Lesson 8 Payment of Gratuity Act 1972 - DTC...

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Page 1 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

Transcript of Lesson 8 Payment of Gratuity Act 1972 - DTC...

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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

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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,

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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)

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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:

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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

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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

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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]

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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.

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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

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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

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(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

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(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

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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

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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

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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.

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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

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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.

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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

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(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

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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

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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)

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(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

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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.

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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.

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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

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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.

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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

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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

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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 -

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(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)

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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

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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]

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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.

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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.

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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

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(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

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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)

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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)

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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

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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.

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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

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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. '

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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

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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

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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

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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

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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