Post on 11-Apr-2018
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Lesson 8
Payment of Gratuity Act 1972
Objectives
The Payment of Gratuity Act, 1972 envisages to provide a retirement benefit to the
workmen who have rendered long and unblemished service to the employer, and have
thus contributed to the prosperity of the employer. Gratuity is a reward for long and
meritorious service.
The significance of this Act lies in the acceptance of the principle of gratuity as a
compulsory, statutory retrial benefit.
Scope and Coverage
The Act extends to the whole of India except that it does not extend to the State of
Jammu and Kashmir so far as it relates to plantations or ports.
The Act applies to the following:
Every factory, oilfield, plantation, port, railway company and mine.
Every shop or establishment in which 10 or more persons are employed, or were
employed on any day of the preceding 12 months.
As per Section 3A, a shop or establishment to which the Act becomes applicable shall
continue to be governed by the Act even if the number of employees falls below 10.
The Central Government has specified Motor Transport undertakings, clubs, chambers of
industries, inland water transport establishments, solicitor‟s office, local bodies, trusts
and societies, circus industry in which 10 or more persons are employed or were
employed on any day during the preceding 12 months to be covered under the Act.
Exemption
The appropriate government is empowered to exempt, by notification, any establishment,
factory, mine, oilfield, plantation, port, railway company or shop to which this Act
applies from the operation of the Act.
If the government so opines that the employees of such establishment, etc. are in receipt
of gratuity or pensionary benefits not less favourable than the benefits conferred under
this Act. The appropriate government may also exempt any employee or class of
employees, similarly.
Employees Entitled
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Employee as defined in section 2(e) means any person (other than an apprentice) who is
employed on wages, whether the terms of such employment are express or implied, in
any kind of work, manual or otherwise in or in connection with the work of a factory,
mine, oilfield, plantation, port, railway company or shop, other establishment to which
the Act applies.
Teachers are now covered under the Act in terms of the amendment of the Act in 2010
though teaches were not earlier covered under the Act.
Employee does not include any person who holds a post under the Central or State
Government and is governed by any other Act or rules providing for payment of gratuity.
Employer [Section 2(f)]
In relation to any establishment, factory, mine, oilfield, plantation, port, railway company or
shop belonging to, or Under the control of the Central or a State Government:
Any person or authority appointed by the appropriate government for the supervision and
control of employees.
Where no person or authority has been so appointed, the head of the Ministry or the
Department concerned.
In relation to any establishment, factory, mine, oilfield, plantation, port, railway company or
shop belonging to, or under the control of any local authority.
The person appointed by such authority for the supervision and control of employees'
Where no person has been so appointed, the chief executive officer of the local authority.
.
In any other case :
The person, who or the authority which has the ultimate control over the affairs of the
establishment, factory, mine, oilfield, plantation, port, railway company or shop.
Where the said affairs are entrusted to any other person, whether called a manager,
managing director or any other name, such person.
Family [Section 2(h)]
Family in relation to an employee shall be deemed to consist of the following:
(i) In the case of a male employee :
himself,
his wife,
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his children, whether married or unmarried,
his dependent parents,
the dependent parents of his wife, and
the widow and children of his predeceased son, if any.
(ii) In the case of a female employee :
herself,
her husband,
her children, whether married or unmarried,
her dependent parents,
the dependent parents of her husband, and
the widow and children of her predeceased son, if any.
(iii) Any child lawfully adopted shall be deemed to be included in his family.
(iv) Where a child has been lawfully adopted by another person, such child shall be excluded
from the family.
Wages [Section 2(s)]
Wages means all emoluments which are earned by an employee while on duty or on
leave in accordance with the terms and conditions of his employment which are paid or
payable to him in cash.
Wages includes dearness allowance.
Wages does not include any bonus, commission, house rent allowance, overtime wages
and any other allowance
Continuous Service [Section 2A]
Eligibility of an employee for gratuity depends upon his continuity of service
An employee shall be in continuous servrce for a period if he has been in uninterrupted
service for that period.
Any interruption in service on account of sickness, accident, leave, absence from duty
Without leave, layoff, strike or a lock-out or cessation of work not due to any fault of the
employee shall be ignored.
Any absence for which an order treating it as break in service has been passed as per the
standing orders shall not be in continuous service.
DEEMED CONTINUOUS SERVICE OTHER THAN IN SEASONAL
ESTABLISHMENT SECTION 2A
For one year
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If he actually worked for not less than 190 days below the ground in a mine or In an
establishment which works for less than 6 days in a week;
In any other case, if he actually worked for not less than 240 days in a year.
For six month
if he actually worked under the employer for not less than 95 days (i) below the ground in
a mine or (ii) in an establishment which works for less than 6 days in a week;
ln any other case, if he actually worked for not less than 120 days.
Consideration of days -The number of days on which an employee has actually worked include
the following:
The days on which he has been laid-off under an agreement or as permitted by standing
orders.
The days on which he has been on leave with full wages.
The days on which he has been absent due to temporary disablement caused by accident
arising out of and in the course of his employment.
In the case of a female, the days on which she has been on maternity leave not exceeding
twelve weeks
DEEMED CONTINUOUS SERVICE IN SEASONAL ESTABLISHMENT
An employee employed in a seasonal establishment shall be deemed to be in continuous service
if he has actually worked for not less than 75% of the number of days on which the establishment
was in operation during period of one year or six month as the case may be.
What is Gratuity
Gratuity is a lump sum payment made by the employer to an employee when he retires or leaves
service.
Entitlement of Gratuity [Section 4]
After 5 years of continuous service - On superannuation or retirement or resignation.
Less than 5 years of continuous service - On death or disablement due to accident or disease.
To WHOM GRATUITY BE PAID IN CASE OF DEATH
In case of death gratuity shall be paid to the nominee of the employee.
if no nomination has been made, gratuity shall be paid to his heirs.
Where any such nominee or heir is a minor, the share of such minor shall be deposited
with the controlling authority.
Computation of Gratuity in Case of Monthly Wage Employee
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The employer shall pay gratuity to an employee at the rate of 15 day8‟ wages based on
last drawn wages for every completed year of service or part thereof in excess of six
months.
The 15 days' wages shall be calculated by dividing the last drawn wages by 26 and
multiplying the quotient by 15
Gratuity = Last drawn wages x (15/26) x completed year of service
Computation of Gratuity in the Case of a Price Rated Employee
Daily wages shall be computed on the average of the total wages received by him for a
period of 3 months immediately preceding the termination of his employment.
The wages paid for overtime work shall not be taken into account.
Gratuity shall be computed at the rate of 15 days wages for completed years of service.
Gratuity = Average daily wages x 15 x completed year of service
Computation of Gratuity in the case of Seasonal Establishment
The employer shall pay the gratuity at the rate of 7 days' wages for each season.
Maximum Amount of Gratuity
The amount of gratuity shall not exceed Rs. 10,00,000/-.
An employee may receive better terms of gratuity under any award or agreement or
contract.
Forfeiture or Gratuity (season: 4(6)];
If the services of an employee have been terminated for any act, willful omission or
negligence causing any damage or loss or destruction of the property of the employer
gratuity shall be forfeited to the extent of the damage or loss caused
If the service of such employee is terminated for his riotous or disorderly conduct or any
other act of violence gratuity may be wholly or partially forfeited.
If the service of any employee is terminated for any offence involving moral turpitude
gratuity may be wholly or partially forfeited.
Intimation of Gratuity Becoming Payable
As soon as gratuity becomes payable, the employer should determine the amount of gratuity and
give a notice in the prescribed form to the payee viz. the employee or his nominee or legal hair
and to the controlling authority of that area.
Application for Payment of Gratuity
A person shall make application in Form ‟I„, within 30 days from the date the gratuity is
payable for payment of gratuity.
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A nominee shall apply ordinarily within 30 days from the date of gratuity became
payable to him, in Form 'J'.
An application in plain paper with relevant particulars shall also be accepted.
A legal heir shall apply ordinarily within one year from the date of gratuity became
payable to him, in Form „K„.
An application filed after the expiry of the specified periods shall be entertained on
sufficient ground.
No claim shall be invalid merely because the claimant failed to present his application
within the specified period.
Duty of Employer to Pay Gratuity [Section 7]
The employer shall whether application has been made or not determine the amount of
gratuity and pay within 30 days from the date it becomes payable.
If the amount is not paid within 30 days. the employer shall pay simple interest.
NO interest shall be payable if the delay is due to the fault of the employee.
Insurance and Registration Section 4A
Every employer, other than under the control of the Central or State Government, shall
have insurance for its liability for payment of gratuity with the Life Insurance
Corporation of India or any other prescribed insurer.
The appropriate government may exempt any employer employing 500 or more persons
who establishes an approved gratuity fund.
Every such employer shall get his establishment registered with the controlling authority.
Where an employer fails to make any payment of premium to the insurance company or
contribution to an approved gratuity fund, he shall be liable to pay gratuity (including
interest, if any, for delayed payments) forthwith to the controlling authority.
Whoever contravenes the aforesaid provisions shall be punishable with fine up to (10,000
and for continuing offence with a further tine up to ?1,000 for each day during which the
offence continues.
Nomination [Section 6]
Each employee, who has completed one year of service, shall make nomination (in Form
F) for receiving gratuity.
An employee may distribute the amount of gratuity amongst more than one nominee.
If an employee has a family at the time of making a nomination, the nomination shall be
made in favour of one or more members of his family. Any nomination made in favour of
a non-family member shall be void.
If at the time of making a nomination the employee has no family, the nomination may be
made in favour of any person. On subsequently acquiring a family, such nomination shall
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forthwith become invalid and the employee shall make a fresh nomination (in Form G) in
favour of one or more members of his family.
A nomination may be modified by an employee at any time giving notice in Form H.
If a nominee predeceases the employee, the interest of the nominee shall revert to the
employee.
Attachment and Assignment of Gratuity [Section 13]
Gratuity shall not be liable to attachment in execution of any decree or order of any civil,
revenue or criminal court
Disputes and Settlement [Section 7(4)]
Where there is any dispute regarding the amount of gratuity or admissibility of any claim,
or entitlement of the person to receive gratuity, the employer shall deposit with the
controlling authority such amount as he admits to be payable.
The employer or employee or any other person raising the dispute may make an
application to the controlling authority for deciding the dispute.
The controlling authority shall, after giving the parties a reasonable opportunity of being
heard, determine the matter.
If any amount is payable to the employee, the controlling authority shall direct the
employer to pay such amount.
The controlling authority shall pay the amount deposited including the excess amount, if
any, deposited by the employer to the person entitled it.
Penalties Section 9
Whoever knowingly makes any false statement or false representation for avoiding
payment of gratuity, he shall be punishable with imprisonment for a term upto 6 months,
or with fine upto Rs. 10,000 or with both.
An employer who contravenes any of the provisions of the Act, he shall be punishable
with imprisonment not less than 3 months but which may extend to one year, or with fine
which shall not be less than Rs. 10,000 but which may extend to 20,000. or with both.
Where the offence relates to non-payment of any gratuity, the employer shall be
punishable with imprisonment for a term which shall not be less than 6 months but which
may extend to 2 years unless the court allows a lesser term.
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1. The Payment of Gratuity Act, 1972
came into force on.............
(a) 01/04/1972
(b) 16/ 07/1972
(c) 16 /09/1972
(d) 01/ 10/1972
2. The Payment of Gratuity Act, 1972
applies to the following:
(a) Every factory. Outfield, plantation, Port,
Railway Company and mine
(b) Every shop or establishment In With 10
or more persons is employed. or were
employed on any day of the preceding 12
months.
(c) Both (a) and (b)
(d) None of the above
3. under the Payment of Gratuity Act.
1972 completed year of service means
continuous service for.................. (a) one year
(b) two year
(c) five year
(d) None of the above
4. Under the Payment of Gratuity Act,
1972 employee includes...............
(a) Any person working In a company's pay
roll
(b) Any person other than an apprentice
(c) Teachers
(d) Both (b) and (c)
5. Under the Payment of Gratuity Act,
1972 employee does not include any
person who............... (a) Holds a post under the Central
government
(b) Holds a post under the State Government
(c) IS governed by any other Act or rules
providing for payment of gratuity
(d) All of the above
6. Under the Payment of Gratuity Act,
1972 wages means........... (a) All emoluments which are earned by an
employee payable to him in cash
(b) Dearness allowance
(c) Concessmns given to employee
(d) Both (a) and (b)
7. Under the Payment of Gratuity Act,
1972 wages does not include
(a) bonus,
(b) Commission,
(c) House rent allowance,
(d) all of the above
8. Under the Payment of Gratuity Act,
1972 deemed continuous service for one
year if he actually worked for not less
than ...... days below the ground in a mine
or in an establishment which works for
less than days in a week.
(a) 180, 7
(b) 180. 6
(c) 190. 6
(d) 190. 7
9. Under the Payment of Gratuity Act,
1972 deemed continuous service for one
year if he actually worked for not less
than...... Days in establishments other
than below the ground in a mine or in an
establishment which works for 6 days in a
week?
(a) 120
(b) 180
(c) 240
(d) 265
10. Under the Payment of Gratuity Act,
1972 deemed continuous service for six
months if he actually worked under the
employer for not less than ...... days (i)
below the ground in a mine or (ii) in an
establishment which works for less than 6
days in a week. (a) 90
(b) 95
(c) 100
(d) 120
11. Under the Payment of Gratuity Act,
1972 deemed continuous service for six
months if he actually worked for not less
than days in establishments other than
below the ground in a mine or In an
establishment which works for 6 days in a
week. (a) 120
(b) 180
(c) 240
(d) 265
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12. Under the Payment of Gratuity Act,
1972 the number of days on which an
employee has actually worked includes
the following:
(a) The days on which he has been laid off
under an agreement or as permitted by
standing orders
(b) The days on which he has been on leave
with full wages
(c) The days on which he has been absent
due to temporary disablement caused by
accident arising out of and in the course of
his employment
(d) All of the above
13. Gratuity shall be payable on death of
an employee even if he has rendered
continuous service for less than........... (a) two years
(b) three years
(c) five years
(d) None of the above
14. Gratuity is payable if a person is in
continuous service of less than 5 years in.
case of...........
(a) Death
(b) Disablement due to accident
(C) Disablement due to disease
d) Any of the above
15. The employer shall pay gratuity to an
employee at the rate of ......... days’ wages
based on last drawn wages for every
completed year of service or part thereof
in excess of six months.
(a) 15
(b) 18
(c) 22
(d) 26
16. For piece rated employees daily wages
shall be computed on the average of the
total Wages received by him for a period
of ....... immediately preceding the
termination of his employment. (a) 2 months
(b) 3 months
(c) 6 months
(d) 12 months
17. The amount of gratuity shall not
exceed
(a) Rs3.00.000!
(b) Rs 350,000]
(6) Rs 210.00.000/
((1) None of the above
18. In seasonal establishments, the
employer shall pay the gratuity at the rate
of..... Days' wages for each season.
(a) 7
(b) 12
(c) 15
(d) 30
19. An employee is getting basic salary of?
8,000 per month at the time of retirement
after completing 28 years 6 months of
service. Gratuity shall be............
(a) Rs. 1, 29,231I
(b) Rs 1.35.2311
(c) Rs 1‟3.50.000/
(d) None of the above
20. An employee is getting basic salary off
48,000 per month at the time of
retirement after completing 35 years 8
months of service. He is also getting
{35000 as DA and? 2000 as traveling
allowance. His gratuity shall be..............
(a) Rs 3.50.000
(b) Rs 10.00.000
(c) Rs 17,213,826
(d) None of the above
21. Gratuity is forfeited........... (a) If the services of an employee have been
terminated for any act. Willful emission or
negligence causing any damage or loss or
destruction of the property of the employer.
Gratuity shall be forfeited to the extent of
the damage or loss caused
(b) If the service of such employee .5
terminated for his riotous or disorderly
conduct or any other act oi violence.
Gratuity may be wholly or partially forfeited
to
(c) If the service of any employee is
terminated for any offence involving moral
turpitude. gratuity may be wholly or
partially laddered
(d) All oi the above
22. Gratuity ......... be withhold for not
releasing quarter by the retired employee.
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(a) Cannot
(b) Can
(c) May
(d) May not
23. The appropriate government may
exempt any employer employing..............
Or more persons who establish an
approved gratuity fund from making
insurance of the employees.
(a) 100
(b) 300
(c) 500
(d) 1000
24. Each employee, who has completed
............ of service, shall make nomination
in Form F for receiving gratuity. (a) 30 days
(1)) 60 days
(c) one month
(d) one year
25. A person shall make application in
Form 'l'. Within........... Days from the
date the gratuity is payable for payment
of gratuity. (a) 7
(b) 15
(c) 30
(d) 60
26. The employer shall. Whether
application has been made or not.
determine the amount 0f gratuity and pay
within ............ days from the date it
becomes payable. (a) 7
(b) 15
(c) 30
(d) 60
27. Any person aggrieved by an order of
the Controlling authority may.
Within............ Whoever knowingly makes
any false statement or false
representation for avoiding payment of
gratuity? He shall be punishable with
imprisonment for a term up to.............. Or
with fine up to or with both.
(a) 3 months, (10 000)
(b) 6 months, {10 000)
(c) 6 months, {1, 00 000)
(d) 2 years. {10,000)
28. An employer who contravenes any 0!
The provisions of the Act, he shall be
punishable with imprisonment not less
than ......... but which may extend to one
year, or with fine which shall not be less
than (10,000 but which may extend to
20,000), or with both.
(a) 3 months
(b) 7 months
(c) 12 months
(d) 2 years
29. Under the Payment of Gratuity Act,
the rate of gratuity is ......... salary for
every completed year of service (a) 20 days
(b) 30 days
(0) 15 days
(d) 2 months
31. Gratuity is paid to the employee for
every completed year of service or part
thereof in excess of six months at the rate
of 15 days wages based on last drawn
wages by the employee. While calculating
the 15 day's wages. the number 01
working clays in a month are taken as . V.
(a) 30
(b) 31
(Cl 15
(d) 26
32. Under the Payment of Gratuity Act,
1972 where the services of an employee
have been terminated for any act which
constitutes an offence involving moral
turpitude provided that such offence is
committed by him in the course of his
employment, the gratuity payable to the
employee may be
(a) Wholly or part ally forfeited
(b) Only partially forfeited
(c) Wholly forfeited
(d) Forfeited in instalments (CS EP Dec
2008)
33. The maximum amount of gratuity
payable under the Payment of Gratuity
Act, 1972 is
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(a) RS. 5.00.000
(b) RS. 10, 00,000
(c) RS. 2.50.000
(d) RS. 2.00.000 (cs EP Dec 2009)
34. The minimum number of employees
required in an establishment for it to
come under the purview of the Payment
of Gratuity Act, 1972 is......... (a) 10
(b) 15
(c) 20
(d) 25 (CS EP June 2012)
35. What is the minimum number of
employees required in an establishment
for it to come under the purview of the
Payment of Gratuity Act, 1972.................?
(a) 10
(b) 15
(c) 20
(d) 25 (CS EP June 2013)
36. Under the Payment of Gratuity Act,
1972 where the services of an employee
have been terminated for any act which
constitutes an offence involving moral
turpitude, provided that such offence is
committed by him in the course of his
employment, the gratuity Payable to the
employee may be (a) Only partially forfeited
(b) Wholly or partially forfeited
(C) Only wholly forfeited
(d) Withheld and distributed to other
employee (CS EP Dec. 2014)
37. AS per section 13 of the Payment of
Gratuity Act, 1972 no gratuity payable
under this Act and no gratuity payable to
an employee employed in any
establishment. Every factory, Mine,
Oilfield, Plantation, Port and Railway
Company or shop exempted under section
5 of the Act. Shall be liable to attachment
in execution at any decree or order of any
(a) Curl, revenue or criminal court
(b) Civil court only
(c) Revenue court only
(d) Revenue or criminal court only (CS EP
Dec. 2014)
38. under the Payment of Gratuity Act.
1972 gratuity shall be payable to an
employee on the termination 01 his
employment it he has rendered
continuous service for (a) Not less than three years
(b) Not less than five years
(c) Not less than seven years
(d) Not less than ten years (CS EP June
2015)
39. If services of an employee have been
terminated for riotous or disorderly
conduct or any other act of violence on his
part, the gratuity payable to him under
the Payment of Gratuity Act, 1972 may
(a) Be forfeited wholly or partially
(b) Not to be forfeited wholly or partially
(c) Be given at the discretion of employer
(d) Be referred to the trade union (CS EP
June 2015)
40. The Payment of Gratuity Act. 1972
does not apply to which of the following - (a) Every factory, Mine, Oilfield, Plantation,
Port and Railway Company
(b) Every shop or establishment Within the
meaning of any law for the time being in
force in relation to shops and establishments
In a State, in which ten or more persons are
employed, or were employed, on any day of
the preceding twelve months
(c) Every shop or establishment Within the
Meaning of any law for the time being In
force in relation to shops and establishments
In State, in which less than 10 persons are
employed. or were employed on any day of
the preceding twelve months
(d) Such other establishments or class of
establishments in which ten or more
employees are employed. Or were
employed. On any day of the preceding
twelve months as the Central Government
may. by notification specify in this behalf
(CS EP June 2015)
41. In the event of any dispute relating to
the amount of gratuity payable, the
employer shall deposit such amount as he
admits to be payable by him
(a) With the Civil Court
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(b) With the Revenue Court
(c) With the Labour Inspector
(d) With the Controlling Authority (CS EP
June 2015)
42. An employee who is employed in a
seasonal establishment and who is not so
employed throughout the year. The
employer shall pay the gratuity under the
Payment of Gratuity Act. 1972 at the rate
of (a) Three days' wages for each season
(b) Five days" wages for each season
(c) Seven day's wages for each season
(d) Ten days' wages for each season (CS EP
June 2015)
43. Under section 13 of the Payment of
Gratuity Act, 1972, ‘gratuity' is exempted
from attachment in execution of any
decree or order of any:
1. Civil Court
2. Revenue court
3. Criminal court
Which of the above is incorrect?
(a) Only (1)
(b) Only (2)
(C) Only (3)
((1) None of the above (CS EP Dec. 2015)
44. Gratuity is payable to an employee
engaged in factories mines, oil fields, etc.
if he has rendered continuous service for
not less than five years on his
(a) Superannuation
(b) Retirement
(c) Resignation
(d) All of the above (CS EP Dec. 2015)
45. According to the Payment of Gratuity
Act, 1972. Gratuity shall be payable to an
‘employee’- (a) On his superannuation after completion
of continuous service for not less than 5
years
(b) On his retirement or resignation alter
completion of continuous service (or not less
than 5 years
(c) On his becoming disabled due to
accident even though unable to complete 5
years of continuous service
(d) All of the above (CS EP June 2016)
46. Which one of the following statements
is true under the Payment of Gratuity
Act? 1972
(a) Gratuity IS payable only to the employee
himself
(b) The maximum amount of gratuity
allowed under the Act is 1' 3 5 lakh
(c) An employee is not required to make
nomination
(d) is payable only to those employees who
are engage3d in factories and mine.
(d) An employer has the right of forfeiture
of gratuity, but the right of forfeiture of
gratuity is limited to the extent of damage
(CS EP June 2016)
47. Under the Payment of Gratuity Act.
1972, ‘gratuity' (a) Is payable only in case of death of an
employee
(b) Shall be paid by the employer at the rate
of thirty days wages on the rate of wages
last drawn by the employee for every
completed year of service
(c) Is a lump sum payment made by the
employer as a mark of recognition of the
service rendered by the employee when he
retires or leaves service?
(d) Is payable only to those employees who
are engaged in factories and mines (CS EP
June 2016)
48. Consider the following statements
under the Payment of Gratuity Act. 1972:
(a) In a seasonal establishment, an employee
shall be deemed to be in continuous service
it he has actually worked for not less than
seventy-five percent of the number of days
on which ("9 establishment was in operation
(b) Service is not continuous in case of legal
termination of service and subsequent
reemployment
© In a sessional establishment, an employee
shall be deemed to be in continuous service
if he has actually worked for one hundred
and ninety days.
(d) Service is deemed to be continuous in
case of legal termination of service and
subsequent e-employment.
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Select the incorrect answer from the options
given below:
(a) And (11)
(b) (ii) and (iii)
(c) (iii) ad (iv)
(d) (iv) and (i) (CS EP June 2016)
1. C
2. C
3. A
4. D
5. D
6. D
7. D
8. C
9. C
10. B
11. A
12. B
13. C
14. D
15. A
16. B
17. C
18. A
19. A
20. B
21. D
22. A
23. C
24. D
25. C
26. C
27. B
28. B
29. A
30. C
31. D
32. A
33. B
34. A
35. A
36. B
37. A
38. B
39. A
40. C
41. D
42. C
43. D
44. D
45. D
46. B
47. C
48. A
Page 14
Lesson 9
Employee’s Compensation Act 1923
Objectives
The Employees' Compensation Act, 1923 is an Act to provide for payment of
compensation by certain classes of employers to their employees for injury due to
accident.
The Act was originally enacted as the Workmen's Compensation Act, 1923.
By the Workmen‟s Compensation (Amendment) Act, 2009 which came into force on
18.01.2010, the word Workmen' was replaced by the word „Employee'.
Scope and Coverage
The Act extends to the whole of India.
It applies to factories, mines, docks, construction establishments, plantations, oilfields
and other establishments listed in Schedule ll and III to the Act.
The Act covers workers of newspaper establishments, drivers, cleaners, etc. working in
connection with a motor vehicle, workers employed by lndian companies abroad, persons
engaged in spraying or dusting of insecticides or pesticides in agricultural operations,
mechanised harvesting and thrashing, horticultural operations and doing other mechanical
jobs.
Every employee including those employed through a contractor, except casual
employees, who is engaged for the purposes of employer's business and who suffers
injury in any accident arising out of and in the course of his employment, shall be entitled
for compensation under the Act.
Exceptions
The Act does not cover establishments covered by the Employees State Insurance Act
it also does not apply to the Armed Forces.
Employees Entitled
As delined in SectIon 2(dd), employee means a person, who Is -
a railway servant not permanently employed in any administrative district or sub-
divisional office of a railway and not employed In any such capacity as is specified In
Schedule II; or
a master seaman or other members of the crew of a ship,
a captain or other member of the crew of an aircraft,
a person recruited as driver, helper, mechanic, cleaner or in any other capacity in a motor
vehicle,
Page 15
a person recruited for work abroad by a company, and who is employed outside India in
any such capacity as is specilied in Schedule II and the ship, aircraft or motor vehicle, or
company, as the case may be, is registered in lndia; or
employed in any such capacity as is specified in Schedule ll, and whether such contract is
express or implied, oral or in writing.
Exceptions: Employee does not include any person working in the capacity of a member of the
Armed Forces of the Union. lt also does not include 3 employee whose employment is of casual
nature and his work not connected with the employer„s trade or business.
Definitions
Dependent Section 2 (1) (d)
Dependent means any of the following relatives of a deceased employee
A widow, a minor legitimate son, and unmarried legitimate daughter, or a widowed
mother,
If wholly dependent on the employee at the time of his death, a son or a daughter who has
attained the age of 18 years and who is infirm.
If wholly or partly dependent on the employee at the time of death,
a widower,
a parent other than a widowed mother,
a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate
or illegitimate if married and a minor or if widowed and a minor,
a minor brother or a unmarried sister or a widowed sister if a minor,
a widowed daughter-in-law,
a minor child of a pre-deceased son,
a minor child of a pre-deceased daughter where no parent of the child is alive, or
a paternal grandparent if no parent of the employee is alive.
Son, daughter and child include adopted son, daughter and adopted child.
Temporary Partial Disablement Section 2 (1)(g)
Where the disablement is of such a nature that it reduces the earning capacity of the
employee in which he was engaged at the time of the accident.
Every injury specified in Part ll of Schedule I.
Permanent Partial Disablement Section 2 (1)(g)
Where the disablement is of such a nature that it reduces the earning capacity of the
employee in every employment which he was capable of undertaking at the time of the
accident resulting in the disablement.
Total Disablement Section 2(1)(I)
Page 16
Disablement, whether temporary or permanent that incapacitates an employee for all
work which he was capable of performing at the time of the accident.
Permanent Total Disablement Section 2(1)(I)
Every injury specified in Part I of Schedule I.
Any combination of injuries specified in Part II where the aggregate percentage of the
loss of earning capacity specified in the said Part II against those injuries is 100% or
more.
Wages Section 2(1)(m)
Wages includes any privilege or benefit which is capable of being estimated in money.
Wages does not include the following:
Any travelling allowance or the value of any travelling concession.
Contribution paid by the employer towards any pension or provident fund.
Any sum paid to an employee to cover any special expenses entailed on him by the
nature of his employment.
Liability for Compensation [Section 3]
The employer is liable for payment of compensation it personal injury is caused to an employee
by accident arising out of and in the course of his employment.
Accident arising out of and in the course of employment
Accident arising out of employment
An accident arising out of employment means that at the time of injury the employee has
been engaged in the business of the employer and not doing something for his personal
benefit.
The accident occurs at the place where the employee is performing his duties.
The injury has resulted from some risk incidental to his duties or inherent in the nature of
condition of employment.
Accident arising in the course of employment
Accident in the course of employment refers to the accident suffered when the employee
is on duty at or about the place of his work.
Statutory provisions for accident arising out of and in the course of employment
Section 3(2) provides the following provisions:
Page 17
If an employee is in employment specified in Part A of the Schedule III contacts any
disease, it is accident arising out of and in the course of employment.
If an employee is in employment specified in Part B of the Schedule III contacts any
disease for not less than 6 months, it is accident arising out of and in the course of
employment.
If an employee is in employment specified in Part C of the Schedule III contacts any
disease, it is accident arising out of and in the course of employment.
Non-liability of Employer
The employer shall not be liable to pay compensation under the following circumstances:
In respect of any injury which does not result in total or partial disablement exceeding 3
days.
In respect of any injury, not resulting in death, caused by an accident directly due to the
employee under the influence of drink or drugs, or wilful disobedience of an order
expressly given or to a rule expressly framed, for the purpose of securing the safety of
employee, or wilful removal or disregard by the employee of any safety guard or other
device which he knew to have been provided for safety of employees.
In respect of any disease if the disease is not directly attributable to the injury by accident
arising out of and in the course of employment.
In respect of any injury for which he has instituted in a Civil Court a suit for damages.
Amount of Compensation [Section 4]
Nature of injury, his monthly wages and the „Factor‟ provided in Schedule IV to the Act
with respect to his completed year of age.
Such compensation may be for death, disablement whether total or partial or temporary
or permanent. '
The amount of compensation shall be as follows:
In case of death
Where death results from the injury, an amount equal to 50% of the monthly wages of the
deceased employee multiplied by the relevant factor as given in Schedule IV; or an amount of
Rs. 1,20,000 whichever is more.
In case of permanent total disablement
Where permanent total disablement results from the injury, an amount equal to 60% of the
monthly wages of injured employee multiplied by the relevant factor; or an amount of Rs.
1,40,000, whichever is more.
In case of Permanent partial disablement
Page 18
Where permanent partial disablement results from injury specified In Part II of Schedule I, such
percentage of the compensation which would have been payable in the case of permanent total
disablement as is specified in the schedule. Where more than one injury is caused by the same
accident, the amount of compensation payable shall be aggregated. Such amount shall not exceed
the amount which would have been payable if permanent total disablement had resulted from the
injuries.
In case of temporary disablement In case of temporary disablement, whether total or partial
result from the injury, a half-monthly payment at the monthly wages or sum equivalent to Rs.
25,000 to be paid.
Time of Payment and Distribution of Compensation [Section 4A(1)]
Compensation to employees shall be paid as soon as it falls due.
In cases where the employer does not accept the liability for compensation to the extent
claimed, he shall t bound to make provisional payment based on the extent of liability
which he accepts.
Such payment shall be deposited with the Commissioner or made to the employee.
Where any employer is in default in paying the compensation due within one month from
the date it fell (ill! the Commissioner shall direct that, in addition to the amount of the
arrears, simple interest at the rate of 12% per annum on the amount due together with, if
in the opinion of the Commissioner there is no justification fc the delay, a further sum not
exceeding 50% of such amount. shall be recovered from the employer.
Time of Payment and Distribution of Half-monthly Compensation [Section 4A(2)]
Half-monthly payment shall be payable on the 16”1 day from the date of disablement
where such disablement lasts for a period of 28 days or more.
Where such disablement lasts for a period of less than 28 days, half-monthly payment
shall be payable on the „16th day alter the expiry of a waiting period of 3 days from the
date of disablement.
Thereafter, the payment shall be made half-monthly during the disablement or during a
period of 5 years whichever period is shorter.
The amount of any allowance which the employee has received from the employer by
way of compensation during the period of disablement prior to the receipt of lump sum or
of the first half-monthly payment, shall be deducted from the lump sum or half-monthly
payments.
Any payment received from the employer towards medical treatment shall not be deemed
to be a payment by way of compensation.
Payment of Compensation to Contract Labour
The principal employer is liable to pay compensation to contract labour in the same manner as
his departmental labour. He is entitled to be indemnified by the contractor. The principal
employer shall not however be liable to pay any interest and penalty leviable under the Act
Page 19
Calculation of Monthly Wages [Section 5}
Monthly wages means the amount of wages deemed to be payable for a month„s service.
whether the wages are payable by the month or by whatever other period or at piece
rates.
Such wages is to be calculated as follows :
In case of monthly wages
Where the employee is liable to compensation during a continuous period of not less than 12
months immediately preceding the accident, monthly wages of the employee shall be one-tweth
oi the total wages in the last twelve months of that period.
In case of less than a month’s wages
Where the whole of the continuous period of service immediately preceding the accident is less
than one month. the monthly wages shall be the average monthly amount during the twelve
months immediately preceding the accident earned by any employee employed on the same work
by the same employer, or, if there was no employee so employed, by an employee employed on
similar work in the same locality.
In case of insufficient information
ln other cases, the monthly wages shall be 30 times of the total wages earned in respect of the
last continuous period of service immediately preceding the accident from the employer who is
liable to pay compensation, divided by the number of days comprising such period.
Review of Half-monthly Payment [Section 6]
Any half monthly payment may be reviewed by the Commissioner on the application of
the employer or the employee.
Such application shall be accompanied by certificate of a qualified medical practitioner
that there has been a change in the condition of the employee or rules.
Any half-monthly payment may on review be continued, increased, decreased or ended.
If the accident is found to have resulted in permanent disablement, half-monthly payment
may be converted to the lump sum.
Computation of Half-monthly Payment [Section 7]
Any right to receive half-monthly payments may, by agreement between the parties or, if the
parties by the parties or determined by the Commissioner.
Distribution of Compensation in case of Death of the injured Employee [Section 8]
Page 20
Compensation amount shall be deposited with the Commissioner.
Payment made directly shall not be a payment of compensation.
An employer may make advance not exceeding (100 but the amount shall be deducted
from such compensation.
The Commissioner shall deduct the actual cost of the employee's funeral expenses not
exceeding 5,000 and pay the same to the person who incurred the same.
If the Commissioner is satisfied that no dependant exists, the balance money be paid to
the employer.
No Assignment and Attachment of Compensation [Section 9]
Any lump sum or half-monthly payment shall not be assigned or charged or be liable to
attachment or pass to any person other than the employee by operation of law.
Any claim shall not be set off against the compensation.
Procedure for Claiming Compensation [Section 10]
Notice of the accident to be given as soon as practicable after the happening of the
accident.
The claim is to be made within two years of the occurrence of the accident or death. "
The Commissioner may entertain any claim even if the notice has not been given or the
claim has not been preferred in due time on sufficient cause.
The Commissioner shall dispose of the matter within a period of three months from the
date of reference and intimate the decision within the said period to the employee.
Penalties [Section 18A]
Whoever fails (a) to maintain a notice-book, or (b) to send to the Commissioner a
statement or (c) to send a report under Section 108, or (d) to make a return under section
16, shall be punishable with fine up to 5,000.
No prosecution shall be instituted except previous sanction of the Commissioner.
No Court shall take cognizance of any offence, unless complaint is made within six
months of the date on Which the alleged offence came to the knowledge of the
Commissioner.
Page 21
1.Where death results from the injury,
compensation is payable for an amount
equal to 50% of the monthly wages of the
deceased employee multiplied by the
relevant factor as given in Schedule IV;
or an amount of ............. whichever is
more.
(a) Rs.60.000
0)) Rs.100000
(c) Rs.1.20.000
(d) Rs.50.000
2.Where permanent total disablement
results from the injury, compensation is
payable for an amount equal to 60% of
the monthly wages of injured employee
multiplied by the relevant factor; or an
amount of ? ............., whichever is more?
(3) 100.000
(b) 1.40.000
(c) 1.75.000
(d) 2.40.000
3.Under the Employees' Compensation
Act. 1923 in case of temporary
disablement. Whether total or partial
results from the injury, Compensation is
payable as a half monthly payment of the
monthly wages or sum equivalent
to...........
(a) Rs.25.000
(b) Rs.50.000
(c) Rs. 1.00.000
(d) Rs. z 2.50.000
4.Under the Employees’ Compensation
Act, 1923 compensation to employees
shall 110 paid...............
(a) Within 3 days
(b) Within 7 days
(c) Within 10 days
(d) as soon as It falls due
5.Under "to Employees' Compensation
Act. 1923 a period of service shall be
deemed to be continuous which has not
been interrupted by a period of absence
from work exceeding.........
(a) 7 days
(b) 10 days
(c) 14 days
(d) 21 days
6.In case of insufficient information,
me monthly Wages shall be........ ..... Of
the total wage; earned in respect of the
last continuous Period of service
immediately preceding the accident from
the employer who is liable to pay
compensation. Divided by the number of
days comprising such period.
(a) 10t|mes
(b) 20 times
(c) 30times
(d) 60times
7.An employee drawing a monthly wages
of Rs.1000 meets with an accident while
working and died on 10.02.2009. His date
of birth was 02.07.1972. Relent factor is
Page 22
192.14. Amount of compensation payable
is................
(a) Rs. 1.15.284
(b) I Rs. 1.20.000
(c) Rs.1.27.319
(d) Rs.1.51.725
8.An employee drawing a monthly wages
of Rs.1000 meets with an accident while
working which results in his permanent
total disablement. His date of birth was
02.07.1972. Relevant factor is 192.14. He
is entitled to compensation of.................
(a) Rs. 96.070
(b) Rs. 1.15.284
(c) Rs. 1.40.000
(d) Rs. 2.15.284
9.As provided in section 4(1) (d). in case a
temporary disablement resulting from
injury. half-monthly payment of the
monthly wages or ............ is paid as
compensation .
(a) Rs.5.000
(b) Rs.15.000
(c) Rs.120.000
(d) Rs.25.000
10.Where the disablement lasts for less
than 28 days, the payment is made after
expiry of ............ days waiting period
from the date of disablement.
(a) 3
(b) 5
(C) 7
(d) 10
11.Where the disablement lasts for a
period at 28 days or more, Half monthly
compensation ls payable on the..............
From the date of disablement
(a) 7th day
(b) 14th day
(c) 16th day
(d) 30th day
12.The Commissioner shall deduct the
actual cost of the employee‘s funeral
expenses not exceeding.............. And pay
the same to the person who incurred the
same.
(a) Rs.1, 000
(b) Rs.5.000
(c) Rs.7, 500
(d) Rs.10, 000
13.Where a Commissioner receives
information from any source that an
employee has died as a result of an
accident arising out of and in the course
of his employment. he may send a notice
to the employer requiring him to submit a
statement giving the circumstances of the
death of the employee within .............. of
the service of the notice and Whether the
employer is liable to deposit
00mpensation.
(a) 7 days
('3) 10 days
Page 23
(C) 21 days
(d) 30 days
14.Where notice is required to be given to
any authority by an employer of any
accident occurring on his premises which
results in death. Or serious bodily injury,
the person shall, within ............... of the
death or serious bodily injury. send a
report to the Commissioner giving the
circumstances of the death or serious
bodily injury.
(a) 7 days
(b) 10 days
(c) 21 days
(d) 30 days
15.A cart man was engaged by a rice mill
to carry rice bags from the mill to railway
station. The cart-man met with an
accident on a public road while returning
back and died. The rice mill owner
claimed that there was no need to pay
compensation as Par section 12. (1) and
12(4) of the Workmen’s Compensation
Act. 1923.
(a) The employer is liable
(b) The employer is not liable
(c) The employer may be liable
(d) Any of the above
16.Whoever fails (a) to maintain a notice-
book. or (b) to send to the Commissioner
a statement or (c) to send a report under
Section 108. or (d) to make a return
under section 16, shall be punishable with
Fine up to
(a) Rs.5, 000
(b) “Rs.5,000
(c) Rs.25, 000
(d) Rs.50.000
17.An appeal shall lie to the High Court
against the order of the authority. The
appeal shall be made within ............... of
the order.
(a) 30 days
(b) 60 days
(c) 90 days
(d) 120 days
18.The Employees' Compensation Act,
1923 shall apply to employees who are
masters of ships or seamen subject to
certain modifications as provided
in...............
(a) Section 15
(b) Section 15A
(c) Section 158
(d) Section 150
19.The Employees' Compensation Act,
1923 shall apply to captains or other
members of the crew of aircrafts subject
to certain modifications as provided
in....................
(a) Section 15
(b) Section 15A
Page 24
(c) Section 158
(d) Section 150
1. C
2. B
3. B
4. D
5. C
6. C
7. B
8. C
9. D
10. A
11. C
12. B
13. D
14. A
15. A
16. A
17. B
18. A
19. B
Page 25
Lesson 10
Contract labour 1970
Objectives
Contract labours suffer from lack of job security, poor economic conditions, casual
nature of employment low payment etc.
To regulate the conditions of these labours, the Contract Labour (Regulation and
Abolition) Act, 1970 was passed
The Act came into force from 10.02.1971.
The main objective of the Act is to stop the exploitatlon of the contract labours and to
abolish the practice of contract labour under the following circumstances:
if the work is of perennial nature. o If the work is incidental to and necessary for
the work of the factory.
if the work is of the nature that it can employ considerable number of whole time
workmen.
If the work can be done by ordinary or regular workmen.
Scope and Coverage
The Act extends to the whole of India.
The Act applies to the following:
To every establishment in which 20 or more workmen are employed or were
employed on any day of the preceding twelve months as contract labour.
To every contractor who employs or who employed on any day of the preceding
twelve months 20 or more workmen.
The appropriate Government may, after giving not less than two months' notice apply
the provisions of the Act to any establishment or contractor employing less than 20
workers.
The Act does not apply to establishments in which work of an intermittent or casual
nature is performed.
Work of intermittent nature
As provided in explanation to section 1. work is intermittent nature if it was performed for
not more than 120 days in the preceding twelve months. In case of a seasonal establishment.
the work performed is not more than 60 days in a year.
Workman Entitled
Workman means any person employed in or in connection with the work of any
establishment to do any skilled. Semi-skilled or un-skilled, manual, supervisory, or clerical
work for hire or reward, whether the terms of employment be express or implied. [Section
Page 26
2(1)(i)]
Exceptions
A workman does not include the following person:
A person employed mainly in a managerial or administrative capacity.
A person employed in a supervisory capacity drawing wages exceeding 500 pm.
A person exercises functions mainly of a managerial nature.
Who is an out worker.
Contract Labour [Section 2(1)(b)]
A workman shall be deemed to be employed as contract labour in or in connection with the
work of an establishment when he is hired by or through a contractor, with or without the
knowledge of the principal employer.
Registration of Establishments [Section 7]
An establishment to which the Act applies has to get registered under the Act.
The Contract Labour (Regulation and Abolition) Rules, 1971 provides that every
principal employer of an establishment shall make an application to the Registering
Officer of the area in which the establishment sought to be registered is located in
Form I for registration within time fixed by the appropriate government.
The registering officer may entertain any such application after expiry of the period
for sufficient cause.
The application shall be accompanied by a demand draft showing payment of the fees
which vary from 20 to 500 which is related to the number of workmen employed as
contract labour.
If the application is complete in all respects, the registering officer shall register the
establishment and issue a certificate of registration.
Revocation of Registration Section 8
If the registering officer is satisfied that the registration has been obtained by
misrepresentation or suppression of any material fact, or that for any other reason the
registration has become useless or ineffective and requires to be revoked, the registering
officer may, after giving an opportunity to the principal employer of the establishment to be
heard and with the previous approval of the appropriate Government, revoke the registration
of such establishment.
Effect of Non-Reistration Section 9
No principal employer of an establishment, to which the Act applies, shall employ contract
Page 27
labour if the establishment is not registered or the registration has been revoked.
Prohibition of Employment of Contract Labour [Section 10]
The appropriate Government to prohibit employment of contract labour in any
process, operation or other Work in consultation with the Central or the State Board.
„
If a question arises whether any process or operation or other work is of perennial
nature, the decision of the appropriate Government thereon shall be final.
Licencing of Contractor [Section 12]
No contractor shall undertake any work through contract labour except under a
licence issued by the licensing officer.
Every application for a license shall be made, in triplicate, in Form IV, to the
licensing officer of the area in Which the establishment is located.
The application shall be accompanied by a demand draft showing deposit of the
security and the payment of fees.
The deposit shall be calculated @ Rs 90 for each workman to be employed as
contract labour.
Where the contractor is a Co-operative Society, the deposited shall be @ Rs. 15 for
each contract labour.
A certificate by the principal employer in Form V to the effect that the applicant has
been employed by him as a contractor and that he undertakes to be bound by all the
provisions as applicable to him as principal employer is to be given along with the
application.
On receipt of the application, the licensing officer shall grant an acknowledgement to
the applicant.
Revocation Suspension of Licence Section 14
If the licensing officer is satisfied that a licence has been obtained by misrepresentation or
suppression of any material fact, the licensing officer may, after giving the holder of the
licence an opportunity of showing cause, revoke or suspend the licence or forfeit the deposit
for the due performance of the conditions subject to which the licence has been granted.
Welfare and Health of Contract Labour
Canteens Section 16
Every establishment to which the Act applies and wherein 100 or more contract
labourers are ordinarily employed by a contractor, one or more canteens shall be
provided and maintained by the contractor.
Page 28
Rest-rooms Section 17
In every place wherein contract labour is required to halt at night in connection with
the work, the contractor shall maintain for the use of the contract labour, rest-rooms
or such other suitable alternative accommodation.
Other facilities Section 18
Every contractor shall provide and maintain (a) sufficient supply of wholesome
drinking water at convenient places; (b) sufficient number of latrines and urinals
convenient and accessible and (c) washing facilities.
First-aid facility Section 19
The contractor shall provide not less than one first-aid box for 150 contract labour.
The boxes shall be readily accessible during all working hours at every place where
contract labour is employed.
Liability of principal employer Section 20
If any amenity required to be provided for the benefit of the contract labour is not
provided by the contractor, such amenity shall be provided by the principal
employer.
Payment of Wages to Contract Labours [Section 21],
A contractor shall be responsible for payment of wages to each worker employed by
him as contract labour.
Every principal employer shall nominate a representative duly authorized by him to
be present at the time of disbursement of wages by the contractor.
lt shall be the duty of such representative to certify the amounts paid as wages.
lt shall be the duty of the contractor to ensure the disbursement of wages in the
presence of the authorized representative of the principal employer.
In case the contractor fails to make payment of wages within the prescribed period or
makes short payment, then the principal employer shall be liable to make payment of
wages in full or the unpaid balance due to the contract labour employed by the
contractor.
The principal employer shall recover the amount so paid from the contractor either by
deduction from any amount payable to the contractor under any contract or as a debt
payable by the contractor.
Penalties
Page 29
Obstruction (Section 22)
Whoever obstructs an inspector in the discharge of his duties or refuses or willfully neglects
to afford the inspector any reasonable faculty for making any inspection, examination,
inquiry or investigation, he shall be punishable with imprisonment up to 3 months, or with
fine up to Rs. 500, or with both.
Refusal to give documents (Section 22)
Whoever willfully refuses to produce to an inspector any register or other document or
prevents or attempts to prevent or does anything which he has reason to believe is likely to
prevent any person from appearing before or being examined by an inspector, shall be
punishable with imprisonment up to 3 months, or with fine up to Rs. 500, or with both.
Contravention of provisions of the Act (Section 23)
Whoever contravenes any provision of the Act or of any rules made thereunder, shall be
punishable with imprisonment up to 3 months, or with fine up to Rs. 1000, or with both. in
the case of a continuing contravention, an additional fine upto Rs. 100 for every day during
which such contravention continues after conviction for the first shall be paid.
Other offences (Section 24)
If any person contravenes any of the provisions of the Act or of any rules made thereunder
for which no other penalty is elsewhere provided, he shall be punishable with imprisonment
for a term up to 3 months, or with fine up to ?1000, or with both.
Ofences by Companies [Section 25]
If a company commits an offence, the company as well as every person in charge of
and responsible to the company for the conduct of its business at the time of the
commission of the offence shall be deemed to be guilty of the offence and shall be
liable to be proceeded against and punished accordingly
Registers and Records [Section 29]
Every principal employer and every contractor shall maintain registers and records
giving particulars of contract labour employed, the nature of work performed, the
rates of wages paid etc.
Display of Notice
Every principal employer and every contractor shall exhibit within the premises of the
establishment where the contract labour is employed, notices containing particulars of
hours of work, nature of duty etc.
Page 30
1.The Contract Labour (Regulation and
Abolition) Act, 1970 came into force from
.......
(a) 10.02.1971
(b) 01.04.1971
(c) 01.07.1971
(d) 01.01.1972
2.The Contract Labour (Regulation and
Abolition) Act. 1970 applies to every
establishment in which........... Workmen
are employed or were employed on any
day of the preceding twelve months as
contract labour.
(a) 20
(b) 20 or more
(c) 50
(d) 50 or more
3.The Contract Labour (Regulation and
Abolition) Act, 1970 applies to every
contractor who employs or who employed
on any day of the preceding twelve
months ......... workmen.
(a) 20
(b) 20 or more
(c) 50
(d) 50 or more
4.The appropriate Government may,
after giving not less than ............ notice
apply the 'provisions of the Contract
Labour (Regulation and Abolition) Act,
1970 to any establishment or contractor
employing less than 20 workers.
(a) one months”
(b) two months„
(c) three months‟
(d) None of the above
5.The Contract Labour (Regulation and
Abolition) Rules, Act, 1970 does not apply
to establishments in which work of an
............. nature is performed.
(a) intermittent
(b) intermittent or casual
„(c) seasonal
(d) service
6.Under the Contract Labour (Regulation
and Abolition) Act, 1970 work is of
intermittent nature it it was performed
for not more than ............. in the
preceding twelve months.
(a) 30 days
(b) 45 days
(0) 60 days
(d) 120 days
7.Under the Contract Labour (Regulation
and Abolition) Act, 1970 in case of a
seasonal establishment, if the work
performed is not more than ............ in a
year.
(a) 15 days
(b) 30 days
(c) 60 days
(d) 90 days
8.The main objective of the Contract
Labour (Regulation and Abolition) Act,
1970 is to stop the exploitation of the
contract labourers and to abolish the
practice of contract labour ................. (a) if the work is of perennial nature
(b) if the work is incidental to and necessary
for the work of the factory
(c) if the work is of the nature that it can
employ considerable number of whole time
workmen
(d) All of the above
9.Under the Contract Labour (Regulation
and Abolition) Act, 1970 contract labour
is defined in............
(a) Section 2(1)(a)
(b) Section 2(1)(b)
(c) Section 2(1)(c)
(d) Section 2(1)(d)
10.Under the Contract Labour
(Regulation and Abolition) Act, 1970
workman is defined in.................
(a) Section 2(1)(a)
(b) Section 2(1)(b)
(c) Section 2(1)(i)
(d) Section 2(1)(j)
11.Under the Contract Labour
(Regulation and Abolition) Act, 1970 a
workman does not include the following
person(s):
(a) A person employed mainly in a
managerial or administrative capacity
Page 31
(b) A person employed in a supervisory
capacity drawing wages exceeding 500 pm.
(c) Who is an outworker
(d) All of the above
12.The Contract Labour (Regulation and
Abolition) Act, 1970 provides that every
principal employer of an establishment
shall make an application to the
Registering Officer of the area in which
the establishment sought to be registered
is located in Form l for registration
within..........
(a) time fixed by the appropriate
government.
(b) 7 days
(c) 30 days
(d) 60 days
13............ of the Contract Labour
(Regulation and Abolition) Act, 1970
empowers the appropriate Government to
prohibit employment of contract labour
in any process, operation or other work in
consultation with the Central or the State
Board. (a) Section 4
(b) Section 7
(c) Section 10
(d) Section 11
14.Some contract labour were engaged by
an organization. Subsequently
prohibition of employment of contract
labour in that category notificated by the
Central Government. The employer did
not absorb the contract labour. The
workmen challenged the action of the
organization. Will they succeed?
(a) The workmen will not succeed
(b) The workmen will succeed
(c) The workmen may succeed
((d) None of the above
15.Any person aggrieved by an order of
refusal of registration, licence or
suspension or revocation of license under
the Contract Labour (Regulation and
Abolition) Act, 1970 may. Within from
the date, on which the order ls
communicated to him, make an appeal to
an appellate officer.
(a) 30 days
(b) 45 days
(c) 60 days
(d) 90 days
16.Every establishment to which the
Contract Labour (Regulation and
Abolition) Act, 1970 applies and wherein
contract labourers are ordinarily
employed by a contractor, one or more
canteens shall be provided and
maintained by the contractor.
(a) 100 or more
(b) 150 or more
(c) 250 or more
(d) 500 or more
17.As per the Contract Labour
(Regulation and Abolition) Act, 1970 the
dining-hall shall accommodate at a time
at least ....... of the contract labour
working at a time. (a) 50
(b) 100
(c) 30%
(d) 50%
18.As per the Contract Labour
(Regulation and Abolition) Act, 1970 at
least one latrine for every........... Females
and at least one latrine for every 25 males
shall be provided.
(a) 15
(b) 25
(c) 50
(d) 60
18.As per the Contract Labour
(Regulation and Abolition) Act, 1970 the
contractor shall provide not less than one
first-aid box for........... Contract labour.
(a) 100
(bl 150
(c) 250
(cl) 500
20.As per the Contract Labour
(Regulation and Abolition) Act, 1970
whoever obstructs an inspector in the
discharge of his duties or refuses or
willfully neglects to afford the Inspector
any reasonable facility for making any
Page 32
inspection, examination, inquiry or
investigation, he shall be punishable with
imprisonment up to 3 months, or with
fine up to .......... , or with both.
(a) Rs.500
(b) Rs.1000
(c) Rs.5000
(d) Rs.10000
21.As per the Contract Labour
(Regulation and Abolition) Act, 1970
whoever willfully refuses to produce to an
inspector any register or other document
or prevents or attempts to prevent or does
anything which he has reason to believe is
likely to prevent any person from
appearing before or being examined by
an inspector, shall be punishable with
imprisonment up to ........... , or with fine
up to t 500, or with both.
(a) 1 month
(b) 3 months
(c) 6 months
(d) 12 months
22.As per the Contract Labour
(Regulation and Abolition) Act, 1970 it
shall be the duty of the ............ to pay
wages to the contract labour.
(a) contractor
(b) employer
(c) both of the above
(d) any of the above
23.Under the Contract Labour
(Regulation and Abolition) Act, 1970, the
principal employer of an establishment
can employ contract labour if.............. (a) the principal employer has not obtained
the certificate of registration.
(b) the work is of urgent nature
(c) the work is not of perennial nature
(d) the work provides instant employment to
a considerable number of unemployed
persons. (CS EP Dec 2008)
24.The Contract Labour (Regulation and
abolition) Act, 1970 applies to every
establishment wherein workmen
employed on any day of the preceding 12
months are................
(a) 100 or more
(b) 50 or more
(c) 20 or more
(d) 200 or more (CS EP Dec 2009)
25.The Contract Labour (Regulation and
Abolition) Act. 1970 applies to every
establishment or contractor wherein
workmen employed on any day of the
preceding 12 months shall be (a) 10 Workmen or more
(b) 20 Workman or more
(c) 50 Workmen or more
(d) 100 Workmen or more (CS EP June
2010)
26.As per the Contract Labour
(Regulation and Abolition) Act, 1970 and
the central rules in case the work is
completed before the expiry of the wage
period, final payment shall be made
within............
(a) 24 hours of the last working day
(b) 48 hours of the last working day
(c) 7 days of the last working day
(d) 3 days of the last working day (CS EP
June 2011)
27.The employment of contract labour
can be prohibited.................
(a) by an order of the labour court
(b) by notification of the Government
(c) when the number of workmen exceeds
50
(d) by the Central Advisory Board (CS EP
Dec 2011)
28.The establishments which have been
exempted from the purview of the
Contract Labour (Regulation and
Abolition) Act, 1970 are...............
(a) Establishments where manufacturing
work is performed
(b) Establishments where metal work is
performed
(c) Establishments where embroidery work
is performed
(d) Establishments where work of
intermittent nature is performed (CS EP Dec
2012)
29.Section 16 of the Contract Labour
(Regulation and Abolition) Act, 1970
requires that in every establishment to
Page 33
which this Act applies, wherein contract
labour is likely to continue for such
period as may be prescribed, the
contractor for the use of such contract
labour shall provide and maintain one or
more --
(a) Guard rooms
(b) Crèches
(c) Canteens
(d) Gyms (CS EP Dec. 2014)
30.Section 21 of the Contract Labour
(Regulation and Abolition) Act, 1970
provides that a shall be responsible for
payment of wages to each worker
employed by him a contract labour and
such wages shall be paid before the expiry
of such period as may be prescribed and
every principal employer shall nominate a
representative duly authorised by him to
be present at the time of disbursement of
wages by the contractor and it shall be the
duty of such representative to the amount
paid as wages in such manner as may be
prescribed.
(a) Principal employer; grant
(b) Contractor; deduct
(c) Contractor, certify
(d) Principal employer; authorize. (CS EP
Dec. 2014)
31.As per section 16 of the Contract
Labour (Regulation Abolition) Act, 1970
in every establishment wherein contract
labour numbering 100 or more is
ordinarily employed by a contractor, the
contractor is required to provide and
maintain for the use of such contract
labour.
(a) One or rest rooms
(In) One or more canteens
(c) Creches
(d) First-aid facilities (CS EP June 2015)
32.Under the Contract Labour
(Regulation and Abolition) Act, 1970 the
principal employer of an establishment
can employ contract labour if~-
(a) The principal employer has not obtained
the certificate or registration
(b) The work is of urgent nature
(c) The work is not of perennial nature
(d) The work provides instant employment
to a considerable number of unemployed
persons. (CS EP June 2015)
33.The limitation period of period of
prosecutions under section 27 of the
Contract Labour (Regulation and
Abolition) Act, 1970 is -
(a) Thee years
(b) One year
(c) Nine months
(d) Three months (CS EP June 2015)
34.The Contract Labour (Regulation and
Abolition) Act, 1970 applies to every
establishment/contractor in which or
more workmen are employed or were
employed on any of the preceding twelve
months as contract labour -
(a) 7
(b) 10
(c) 15
(d) 20 (03 EP June 2015)
35.The Contract Labour (Regulation and
Abolition) Act, 1970 applies to every
establishment or contractor wherein 20 or
more workmen are or were employed as
contract labour on any day of the
preceding
(a) Fifteen months
(b) Fourteen months
(0) Sixteen months
(d) Twelve months. (CS EP Dec. 2015)
36.Section 7 of the Child Labour
(Prohibition and Regulation) Act, 1986
stipulates that:
(1) No] child shall permitted to work
between 7 p.m. and 8 am.
(2) No child shall be permitted to work
overtime
(3) No child shall be required to work in
any establishment on any day on which he
has
already been working in another
establishment.
Which of the above is incorrect –
(a) Only (1)
(b) Only (2)
(c) Only (3)
Page 34
(d) None of the above. (CS EP Dec. 2015)
37.Under section 27 of the Contract
Labour (Regulation and Abolition) Act,
1970 where the offence consists of
disobeying a written order made by an
inspector, compiaint thereof may be made
-
(a) Within three months from the date on
which the alleged commission of the offence
came to the knowledge of an inspector
(b) Within six months from the date on
which the offence is alleged to have been
committed
(c) Anytime before the expiry of one year
from the date on which offence is alleged to
have been committed
(d) Anytime because no rule of limitation
applies to such cases. (CS EP June 2016)
38.Which one of the following statements
is incorrect under . the Contract Labour
(Regulation and Abolition) Act, 1970 --
(a) The Act does not apply to establishments
in which work only of intermittent or casual
nature is performed.
(b) „Workman‟ does not include a person
who is employed mainly in administrative
capacity or who is an out-worker
© The tribunals enjoy jurisdiction to abolish
contract labour.
(d) Before revoking registration or
establishment/contractor the registering
officer is required to obtain previous
approval of the appropriate government. (CS
EP June 2016)
1. A
2. B
3. B
4. B
5. B
6. D
7. C
8. D
9. B
10. C
11. D
12. A
13. C
14. A
15. A
16. A
17. C
18. B
19. B
20. A
21. B
22. A
23. C
24. C
25. B
26. B
27. B
28. D
29. C
30. C
31. B
32. C
33. D
34. D
35. D
36. A
37. A
38. C
Page 35
Lesson 11
Maternity Benefit Act 1961
Objectives
The object of maternity leave and benefit is to protect the dignity of motherhood by
providing for the full and healthy maintenance of working woman and her child when she
is not working.
With this object the Maternity Benefit Act, 1961 was enacted
The Act came into force on 01.11.1963
As per preamble of the Act, it is an Act to regulate the employment of woman in certain
establishments for certain period before and after child-birth and to provide for maternity
and certain other benefits.
Scope and Coverage
The Act extends to the whole of india.
It applies to every establishment being a factory, mine or plantation including any such
establishment belonging to Government and to every establishment wherein persons are
employed for the exhibition of equestrian acrobatic and other performances.
The Act also applies to every shop or establishment in which 10 or more persons are
employed or were employed on any day of the preceding 12 months.
Where ESI Act applies to the factory but any employee is out of its coverage due to
salary limit, the provisions of the Maternity Benefit Act shall apply in her case.
Exception
The Act shall not apply to any factory or establishment to which the Employees„ State insurance
Act, 1948 applies except as provided in Sections 5A and 58.
Employees Entitled
Every woman employee, whether employed directly or through a contractor, who has
actually worked in the establishment for a period of at least 80 days during the 12 months
immediately preceding the date of her expected delivery, is entitled to receive maternity
benefit. [Sec 5(2)]
The qualifying period of 80 days shall not apply to a woman who has immigrated into the
State of Assam and we pregnant at the time of immigration, [Sec- 5(2)]
For calculating the number of days on which a woman has actually worked during the
preceding 12 months, the days on which she has been laid off or was on holidays with
wages, shall also be counted.
There is neither a wage ceiling for coverage under the Act nor there is any restriction as
regards the type of work a woman is engaged in.
Page 36
Female workers engaged on casual basis or on muster roll on daily wages are also
entitled to benefit under the Act since there is nothing in the Act which confers the
benefit only on regular women employees.
Maternity Benefit
Rate of Benefit Every woman shall get maternity benefit for the period of her actual
absence at the rate of average daily wage.
Average daily wage for this purpose means the average wages payable
to her for the days on which she has worked during the period of three
calendar months immediately preceding the date from which she
absents herself on account of maternity, or the minimum rate of wage
fixed or revised under the Minimum Wages Act, 1948 or „10 whichever
is the highest.
Minimum
Working Period A woman shall be entitled to maternity benefit if she has actually
worked in an establishment for t not less than 80 days in the 12 months
immediately preceding the date of her expected delivery. .
For calculating the actual working days, the days for which she has
been laid off or was on holidays shall be taken into account as working
days.
Maximum Benefit
Period
The maximum period for entitlement of maternity benefit shall be 26
weeks of which not more than 8 weeks shall precede the date delivery.
Death of a
Woman Before
Actually
Receiving Benefit
if a woman entitled to maternity benefit or any other amount dies before
receiving such benefit or amount, the employer shall pay such benefit or
amount to the person nominated by the woman in the notice and in case
there is no such nominee, to her legal representative.
Claim for Maternity Benefit Section 6
Any woman entitled to maternity benefit may give notice in writing to her „employer
claiming the benefit.
She may nominate any person in the notice and state that she will not work in any
establishment during the period for which she receives maternity benefit.
She shall state the date from which she will be absent not earlier than six weeks from the
date of her expected delivery.
Any woman who has not given the notice when she was pregnant may give such notice as
soon as possible after the delivery.
On receipt of the notice, the employer shall permit such woman to absent herself during
the period for which she receives the maternity benefit.
The amount of maternity benefit for the period preceding the date of her expected
delivery shall be paid in advance on production of proof.
Page 37
The amount due for the subsequent period shall be paid within 48 hours on production of
proof of delivery of child.
The failure to give notice shall not disentitle a woman to maternity benefit.
Forfeiture of Maternity Benefit
If a woman after she has been permitted by her employer to absent for any period works in any
establishment during such authorised absence, she shall forfeit the maternity benefit for such
period.
Maternity bonus (Section 8)
Every woman entitled to maternity benefit under this Act shall also be entitled to receive from
her employer 8 medical bonus of Rs. 1000, if no pre-natal confinement and post-natal care is
provided for by the employer free of charge.
Leave
Leave for miscarriage
(Section 9)
ln case of miscarriage or medical termination of pregnancy, a woman
shall be entitled to leave with wages for a period of 6 weeks
immediately following the day of miscarriage 0" medical termination
of pregnancy.
Leave with wages for
tubectomy operation
(Section 9A)
In case of tubectomy operation, a woman shall be entitled to leave
with wages at the rate of maternity benefit for a period of 2 weeks
immediately following the day of her tubectomy operation.
Leave for illness
(Section 10)
A woman suffering from illness arising out of pregnancy, delivery;
premature birth of child, miscarriage, medical termination .of
pregnancy or tubectomy operation shall be entitled to leave with
wages at the rate of maternity benefit for a maximum period of one
month in addition to the period of absence allowed to her.
Nursing Breaks
(Section 11)
Every woman who delivered of a child if returns to duty after such
delivery shall, in addition to the normal interval for rest, will get two
breaks for nursing the child until the child attains the age of 15
months.
Dismissal During Absence for Pregnancy
When a woman absents herself from work in accordance with the Act it shall be unlawful
for her employer to discharge or dismiss her during such absence.
The employer shall not vary to her disadvantage any of the conditions of her service.
The discharge or dismissal of a woman at any time during her pregnancy shall not
deprive her of the maternity benefit or medical bonus.
No Deduction of Wages
Page 38
No deduction from the normal and usual daily wages of a woman entitled to maternity benefit
shall be made by reason only of (a) the nature of work assigned to her; or (b) breaks for nursing
the child allowed to her.
Penalties
Non-payment of benefit or discharge of women -If any employer fails to pay any amount of
maternity benefit to a woman or discharges or dismisses such woman during her absence, he
shall be punishable with imprisonment which shall not be less than 3 months but which may
extend to one year and with fine which shall not be less than Rs. 2,000 but which may extend to
Rs. 5,000. The court may, for sufficient reasons impose a sentence of imprisonment for a lesser
term or fine only in lieu of imprisonment.
Contravention of the Act -If any employer contravenes the provisions of the Act or the rules
made thereunder, he shall, if no other penalty is elsewhere provided under the Act, be punishable
with imprisonment which may extend to one year, or with fine which may extend to Rs. 5,000,
or with both.
Page 39
1.The Maternity Benefit Act, 1961 came
into force on…….
(a) 01.01.1961
(b) 01.01.1962
(c) 01.11.1961
(d) 01.11.1963
2.The Maternity Benefit Act, 1961 applies
to every shop or establishment in which
or more persons are employed or were
employed on any day of the preceding 12
months.
(a) 10
(b) 20
(c) 100
(d) 500
3.The Maternity Benefit Act, 1961 shall
not apply to any factory or establishment
to which the ............. applies except as
provided in Sections 5A and 53.
(a) Employees‟ State Insurance Act, 1948
(b) Employees‟ Compensation Act, 1923
(c) Factories Act, 1948
(d) Any of the above
4.Employer under the Maternity Benefit
Act, 1961 is defined in ................ (a) Section 3(c)
(b) Section 3(d)
(c) Section 3(f)
(d) None of the above
5.Under the Maternity Benefit Act, 1961
wages includes the following: (a) Cash allowances including dearness
allowance and house rent allowance
(b) incentive bonus
(c) The money value of the concessional
supply of food grains and other articles
(d) All of the above
6.Wages under the Maternity Benefit Act,
1961 does not include the following:
(a) Any bonus other than incentive bonus
(b) Over-time earnings
(c) Any contribution paid or payable by the
employer to any pension fund or provident
fund
(d) All at the above
7.Average daily wage: under the
Maternity Benefit Act, 1981 means the
average of the women‘s wages payable to
her for the days on which she has:
worked during the period of immediately
preceding the date from which she
absents herself.
(a) 2 calendar months
(b) 3 calendar months
(c) 6 calendar months
(d) 12 calendar months
8.As per the Maternity Benefit Act, 1961
a woman shall be entitled to maternity
benefit if she has actually worked in an
establishment for not less than.............. in
the 12 months immediately preceding the
date of her expected delivery.
(a) 10 days
(b) 30 days
(c) 60 days
(d) 80 days .
9.Under the Maternity Benefit Act, 1961
the maximum period for entitlement of
maternity benefit shall be ................ of
which not more than 6 weeks shall
precede the date delivery.
(a) 10 weeks
(b) 12 weeks
(c) 18 weeks
(d) 24 weeks
10.In case of tubectomy operation, a
woman is entitled to maternity benefit for
a period of.............. Immediately following
the day of her operation.
(a) 2 weeks
(b) 3 weeks
(c) 6 weeks
(d) 12 weeks
11.Every woman whose wages for a
month exceed the amount for eligibility of
ESI benefit and who worked for not less
than ............ in the 12 months
immediately preceding the date of her
expected delivery, she shall be entitled to
maternity benefit.
(a) 10 days
(b) 30 days
(c) 60 days
(d) 80 days
12.Every woman entitled to maternity
benefit shall be entitled to receive from
Page 40
her employer a medical bonus of........... ,
if no pre-natal if no pre-natalconfinement
and post-natal care is provided for by the
employer free of charge
(a) Rs 250
(b) Rs 500
(c) Rs 1000
(d) Rs 10000
13.As per the Maternity Benefit Act, 1961
in case of miscarriage or medical
termination of pregnancy, a woman shall
be entitled to leave with wages for a
period of. .............. Immediately following
the day of miscarriage or medical
termination of pregnancy.
(a) 2 weeks
(b) 3 weeks
(c) 6 weeks
(d) 12 weeks
14.As per the Maternity Benefit Act, 1961
every woman who delivered of a child if
returns to duty after such delivery shall,
in addition to the normal interval for rest,
will get .......... breaks for nursing the child
until the child attains the age of 15
months. (a) 2
(b) 3
(C) 4
(d) As and when required
15.As per the Maternity Benefit Act, 1961
any woman so deprived of such benefit or
discharged or dismissed may appeal to
the authority within........... From the date
on which the order is communicated to
her.
(a) 10 days
(b) 30 days
(c) 60 days
(d) 80 days
16.As per the Maternity Benefit Act, 1961
any person aggrieved by the decision of
the inspector may, within from the date
on which such decision is communicated
to such person, appeal to the prescribed
authority.
(a) 10 days
(b) 30 days
(c) 60 days
(d) 80 days
17.If any employer fails to pay any
amount of maternity benefit to a woman
or discharges or dismisses such woman
during her absence, he shall be
punishable with imprisonment which
shall not be less than 3 months but which
may extend to one year and with fine
which shall not be less than ...... but which
may extend to ................ (a) Rs 2.000. Rs 5,000
(b) Rs 5,000, Rs 10.000
(c) Rs 10.000. Rs 25.000
(d) Rs 20,000. Rs 1.00,000
18.lf any employer contravenes the
provisions of the Maternity Benefit Act,
1961 or the rules made thereunder, he
shall, if no other penalty is elsewhere
provided under the Act, be punishable
with imprisonment which may extend to
one year, or with fine which may extend
to ..... . ...... , or with both.
(a) Rs 5,000
(b) Rs 10,000
(c) Rs 15,000
(d) Rs 25,000
19.As per the Maternity Benefit Act, 1961
whoever fails to produce on demand any
register or document in his custody to the
inspector or conceals or prevents any
person from appearing before an
Inspector, he shall be punishable with
imprisonment which may extent to one
year, or with fine which may extend
to................. , or with both.
(a) 213,000
(b) Rs 10,000
(6) Rs 15,000
(6) Rs 25,000
20.For how much time a woman can get
maternity benefit?
(a) 10 weeks
(b) 12 weeks
(c) 15 weeks
(d) 20 weeks
Page 41
21.For how much time a woman can get
leave with pay from the date of
miscarriage? (a) 2 weeks
(b) 4 weeks
(c) 6 weeks
(d) 9 weeks
22. To be entitled to maternity benefits, a
woman must have worked for
(a) not less than 20 days
(b) not less than 50 days
(c) not less than 80 days
(d) not less than 100 days
23.Who is responsible for administration
of the Maternity Benefit Act in mine?
(a) Employer
(b) Employee
(c) Central Government
(d) State Government
24.Under the Maternity Benefit Act, a
woman worker is eligible for...........
Weeks leave with wages.
(a) 3
(b) 6
(c) 9
(d) 12
25.Every woman who delivered of a child
if returns to duty after such delivery shall
be allowed..... Breaks for nursing the
child until the child attains the age
of.............. Months. (a) 2, 15
(b) 3,15
(c) 2, 10
(d) 3, 10
26.Which of the following enactment
stipulates for nursing break to a women
employee? (a) Equal Remuneration Act, 1976
(b) Maternity Benefit Act, 1961
(c) Apprentices Act, 1961
(d) The Child Labour (Prohibition and
Regulation) Act, 1986
27.Every woman entitled to maternity
benefit under the Maternity Benefit Act,
1961 shall also be entitled to receive
.................. from her employer.
(a) medical bonus
(b) leave for miscarriage
(c) leave with wages for tubectomy
operation
(d) All of the above
28.Section 11 of the Maternity Benefit
Act, 1961 provides that every woman
delivered of a child who returns to duty
after such delivery shall. in addition to
the interval for rest allowed to her, be
allowed in the course of her daily work
break(s) of the prescribed duration for
nursing the child until the child attains
the age of (a) One; ten months
(b) Two; fifteen months
(c) Two; twenty months
(d) Four; fifteen months. (CS EP Dec. 2014)
29.The Maternity Benefit Act, 1961 inter
alia, applies to every shop or
establishment within the meaning of any
law for the time being in force in relation
to shops and establishments in a State, in
which persons are employed, or were
employed, on any day of the preceding
(a) Ten or more; twelve months
(b) Twenty or more; six months
(c) Ten or more; two years
(d) Less than ten; twelve month. (CS EP
Dec. 2014)
30.As per section 19 of the Maternity
Benefit Act, 1961 of the provisions of this
Act and the rules made thereunder in the
language or languages of the locality shall
be exhibited in a conspicuous place by the
employer in every part of the
establishment in which women are
employed. '
(a) A book
(b) A register
(c) An abstract
(d) A copy. (cs EP Dec. 2014)
31.As per the Maternity Benefit Act, 1961
a woman is entitled to maternity benefit if
she has actually worked in an
establishment of the employer for a
period of not less than -
Page 42
(a) Eighty days in the twelve months
immediately preceding the date of her
expected delivery
(b) Ninety days in the twelve months
immediately preceding the date of her
expected delivery '
(c) Hundred days in the twelve months
immediately preceding the date of her
expected delivery
(d) Hundred twenty days in the twelve
months immediately preceding the date of
her expected delivery (CS EP June 2015)
32.Under the Maternity Benefit Act, 1961
employment of or work by a woman is
prohibited during -
(a) Three weeks immediately following the
day of her delivery, miscarriage of medical
„termination of pregnancy
(b) Six weeks immediately following the
day of her delivery. miscarriage or medical
lamination of pregnancy
(c) Nine weeks immediately following the
day of her delivery. miscarriage or medical
termination of pregnancy
(d) Twelve weeks immediately following
the day of her delivery, miscarriage or
medical termination of pregnancy. (CS 03
EP June 2015)
33.Which Act, regulates employment of
women in certain establishments for a
certain period before and after childbirth
and provides for maternity and other
benefits - (a) The Apprentices Act, 1961
(b) The industrial Employment (Standing
Orders) Act, 1946
(c) The Maternity Benefit Act, 1961
(d) The Equal Remuneration Act, 1876 ' (CS
EP June 2015)
34.Under section 5(3) of the Maternity
Benefit Act, 1961 the maximum period
for which any woman employee shall be
entitled to maternity benefit is - (a) Six weeks
(b) Eight weeks
(c) Twelve weeks
(d) Twenty four weeks. (CS EP Dec. 2015)
35.According to section 3(h) of the
Maternity Benefit Act, 1961, ‘maternity
benefit’ means the payment referred
under (a) Section 5(1)
(b) Section 5(2)
(c) Section 5(3)
(d) None of the above. (CS EP Dec. 2015)
36.Consider the following statements
under the Maternity Benefit Act. 1961 :
(i)The object of this legislation does not
correspond with the provisions contained
in Article 42 of the Constitution of India
(ii) Women employees are also entitled to
six weeks maternity benefit in case of
miscarriage
(iii) A woman entitled to maternity
benefit is also entitled to receive from her
employer medical bonus
(iv) The Act does not made provisions to
safeguard the interest of pregnant women
workers.
Select the correct answer from the options
given below -
(a) (i) and (ii)
(b) (ii) and (iii)
(c) (iii) and (iv)
(d) (iv) and (i) ‘ (CS EP June 2016)
37. Under the provisions of the Maternity
Benefit Act, 1961 no woman shall work in
any establishment during (3) Six weeks immediately following the
day of her delivery, miscarriage or medical
termination of pregnancy
(b) Eight weeks immediately following the
day of her delivery, miscarriage or medical
termination of pregnancy
(c) Nine weeks immediately following the
day of her delivery, miscarriage or medical
termination of pregnancy
(d) Three weeks immediately following the
day of her delivery, miscarriage or medical
termination of pregnancy. (CS EP June
2016)
Page 43
1. D
2. A
3. A
4. B
5. D
6. D
7. B
8. D
9. B
10. A
11. D
12. C
13. C
14. A
15. C
16. B
17. A
18. A
19. A
20. B
21. C
22. C
23. C
24. D
25. A
26. B
27. D
28. B
29. A
30. C
31. A
32. B
33. C
34. C
35. A
36. B
37. A
Page 44
Lesson 12
Child Labour (Prohibition & Regulation) Act 1986
Objectives
In order to ban employment of children below the age of 14 years in factories, mines and
hazardous employments and to regulate the working conditions of children in other
employments, Child Labour (Prohibition & Regulation) Act, 1986 was enacted.
The objectives of the Act are as follows:
To ban the employment of children in Specified occupations and processes.
To lay down procedures for modifications to the Schedule of banned occupations or
processes.
To regulate the conditions of work of children in employments where they are not
prohibited.
To lay down enhanced penalties for employment of children where they are prohibited.
Scope and Coverage
The Act applies to all establishments and workshops wherein any industrial process is
carried on.
It does not apply to any factory to which Section 67 of the Factories Act, 1948
(Employment of Children) applies.
It prohibits employment of children in all occupations and processes to facilitate their
enrolment in schools in view of the Right of Children to Free and Compulsory Education
Act, 2009 and to prohibits employment of adolescents (persons who have completed
fourteenth year of age but have not completed eighteenth year) in hazardous occupations
and processes and to regulate the conditions of service of adolescents.
The Schedule to the Act now provides 18 occupations and 65 processes Where
employment of children is prohibited.
Who is a child Labour
Child means a person who has not completed his fourteenth year of age or such age as may be
specified in the Right of Children to Free and Compulsory Education Act, 2009, whichever is
more. [Section 2(11)]
Establishment [Section 2(iv)]
Establishment includes a shop, commercial establishment, work-shop, farm, residential hotel,
restaurant, eating-house, theatre or other place of public amusement or entertainment.
Prohibition of employment of child labour [Section 3]
Page 45
Section 3 of the Act provides that no child shall be employed or permitted to work in any
occupations or process except:-
helps his family or family enterprise, which is other than any hazardous occupations or
processes set forth in the Schedule, after his school hours or during vacations;
works as an artist in an audio-visual entertainment industry, including advertisement,
films, television serials or any such other entertainment or sports activities except the
circus, subject to such conditions and safety measures, as may be prescribed.
However no such work shall effect the school education of the child.
Prohibition of employment of adolescents in certain hazardous occupations and processes
Section 3A provides that no adolescent shall be employed or permitted to work in any of the
hazardous occupations or processes set forth in the Schedule. The hazardous occupations or
processes set forth in the Schedule are as under:
Mines.
Inflammable substances or explosives.
Hazardous process.
However, the Central Government may, by notification, specify the nature of the nonhazardous
work to which an adolescent may be permitted to work under the Act.
Hours and period of work [Section 7]
No child shall work in any establishment in excess of such number of hours as may be
prescribed.
The period of work on each day shall be so fixed that no period shall exceed 3 hours.
No child shall work for more than 3 hours before an interval for rest for at least one hour.
The period of work shall not be spread over more than 6 hours, including waiting time on
any day.
No child shall work between 7 pm. and 8 am.
No child shall work overtime.
No child shall work in any establishment on any day on which he has already been
working in another establishment.
Weekly Holidays [Section 8]
Every child employed in an establishment shall be allowed in each week, a holiday for
one whole day.
The day shall be specified by the occupier in a notice permanently exhibited in a
conspicuous place in the establishment.
The day so specified shall not be altered by the occupier more than once in 3 months.
Page 46
These provisions shall not apply to any establishment where any process is carried on by
the occupier with or to any schools established by, or receiving assistance or recognition
from Government
Disputes as to age [Section 10]
If any question arises as to the age of any child and no certificate as to the age of such
child is granted by the prescribed authority, the matter be referred by the inspector to the
prescribed medical authority.
Every certificate as to the age of a child granted by a prescribed medical authority shall
be W evidence as to the age of the child.
Display of Notice [Section 12]
Every railway administration, every port authority and every occupier shall display in a
conspicuous and accessible place at every station on its railway or within the limits of a port or at
the place of work a notice in the local language and in the English language containing an
abstract of Sections 3 and 14.
Penalties [Section 14]
Whoever employs any child or permits any child to work in contravention of the
provisions of the Act shat] be punishable With imprisonment which shall not be less than
3 months but may extend to one year or With line not be less than Rs. 10,000 but which
may extend to Rs. 20,000 or with both.
Whoever, having been convicted of an offence commits a like offence afterwards; he
shall be punishable With imprisonment for a term which shall not be less than 6 months
but which may extend to 2 years.
Any employer who fails to give notice or fails to maintain a register or makes any false
entry in any such register; or fails to display a notice or fails to comply with or
contravenes any other provisions of the Act or the rules made there under; shall be
punishable with simple imprisonment up to one month or With fine.
Maintenance of Register
Every occupier shall maintain in respect of children a register showing
the name and date of birth of every child;
hours and periods of work of any such child and the intervals of rest;
the nature of work; and
such other particulars as may be prescribed.
The register shall be available for inspection by an Inspector at all times during working hours or
when work is being carried on in any such establishment.
Page 47
1.In order to ban employment of children
below the age of in factories. minus and
hazardous employment and to regulate
the working conditions of children in
other ‘ employments. The Child Labour
(Prohibition & Regulation) Act. 1986 was
enacted.
(a) 14 years
(b) 15 years
(c) 18 years
(d) 21 years
2.The National Policy on Child Labour
declared in August. contains the action
plan for tackling the problem of child
labour.
(a) 1986
(b) 1987
(c) 1988
(cl) 2010
3.In pursuance of National Child Labour
Policy, the NCLP Scheme was started in
................ to rehabilitate child labour.
(a) 1986
(b) 1987
(c) 1988
d) 2010
4.The objectives of the Child Labour
{Prohibition 8: Regulation) Act, 1986
islare:
(a) To ban the employment of children in
specified occupations and processes
(b) To lay down procedures for
modifications to the Schedule of banned
occupations or processes
(c) To lay down enhanced penalties for
employment of children where they are
prohibited
(d) All of the above
5.Under the Child Labour (Prohibition &
Regulation) Act. 1986 employment of
children below..... Is prohibited in
hazardous occupations and processes.
(a) 12 years
(b) 14 years
(c) 15 years
(d) 18 years
6.Child under the Child Labour
(Prohibition & Regulation) Act. 1986
means a person who has not completed
his ................... of age.
(a) 12 years
(b) 14 years
(c) 15 years
(d) 18'years
7.Week under the Child Labour
(Prohibition & Regulation) Act, 1986
means a period of 7days beginning at
midnight on ............ night or such other
night as may be approved in writing for a
particular area by the Inspector.
(a) Saturday
(b) Sunday
(c) Wednesday
(d) Friday
8.As per the Child Labour (Prohibition &
Regulation) Act, 1986 no child shall be
employed or permitted to work in
occupations like............
(a) Driving
(b) Circus
(c) Cinder picking, clearing of an ash pit or
building operation in the railway premises.
(d) All of the above
9.As per the Child Labour (Prohibition &
Regulation) Act, 1986 no child shall be
employed or permitted to work in
occupations like...............
(a) Work in a catering establishment at a
railway station, involving the movement of a
vendor or any other employee of the
establishment from the one platform to
another or in to or out of a moving train
(b) Automobile workshops and garages
(c) Foundries
(d) All of the above
10. As per the Child Labour (Prohibition
& Regulation) Act, 1986 no child shall be
employed or permitted to work in the
following:
(a) In any workshop where any process
stated in Part B of the Schedule is carried on
(b) Beedi-making
(c) Carpet-weaving
Page 48
(d) All of the above
11.As per the Child Labour (Prohibition
& Regulation) Act, 1986 no child shall be
employed or permitted to work in the
following:
(a) Cement manufacture, including bagging
of cement
(b) Cloth printing, dyeing and weaving
(c) Manufacture of matches, explosives and
fireworks
(d) All of the above
12.As per the Child Labour (Prohibition
& Regulation) Act, 1986 no child shall be
employed or permitted to work in the
following:
(a) Mica-cutting and splitting
(b) Shellac manufacture
(c) Soap manufacture
(d) All of the above
13.As per the Child Labour (Prohibition
& Regulation) Act, 1986 no child shall be
employed or permitted to work in the
following: (a) Tanning
(b) Wool-cleaning
(c) Tyre making, repairing, re-treading and
graphite benefication
(d) All of the above
14.As per the Child Labour (Prohibition
& Regulation) Act, 1986 the period of
work on each day shall be so fixed that no
period shall exceed.......
(a) 3 hours
(b) 4 hours
(c) 6 hours
(d) 8 hours
15.As per the Child Labour (Prohibition
& Regulation) Act, 1986 no child shall
work for more than........ Before an
interval for rest for at least one hour.
(a) 3 hours
(b) 4 hours
(c) 6 hours
(cl) 8 hours
16.As per the Child Labour (Prohibition
& Regulation) Act. 1986 the period of
work shall not be spread over more than
.........., including waiting time on any day.
(a) 3 hours
(b) 4 hours
(c) 6 hours
(d) 8 hours
17.As per the Child Labour (Prohibition
8; Regulation) Act, 1986 no child shall
work between ……….
(a) 8 pm. and 8 am.
(b) 7 pm. and 7 am.
(e) 7 pm. and 8 am.
(d) 8 pm. and 7 am.
18.As per the Child Labour (Prohibition
8: Regulation) Act, 1986 the holiday so
specified shall not be altered by the
occupier more than once in..................
(a) 1 month
(b) 3 months
(c) 6 months
(d) 12 months
19.According to the Child Labour
(Prohibition & Regulation) Act, 1986
every occupier, who employs or permits
to work any child, shall, within ...............
from the date of such employment send to
the Inspector within whose local limits the
establishment is situated, a written notice.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 45 days
20.Whoever employs any child or permits
any child to work in contravention of the
provisions of the Child Labour
(Prohibition 8: Regulation) Act, 1986
shall be punishable with imprisonment
which shall not be less than 3 months but
may extend to one year or with fine not be
less than ............... but which may extend
to (20,000 or with both. (a) Rs.10, 000
(b) Rs.z12,000
(c) Rs. 15,000
(d) Rs.18, 000
Page 49
21.As per the Child Labour (Prohibition
8: Regulation) Act, 1988 whoever, having
been convicted of an offence commits a
like offence afterwards; he shall be
punishable with imprisonment for a term
which shall not be less than ................ but
which may extend to 2 years. (a) 3 months
(b) 6 months
(c) 9 months
(d) 7 years
22.Any person convicted for second
offence under the Child Labour
(Prohibition 8Regulation) Act, 1986 shall
be liable to penalties as provided in this
section and not under the provisions of
the following Act(s):
(a) Section 67 of the Factories Act, 1948
(b) Section 109 of the Merchant Shipping
Act, 1958
(c) Section 21 of the Motor Transport
Workers Act. 1961
(d) All of the above Acts
23.The Supreme Court gave certain
directions in connection with regulation
of child labour in (a) M. C. Mehta case
(b) A. K. Gopalan case
(c) Bank Nationalisation case
(d) Karnataka Road Transport Case
24.As per Schedule to the Child Labour
(Prohibition and Regulation) Act, 1986,
paper making is a....................
(a) Occupation
(b) Process
(6) Both (a) & (b)
(d) None of the above
25.Violation of the Child Labour
(Prohibition 1 Regulation) Act, 1986 shall
be punishable with imprisonment for a
term not be les than.............
(a ) one month
(b) three months
(c) six months
(d) one year
26.Child Labour (Prohibition and
Regulation) Act . 1986….
(a) Prohibit: all type: of child labour up to
14 year: of In. of child
(b) Prohibits child labour in risk-taking
works only
(c) Prohibits child labour during school
hours only
(d) Prohibits Child labour by imposing the
responsibility of children‟s education on the
employer
27.Complaint in any court may be filed
under the Child Labour (Prohibition
8Regulation) Act. 1986 by …..
(a) Any person
(b) Police» officer
(c) Inspector
(d) All of the above
28.As per the Child Labour (Prohibition
& Regulation) Act, 1986 every child
employed in an establishment shall be
allowed in each week, a holiday for…..
(a) One whole day
(b ) one half day
(c) As may be decided by the occupier
(d) None of the above
29.Asper schedule to the Child Labour
(Prohibition and Regulation) Act, 1986,
bid! Making and aggarbattl
manufacturing are treated as--- (a) Occupations set forth in Part-A of the
Schedule
(b)) Processes set forth in Part-B of the
Schedule
(c) Occupations set forth in Part-B of the
Schedule
(d) Processes set forth in Part-A of the
Schedule. (CS EP Dec. 2014)
30.Under section 7 of the Child Labour
(Prohibition and Regulation) Act. 1986
the period of work on each day shall be so
fixed that no period shall exceed……..
and no child shall work for more
than…….. before he has had an interval
for rest for at least om hour.
(a) 8 hours; 8 hours
(b) 5 hours; 5 hours
(c) 3 hours; 3 hours
(d) 4 hours; 4 hours. (CS EP Dec. 2014)
Page 50
31.As per section 12 of the Child Labour
(Prohibition and Regulation) Act, 1986
every railway administration, every port
authority and every occupier shall cause
to be displayed in a conspicuous and
accessible place at every station on its
railway or within the limits of a port or at
the place of work, as the case may be, a
notice in the local language and in
the……… containing an abstract of ……..
(a) Regional language; sections 3 and 14
(b) Hindi language; sections 4 and 15
(c) English language; sections 5 and 16
(d) English language; section 3 and 14. (CS
EP Dec. 2014)
32.The violation of section 3 of the' Child
Labour (Prohibition and Regulation) Act,
1986 shall be punishable with
imprisonment for a term not less
than…….. but which may extend to one
year or with fine which shall not be less
than ten thousand rupees but which may
extend to………… or with both.
(a) One month; ten thousand rupees
(b) Three months; twenty thousand rupees
(c) Six months; twenty-five thousand rupees
(d) Nine months; fifty thousand rupees. (CS
EP Dec. 2014)
33.As per the Child Labour (Prohibition
and Regulation Act, 1986 domestic
workers or servant are treated as - (a) Occupations set forth in Part-A of the
Schedule
(b) Processes set forth in Part-B of the
Schedule
(c) Occupations set forth in Part-B of the
Schedule
(d) Processes set forth in Part-A of the
Schedule (CS EP June 2015)
34.Under section 2(ii) or the Child
Labour (Prohibition and Regulation) Act,
1986 a person who has not completed his
fourteenth year of age is defined as -
(a) infant
(b) Child
(c) Adolescent
(d) Young (CS EP June 2015)
35.According to the Child Labour
(Prohibition and Regulation) Act, 1986
prohibition of employment of children Is
not applicable to any workshop wherein
any process is carried on the occupier -- (a) With the aid of his family
(b) With the aid of foreign government
(c) With the aid of his friends
(d) With the aid of public (CS EP June
2015)
36.Section 7 of the Child Labour
(Prohibition and Regulation) Act, 1986
stipulates that:
(1) No child shall permitted to work
between 7 pm. and 8 am.
(2) No child shall be permitted to work
overtime
(3) No child shall be required to work in
any establishment on any day on which he
has already been working in another
establishment.
Which of the above is incorrect - (a) Only (1)
(b) Only (2)
© Only (3)
(d) None of the above. (CS EP Dec. 2015)
37.Prohibition of employment of children
under section 3 of the Child Labour
(Prohibition and Regulation) Act, 1986
shall not be applicable to» (a) Any workshop wherein process is carried
on by the occupier with the aid of his family
(b) Any school established by„or receiving
assistance or recognition from government
(c) Both (A) and (8) above
(d) Neither (A) nor (B) (CS EP Dec. 2015)
38.Provision of penalty for employing any
child or permitting any child to work in
contravention of the provisions of section
3 of the Child Labour (Prohibition and
Regulation) Act, 1986 is given in -’
(a) Section 13
(b) Section 14
(c) Section 15
(d) Section 18 (CS EP Dec. 2015)
Page 51
39.The Child Labour (Prohibition and
Regulation) Act. 1986 seeks to achieve
which of the following objectives:
(1) To ban the employment of children
below 14 years of age in factories, mines
and hazardous employments
(2) To regulate the conditions of work of
children in employment where they are
not prohibited from working
(3) To obtain uniformity in the definition
of ‘child’ in the related laws.
Which of the above islare correct -
(a) Only (1)
(b) Only (2)
(c) Only (3)
(d) All of the above (CS EP Dec. 2015)
40.Section 7 of the Child Labour
(Prohibition and Regulation) Act, 1986
stipulates that no child shall be permitted
or required to work between ~
(a)6.00 pm and 12.00 midnight
(b)6.00 am and 6.00 pm
(c) 8.00 AM. and 4.00 PM.
(d) 7.00 PM. and 3.00 AM. (cs EP June
2016)
41.Which one of the following statements
incorrect as per the provisions of the
Child Labour (Prohibition and
Regulation) Act, 1986 ~---
(a) The provisions of the Act are consistent
Witt-I the provisions of the Constitution of
indie
(b) The Act prohibits the engagement of
children below the age of 14 years in
factories, mines and hazardous employments
(c) The prohibition of employment is
applicabie to any worlfshop wherein any
process is carried on by the occupier with
the aid of his family
(d) The Act does not prohibit but regulates
employment of children in non-hazardous
occupations and processes. ' (CS EP June
2016)
1. A
2. B
3. C
4. D
5. B
6. B
7. A
8. d
9. d
10. d
11. D
12. D
13. D
14. A
15. A
16. C
17. C
18. B
19. C
20. A
21. B
22. D
23. A
24. B
25. B
26. A
27. D
28. A
29. B
30. C
31. D
32. B
33. D
34. B
35. A
36. D
37. C
38. B
39. D
40. D
41. C
Page 52
Page 53
Lesson 13
Industrial Employment (Standing Order) Act 1946
Objectives
The object of the Act is to have uniform Standing Orders providing for the matters
enumerated in the Schedule to the Act.
As the preamble of the Act says it is an Act to require employers in industrial
establishments formally to define conditions of employment under them and to make the
said conditions known to workmen employed by them.
Scope and Coverage
The Act extends to the whole of India.
The Act applies to every industrial establishment where 100 or more workmen are
employed, or were employed on any day of the preceding twelve months.
The appropriate government may, after giving not less than two months‟ notice, apply the
provisions of the Act to any industrial establishment employing less than 100 workmen.
Standing Orders - Definition & Meaning
“Standing Orders‟ means rules of conduct for workmen employed in industrial
establishments.
In order to maintain harmonious relationship between the employers and the employees,
regulating the conditions of recruitment, discharge, disciplinary action, leave, holidays,
etc. of the workers employed in industrial establishments, the Industrial Employment
(Standing Orders) Act, 1946 was enacted.
Industrial Establishment [Section 2(e)]
Industrial establishment means the following:
An industrial establishment as defined in Section 2(ii) of the Payment of Wages Act,
1936.
A factory as defined in Section 2(m) of the Factories Act, 1948.
A railway as defined in Section 2(4) of the lndian Railway Act, 1989.
The establishment of a person who, for the purpose of fulfilling a contract with the owner
of any industrial establishment, employs workmen.
Submission of draft Standing Orders for Certification [Section 3]
Within six months from the date on which the Act becomes applicable to an industrial
establishment, the employer shall submit to the Certifying Officer five copies of the draft
standing orders for adoption in the industrial establishment.
Page 54
The draft standing order shall be, as far as practicable, in conformity with the model
standing order.
The draft standing orders shall be accompanied with a statement giving particulars of the
workmen including the name of the trade union, if any, to which they belong.
A group of employers in similar industrial establishments may submit a joint draft of
standing orders.
Certification of Standing Orders [Section 5]
On receipt of the draft standing order, the Certifying Officer shall forward a copy thereof
to the trade union of the workmen or where there is no such trade union, to the workmen
together with a notice requiring objections, if any.
The objections, if any, are to be given within 15 days from the receipt of the notice.
After giving the employer and the trade union or such other representatives of the
workmen an opportunity of being heard, the Certifying Officer shall decide whether any
modification or addition to the draft submitted by the employer is necessary.
The Certifying Officer shall thereupon certify the draft standing orders after making
modifications if any.
Within seven days thereafter he shall send copies of the certified standing orders to the
employer and to the trade union or other representatives of the workmen.
Appeal against Certification [Section 6]
Any employer, Workmen, trade union or other representatives of the workmen aggrieved
by the order of the Certifying Officer may, within 30 days from the date on which copies
are sent, appeal to the appellate authority.
The appellate authority shall by order in writing confirm the standing orders either in the
form certified by the Certifying Officer or after amending the said standing orders by
making modifications or additions as it thinks necessary.
The appellate authority shall, within 7 days of its order send copies thereof to the
Certifying Officer, employer and trade union or other representatives of the workmen,
accompanied, unless it has confirmed without amendment, by copies of the standing
orders as certified by it.
Effective Date of 0peration of Standing Order [Section 7]
The standing orders shall, unless an appeal is preferred, come into operation on the expiry
of 30 days from the date on which authenticated copies thereof are sent.
Where an appeal is preferred, the standing orders shall come into operation on the expiry
of 7 days from the date on which copies of the order of the appellate authority are sent.
Display of Standing Order [Section 9]
The text of the finally certified standing orders shall be prominently posted by the
employer in English and in the language understood by the majority of his workmen on
Page 55
special boards at or near the entrance through which the majority. of the workmen enter
the industrial establishment and in all departments where the workmen are employed.
Duration and Modification of Certified Standing Orders [Section 10]
Standing orders finally certified shall not be modified until the expiry of six months from
the date on which the standing orders or the last modifications came in to operation.
After six months, modification can be made if there is any agreement between the
employer and the workmen or trade union or other representative of the workmen.
Any one of them may apply to the Certifying Officer for modification of the standing
orders attaching five copies of the modifications proposed.
Where such modifications are proposed to be made by agreement a certified copy of that
agreement shall be filed along with the application.
Powers of Certifying Officer and The Appellate Authority [Section 1 1]
All the powers of a Civil Court for the purposes of receiving evidence, administering
oaths, enforcing the attendance of witnesses, and compelling the discovery and
production of documents.
To correct any clerical or arithmetical mistake in any order passed by it or errors arising
therein from any accidental slip or omission. „
Penalties
An employer who fails to submit draft standing orders or who modifies his standing
orders otherwise than in accordance with Section 10, shall be punishable with fine up to ?
5,000.
In the case of a continuing offence the punishment is with a further fine up to t 200 for
every day after the first during which the offence continues.
An employer who does any act in contravention of the finally certified standing orders
shall be punishable with fine up to Rs. 100.
In the case of a continuing offence the punishment is with a further fine up to Rs. 25 for
every day after the first during which the offence continues.
Model Standing Orders
Model Standing Orders refer to the one given in the Schedule to the Industrial Employment
(Standing Orders) Act, 1946. This model standing order can be used and followed by
establishments in preparing their own standing order. This is like a sample standing order for use
by the employers in preparing their standing orders. This standing order is applicable to an
establishment which has no certified standing orders.
Draft Standing 0rder
Draft standing orders means the standing order prepared by an establishment and submitted to
the Certifying officer for certification.
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Certified Standing Order
When an establishment prepares it standing orders and get it registered with the authority, the
standing orders are known as certified standing orders. Certified standing orders are the approved
standing order to be followed in the establishment.
Subsistence Allowance (Section 10A)
Where any workman is suspended by the employer pending inquiry, the employer shall
pay to such workman an allowance called subsistence allowance.
Such allowance is payable for the first 90 days of suspension @ 50% of the wages which
workman was entitled to immediately preceding the date of such suspension.
If there is delay in completion of disciplinary proceedings against such workman not
directly attributable to the conduct of such workman subsistence allowance @ 75% of
sUch wages is payable for the remaining period of suspension. '
If any dispute arises regarding the subsistence allowance, the workman or the employer
may refer the dispute to the Labour Court.
The Labour Court shall, after giving the parties an opportunity of being heard, decide the
dispute such decision shall be final and binding on the parties.
Where provisions relating to payment of subsistence allowance under any other law for
the time being in force in any State are more beneficial, the provisions of such other law
shall be applicable to the payment of subsistence allowance in that State. '
Page 57
1. The industrial Employment (Standing
Orders) Act, 1946 applies to every
industrial establishment where workmen
are employed, or were employed on any
day of the preceding 12 months. (a) 10 or more
(b) 20 or more
(c) 50 or more
(d) 100 or more
2. The object of the Industrial
Employment (Standing Orders) Act, 1946
is to have......... Standing Orders
providing for the matters enumerated in
the Schedule to the Act. (a) New
(b) One
(c) Uniform
(d) None of the above
3. In the Industrial Employment
(Standing Orders) Act, 1948 industrial
establishment is define in .......... (a) Section 2
(0) (b) Section 2(f)
(c) Section 2(k)
(d) Section 2(m)
4. In the Industrial Employment
(Standing Orders) Act, 1946 industrial
establishment means the following: (a) An industrial establishment as defined in
the Payment of Wages Act, 1936
(b) A factory as defined in the Factories Act,
1948
(c) A railway as defined in the lndian
Railway Act, 1989
(d) All of the above
5. Within........... from the date on which
the industrial Employment (Standing
Orders) Act, 1946 becomes applicable to
an industrial establishment, the employer
shall submit to the Certifying Officer
............ copies of the draft standing orders
for adoption in the industrial
establishment.
(a) 15 days
(b) three months
(6) six months
(d) twelve months
6. On receipt of the draft standing order,
the Certifying Officer shall forward a
copy thereof to the trade union of the
workmen or where there is no such trade
union, to the workmen together with a
notice requiring objections, if any. The
objections, if any, are to be given within
............ from the receipt of the notice.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 60 days
7. The Certifying Officer shall within
......... after certifying a standing order
shall send copies of the certified standing
orders to the employer and to the trade
union or other representatives of the
workmen.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 60 days
8. The standing orders shall, unless an
appeal is preferred, come into operation
on the expiry of.............. From the date on
which authenticated copies thereof are
sent.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 60 days
9. Any employer, workmen, trade union
or other representatives of the workmen
aggrieved by the order of the Certifying
Officer may, within ....... from the date on
which copies are sent, appeal to the
appellate authority.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 60 days
10. The appellate authority shall, within
......... of its order send copies thereof to
the Certifying Officer, employer and
trade union or other representatives of
the workmen. accompanied, unless it has
Page 58
confirmed without amendment, by copies
0f the standing orders as certified by it.
(a) 7 days
(b) 15 days
(c) 30 days
(d) 60 days
11. The text of the Certified Standing
Orders shall be prominently posted by
the employer in ............ and in the
language understood by the majority of
his workmen. (a) English
(b) Hindi
(c) in the language understood by the
majority of his workmen
(d) Both (a) & (c)
12. Standing orders finally certified shall
not be modified until the expiry of .........
from the date on which the standing
orders or the last modifications came in to
operation.
(a) 15 days
(b) three months
(c) six months
(d) 3 years
13. Where any workman is suspended by
the employer pending inquiry, the
employer shall pay to such workman an
allowance called subsistence allowance.
Such allowance is payable for the first 90
days of suspension ........ of the wages
which workman was entitled to
immediately preceding the date of such
suspension. (a) @40%
(b) @50%
(c) @60%
(d) @75%
14. if there is delay in completion of
disciplinary proceedings against any
workman not directly attributable to the
conduct of such workman subsistence
allowance ......... of such wages is payable
for the period of suspension exceeding 90
days.
(a) @40%
(b) @50%
(c) @60%
(d) @75%
15. If any dispute arises regarding the
subsistence allowance, the workman or
the employer may refer the dispute to
........... .
(a) The Labour tribunal
(b) The Labour Court
(c) Appropriate government
(d) High Court
16. When the Industrial Employment
(Standing Orders) Act, 1946 becomes
applicable to an establishment and the
establishment has no standing orders of
its own,...........Shall be applicable to the
establishment.
(a) Industrial Employment (Standing
Orders) Act, 1946
(b) Draft standing order
(c) No standing order
(d) Model standing order
17. An employer who fails to submit draft
standing orders or who modifies his
standing orders otherwise than in
accordance with Section 10, shall be
punishable with fine up to ............
(a) Rs.5, 00
(b) Rs.5, 000
(c) Rs.10, 000
(d) Rs.25, 000
18.An employer who does any act in
contravention of the finally certified
standing orders shall be punishable with
fine up to ……….
(a) Rs.100
(b) Rs.5, 00
(c) Rs.10, 000
(d) Rs. 1, 00,000
19. Workers participation in management
is an effective tool for prevention of
industrial disputes.
(a) True
(b) False
(c) Partly true
(d) None of the above
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20. The function of a certifying officer or
the appellate authority is to adjudicate
upon the ............ of the standing orders.
(a) Correctness
(b) Fairness
(c) Legality
(d) Acceptability
21. From the date on which the Industrial
Employment (Standing Orders) Act, 1946
becomes applicable to an industrial
establishment, an employed is required to
submit to the certifying officer the draft
standing orders .................. (a) Within 3 months
(b) Within 6 months
(6) Within a months
(d) Immediately on receipt (CS EP Dec
2009)
22. The employer of an establishment to
which the Industrial Employment
(Standing Orders) Act, 1946 applies shall
submit to the Certifying officer draft
standing orders proposed by him for
adaptation in that establishment
within...............
(a) 6months
(b) 4 months
(c) 30 days
(d) 2 months (CS EP Dec 2010)
23. The interpretation of certified
standing orders is within the jurisdiction
of.............. (a) Labour court
(b) Certifying officer
(c) Workmen
(d) Employer and workmen (CS EP Dec
2011)
24. Under the Industrial Employment
(Standing Orders) Act, 1946, which of the
following documents must a ‘standing
order’ be in conformity with..........
(a) Standard Standing Orders
(b) Model Standing Orders
(0) Uniform Standing Orders
(d) Formal Standing Orders (CS EP June
2012)
25. Section 10 of the industrial
Employment (Standing Orders) Act, 1946
states that standing orders finally
certified under the Act shall not, except
on agreement between the employer and
the workmen or a trade union or other
representative body of the workmen be
liable to modification until the expiry of
….From the date on which the standing
orders or the last modifications thereof
came into operation.
(A) Three months
(8) Six months
(C) Nine months
(D) Twelve months. (CS EP Dec.2014)
26. Under the Industrial Employment
(Standing Orders) Act, 1946 the function
of a certifying officer or the appellate
authority is to adjudicate upon the of the
provisions of the standing orders. (a) Fairness or reasonableness
(b) Legality
(c) Absoluteness
(d) Clarity. (CS EP Dec. 2014)
27. Section 10A of the Industrial
Employment (Standing Orders) Act, 1946
provides that where any workman is
suspended by the employer pending
investigation or inquiry into complaints
or charges of misconduct against him, the
employer shall pay to such a workman
the subsistence allowance at the rate of
the wages which the workman was
entitled to immediately preceding the date
of such suspension, for the first ninety
days of suspension; and at the rate of
such wages for the remaining period of
suspension if the delay in the completion
of disciplinary proceedings against such
workman is not directly attributable to
the conduct of such workman.
(a) 50%; 90%
(b) 75%; 50%
(c) 50%; 75%
(d) 90%; 75% (CS EP Dec. 2014)
28. Under section 13A of the Industrial
Employment (Standing Orders) Act, 1946
if any question arises as to the application
or interpretation of a standing order
certified under this Act, any employer or
Page 60
workman or a trade union or other
representative body of the workmen may
refer the question to any one of the
constituted under the , and specified for
the disposal of such proceeding by the
appropriate Government by notification
in the Official Gazette.
(a) Authority; Industrial Employment
(Standing Orders) Act. 1946.
(b)Tribunal; Industrial Employment
(Standing Orders) Act, 1946
(c) Courts; Industrial Employment (Standing
Orders) Act. 1946
(d) Labour Courts; Industrial Disputes Act,
1947. (CS EP Dec. 2014)
29. The text of the ‘standing orders’ as
finally certified under Industrial
Employment (Standing Orders) Act, 1946
shall be prominently posted by the
employer In and in the language
understood by the majority of his
workmen on to be maintained for the
purpose at or near the entrance through
which the majority of the workmen enter
the industrial establishment and in all
departments thereof where the workmen
are employed.
(a) Hindi; special board
(b) English; black board
(c) Urdu; sizable board
(d) English; special board. (CS EP Dec.
2014)
30. As per the Industrial Employment
(Standing Orders) Act, 1946 Standing
Orders shall come into operation - (a) On expiry of 15 days from the date on
which the authenticated copies are sent to
employer and workers representatives
(b) On the expiry of 30 days from the date
on which the authenticated copies are sent to
employer and workers representatives
(c) On the expiry of 60 days from the date
on which the authenticated copies are sent to
employer and workers representatives
(d) On the expiry of 6 weeks from the date
on which the authenticated copies are sent to
employer and workers representatives. (CS
EP June 2015)
31. According to the Industrial
Employment (Standing Orders) Act, 1946
modification of Standing Orders will not
be affected until - (a) The expiry of 1 month from the date on
which the Standing Orders were last
modified or certiiied as the case may be
(b)The expiry of 2 months from the date on
which the Standing .Orders were last
modified or certified as the case may be
(c) The expiry of 3 months from the date on
which the Standing Orders were last
modified or certified as the case may be
(d) The expiry of 6 months from the date on
which the Standing Orders were last
modified or certified as the case may be (CS
EP June 2015)
32. Which one of the following Acts
requires employers in industrial
establishments formally to define
conditions of employment under them-
(a) The Apprentices Act, 1961
(b) The industrial Employment (Standing
Orders) Act, 1946
(c) The Contract Labour (Regulation and
Abolition) Act, 1970
(d) The Equal Remuneration Act, 1976 (CS
EP June 2015)
33. In terms of section 10A of the
industrial Employment (Standing Orders)
Act, 1946 where any workman is
suspended by the employer pending
investigation or inquiry into complaints
or charges of misconduct against him, the
employer shall pay to such a workman
the subsistence allowance, at the rate of
per cent of the wages which the workman
was entitled to immediately preceding the
date of such suspension, for the first
ninety days of suspension.
(a) Fifty
(b) Sixty
(c) Seventy five
(d) Ninety „(CS EP June 2015)
34. In an appeal against the order of the
certifying officer under section 6 of the
Industrial Employment (Standing
Page 61
Orders) Act, 1946, the appellate authority
can --- (a) Set aside the order of certifying officer
(b) Remand the matter to the certifying
officer for fresh consideration
(c) Both (A) and (B) above
(d) Neither (A) nor (8). (05 EP Dec. 2015)
35. According to the industrial
Employment (Standing Orders) Act,
1946, the subsistence allowance payable to
a workman for the first 90 days when he
has been suspended pending enquiry
against him is --
(a) 28% of wages
(b) 50% of wages
(c) 65% of wages
(d) 75% of wages (CS EP Dec. 2015)
36. Following are said to be ‘Certifying
Officer’ under section 2(0) of the
Industrial Employment (Standing
Orders) Act, 1946:
(1) Labour Inspector
(2) Labour Commissioner
(3) Regional Labour Commissioner
Which of the above islare correct --
„(a) Only (1) and (2)
(b) 0th (2) and (3)
(c) Only (1) and (3)
(d) All of the above. (CS EP Dec. 2015)
37. Certified standing orders become part
of the statutory and not contractual terms
and conditions of service and are binding
on both the employer and the employees.
This view ' was expressed by the court in
the matter of -----
(a) Mohan Raj v Regional Provident Fund
Commissioner
(b) Bihar State Electricity Board v. Their
Workman
(c) Derby Textiles Ltd. v. Karmchari and
Shramik Union
(d) All of the above. (CS EP Dec. 2015)
38. The object of the Industrial
Employment (Standing Orders) Act, 1946
is to have uniform standing ‘orders in
respect of matters enumerated in the
schedule to the Act applicable to all
workers irrespective of their time of
appointment. This has been observed by
the Supreme Court of India in
(a) Raj Ratna Sethi v. Ashok Bhasin
(b) Barauni Refinery Pragatisheel Parishad
v. Indian Oil Corporation Ltd.
(c) State of Uttar Pradesh v. Arun Kumar
Singh
(d) None of the above (CS EP Dec. 2015)
39. Which one of the following statements
is incorrect regarding certification of
draft standing orders under the
Industrial Employment (Standing
Orders) Act, 1946 –
(a) The employee of an establishment is
required to submit to the Certifying Officer,
three copies of the draft standing orders
proposed by him for adoption in their
establishments.
(b) The draft standing orders must be in
conformity with the model standing orders
(c) Employers of industrial establishments
of similar nature may submit a joint draft of
standing orders.
(d) Standing orders shall be certifiable if
they are otherwise in conformity with the
provisions of „the Act. (CS EP June 2016)
40. The Industrial Employment (Standing
Orders) Act, 1946 extends to the whole of
India and applies to every industrial
establishment wherein or more workmen
are employed or were employed on any
day during the preceeding months.
(a) 50; 6
(b) 75; 9
(c) 100; 12
(d) 200; 3 (CS EP June 2016)
1. D
2. C
3. A
4. D
Page 62
5. C
6. B
7. A
8. C
9. C
10. A
11. D
12. C
13. B
14. D
15. B
16. D
17. B
18. A
19. A
20. B
21. D
22. B
23. A
24. B
25. B
26. A
27. C
28. D
29. D
30. B
31. D
32. B
33. A
34. D
35. B
36. B
37. C
38. B
39. A
40. C