variation or interruption, and reasonable, applying an analytical framework broadly analogous to that used in evaluating customs as a source of law more generally in Indian jurisprudence, while also considering the specific industrial relations context and the distinction between a genuinely binding customary practice and a merely occasional or discretionary employer gesture

Indian labour jurisprudence addressing claims of customary payments in estate-based industries such as tea plantations applies an analytical framework broadly analogous to that used more generally in evaluating the legal status of customs, examining factors including whether the alleged practice is sufficiently long-established and consistently observed, certain and definite in its specific terms (such as the rate or amount of payment), and reasonable, while also carefully considering the specific industrial relations context to distinguish a genuinely binding, settled customary practice from what may be merely an occasional, voluntary, or discretionary gesture by the employer that has not crystallised into an enforceable implied term of employment, reflecting the broader jurisprudential principle that customary entitlements require clear and consistent evidentiary support before being judicially recognised as legally binding.

Source note: Industrial Custom and Customary Bonus Jurisprudence in Estate-Based Industries

Question 45HardCode on Social Security 2020 - Maternity Benefit Provisions Retained from the 1961 Act

The Code on Social Security, 2020, having absorbed the Maternity Benefit Act, 1961 into its consolidated framework, generally retains which of the key substantive protections from the original 1961 Act and its 2017 amendment?

  1. A

    The Code entirely eliminates all maternity-related protections, with no provision addressing maternity benefit, leave, or related matters appearing anywhere within the consolidated Code on Social Security

  2. B

    The Code generally retains the substantive framework established under the Maternity Benefit Act, 1961 (as amended in 2017), including provisions addressing the duration of maternity benefit (distinguishing between women with fewer than two and two or more surviving children), extension of benefit to commissioning and adopting mothers, the creche facility requirement, and protection against discharge or dismissal connected to maternity-related absence, while restructuring these provisions within the broader consolidated social security framework alongside other absorbed enactments such as the epf Act and esi Act

  3. C

    The Code retains only the provisions relating to creche facilities, while entirely eliminating every other substantive maternity-related protection that existed under the 1961 Act

  4. D

    The Code applies maternity benefit provisions exclusively to government employees, entirely excluding private sector women employees from any maternity-related protection whatsoever

View answer and explanation

Correct answer: B. The Code generally retains the substantive framework established under the Maternity Benefit Act, 1961 (as amended in 2017), including provisions addressing the duration of maternity benefit (distinguishing between women with fewer than two and two or more surviving children), extension of benefit to commissioning and adopting mothers, the creche facility requirement, and protection against discharge or dismissal connected to maternity-related absence, while restructuring these provisions within the broader consolidated social security framework alongside other absorbed enactments such as the epf Act and esi Act

The Code on Social Security, 2020, in absorbing the Maternity Benefit Act, 1961 (as substantially amended in 2017) into its consolidated framework, generally retains the core substantive protections established under the original legislation, including the differentiated duration of maternity benefit based on the number of surviving children, the extension of benefit to commissioning and adopting mothers reflecting evolving family formation methods, the requirement for creche facilities in establishments meeting prescribed thresholds, and protection against discharge or dismissal connected to maternity-related absence. This continuity reflects the broader codification exercise's general structural approach, which seeks to consolidate and reorganise the previously separate labour and social security statutes into unified codes while substantively preserving the established protective entitlements that workers had accumulated under the prior legislative framework.

Source note: Code on Social Security 2020 - Retained Maternity Benefit Provisions

Question 46HardIndustrial Disputes Act 1947 - Workmen as a Class - Representative Capacity in Industrial Disputes

When an industrial dispute is referred for adjudication on behalf of 'workmen' generally (rather than being confined to a specifically named individual workman), what is the general jurisprudential understanding regarding the binding effect of the resulting award on the broader body of workmen in the establishment?

  1. A

    An award rendered in such a dispute binds exclusively the specific named individuals who personally appeared and gave oral testimony before the Tribunal, with no binding effect whatsoever on any other workman in the establishment, however similarly situated

  2. B

    Where a dispute is raised and adjudicated on behalf of workmen generally (often through their trade union or other representative body), the resulting award is generally understood to bind not merely the specific individuals who happened to be parties to or directly involved in the proceedings, but the broader body of workmen in the establishment (or relevant category) on whose behalf the dispute was raised, reflecting the collective and representative character of industrial dispute resolution under the Act, broadly paralleling (though not identical to) the representative suit principles found in civil procedure

  3. C

    Industrial disputes can never be raised on behalf of workmen generally under any circumstances, with every dispute under the Act necessarily and exclusively confined to a single, specifically and individually named workman

  4. D

    The binding effect of an award rendered on behalf of workmen generally is determined exclusively by the personal preference of the presiding officer of the Tribunal, with no consistent jurisprudential principle applicable across different cases

View answer and explanation

Correct answer: B. Where a dispute is raised and adjudicated on behalf of workmen generally (often through their trade union or other representative body), the resulting award is generally understood to bind not merely the specific individuals who happened to be parties to or directly involved in the proceedings, but the broader body of workmen in the establishment (or relevant category) on whose behalf the dispute was raised, reflecting the collective and representative character of industrial dispute resolution under the Act, broadly paralleling (though not identical to) the representative suit principles found in civil procedure

Where an industrial dispute is raised and adjudicated on behalf of workmen generally, typically through their trade union or other representative collective body, the resulting award is generally understood to bind not merely the specific individuals who were personally parties to or directly involved in the proceedings, but the broader body of workmen in the establishment (or the relevant category of workmen) on whose behalf the dispute was originally raised and espoused. This reflects the inherently collective and representative character of industrial dispute resolution under the Industrial Disputes Act, which is fundamentally oriented towards resolving disputes affecting groups of workmen rather than purely individual grievances (the latter being more specifically addressed through provisions such as Section 2A), broadly paralleling, though not being strictly identical to, the representative suit principles found in civil procedure law, such as those reflected in Order I Rule 8 of the Code of Civil Procedure.

Source note: Representative Character of Industrial Dispute Adjudication

Question 47HardIndustrial Relations Code 2020 - Re-Skilling Fund

The Industrial Relations Code, 2020 introduces a requirement connected with worker re-skilling in the context of retrenchment. What does this provision contemplate?

  1. A

    The Code makes no provision whatsoever for worker re-skilling in connection with retrenchment, leaving this matter entirely unaddressed by any statutory framework

  2. B

    The Code contemplates a worker re-skilling fund, to which the employer contributes an amount equivalent to fifteen days' wages last drawn by a retrenched worker (or such other number of days as may be notified by the appropriate government), within a prescribed time, intended to facilitate the retrenched worker's transition through skill development for alternative employment opportunities, reflecting an attempt to provide a forward-looking, transition-oriented dimension to the consequences of retrenchment, beyond the traditional notice-and-compensation model under the erstwhile Industrial Disputes Act

  3. C

    The re-skilling fund is funded entirely and exclusively by the retrenched worker himself, with no contribution obligation whatsoever imposed on the employer under the Code

  4. D

    The re-skilling fund applies only to workers retrenched from government establishments, with no application whatsoever to retrenchment occurring in any private sector establishment

View answer and explanation

Correct answer: B. The Code contemplates a worker re-skilling fund, to which the employer contributes an amount equivalent to fifteen days' wages last drawn by a retrenched worker (or such other number of days as may be notified by the appropriate government), within a prescribed time, intended to facilitate the retrenched worker's transition through skill development for alternative employment opportunities, reflecting an attempt to provide a forward-looking, transition-oriented dimension to the consequences of retrenchment, beyond the traditional notice-and-compensation model under the erstwhile Industrial Disputes Act

The Industrial Relations Code, 2020 introduces the concept of a worker re-skilling fund, requiring the employer to contribute an amount equivalent to fifteen days' wages last drawn by the retrenched worker (or such other number of days as may be notified by the appropriate government) into this fund within a prescribed time period following retrenchment. This provision reflects an attempt to provide a forward-looking, transition-oriented supplement to the traditional retrenchment compensation framework inherited from the erstwhile Industrial Disputes Act, seeking to facilitate the retrenched worker's acquisition of new skills relevant to securing alternative employment opportunities, rather than the retrenchment consequence being limited purely to a one-time financial compensation payment without any forward-looking skill development support mechanism.

Source note: Industrial Relations Code 2020 - Worker Re-Skilling Fund

Question 48HardCode on Wages 2019 - Section 30 - Maintenance of Registers, Records, and Returns

The Code on Wages, 2019 introduces simplification measures relating to compliance documentation for employers. What is the general nature of this simplification?

  1. A

    The Code abolishes entirely any requirement for employers to maintain any registers, records, or returns whatsoever, eliminating all documentary compliance obligations connected with wage-related matters

  2. B

    The Code empowers the appropriate government to prescribe a single, simplified format and consolidated set of registers, records, and returns to be maintained by employers in electronic or other prescribed form for purposes connected with the wage-related provisions of the Code (such as minimum wages, bonus, and timely payment), reflecting an attempt to reduce the previously fragmented and overlapping documentation requirements that existed across the separate predecessor enactments (such as the Payment of Wages Act and Minimum Wages Act) before their consolidation, easing the compliance burden on employers while still ensuring adequate record-keeping for enforcement purposes

  3. C

    The Code requires employers to maintain registers and records exclusively in a specific foreign language, with no provision permitting maintenance of such records in any Indian language

  4. D

    The Code requires that all registers, records, and returns be maintained exclusively in physical handwritten form, with electronic record-keeping being expressly and entirely prohibited under the Code

View answer and explanation

Correct answer: B. The Code empowers the appropriate government to prescribe a single, simplified format and consolidated set of registers, records, and returns to be maintained by employers in electronic or other prescribed form for purposes connected with the wage-related provisions of the Code (such as minimum wages, bonus, and timely payment), reflecting an attempt to reduce the previously fragmented and overlapping documentation requirements that existed across the separate predecessor enactments (such as the Payment of Wages Act and Minimum Wages Act) before their consolidation, easing the compliance burden on employers while still ensuring adequate record-keeping for enforcement purposes

The Code on Wages, 2019 introduces an important compliance simplification measure by empowering the appropriate government to prescribe a single, simplified, and consolidated format for the registers, records, and returns that employers are required to maintain in connection with the wage-related provisions of the Code, with provision for such records to be maintained in electronic or other prescribed form. This reflects a deliberate attempt to reduce the compliance burden on employers that had previously resulted from the fragmented and sometimes overlapping documentation requirements scattered across the separate predecessor enactments (such as the Payment of Wages Act, 1936 and the Minimum Wages Act, 1948) prior to their consolidation, while still ensuring that adequate records are maintained to facilitate effective enforcement of the substantive wage-related protections under the Code.

Source note: Code on Wages 2019 - Simplified Registers and Returns

Question 49HardOccupational Safety Health and Working Conditions Code 2020 - Threshold for Factory Coverage

The Occupational Safety, Health and Working Conditions Code, 2020, in absorbing the Factories Act, 1948, addresses the threshold for coverage of an establishment as a 'factory'. How does the Code's approach compare with the dual threshold previously applied under Section 2(m) of the Factories Act, 1948?

  1. A

    The Code entirely eliminates any threshold requirement, treating every establishment of any size whatsoever, however small, as a covered factory under the Code

  2. B

    The Code generally continues the underlying approach of distinguishing coverage based on whether power is used in the manufacturing process, though the Code has revised the specific numerical thresholds compared to the original Factories Act, 1948 figures (which were ten or more workers with power, and twenty or more workers without power), reflecting the broader codification exercise's general pattern of revisiting and adjusting numerical thresholds across various provisions while retaining the underlying structural and conceptual approach of the predecessor legislation

  3. C

    The Code requires a minimum of one million workers before any establishment can be classified as a covered factory under any circumstances

  4. D

    The threshold under the Code depends exclusively on the geographical location of the establishment, with no reference whatsoever to the number of workers employed or the use of power in the manufacturing process

View answer and explanation

Correct answer: B. The Code generally continues the underlying approach of distinguishing coverage based on whether power is used in the manufacturing process, though the Code has revised the specific numerical thresholds compared to the original Factories Act, 1948 figures (which were ten or more workers with power, and twenty or more workers without power), reflecting the broader codification exercise's general pattern of revisiting and adjusting numerical thresholds across various provisions while retaining the underlying structural and conceptual approach of the predecessor legislation

The Occupational Safety, Health and Working Conditions Code, 2020, in absorbing the Factories Act, 1948, generally continues the underlying conceptual approach of distinguishing factory coverage based on whether power is used in the manufacturing process, while revising the specific numerical worker thresholds compared to the original Factories Act figures, reflecting the broader codification exercise's general pattern across multiple provisions and codes of revisiting and recalibrating numerical thresholds (such as the increased Chapter VB threshold from 100 to 300 workers under the Industrial Relations Code) while substantially retaining the underlying structural and conceptual framework inherited from the predecessor legislation that the new codes have absorbed and consolidated.

Source note: Occupational Safety Health and Working Conditions Code 2020 - Factory Coverage Threshold

Question 50MediumLabour Law - Overall Significance of the National Commission on Labour Reports

The First National Commission on Labour (1969) and the Second National Commission on Labour (2002), both significant points of reference in the prescribed readings for the study of Indian labour law, played which broader role in the development of Indian labour legislation?

  1. A

    These Commissions had no influence whatsoever on Indian labour legislation, and their reports were entirely disregarded by the government and legislature in every subsequent legislative development

  2. B

    The two National Commissions on Labour conducted comprehensive reviews of the prevailing labour law framework and industrial relations practices at their respective points in time, making recommendations for legislative reform addressing matters such as trade union recognition, simplification and consolidation of labour legislation, and adaptation of the legal framework to changing economic and industrial conditions, with the Second Commission's recommendations in particular being widely regarded as having significantly influenced the subsequent move towards the comprehensive codification of central labour legislation into the four labour codes enacted from 2019 onwards

  3. C

    The Commissions were established exclusively to investigate matters relating to international trade tariffs, with no connection whatsoever to domestic labour law or industrial relations

  4. D

    The First and Second National Commissions on Labour were, in fact, the same single body operating continuously without any interruption or distinction between them, contrary to their being commonly referred to as separate Commissions

View answer and explanation

Correct answer: B. The two National Commissions on Labour conducted comprehensive reviews of the prevailing labour law framework and industrial relations practices at their respective points in time, making recommendations for legislative reform addressing matters such as trade union recognition, simplification and consolidation of labour legislation, and adaptation of the legal framework to changing economic and industrial conditions, with the Second Commission's recommendations in particular being widely regarded as having significantly influenced the subsequent move towards the comprehensive codification of central labour legislation into the four labour codes enacted from 2019 onwards

The First National Commission on Labour (1969) and the Second National Commission on Labour (2002) each conducted comprehensive, periodic reviews of the prevailing Indian labour law framework and industrial relations practices, generating influential reports containing recommendations for legislative and policy reform addressing matters including trade union recognition mechanisms, the simplification and consolidation of what had become an increasingly fragmented body of central labour legislation, and the adaptation of the legal framework to evolving economic and industrial conditions over time. The Second Commission's recommendations, in particular, are widely regarded by labour law scholars and policymakers as having significantly informed and influenced the subsequent and substantial move towards the comprehensive codification of central labour legislation into the four consolidated labour codes (the Code on Wages, the Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code) enacted progressively from 2019 onwards, illustrating the long gestation period and policy continuity underlying this significant legislative reform.

Source note: Report of the National Commission on Labour 1969; Report of the Second National Commission on Labour 2002