Labour Law MCQs for Judiciary, Page 4

Correct answer: B. Five years of continuous service

Section 4 of the Payment of Gratuity Act, 1972 mandates that gratuity shall be payable to an employee on the termination of his employment (whether by superannuation, retirement, resignation, death, or disablement) after he has rendered continuous service for not less than five years, except that the five-year continuous service condition is specifically not required in cases of termination of employment due to death or disablement, recognising that in these unfortunate circumstances the employee or their dependants should not be denied the gratuity benefit merely because the qualifying period had not yet been completed.

Source note: Section 4, Payment of Gratuity Act 1972

Correct answer: B. Fifteen days' wages based on the rate of wages last drawn by the employee concerned, calculated based on a specific divisor (typically 26 days for monthly rated employees) for ascertaining the daily wage rate

Section 4(2) of the Payment of Gratuity Act, 1972 prescribes that for every completed year of service, or part thereof in excess of six months, the employer must pay gratuity at the rate of fifteen days' wages based on the rate of wages last drawn by the employee. For monthly rated employees, this fifteen days' wage is typically calculated by dividing the monthly wage by twenty-six (reflecting the typical number of working days in a month) and multiplying by fifteen, then multiplying this result by the number of completed years of service, subject to the statutory ceiling on the maximum gratuity amount payable under the Act.

Source note: Section 4(2), Payment of Gratuity Act 1972

Correct answer: B. The Code subsumes the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946.

The Industrial Relations Code, 2020 consolidates three previously separate but interrelated central labour enactments that collectively governed industrial relations in India: the Trade Unions Act, 1926 (governing registration, regulation, and legal protection of trade unions); the Industrial Employment (Standing Orders) Act, 1946 (requiring certified standing orders defining conditions of employment in larger industrial establishments); and the Industrial Disputes Act, 1947 (providing the comprehensive machinery for investigation, conciliation, and adjudication of industrial disputes, along with provisions on lay-off, retrenchment, closure, and strikes/lockouts). This consolidation brings together the foundational statutory architecture of Indian collective labour relations into a unified code, while introducing certain substantive and procedural modifications to the previously separate frameworks.

Source note: Industrial Relations Code 2020

Correct answer: B. The Industrial Relations Code, 2020 increased the threshold for the requirement of prior government permission for lay-off, retrenchment, and closure from 100 workers (as under the erstwhile Chapter vb of the Industrial Disputes Act) to establishments employing 300 or more workers, while also empowering the appropriate government to increase this threshold further by notification, reflecting a policy shift towards providing greater operational flexibility to industrial establishments of a wider range of sizes

The Industrial Relations Code, 2020 introduced a significant policy change by increasing the threshold for the requirement of prior government permission before lay-off, retrenchment, or closure from the erstwhile 100-worker threshold under Chapter VB of the Industrial Disputes Act, 1947, to a higher threshold of 300 or more workers. The Code also empowers the appropriate government to further increase this threshold by notification, reflecting a policy direction aimed at providing greater operational and workforce flexibility to a larger category of industrial establishments that would previously have been required to seek prior government permission, a change that has generated considerable debate regarding the appropriate balance between worker protection and ease of doing business considerations.

Source note: Industrial Relations Code 2020

Correct answer: B. Where there is only one registered trade union in an industrial establishment, that union is to be recognised as the sole negotiating union for purposes of collective bargaining; where there are multiple registered trade unions, the union having the support of a specified minimum percentage of workers is recognised as the negotiating union, and where no single union meets this threshold, a negotiating council is constituted comprising representatives from the various unions, providing for the first time a statutory framework for trade union recognition for collective bargaining purposes at the central legislative level

The Industrial Relations Code, 2020 introduces, for the first time at the central legislative level, a statutory framework addressing the long-standing gap in Indian labour law regarding formal recognition of trade unions for collective bargaining purposes (a gap previously noted in case law such as Food Corporation of India Staff Union, which held the Trade Unions Act, 1926 itself did not mandate such recognition). The Code provides that where there is a single registered trade union, it is recognised as the sole negotiating union; where multiple unions exist, the one meeting a prescribed minimum support threshold (such as a specified percentage of workers as members) is recognised as the negotiating union; and where no single union meets this threshold, a negotiating council is constituted with proportional representation from the various unions, providing a more structured and legally defined mechanism for determining which union or combination of unions engages in collective bargaining with the employer.

Source note: Industrial Relations Code 2020

Correct answer: B. Fixed term employment refers to the engagement of a worker on the basis of a written contract for a fixed period, and the Code provides that a fixed term employee shall be entitled to statutory benefits available to a permanent workman proportionately according to the period of service rendered, even though the duration of employment is fixed in advance, addressing concerns that fixed-term arrangements should not be used to systematically deny benefits otherwise available to permanent employees

The Industrial Relations Code, 2020 formally recognises and defines 'fixed term employment' as engagement of a worker based on a written contract of employment for a fixed period. Importantly, the Code seeks to address concerns that such fixed-term arrangements might otherwise be used to deny workers benefits that permanent employees enjoy, by providing that fixed term employees are entitled to statutory benefits (such as those relating to hours of work, wages, and other working conditions) on a basis proportionate to their period of service, even though their employment itself is for a defined duration rather than being open-ended. This statutory recognition aims to provide a degree of flexibility for employers while still ensuring a baseline of proportionate protection for workers engaged on fixed-term arrangements.

Source note: Industrial Relations Code 2020 - Fixed Term Employment

Correct answer: B. The appropriate government is required to take into account factors including the skill required, the arduousness of work, geographical location, and other relevant factors while fixing minimum wages, and minimum wages may be fixed on the basis of time rate, piece rate, or on a guaranteed time rate basis, subject to the overriding requirement that no minimum wage so fixed can be lower than the national floor wage

The Code on Wages, 2019 requires the appropriate government, while fixing minimum wages for scheduled employments, to have regard to factors such as the skill required for the work, the arduousness of the work involved, geographical location, and other relevant considerations that may affect the appropriate wage level for a particular category of employment. The Code permits minimum wages to be fixed on the basis of a time rate, piece rate, or a guaranteed time rate, providing flexibility in wage structure design suited to different types of work, while subjecting all such fixation to the overriding constraint that the minimum wage fixed cannot fall below the national floor wage established by the Central Government.

Source note: Code on Wages 2019 - Minimum Wage Fixation Parameters

Correct answer: B. The Code subsumes legislations including the Factories Act, 1948; the Mines Act, 1952.

The Occupational Safety, Health and Working Conditions Code, 2020 consolidates a substantial number of previously distinct sector-specific and general labour enactments addressing workplace safety, health standards, and working conditions, including the Factories Act, 1948; the Mines Act, 1952; the Contract Labour (Regulation and Abolition) Act, 1970; and other statutes covering specific categories such as plantation workers, building and construction workers, and inter-state migrant workmen. This consolidation reflects an effort to create a unified framework addressing the common underlying concerns of worker safety, health, and acceptable working conditions across the diverse range of sectors and employment categories that were previously governed by separate, sometimes inconsistent, sector-specific legislation.

Source note: Occupational Safety Health and Working Conditions Code 2020

Correct answer: B. The Act regulates the employment of inter-state migrant workmen, who are recruited by contractors in one state for employment in an establishment in another state, requiring registration of establishments employing such workmen and licensing of the contractors recruiting them, and providing for specific protections including journey allowance, displacement allowance, and equal wages with workmen performing similar work in the establishment where they are employed

The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 was enacted to address the particular vulnerabilities faced by workers recruited by contractors in their home state for employment in establishments located in a different state, a category of workers who historically faced significant exploitation due to their displacement from familiar social and legal support networks. The Act requires registration of principal employers employing such inter-state migrant workmen and licensing of the contractors who recruit them, while mandating specific protective measures including payment of a displacement allowance, journey allowance for travel to and from the home state, and crucially, the right to wages at rates not less than those paid to other workmen performing the same or similar work in the establishment where the migrant workman is employed, addressing concerns about wage discrimination against migrant labour.

Source note: Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act 1979

Correct answer: B. An Internal Complaints Committee, which must be presided over by a woman employed at a senior level, and must include at least one external member from a non-governmental organisation or association committed to the cause of women, or a person familiar with issues relating to sexual harassment, with the Committee empowered to conduct an inquiry into complaints and recommend appropriate action

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 mandates that every employer of a workplace having ten or more employees must constitute an Internal Complaints Committee to receive and inquire into complaints of sexual harassment. The Committee must be presided over by a woman employed at a senior level, must include at least two other employees committed to the cause of women or having experience in social work or legal knowledge, and importantly must include at least one external member from a non-governmental organisation or association committed to the cause of women, or a person familiar with issues relating to sexual harassment, ensuring an element of independence and external perspective in the inquiry process. The Committee conducts inquiries following a prescribed procedure and recommends appropriate action to the employer based on its findings.

Source note: Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013

Correct answer: B. The amendment introduced a complete prohibition on the employment of children below 14 years of age in any occupation or process (subject to limited exceptions such as helping family enterprises after school hours and certain specified categories), and introduced a new category of 'adolescent' (defined as a person between 14 and 18 years), prohibiting the employment of adolescents in hazardous occupations and processes specified under the Act

The Child and Adolescent Labour (Prohibition and Regulation) Amendment Act, 2016 significantly strengthened the protective framework of the earlier 1986 Act by introducing a complete and general prohibition on the employment of children below 14 years of age in any occupation or process, moving away from the earlier Act's more limited approach of only prohibiting certain specified hazardous occupations and processes for children. The amendment carved out limited specific exceptions, such as a child helping family or family enterprises after school hours or during vacations, and participation in audio-visual entertainment subject to safeguards. The amendment also introduced the new statutory category of 'adolescent' (defined as a person between 14 and 18 years), prohibiting the employment of adolescents specifically in hazardous occupations and processes listed in the Act, reflecting an enhanced and more comprehensive child and adolescent labour protection framework.

Source note: Child and Adolescent Labour (Prohibition and Regulation) Amendment Act 2016

Correct answer: B. The Act establishes a statutory framework for the engagement, training, and regulation of apprentices in designated trades, requiring employers in establishments engaged in specified industries to engage a prescribed ratio of apprentices, providing for the execution of a contract of apprenticeship, and addressing matters such as the period of apprenticeship training, payment of stipend, and the conduct of tests and certification on satisfactory completion of training

The Apprentices Act, 1961 establishes a comprehensive statutory framework governing the engagement and training of apprentices in designated trades, reflecting the legislative objective of promoting structured skill development and vocational training within industry. The Act requires establishments engaged in specified industries to engage apprentices according to a prescribed ratio relative to their skilled workforce, mandates the execution of a formal contract of apprenticeship between the employer and the apprentice (or their guardian, if a minor), and addresses matters such as the duration of the apprenticeship training period, payment of a stipend during training, and the conduct of trade tests with certification upon satisfactory completion, providing a regulated pathway for young persons and workers to acquire recognised industrial and technical skills.

Source note: Apprentices Act 1961

Correct answer: B. The Code retains the concept of a prescribed wage ceiling, above which an employee, while still potentially being eligible for bonus in terms of the qualifying service period, may have the bonus calculated with reference to a notional or capped wage figure (rather than their actual higher wage) for purposes of bonus calculation, reflecting continuity with the wage-ceiling structure historically used to define and calculate statutory bonus entitlements

The Code on Wages, 2019 retains the historical structure of using a wage ceiling for purposes of statutory bonus calculation, building on the framework established under the erstwhile Payment of Bonus Act, 1965. Under this structure, while eligibility for bonus may extend to employees up to a certain wage level (with the ceiling subject to periodic governmental revision), the actual calculation of the bonus amount for employees whose wages exceed a specified calculation ceiling may be computed with reference to that notional ceiling figure rather than the employee's actual (higher) wage, ensuring the bonus calculation mechanism remains administratively workable and consistent with the underlying profit-sharing rationale of the statutory bonus scheme, while still extending the bonus entitlement itself to a relatively broad band of the workforce.

Source note: Code on Wages 2019 - Bonus Provisions

Correct answer: B. Discharge or dismissal of a woman during or on account of her absence from work in accordance with the provisions of the Act is prohibited, and it is further provided that the discharge or dismissal of a pregnant woman shall not have the effect of depriving her of the maternity benefit or medical bonus to which she would otherwise have been entitled; discharge or dismissal during this period, except on certain specified grounds such as gross misconduct, may be set aside

Section 12 of the Maternity Benefit Act, 1961 provides important protection against discharge or dismissal of a woman during or on account of her absence from work in accordance with the provisions of the Act, recognising the vulnerability of pregnant employees to potential discriminatory termination. The provision specifically clarifies that even where discharge or dismissal occurs, it shall not have the effect of depriving the woman of the maternity benefit or medical bonus to which she would otherwise have been entitled, ensuring that an employer cannot circumvent the financial protections of the Act simply by terminating the woman's employment during the protected period, except in cases involving specified serious grounds such as gross misconduct, which are subject to a particular procedure under the Act.

Source note: Section 12, Maternity Benefit Act 1961

Correct answer: B. The case examined whether and to what extent an association of government employees, such as non-gazetted officers, could qualify for registration under the Trade Unions Act, 1926, by satisfying the statutory definition of 'trade union' under Section 2(h), addressing the boundary question of how the Act's framework, primarily conceived in the context of industrial and trade relations, applies to associations formed by government service employees

In The Tamil Nadu Non-Gazetted Government Officers' Union, Madras v. The Registrar of Trade Unions (AIR 1962 Mad 234), decided alongside and closely related to Rangaswami v. Registrar of Trade Unions, the Madras High Court examined the boundary question of whether and how an association formed by government employees, specifically non-gazetted officers, could satisfy the statutory definition of 'trade union' under Section 2(h) of the Trade Unions Act, 1926, for purposes of registration. This case, together with Rangaswami, contributed to the developing jurisprudence on the scope of the Registrar's examination function and the application of the Trade Unions Act framework, which was primarily conceived in the context of industrial and commercial trade relations, to associations formed within the structure of government service.

Source note: The Tamil Nadu Non-Gazetted Government Officers' Union, Madras v. The Registrar of Trade Unions AIR 1962 Mad 234

Correct answer: B. Prohibit or restrict the employment of women, adolescents, or children in any manufacturing process or operation which is found to be of a dangerous nature, exposing them to serious risk of bodily injury, poisoning, or disease

Section 87 of the Factories Act, 1948 empowers the State Government to make rules prohibiting or restricting, in any specified factory or class of factories, the employment of women, adolescents, or children in any manufacturing process or operation that is found to expose them to serious risk of bodily injury, poisoning, or disease. This provision reflects the Act's protective orientation towards categories of workers considered more vulnerable to occupational hazards, allowing for targeted regulatory restrictions on particularly dangerous operations rather than a uniform standard applicable to all workers regardless of the specific risks involved.

Source note: Section 87, Factories Act 1948

Correct answer: B. Required or allowed to work in any factory; this absolute prohibition reflects the Act's alignment with broader child labour protection policy, ensuring that factories, recognised as inherently more hazardous work environments, are completely closed to children below the minimum age threshold

Section 67 of the Factories Act, 1948 establishes an absolute prohibition: no child who has not completed his fourteenth year shall be required or allowed to work in any factory. This complete prohibition, rather than a mere restriction, reflects the heightened concern for child safety in the factory environment, which the legislature considered inherently more hazardous than many other work settings, warranting a categorical bar rather than a regulated permission scheme, consistent with subsequent strengthening of child labour protections under the Child and Adolescent Labour (Prohibition and Regulation) Amendment Act, 2016.

Source note: Section 67, Factories Act 1948

Correct answer: B. The six weeks immediately following the day of her delivery, miscarriage, or medical termination of pregnancy; the Act also restricts the nature of work a pregnant woman may be required to perform during certain periods preceding the expected delivery date

Section 4 of the Maternity Benefit Act, 1961 prohibits an employer from knowingly employing a woman in any establishment during the six weeks immediately following the day of her delivery, miscarriage, or medical termination of pregnancy, providing a mandatory recovery period during which the woman cannot be required to work regardless of her own willingness. The Act further restricts, under related provisions, the nature of arduous work, work involving long hours of standing, or work likely to interfere with pregnancy or the normal development of the foetus, that a woman may be required to perform during specified periods preceding her expected delivery date, providing additional protective regulation of working conditions during pregnancy beyond the core leave entitlement.

Source note: Section 4, Maternity Benefit Act 1961

Correct answer: B. Employees of the Life Insurance Corporation of India, employees of any establishment engaged in any industry carried on by or under the authority of any department of the Central Government or a State Government dealing with sovereign functions, and employees of certain other specifically listed categories such as seamen and dock workers (governed by their own separate schemes) are excluded from the operation of the Act

Section 32 of the Payment of Bonus Act, 1965 lists specific categories of establishments and employees excluded from the Act's application, recognising that certain sectors are governed by alternative arrangements or considered inappropriate for the Act's general profit-sharing bonus framework. These exclusions include employees of the Life Insurance Corporation of India, employees of departments carrying on sovereign functions of government, and various other specifically enumerated categories such as seamen and certain dock workers, who may be governed by sector-specific arrangements or considered to fall outside the general scheme contemplated by the Act, reflecting a deliberate legislative carve-out rather than a universal application of the bonus scheme to every employment category in the country.

Source note: Section 32, Payment of Bonus Act 1965

Correct answer: B. The amount of compensation for death is calculated as a percentage of the deceased employee's monthly wages multiplied by a relevant factor based on the employee's age, subject to a prescribed minimum amount, reflecting an attempt to provide compensation broadly proportionate to the deceased employee's earning capacity and the corresponding economic loss suffered by dependants, while ensuring a statutory minimum floor

Section 4 of the Employees' Compensation Act, 1923 establishes a formula-based approach for calculating compensation in cases of death resulting from employment injury, generally computed as a percentage of the deceased employee's monthly wages multiplied by a relevant age-based factor (reflecting the principle that compensation should account for the remaining expected working life and earning capacity that has been lost), subject to a prescribed statutory minimum amount that ensures dependants receive at least a baseline level of compensation even in cases involving relatively low-wage employees. This formula-driven approach aims to provide a degree of proportionality between the compensation awarded and the actual economic loss suffered by the deceased employee's dependants, while maintaining administrative predictability and a guaranteed minimum protection.

Source note: Section 4, Employees Compensation Act 1923

Correct answer: B. The model standing orders, prescribed by the appropriate government, apply to the establishment as if they had been certified, until such time as the certifying officer certifies the employer's own draft standing orders submitted for that establishment, ensuring continuity of a defined regulatory framework governing conditions of employment throughout the certification process

The Industrial Employment (Standing Orders) Act, 1946, through its provisions addressing model standing orders, ensures that there is no regulatory vacuum during the period when an employer's submitted draft standing orders are pending certification by the appropriate certifying officer. During this interim period, the model standing orders prescribed by the appropriate government apply to the establishment as the operative framework governing conditions of employment, providing continuity and certainty for both the employer and workmen until the employer's own specific, establishment-tailored standing orders are formally certified and take effect, replacing the model standing orders for that particular establishment.

Source note: Section 12A, Industrial Employment (Standing Orders) Act 1946

Correct answer: B. The Code retains and integrates the principle that there shall be no discrimination in the matter of wages between employees on the ground of gender, in respect of the same work or work of a similar nature done by any employee, bringing this anti-discrimination principle within the unified wage code rather than leaving it as a standalone separate statute

The Code on Wages, 2019, by absorbing the substantive principles of the erstwhile Equal Remuneration Act, 1976, retains and integrates the prohibition against gender-based wage discrimination for the same work or work of a similar nature, bringing this important anti-discrimination principle within the unified statutory wage framework. This consolidation reflects a structural and organisational change (placing the equal remuneration principle alongside other wage-related matters such as minimum wages, timely payment, and bonus within a single code) rather than a substantive weakening of the underlying gender-equality protection, which continues to operate as a core principle within the consolidated framework governing wage-related employment matters.

Source note: Code on Wages 2019 - Equal Remuneration Provisions

Correct answer: B. An officer of a registered trade union of which he is a member, or an officer of a federation of trade unions to which the union is affiliated, or where the workman is not a member of any trade union, by an officer of a trade union connected with the industry concerned or by any other workman employed in that industry and authorised, in the prescribed manner, with restrictions placed on the appearance of legal practitioners in certain proceedings, particularly before Conciliation Officers and Boards, without the consent of the other parties and the relevant authority

Section 36 of the Industrial Disputes Act, 1947 provides a specific framework for representation of parties in proceedings under the Act, allowing a workman to be represented by an officer of a registered trade union of which he is a member, an officer of a federation of trade unions to which that union is affiliated, or, where the workman is not a union member, by an officer of a trade union connected with the relevant industry or another authorised workman from that industry. Notably, the provision places restrictions on the appearance of legal practitioners (advocates) in certain proceedings, particularly before Conciliation Officers and Boards, generally requiring the consent of the opposing parties and the relevant authority, reflecting a policy preference in the original Act for a more informal, trade-union-mediated representation structure rather than formal legal representation at every stage of the dispute resolution process.

Source note: Section 36, Industrial Disputes Act 1947

Correct answer: B. Has not attained the age of eighteen years, or has been convicted by a court in India of any offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release

Section 21A of the Trade Unions Act, 1926 establishes specific disqualifications for office-bearers of registered trade unions, providing that a person is disqualified from being chosen as, or continuing as, an office-bearer if he has not attained the age of eighteen years, or if he has been convicted by a court in India of an offence involving moral turpitude and sentenced to imprisonment, unless a period of five years has elapsed since his release. These disqualification criteria aim to ensure a baseline standard of maturity and personal integrity among those holding leadership positions within registered trade unions, balancing the freedom of association with reasonable safeguards regarding the character and suitability of union leadership.

Source note: Section 21A, Trade Unions Act 1926

Correct answer: B. Not less than one-half (or such other proportion as may be specified by the appropriate government) of the total number of office-bearers of a registered trade union of workmen shall be persons actually engaged or employed in an industry with which the trade union is connected, subject to specified exceptions, reflecting the legislative intent to ensure that trade union leadership maintains a meaningful and substantial connection to the workforce and industry the union represents

Section 22 of the Trade Unions Act, 1926 requires that not less than one-half (or such other proportion as the appropriate government may specify by notification) of the total number of office-bearers of a registered trade union of workmen must be persons actually engaged or employed in an industry connected with the union, subject to certain exceptions permitting a limited number of 'outside' office-bearers (often experienced trade union organisers, advocates, or other professionals not directly employed in the relevant industry) to also hold office. This requirement reflects the legislative intent to ensure that trade union leadership retains a meaningful connection to and representation from the actual workforce of the industry concerned, while still permitting some external expertise and leadership support within defined limits.

Source note: Section 22, Trade Unions Act 1926