INDEX

S.NO CHAPTER PAGE NO 1 FACTORIES ACT 1-22 2 MINIMUM WAGES ACT 23-36 3 PAYMENT OF WAGES ACT 37-49 4 EQUAL REMUNERATION

ACT 50-55

5 EMLOYEES STATE INSURANCE

56-71

6 PROVIDENT FUND 72-86 7 BONUS Act 87-100

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Lesson 1 Factories Act 1948

Introduction

The first law in lndia relating to regulation of workers in the factories was passed in 1881.

The Factories Act, 1948 was enacted after independence.

It came into force on 01.04.1949. Objectives

To ensure adequate safety measures and promote the health and welfare of the workers in factories.

To prevent haphazard growth of factories by ensuring previous approval of plans for setting up factories.

To regulate the working condition, working hours, leave, holidays, overtime, employment of children, women and young persons etc. in factories.

Applicability

The Act extends to the whole of India.

It is applicable to all factories using power and employing 10 or more workers on any day of the preceding 12 months.

It also applies to factories not using power but employing 20 or more workers on any day of the preceding 12 months.

The Act is also applicable to factories belonging to the Central or State Governments. Employees Covered under Act

The Act covers all workers employed in the

factory premises or precincts, thereof,

directly or by or through any agency including a contractor, with or without the knowledge of the principal employer,

whether for remuneration or not,

in any manufacturing process or any kind of work incidental or connected thereto.

There must be a nexus between the employment of the worker concerned and the manufacturing process.

The worker need not necessarily do manual labour or receive remuneration for his services. Thus, pieces-rated workers are also covered under the Act

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Employees in the canteen established under section 46 of the Act shall be the employees of the occupier of the factory, and thus covered under the Act.

But, where the workmen are employed in a canteen run by a Co-operative Society, they do not become employees of the occupier of factory, and are not covered by the Factories Act but by the law governing the Co-operative societies.

Besides, persons employed only for selling the manufactured article are not covered under this Act, since sale, distribution or transport of an article after its manufacturing, is nota process.

Any member of the armed forces of the Union is not covered by the definition of worker.

Definitions Child [Section 2(c)] Child means a person who has not completed his 15 year of age. Adolescent [Section 2(b)] Adolescent means a person who has completed his 15 year of age but has not completed his 18 year. Adult [Section 2(a)] Adult means a person who has completed his 18m years of age. Young Person [Section 2(d)] Young person means a person who is either a child or an adolescent. Power [Section 2(g)] Power means electrical energy, or any other form of energy which is mechanically transmitted and Is not generated by human or animal agency. Factory [Section 2(m)] Factory means any premises including the precincts thereof ~

whereon 10 or more workers are working, or were working on any day of the preceding 12 months, and in any part ofwhich a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or

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whereon 20 or more workers are working, or were working on any day of the preceding 12 months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on.

All the workers in different groups and relays in a day shall be taken into account. Manufacturingprocess [Section 2 (k)]

Manufacturing process includes Manufacturing process does not includes

making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use, sale, transport, delivery or disposal; or

pumping oil, water, sewage or any other substance; or

generating, transforming or transmitting power; or

composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; or

constructing reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or

preserving or storing any article in cold storage.

Exhibition of film process.

industrial schools or institute imparting training, producing cloth not for sale.

Receiving news from various sources through tele-printer.

Preliminary packaging of raw materials.

Finished goods and packaging.

Worker [Section 2 (l)] . Worker means a person employed,

directly or by any agency (including a contractor) with or without the knowledge of the principal employer.

whether for remuneration or not,

in any manufacturing process, or

in cleaning any part of the machinery or premises used for a manufacturing process.

in any other kind of work incidental to, or connected with, the manufacturing process,. The concept employment covers three things, employer, employee and employment. All employees are workers but all workers may not be employees.

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Hazardous Process [Section 2(n)] Hazardous process means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, by-products, wastes or effluents thereof would --

Cause material impairment to the health of the persons engaged in or connected therewith, or

Result in the pollution of the general environment. Occupier [Section 2(n)] Occupier of a factory means the person who has ultimate control over the affairs of the factory.

In the case of a firm or other association of individuals -Any meet the individual partners or members.

In the case of a company -Any one of the directors.

In the case of a factory owned or controlled by the Government or any local authority -The person appointed to manage the affairs of the factory by the Government or the local authority.

In the case of a dry dock which is available for hire -The owner of the dock.

In case of ship -The owner of the ship or his agent or master or other officer-in-charge of the ship.

General Duties of the Occupier Section 7A Every occupier shall ensure the health, safety and welfare of all workers. The duty extends, shall include the following:

Maintenance of plant and systems of work in the factory.

Arrangements in the factory for ensuring safety and absence of risks to health.

Provision for information, instruction, training and supervision to ensure the health and safety of workers.

Maintenance of all places of work in the factory in proper condition.

Maintenance or monitoring of working environment in the factory. Provisions for Health of Workers Cleanliness Section 11

Every factory shall be kept clean and free from effluvia.

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The floor of every work-room shall be washed using disinfectant in every week.

Inside walls, ceilings, staircases which are painted or varnished, be repainted or varnished once in every 5 years.

Where these are painted with washable paints, be repainted once in every 3 years and washed once in every 6 months.

White-washing or colour washing be done at least once in every 14 months.

All doors, window frames and shutters shall be painted or varnished in at least once in every 5 years.

Ventilation and Temperature Section 13

Suitable provision shall be made for adequate ventilation.

Walls and roofs shall be of such material and design to keep temperature low. Dust and Fume Section 14

Effective measures shall be taken to prevent inhalation of dust or fume.

Exhaust appliance shall be applied.

internal combustion engine shall be operated that exhaust into the open air. Artificial Humidification Section 15

Where humidity of air is artificially increased. the standards of humidification shall be followed.

Water used for the purpose shall be taken from a public supply or shall be effectively purified before use.

Overcrowding Section 16

No room in any factory shall be overcrowded.

There shall be at least 14.2 cubic meters of space for every worker in the work room. Lighting Section 17

Where workers are working or passing, sufficient and suitable lighting shall be provided.

All glazed windows and skylights shall be kept clean on both the inner and outer surfaces.

Drinking Water Section 18

Arrangements shall be made at convenient points for sufficient supply of wholesome drinking water.

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All such points shall be legibly marked "Drinking Water" in a language understood by a majority of the workers.

Latrines and Urinals Section 19

Sufficient latrine and urinal shall be provided.

The floors, walls and the sanitary pans shall be washed and cleaned once in every 7 days with detergents or disinfectants or with both.

Spittoons Section 20

In every factory there shall be sufficient number of spittoons at convenient places.

These shalt be maintained in a clean and hygienic condition. Provision for Safety Employment of young persons on dangerous machines Section 23

No young person shall work at any machine unless he has been fully instructed of the dangers of the machine.

He should receive sufficient training or should be under supervision of a person having knowledge and experience of the machine. '

Floors stairs and means of access Section 32

All floors, steps, stairs. passages and gangways shall be of sound construction.

These shall be properly maintained and kept free from obstructions Protection of eyes Section 35

Where any manufacturing process involves risk of injury to the eyes from particles or fragments thrown off in the course of the process, or by reason of exposure to excessive light, effective screens or suitable goggles shall be provided.

Precautions in case of fire Section 38

All practicable measures shall be taken to prevent outbreak of fire and its spread.

Safe means of escape for all persons in the event of a fire shall be provided.

Necessary equipment and facilities for extinguishing fire shall be provided. Safety Officers Section 40B

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In every factory, wherein 1000 or more workers are employed, or any manufacturing process is carried on which involves any risk of bodily injury, poisoning or disease, or any other hazard to health, the occupier shall employ Safety Officers.

Provision for Welfare Washing facilities Section 42

In every factory adequate and suitable facilities for washing shall be provided and maintained.

Separate facilities shall be provided for male and female workers. Facilities for sitting Section 44

Suitable arrangements for sitting shall be provided and maintained for all workers who work in a standing position so that they may take rest in the course of their work when available.

First-aid appliances Section 45

First-aid boxes or cupboards shall be provided in the factory readily accessible to the workers.

At least one box or cupboard shall be provided for every 150 workers.

Where more than 500 workers are employed, an ambulance room with prescribed equipment shall be provided.

Canteens Section 46

In any factory where more than 250 workers are employed, canteen shall be provided and maintained.

Shelters rest rooms and lunch rooms Section 47

Where more than 150 workers are employed, adequate and suitable shelters or rest rooms and lunch room, with provision for drinking water, shall be provided.

Creches Section 48

Where more than 30 women workers are employed. creches shall be provided for use of children under the age of 6 years.

Such rooms shall provide adequate accommodation, adequately lighted and ventilated, maintained in a clean and sanitary condition.

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Welfare officers Section 49

Where 500 or more workers are ordinarily employed, the occupier shall employ welfare officers.

Specific Responsibility of the Occupier Section 41C

Every occupier shall maintain accurate and up-to-date health records or medical records of the workers who are exposed to any chemical. toxic or any other harmful substances.

He shall appoint qualified persons having experience in handling hazardous substances.

He shall provide for medical examination of every worker before such worker is assigned to a job involving hazardous substance, while continuing in such job and after he has ceased to work in such job, at intervals not exceeding 12 months.

Employment of Adults Weekly working hours Section 51

No adult worker shall be required to work for more than 48 hours in any week. Intervals for rest Section 55

No worker shall work for more than 5 hours before an interval for rest of at least half an hour.

The State Government or the Chief Inspector may exempt any factory from this provision.

The total number of hours of work without an interval shall not exceed 6 hours. Prohibition of overlapping shifts Section 58

Shifts shall be arranged so that not more than one relay of workers work of the same work at the same time.

The State Government or the Chief Inspector may exempt on this condition. Restriction on double employment Section 60

No adult workers do work on anyday on which he has already been working in any other factory.

Notice of periods of work for adults Section 61

A notice shall be displayed and correctly maintained in every factory stating the periods of work for adults.

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Where all the adult workers are required to work during the same periods, the manager shall 6x those periods.

Register of adult workers Section 62 The manager of every factory shall maintain a register of adult workers showing the following:

Name of each adult worker in the factory.

Nature of his work.

Group, if any, in which he is included.

Where his group works on shifts, the relay to which he is allotted. Employment of Child and Adolescent Prohibition of employment Section 67

No child who has not completed his 14 year to work in any factory. Working hours of children Section 71

A child of more than 14 years (during 15 year) if employed shall not be employed for more than four and a half hours in any day.

No child shall be allowed to work during the night. Night means 12 consecutive hours including time between 10 PM. and 6 AM.

The period of work of all children shall be limited to 2 shifts.

The shift shall not ‘spread over more than 5 hours each.

No child shall work more than 48 hours in a week.

No child shall be required to work on any day on which he has already been working in another factory.

A female child shall work in any factory between 8 AM. and 7 PM. Notice of periods of work for children Section 72

To display of notice showing clearly the periods during which children may work in the factory.

The periods shown in the notice shall be fixed beforehand. Register of child workers Section 73

The manager of every factory shall maintain a register of child workers.

The register shall contain the following:

Name of each child worker in the factory.

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Nature of his work.

Group, if any in which he is included.

Where his group works on shifts, the relay to which he is allotted.

Number of his certificate of fitness. Non-adult workers to carry tokens Section 68

A child who has completed his 14th year or an adolescent shall not work in any factory unless a certificate of fitness is given to the manager of the factory. Such child or adolescent shall carry a token giving a reference to such certificate. '

Certificate of fitness to young person Section 69

On the application of any young person or his parent or guardian with a document signed by the manager of a factory that such person will be employed if certified to be fit, or on the application of the manager of the factory, the certifying surgeon shall examine such person and issue certificate of fitness.

A certificate of fitness granted or renewed shall be valid for a period of 12 months.

A certifying surgeon shall revoke any certificate if, in his opinion, the holder is no longer fit to work.

Certificate of fitness to adolescent Section 70

An adolescent having a certificate of fitness as an adult carrying a token, shall be deemed to be an adult.

No female adolescent or a male adolescent who has not attained the age of 17 years but who has been granted a certificate of fitness as an adult shall not work in any factory between except 6 AM. and 7 PM.

The State Government may change the time so that any female adolescent shall not be employed between 10 PM. and 5 AM.

Restriction of Employment of Women Section 66

A woman shall work in a factory between 6 AM. and 7 PM.

The State Government may vary the limits but not between 10 PM. and 5 AM.

There shall be no change of shifts except after a weekly holiday or any other holiday.

The State Government may exempt the restrictions for women working in fish-canning, where the employment beyond the specified hours is necessary to prevent damage in any raw material.

The rules shall remain in force for not more than 3 years at a time. Holidays

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Weekly holidays Section 52

An adult worker who works on the first day of the week, has or will have a holiday for a whole day 3 days immediately before or after the said day.

No worker shall work for more than 10 days consecutively without a holiday for a whole day.

Annual Leave with Wages Section 79 Number of days of leave Every worker working for 240 days during a calendar year shall be allowed during the subsequent calendar _ year leave with wages -

if an adult, one day for every 20 days of work performed by him during the previous year;

if a child, one day for every 15 days of work performed by him during the previous year.

Fraction of leave of half a day or more shall be treated as one full clay.

The leave shall be exclusive of all holidays whether occurring during or at either end of the period of leave.

In calculating the number of days, the following shall be considered as working days:

Any day of lay off, by agreement or contract or as permissible under the standing orders.

in the case of a female worker, maternity leave upto 12 weeks.

The leave earned in the year prior to that in which the leave is enjoyed. Wages in lieu of leave

if a worker is dismissed from service or quits his employment or is superannuated or dies while in service, he or his heir or nominee, shall be entitled to leave wages due to him.

Such payment shall be made

where the worker is dismissed or quits employment, before the expiry of the 2nd working day from the date of such discharge, dismissal or quitting;

where the worker is superannuated or dies while in service, before the expiry of 2 months from the date of such superannuation or death.

Carry forward of leave

If a worker does not in any one calendar year take the whole of his due leave, the balance shall be added to his leave of the succeeding calendar year.

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The total number of days of leave to be carried forward shall not exceed 30 in the case of an adult and 40 in the case of a child.

A worker, who has applied for leave with wages but has not been given such leave, shall be entitled to carry forward such leave refused beyond the limit.

Overtime Section 59

Where a worker works more than 9 hours in any day or for more than 48 hours in any week, he shall be entitled to wages twice of his ordinary rate of wages for the extra hours called overtime.

Ordinary rate of wages’ means the basic wages plus dearness allowances, including the cash equivalent i0r concessional sale of food grains and other articles. it does not include bonus and wages for overtime work.

Penalties General penalties foroffences

If there is my contravention of any of the provisions of the Act or of any rules made thereunder, the occupier and manager of the factory shall be punishable with imprisonment up to 2 years or with tine up to Rs. 1 lakh or with both.

if the contravention is continued after conviction, a further tine up to i“ 1000 for each day on which the contravention is continued shall be made.

Penaty for subsequent offence

if any person who has been convicted of any 'offence is again guilty of an offence involving the same provision he shall be punishable on a subsequent conviction with imprisonment up to 3 years or with tine which shalt not be less than 1‘ 10,000 but which may extend to Rs. 2 lakh or with both.

Offences by workers

if any worker contravenes any provision of the Act imposing any duty or liability on workers, he shall be punishable with fine up to Rs. 500.

Where a worker is so convicted, the occupier or manager shall not be deemed to be guilty of the offence.

Power of Inspectors

An inspector may exercise any of the following powers within the local limits for which he is appointed:

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He can enter any place which is used or which he has reasons to believe, is used as factory

He can make examination of the premises, plant and machinery etc

He can require the production of any prescribed register or any other document relating to the factory

Take measurement and photographs and make such recordings as he considers necessary for the purpose of any examination.

Special Provisions relating to Hazardous Processes Special provisions relating to hazardous processes have been envisaged under Chapter IVA of the Factories Act, 1948. This chapter was inserted by the Factories (Amendment) Act, 1987 and Consists of Section 41 A to 41 H. these sections are as follows: Constitution of Site appraisal Committees [Section 41A]: A Committee under the name Site appraisal Committees shall be constituted by the State Government to advise the Government in the matter of examination of applications for establishment of factories involving hazardous processes. The constitution of the site appraisal committee consisting of committee has been specified therein. The Site appraisal Committee shall examine an application for the establishment of a factory involving hazardous process and make its recommendation to the State Government within a period of ninety days in the prescribed form. Compulsory disclosure of information by the occupier [Section 41B]: It is compulsory on the part of the occupier of every factory involving a hazardous process to disclose all information regarding dangers, including health hazards to the workers employed in the factory, the Chief Inspector, the local authority within whose jurisdiction the factory is situated and the general public in the vicinity Inquiring Committee [Section 41D] : In the event of occurrence of an extraordinary situation, the Central Government may appoint an Inquiry Committee to inquire into standards of health and safety observed in the factory with a view to finding out the causes of any failure or neglect in the adoption of any measures prescribed for the health and safety of the workers or the general public. Emergency standards [Section 41E]: The Director General of Factory Advice Service and Labour Institutes may be directed by the Central Government to lay down emergency standards in respect of hazardous process.

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Permissible limits of exposure of chemical and toxic substances [Section 41F]: The Section Schedule added to the Act, indicates maximum permissible threshold limits of exposure of chemical and toxic substances in manufacturing processes in any factory. Workers Participation in safety management [Section 41G]: The occupier in every factory shall set up a safety committee consisting of equal number of representatives of workers and management to promote co-operation between the workers and the management in maintaining proper safety and health at work and to review periodically the measures taken in that behalf where hazardous process is involved. Warning about imminent danger [Section 41H]: If there is reasonable apprehension regarding likelihood of imminent danger to the lives or health of the workers employed in a factory, they may bring the same to the notice of the occupier agent, manager etc.

Important Cases

Employers Association of Northern India v. Secretary for Labour U.P. Govt. Seasonal factory does not cease to be a factory when no manufacturing process is carried on during the off-season. Workmen of Delhi Electric Supply Undertaking v. Management of D.E.S.U. Process undertaken in zonal, sub-stations and electricity generating stations relating to transforming and transmitting electricity generated at the power station does not fall within the definition of manufacturing process and could not be said to be factories. Chintaman Rao v. State of MP. The prima facie test for determination of the relationship between the employer and employee is the existence of the right of the employer to supervise and control the work done by the employee not only in the matter of directing what work the employee is to do but also the manner in which he shall do his work. Shankar Balaji Waje v. State of Maharashtra Piece-rate workers are workers within the definition of ’worker’ as per Factories Act, 1948, if they are regular workers and work under supervision and control of employer.

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Shinde v. Bombay Telephones Employee employed in work incidental to process connected with factory is workman whether he stands outside the factory premises or inside it. . J .K. Industries Ltd. v. Chief Inspector of Factories In case of company, only director can be occupier of the factory of the Company. Company owing factory cannot nominate its employees or officers except director of the company as occupier of its factory. State of Bombay v. Ardeshir Hormusji Bhiwandiwala Land in which manufacturing process of salt is carried on would be deemed a factory. Ravi Shankar Sharma v. State of Rajasthan Factories Act is a social legislation and it provides for the health, safety, welfare and other aspects of the workers in the factories.

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1. As per the Factories Act, factory means any premises including the ...... thereof. (a) Precincts (b) Buildings (c) Gardens (d) Canteens 2. The Chief Inspector of Factories is appointed by the............. (a) Central Government (b) State Government (c) Chief Inspector (d) Labour Commissioner 3. Workers right in a factory includes to ……… (a) obtain information relating to workers health, safety etc ‘ (b) get training (c) represent the inspector in the matter of protection of his health or safety in the factory (d) all of the above 4. Factory is included in List III of 7 schedule to Constitution entry no. 36. it is ............... (a) a Central subject. (b) a State subject. (c) ‘ a concurrent subject. (d) a constitutional subject 5. Factory is included in list lll entry no a) 30 b) 36 c) 39 d) 40 6. For the purpose of computing the number of working In a factory all workers working in…. (a) different groups and relay on a day are taken into account. (b) day shift and single relay on a day are taken into account. (c) two shifts are taken into account. (d) different groups and relay on the fisrt day of the month is considered 7. In a factory workers will be entitled to overtime wages if they have worked for more than .......... (a) 48 hours in a week (b) 48 hours in a month (c) 64 hours in a week (d) None of the above

8. For proper cooperation between the workers and management with respect to maintaining proper safety and health at workplace in a factory ........... . (a) Safety committee is formed (b) industrial dispute redressal committee is formed (c) Trade union is formed (d) industrial dispute Act is implemented 9. When a person wilfully obstructs an inspector in a factory in the exercise of his duties, he shall be punishable with…….. (a) imprisonment for a term which may extend to six month (b) with fine which may extend to €10,000 (c) both (a) and (b) (d) any of (a) and (b) 10.What would be the overtime rate of a worker whose basic salary is 160 per hour? (a) R 80 (b) R 120 (c) R 160 (d) R Depends upon the management 11.Occupier of a factory means ............ (a) the person who has set up the factory. (b) the person who has highest share capital in the factory. (c) the person who has ultimate control over the affairs of the factory. (d) the person who has ultimate control over the employees of the factory 12.A premises including precincts thereof is a ‘factory’ within the meaning of the Factories Act. 1948 wherein a manufacturing process is being carried on with the aid of power and where the number of workers working is (a) 10 or more workers (b) 20 or more workers (c) 15 or more workers (d) 50 or more workers (CS EP Dec 2008) 13.‘Occupier’ of the factory is required to appoint a Welfare Officer where ~ (a) 250 workers are employed (b) 100 workers are employed (c) 200 workers are employed (d) 500 or more workers are employed. (CS EP Dec 2009) 14.Out of the following which is not a manufacturing process-

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(a) Finished goods and packing thereof. (b) The making of bidis. (c) Stitching old gunny bags and making them fit for use (d) Pumping of water from a tubewell. (CS EP Dec 2009) 15. The occupier of a factory is required to send a written notice to the Chief Inspector of Factories at least' (a) 7 days before he begins to occupy or use the premises as a factory. (b) 15 days before he begins to occupy or use the premises as a factory. (c) 21 days before he begins to occupy or use the premises as a factory. (d) 10 days before he begins to occupy or use the premises as a factory. (CS EP Dec 2009) 16. The State Government may make rules regarding the provisions and maintenance of a canteen for the use of workers wherein more than- (a) 250 Workers are ordinarily employed. (b) 500 Workers are ordinarily employed. (c) 300 Workers are ordinarily employed. ((d) 100 Workers are ordinarily employed. (CS EP June 2010) 17. When a new manager is appointed for a factory, the occupier shall send to the Inspector of Factories a notice in writing within (a) 7 days. (b) 15 days. (c) 30 days. (d) 45 days. (CS EP Dec 2010) 18. As per the Factories Act, 1948 any engine, motor or other appliance which generates or otherwise provides power is defined as ~ (a) Prime mover (b) Power (c) Transmission machinery (d) Machinery (CS EP Dec. 2014) 19.A premises including precincts thereof is a ‘factory’ within the meaning of the Factories Act, 1948 whereon are working, or were working on any day of the preceding twelve months and in any part of which a manufacturing process is being carried on with the aid of power or is ordinarily so carried on; or whereon are working, or were working on a day of the preceding twelve months, and in any part of which a manufacturing process is being

carried on without the aid of power, or is ordinarily so carried on. (a) 10 or more workers; 20 or more workers (b) 20 or more workers; 10 or more workers (c) 10 or more workers; 100 or more workers (d) 15 or more workers; 20 or more workers. (CS EP Dec. 2014) 20. As per the Factories Act, 1948 ‘adolescent’ means a person who has completed (a) 18‘“ year but not completed 21St year (b) 15th year but not completed 18th year (c) 16th year but not completed 18th year (d) 15“1 year but not completed 21St year. ' (CS EP Dec. 2014) 21. As per section 16 of the Factories Act, 1948 the minimum space to be allocated to each worker employed in the factory is - (a) 12.2 cubic metres (b) 13.2 cubic metres (c) 14.2 cubic metres (d) 15.2 cubic metres. (CS EP Dec. 2014) 22. As per section 90 of the Factories Act, 1948 the State Government may, if it considers it expedient to do so, appoint a competent person to inquire into the causes of any accident occurring in a factory or into any case where a disease specified in has been, or is suspected to have been contracted in the factory. (a) First schedule and second schedule. (b) Second schedule and sixth schedule (c) Third schedule (d) Fifth schedule. (CS EP Dec. 2014) 23. Under section 408 of the Factories Act, 1948 in every factory, wherein or more workers are ordinarily employed, or wherein, in the opinion of State Government, any manufacturing process or operation is carried on, where process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the persons employed in the factory, the occupier shall, if so required by the State Government by notification in the Official Gazette, employ such number of as may be specified in that notification.

(a) One thousand; safety officers (b) Five hundred; health officers (c) Four hundred; welfare officers (d)Two hundred; inspection officers. (CS EP Dec. 2014)

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23. As per section 53 of the Factories Act, 1948 where, as a result of the passing of an order or the making of a rule under the provisions of this Act exempting a factory or the workers therein from the provisions of weekly holidays, a worker deprived of any of the weekly holidays for which provision is made, he shall be allowed, within the month in which the holidays were due to him or within the two months immediately following that month of equal number of the holidays as lost. (a) Earned leave (b) Restricted holidays (c) Compensatory holidays (d) Accumulated leave.‘ (03 EP Dec. 2014) 24. As per section 48 of the Factories Act, 1948 in every factory wherein more than women workers are ordinarily employed, the facility of suitable room or rooms should be provided and maintained for the use of children under the age of ________________ of such women. (a) 30', six years (b) 50; five years (c) 75; seven years (d) 100', five years. (CS EP Dec. 2014) 25. The ‘occupier’ of a factory under the Factories Act, 1948 is required to appoint a Welfare Officer where number of workers employed are__ (a) 200 (b) 300 (c) 400 (d) 500 or more. (CS EP Dec. 2014) 26. Under the Factories Act, 1948, usually the term ‘preclncts’ is known as…… (a) A space enclosed by walls (b) Part of factory (c) Subsidiary of factory (d) Walls of the factory (CS EP June 2015) 27. Which of the following is empowered under section 410 of the Factories Act, 1948 to appoint an inquiry Committee In the event of the occurrence of an extraordinary situation involving a factory engaged In a hazardous process, to inquire Into the standards of health and safety observed in the factory with a view to finding out the causes of any failure or neglect in the adoption of any measures or standards prescribed for the health and safety of the workers employed in the factory -- (a) Central Government

(b) State Government (c) Occupier of the factory (d) inspector of the factory (CS EP June 2016) 28. Any unpaid wages due to the workers under the Chapter Vii (annual leave with wages) of the Factories Act, 1948 can be recovered as delayed wages under the provisions of the - (a) Minimum Wages Act, 1948 (b) Payment of Wages Act, 1936 (c) Equal Remuneration Act, 1976 (d) Payment of Bonus Act, 1965 (CS EP June 2015) 29. Under section 55 of the Factories Act, 1948, an adult worker shall not work continuously for more than five hours unless he has had a rest interval of at least -- (a) One hour (b)'45 minutes . (c) Half an hour . (d) Two hours (CS EP June 2015) 30. According to section 66 of the Factories Act, 1948 a woman shall not be allowed to work in any factory except between the hours of -~ (a) 6 AM. and 7 P. M. (b) 6 AM. and 9 PM. (c) 8 AM. and 9 PM. (d) 8 AM. and 8 PM. (CS EP June 2015) 31. Section 36A of the Factories Act, 1948 provides that in any factory no portable electric light or any other electric appliance of voltage exceeding shall be permitted for use inside any chamber, tank, vet, pit, pipe, flue or other confined space unless adequate safety devices are provided. (a) 42 Volts (b) 24 Volts (c) 50 Volts (d) 100 Volts (CS EP June 2015) 32. Section 28 of the Factories Act, 1948 provides that in a factory, every hoist and life shall be properly maintained and thoroughly examined by a competent person at least once in every period of (a) Three months (b) Six months (c) Nine months (d) Twelve months (CS EP June 2015)

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33. Under section 2(d) of the Factories Act, 1948, ‘young person’ means a person who - (a) is either an adult or an adolescent (b) Has completed his eighteen years of age (c) is either a child or an adolescent (d) All of the above. (CS EP Dec. 2015) 34. According to the definition of ‘factory’ given in section 2(m) of. the Factories Act, 1948, which of the following is not included in the term ‘factory’- (a) Mines (b) Railway running sheds (c) Hotels, restaurants and eating places (d) All of the above. (CS EP Dec. 2015) 35. The word ‘premises’ under section 2(m) of the Factories Act, 1948 is a generic term meaning open land or land with buildings or buildings alone. The legislature had no intention to discriminate between workers engaged in manufacturing process in a building and those engaged in .such a process on an open land. Thus, the salt works, in which the work done is of conversion of sea water into crystals of salt, come within the meaning of the word ‘premises’. It was observed by the Supreme Court of India in the case of (a) Ardeshir H. Bhiwandiwala v. State of Bombay (b) BharatiUdyog v. Regional Director E.S.l. Corporation (c) Both (A) and (8) above (d) Neither (A) nor (8) (CS EP Dec. 2015) 36. Factory is a premise where a manufacturing process in carried on. The process undertaken in zonal station, sub-stations and electricity generating stations, transforming and transmitting electricity generated at the power stations does not fall within the definition of manufacturing process as the workmen employed therein have no part in any manufacturing process. This view was expressed by the Supreme Court of India in -

(a) U. P. Electricity Supply Co. v. The workmen of U. P. Electricity Supply Co. (b) Workmen of Delhi Electric Supply Undertaking v. Management of D.E.S.U. (c) Agra Electric Supply Co. Ltd., Agra v. Workmen o Agra Electricity Co. Ltd. (d) None of the above. (CS EP Dec. 2015) 37. Every occupier of factory shall ensure, so far as is reasonably practicable, the health, safety and welfare of all workers while they are at work in the factory. In which of the following

sections of the Factories Act, 1948 has it been provided (a) Clause (I) of section 7A (b) Clause (a) of section 78 (c) Both (A) and (B) above (d) Neither (A) nor (B). (CS EP Dec. 2015) 38. Provision on penalty for permitting double employment of a child by parents or guardians has been stipulated in the Factories Act, 1948 under - (a) Section 93 (b) Section 95 (c) Section 96 (d) Section 99. (CS EP Dec. 2015) 39. Under section 69 of the Factories Act, 1948 before employing a young person in the factory, a certificate has to be obtained from certifying surgeon that such young person is fit for that work in the factory. Who can apply for obtaining such fitness certificate : (1) Young person himself (2) His parent or guardian (3) Manager of the factory Which of the above is incorrect -- (a) Only (1) (b) only (2) © only (3) (d) None of the above (CS EP Dec. 2015) 40. Who shall be the Chairman of Site Appraisal Committee constituted by the State Government under section 41A of the Factories Act, 1948 - (a) Inspector General of Police (b) Principal Secretary of Environment (c) Chief inspector of the State (d) None of the above. (CS EP Dec. 2015) 41. The provision that no adult worker shall be allowed to work in a factory for more than forty eight (48) hours in any week, is made under which of the following sections of the Factories Act, 1948 (a) Section 51 (b) Section 51A (c) Section 52 (d) None of the above. (CS EP Dec. 2015) 42. The Factories Act, 1948 is a social legislation and it provides for the health, safety, welfare and other aspects of the workers employed in the factories. This view has been expressed by the Rajasthan High Court in the. case of ’

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(a) Sajjan Singh v. State of Rajasthan (b) State of Rajasthan v. Union of India (c) Ravi Shankar Sharma v. State of Rajasthan (d) None of the above. (CS EP Dec. 2015) 43. Which one of the following is not welfare provisions under the Factories Act, 1948 – (a) Canteen (b) Creches (c) Alcoholic beverage (d) Drinking water. (CS EP June 2016) 44. Section 2(n) of the Factories Act, '1948 defines the term ‘occupier’ as a person who has ultimate control over the affairs of the factory. In the light of the definition of occupier, in the case of a company (a) The Company Secretary shall be deemed to be the occupier (b) Any one of the directors shall be deemed to be the occupier (c) Any senior officer of the company shall be deemed to be the occupier (d) Any responsible and trusted employee who stays at the factory premises throughout day and night shall be deemed to be the occupier. (CS EP June 2016) 45. Which one of the following statements ls true under the provisionsof the Factories Act, 1948 - (a) For the purpose of cleanliness, the office of the factory must be kept clean and free from effluvia arising from any drain of nuisance (b) Where the work carried on in the factory generates excessively high temperature, (C) such process should be separated from the work room Artificial humidification is required for carrying out every type of manufacturing process (d) Sufficient number of spittoons situated at convenient places is a mandatory condition where more than 1,000 workers are ordinarily employed in a factory. (CS EP June 2016) 46. The administration of the Factories Act, 1948 is carried out through Inspecting Staff, Certifying Surgeon, Welfare Officer and Safety Officer. In this relation read the following statements : (i) The Chief Inspector of factories is appointed by the Central Government

(ii) In every district the Sessions Judge shall be deemed to be an Inspector for his district (iii) The primary function of a ‘Certifying Surgeon’ is to make examination of the premise, plant and machinery and to maintain registers and records (iv) Under section 408 of this Act, appointment of Safety Officer is not mandatory in every factory. 47. Select the correct answer from the options given below‘ (a) and (ii) (b) (ii) and (iii) (c) (i) only (d) (iv) only (CS EP June 2016) 48. In which case, the Supreme Court held that the process undertaken in zonal and substations, transforming and transmitting electricity generated at the power station does not fall within the definition of ‘manufacturing process' and could not said to be a 'factory' ‘ (a) Workman of Delhi Electric Supply Undertaking v. Management of Delhi Electric Supply Undertaking ‘ (b) R. E. D’souza v. Krishnan Nair (c) V. P. Gopala Rao v. Public Prosecutor (d) P. Natrajan v. E.S.|.Corporation. (CS EP June 2016) 49. Which one of the following statements is notcorrect as per section 2 of the Factories Act, 1948- (a) ‘Child’ means a person who has not , completed this 15th year of age (b) ‘Power’ does not include the power generated by human or animal agency (c) ‘Adolescent’ is a person who has completed his 14th years of age but has not completed his 20th year. (d) The term ‘machinery’ includes prime-movers, transmission machinery and all other appliance whereby power is generated, transformed, transmitted or applied. (CS EP June 2016)

50. Which one of the following is not an essential element of a factory –

(a) There must be premises (b) There must be a manufacturing process

being carried on at the premises (c) There must be 10 or more workers

where the manufacturing process is being carried on with the aid of power

(d) There are installed electronic data processing units (CS EP June 2016)

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1. a 2. b 3. d 4. c 5. c 6. a 7. a 8. a 9. d 10. b 11. c 12. a 13. d 14. a 15. b 16. a 17. a 18. c 19. a 20. b 21. c 22. c 23. a 24. c 25. a 26. d 27. a 28. a 29. b 30. c 31. a 32. b 33. b 34. c 35. d 36. a 37. b 38. a

39. d 40. d 41. c 42. a 43. c 44. c 45. b 46. d 47. d 48. a 49. c 50. d

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Lesson 2 Minimum wage act 1948

Introduction

The concept of minimum wages was first evolved by InternationalLabourOrganisation in 1928.

0n the recommendation of the 8‘" Standing Labour Committee, the Minimum Wages Act, 1948 was passed.

It came into force on 15th March, 1948. objectives

The main object of the Act is for fixing minimum rates of wages in certain employments. Scope and Coverage

The Act applies to the whole of India.

All the provisions of the Act equally apply to both male and female workers.

“Scheduled employment’ refers to the employments specifically stated in the Schedule to the Act.

Employees Entitled

The Act covers every employee engaged in any Scheduled employment, including an 'out-worker’ to whom the materials are given out for manufacturing or processing at his own premises. The Act is applicable to all employees engaged to do any work, skilled, unskilled, manual or clerical, in a scheduled employment, including out-workers.

Definitions Child Section 2 (bb) Child means a person who has not completed his 14 year of age. Adult Section 2 (aa) Adult means a person who has completed his 18th year of age. Appropriate Government [Sec 2 (b)]

“Appropriate Government” means –

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(i) in relation to any scheduled employment carried on by or under the authority of the Central

or a railway administration, or in relation to a mine, oilfield or major part or any corporation

established by a Central Act, the Central Government, and

(ii) in relation to any other scheduled employment, the State Government.

Adolescent Section 2 (a) Adolescent means a person who has completed his 14th year of age but not completed his 18th year. Wages Section 2(h)

Wages means all remuneration capable of being expressed in terms of money which would be payable to a person employed in respect of his employment or of work done in such employment if the terms of the contract of employment express or implied, were fulfilled. It includes house rent allowance.

Wages does not includes;

The value of any house accommodation, supply of light, water, medical attendance, or any other amenity or any service excluded by general or special order of the appropriate government.

Any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance.

Any travelling allowance or the value of any travelling concession. I Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment

Any gratuity payable on discharge. Scheduled Employment [Section 2(g)] Scheduled employment means an employment specified in the Schedule to the Act or any process or branch of work forming part of such employment. The following are some of the industries to' which the Act applies as provided in the Schedule:

Employment in any woolen carpet making or shawl weaving establishment.

Employment in any rice mill, flour mill or dal mill.

Employment in any tobacco (including bidi making) manufactory.

Employment in any plantation that is to say any estate which is maintained for the purpose of growing cinchona rubber, tea or coffee.

Employment in any oil mill.

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Employment under any local authority.

Employment on the construction or maintenance of roads or in building operations.

Employment in stone breaking or stone crushing.

Employment in public motor transport

Employment in tanneries and leather manufactory. Scheduled employment also includes employment in agriculture including cultivation and tillage of the soil, dairy farming, production, cultivation, growing and harvesting of any agricultural or horticultural commodity, raising of live-stock, bees or poultry and any practice performed by a farmer or a farm incidental to or in conjunction with farm operation including any forestry or timbering operations and the preparation for market and delivery to storage or to market or to carriage for transportation to market of farm produce. Fixation of Minimum Wages Section 3(1)

The appropriate government to fix minimum rates of wages in an employment specified in Part I or Part ll of the Schedule.

In respect of employment specified in Part ll of the Schedule, minimum rates of wages may be fixed for part of the State or for any class or classes of such employment.

Revision of Minimum wage Section 3(1)(b)

The ‘appropriate Government’ may review at such intervals as it may thing fit, such intervals not exceeding five years, and revise the minimum rate of wages, if necessary.

This means that minimum wages can be revised earlier than five years also. Manner of Fixation/ Revision of minimum wage Section 3(2) The ‘appropriate Government’ may fix minimum rate of wages for:

time work, known as a Minimum Time Rate;

piece work, known as a Minimum Piece Rate;

a “Guaranteed Time Rate” for those employed in piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis

a “Over Time Rate” i.e. minimum rate whether a time rate or a piece rate to apply in substitution for the minimum rate which would otherwise be applicable in respect of overtime work done by employee.

Different wages for different employees Different minimum rates of wages may be fixed for –

different scheduled employments;

different classes of work in the same scheduled employments;

adults, adolescents, children and apprentices;

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An independent person means a person who is neither an employer nor an employee in

the employment for which the minimum wages are to be fixed.

Central Advisory Board

Section 8 of the Act provides that the Central Government shall appoint a Central

Advisory Board for the purpose of advising the Central Government and State

Governments in the Matters of fixation and revision of minimum rates of wages and

other matter under the Minimum Wages Act and for coordinating work of the advisory

boards.

The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers and employees in the scheduled employment who shall be equal in number; and independent persons not exceeding 1/3rd of its total number of members, one of such independent persons shall be appointed as the Chairman of the Board by Central Government.

Overtime Rate Section 14

Where an employee whose minimum rate of wages is fixed by hour, day or such a longer wage-period, works on any day in excess of normal hours, he shall be entitled to overtime rate for the excess hour.

Overtime rate is fixed by the appropriate government. It is generally double the actual rate.

Time of Payment of Wages

in the case of establishments with less than 1000employee.

Before the expiry of the 7 day after the last day of wageperiod.

In the case of other establishments. Before the expiry of the 10 day after the last day of wageperiod.

Where the employment of any person isterminated by the employer.

Before the expiry of the 2" working day after the day onwhich the employment is terminated.

Working Hours and Rest Day Section 13

The appropriate government may fix the working hours and intervals.

It may provide for a day of rest in every period of 7 days. Claim for Minimum wages and Compensation

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The following persons may apply to the authority for a direction for payment of minimum rate of wages.

The employee.

Any legal practitioner authorised in writing.

Any official of a registered trade union authorised in writing.

Any Inspector or any person acting with the permission of the authority appointed.

A single application may be made on behalf of a number of employees.

Every application shall be presented within six months from the date on which the minimum wages is due.

Any such application may be admitted after six month if sufficient cause is given. Relinquishing Right to Minimum Wages [Section 25] Any contract or agreement whereby an employee relinquishes or reduces his right to minimum rate of wages shall be null and void. Offence and Penalties

Any employer who pays to anyemployee less than the minimum rates of wages, shall be punishable with imprisonment up-to six months or with fine up to Rs. 500 or with both. [Section 22]

Any employer who contravenes any provision of the Act or of any rule or order made thereunder shall, if no other penalty is provided for such contravention by the Act, be punishable with fine up to Rs 500. [Section 22A]

Maintenance of Registers and Records [Section 18]

Every employer shall maintain registers and records in prescribed manner giving particulars of employees, work performed by them, the wages paid to them, the receipts given by them etc.

Every employer shall keep exhibited, in prescribed manner in the factory, workshop or place where the employees may be employed, or in the case of out-workers, in such factory, workshop or place as may be used for giving out work to them, notices containing prescribed particulars.

The appropriate government may make rules for the issue of wage books or wage slips to employees and the manner in which entries shall be made andauthenticated in such wage books or wage slips by the employer or his agent.

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1.The schedule to the Minimum wages Act, 1948 consists of .Parts. (a) 1 (b) 2 (e) 3 (d) 4 2.Adolescent under the Minimum Wages Act, 1948 means a person who has completed his........ of age but not completed his (a) 14m years, 18th year (b) 15'" years, 18‘h year (c) 18m years, 213' year (d) None of the above 3.The appropriate government may review the minimum rates of wages not exceeding before.... . (a) 1 years (b) 3 years ,(c) 5 years (d) 7 years 4.As per the Minimum Wages Act, child means a person who has not completed the age of ......... . (a) 15 years (b) . 14 years (c) 18 years ( d)' 21 years 5.Any employer who pays to any employee less than the minimum rates of wages, shall be punishable with imprisonment for a term up to six months or with fine up to ....... or with both. ' (a) t 500 (b) t 1000 (c) z 1500 (d) i 2500 6.Competent authority under the Minimum Wages Act means the authority appointed by the (a) Central government (b) State government (c) Appropriate government (d) Labour Commissioner 7.Minimum rates of wages is fixed in relation to ……. (a) Cost of living index number (b) Sensex (c) Nifty

(d) Any of the above 8.In a factory where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed, any person named under section 7(1)(f) of the Factories Act. 1948 be deemed to be the (a) Manager of the factory (b) Occupier of the factory (c) Director of the factory (d) None of the above 9.Wages means all remuneration, capable of being expressed in terms of money and includes ...... (a) House rent allowance (b) The value of any supply of light, water, medical attendance (c) Any contribution paid by the employer to any pension fund or provident fund ' (d) Any travelling allowance or the value of any travelling concession 10.Wages does not include ......... (a) Any contribution paid by the employer to any pension fund or provident fund or under any scheme of social insurance (b) Any travelling allowance or the value of any travelling concession (c) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment (d) All of the above 11.Different minimum rates of wages may be fixed for ......... (a) Different classes of work in the same scheduled employment (b) Adults, adolescents, children and apprentices (c) Different localities (d) All of the above 12.Minimum rates of wages may be fixed as per (a) the hour (b) the day (c) the month (d) All of the above 13.The Central Advisory Board shall consist of persons to be nominated by the Central Government representing ....... (a) employers and Central government (b) employers and State government (c) employers and representatives of Trade Union

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(d) employers and employees 14.The Central Advisory Board shall consist of representatives of employers and employees in equal number, and independent persons not exceeding ........ of its total number of members. ’ (a) one-third (b) half (c) two third (d) one fourth 15.A day of rest in every period of ....... days shall be allowed to all employees. (a) Four ' (b) Five (c) Six (d) Seven 16.If an employee whose minimum rate of wages has been fixed by the day works and on any day on which he was employed for a period less than the requisite number of hours constituting a normal working day, he shall be entitled to receive wages........ (a) for a full normal working day (b) Proportionately (c) half of the wages (d) as may be decided by the manager 17.The Inspector is appointed by the ...... (a) ApprOpriate government (b) State government (c) Central government (d) Chief Labour Commissioner 18.Any employer who contravenes any provision of the Act shall, if no other penalty is provided for such contravention by the Act be punishable with fine which may extend to …..

(a) R 500 (b) R 2,500 (c) R 5,000 (d) R 10,000

19.The responsibility for fixing minimum rates of wages lies with .......... (a) Appropriate Government (b) Central Government (c) Union parliament (d) Labor commissioner 20The term Wages under the Minimum Wages

Act, 1948 excludes.......... (a) Basic wages (b) House rent allowance (c) Deamess alliance (d) None of the above 21. Who has power to add to Schedule 1 to the Minimum Wages Act, 1948? (a) State Government (b) Central Government (c) Appropriate Government (d) Labor Commissioner 22.General provisions for punishment of offences under the Minimum Wages Act are provided in section of the Act.

(a) 21 ‘ (b) 20 (c) 18 (d) 22A 23.For the purpose of fixation of Minimum wages the Appropriate Government is advised by (a) Central Advisory Board (b) Labor Commissioner (c) Ministry of Social Justice and Welfare (d) All the three 24. .................. appoints. inspector for the purpose of administration of the Minimum Wages Act,1948 (a) Central Government (b) Appropriate Government (c) State Government (d) Local Government 25.The responsibility of reviewing rate of Minimum wages lies with ............ (a) Appropriate Government (b) Central Government (c) State Government (d) District Administration 26.Rates of Minimum wages fixed under the payment of Minimum Wages, Act,1948are reviewed at an interval .......... (a) Of five years (b) 0f not more than five years (c) One in ten years (d) One in two years ‘

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27.

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(a) Appropriate Government; not exceeding five (b) Central government; exceeding five (c) State government; not exceeding three (d) Local authority; exceeding three (CS EP Dec. 2014) 41.Section 17 of the Minimum Wages Act, 1948 provides that where an employee is engaged in work on piece work basis for which minimum time rate and not a minimum piece rate has been fixed, wages shall be paid at – (a) Minimum piece rate (b) Over-time rate (c) Minimum time rate (d) Normal rate. (CS EP Dec. 2014) 42.As per the Minimum Wages Act, 1948 the method used to fix minimum wages in respect of scheduled employment is called - (a) Employment method (b) Appropriate method (c) Committee and notification method (d) Wage method. (CS EP Dec. 2014) 43.According to section 4 of the Minimum Wages Act, 1948 any minimum rate of wages duly fixed or revised may not consist of ~ (a) A basic rate of wages and a special allowance at a rate to be adjusted (hereinafter to as the cost of living allowance) (b) A basic rate of wages or without the cost of living allowance and the cash value of the concession in respect of supplies of essential commodities at concessional rates where so authorized (c) An al inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any (d) An all excusive rate not allowing for the basic rate, the cost of living allowance and the cash value of the concessions, if any (CS EP June 2015) 44. The authority to hear and decide claim arising out of payment of less than the minimum rates of wages under section 20 of the Minimum Wages Act, 1948 is - (a) Any Commissioner for workmen’s compensation (b) Any officer of the local government (c) Any officer of the State government below the rank of Labour Commissioner (d) Employer (CS EP June 2015)

45.Who‘ among the following fixes the minimum rate of wages for piece work, known as minimum piece rate under section 3 of the Minimum Wages Act, 1948 - (a) Employer (b) Contractor (c) Labour Commissioner (d) Appropriate government (CS EP June 2015 46.Who is empowered to fix minimum rates of wages in the manner prescribed under the Minimum Wages Act, 1948 - (a) Competent authority (b) Appropriate authority (c) Appropriate government (d) All of the above. (CS EP Dec. 2015) 47.According to section 4tof the Minimum Wages Act, 1948, any minimum rate of wages fixed or revised may consist of the following: (a) Basic rate of wages with or without the cost of living allowance (b) Basic rate of wages and a special allowance (c) All inclusive rate allowing for the basic rate (d) Cost of living allowance Select the correct answer from the options given below (a) (1) only (b) (1) and (2) only (C) (1). (3) and (4) only (d) (1). (2). (3) and (4) (03 EP Dec. 2015) 48.The committee appointed under section 5 of the Minimum Wages Act, 1948 is only an advisory body and the government is, therefore, not bound to accept its recommendations." This view is taken by the Supreme Court of India in (a) Edward Mills Co. v. State of Ajmer (b) Andhra Pradesh Hotels Association v. Government of Andhra Pradesh (c) Both (A) and (8) above (d) Neither (A) nor (B). (CS EP Dec. 2015) 49.Under section 18 of the Minimum Wages Act, 1948 maintenance of registers and records by the employer is - (a) Mandatory (b) Optional . (c) Mandatory as well as optional as the circumstances require (d) None of the above. (CS EP Dec. 2015)

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50.Consider the following statements under the Minimum Wages Act, 1948 : (i)The Act provides for fixation and revision of minimum wages of the workers in the scheduled employments (ii) Under this Act, both Central and State Governments are responsible for fixation and revision of minimum wages in respect of scheduled employments (iii) There is a uniformity of minimum wages within the country inspite of differences in price of essential commodities, paying capacity, productivity, local conditions, etc. (iv) The Act extends to whole of India and provides for fixing minimum rate of wages in all employments. Select the correct answer from the options given below - (a) and (ii) (b) (ii) and (iii) (c) (iii) and (iv) (d) (i) and (W) (cs EP June 2016) 51.According to section 3(2) of the Minimum Wages Act, 1948 the appropriate government may fix minimum rate of wages. Accordingly, which one of the following matter does not fall within the provisions of section 3(2) - (a) Time work (b) Piece work (c) Manual work (d) Guarantee time rate. (CS EP June 2016) 52.Under the Minimum Wages Act, 1948, the appropriate government can fix or revise minimum rates of wages by notification in the official gazette. In this regard - (a) The minimum rates of wages can be revised with retrospective effect (b) The minimum rates of wages cannot be \ revised with retrospective effect (c) The minimum rates of wages can be revised with retrospective effect in consultation with representatives of scheduled employments

(d) The minimum rates of wages can be revised with retrospective effect only when owners of scheduled employments can afford to pay. (CS EP June 2016) 53.Under section 20(1) of the Minimum Wages Act, 1948, which one of the following may be appointed by the appropriate government as an authority to hear and decide cases related to payment of wages (a) Any commissioner for workmen’s compensation (b) Any officer of the Central Government exercising functions as labour commissioner for any region (c) Any officer of the State Government not below the rank of Labour Commissioner (d) All of the above. (CS EP June 2016) 54.As per the Minimum Wages act, 1948, the appropriate government may review and revise the minimum rate of wages at such intervals as it may think fit, such intervals should (a) Not exceed one year (b) Not exceed two years (c) Not exceed three years (d) Not exceed five year (CS EP June 2016) 55.Which statement is correct as held by the Supreme Court in the case of Bijoy Cotton Mills v. State of Ajmer (1955) - (a) The freedom guaranteed under Article 19(1)(g) of the Constitution of India is an absolute freedom (b) The restrictions imposed upon the freedom of contract by the fixation of minimum rate of wages are not unreasonable (c) The restrictions imposed upon the freedom of contract by the fixation of minimum rate of wages are unreasonable (d) In the interest of general public the appropriate government is required to fix ‘ Uniform rate of minimum wages. (CS EP June 2016)

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1. B

2. A

3. C

4. B

5. A

6. C

7. A

8. A

9. A

10. D

11. D

12. D

13. D

14. A

15. D

16. A

17. A

18. A

19. A

20. B

21. C

22. D

23. A

24. B

25. A

26. B

27. C

28. D

29. A

30. A

31. D

32. C

33. A

34. A

35. D

36. B

37. A

38. C

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39. B

40. A

41. C

42. C

43. D

44. A

45. D

46. C

47. D

48. A

49. A

50. A

51. C

52. A

53. D

54. D

55. b

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Lesson 3 Payment of wages Act 1936

Objectives

The Payment of Wages Act, 1936 has been enacted to regulate the payment of wages to workers employed in certain specified industries. The Payment of Wages Act, 1936 was enacted with the object of

regulating payment of wages, imposition of fines and deductions from wages, and

eliminating all malpractioes by laying down wage periods and times and mode of payment of wages.

The Act, therefore, ensures payment of wages in a particular form at regular intervals without unauthorized deductions. The Act came into force on 28.03.1937.

Scope and Coverage

The Act extends to the whole of India.

It applies to any factory, any railway establishment and any industrial or other establishment like tramway service, motor transport service, air transport service, dock, wharf, jetty, inland vessel, mine, quarry, oilfield, plantation, workshop or other establishment producing, adapting or manufacturing any article, establishments engaged in construction, development and maintenance of buildings, roads, bridges or canals, navigation, irrigation or supply of water, generation, transmission and distribution of electricity/power and any other establishment notified by the Central or a State Government.

Applicability of the Act

The Act extends to the whole of india.

The Act applies for payment of wages

to persons employed in any factory,

to persons employed otherwise than in a factory upon any railway or directly or through a sub-contractor.

The State Government may, giving three months‘ notice extend the provisions of the Act to any class of persons.

Non-Applicability of the Act The Act shall not apply where wages payable is Rs. 18,000 or more ‘per month. vide notification no. SO 2260(E), dated 11-94012]

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Definitions Wages Section 2 (vi) Wages means all remuneration (whether by way of salary, allowances or otherwise) expressed in terms of money or capable of being so expressed which would be payable to a person employed in respect of his employment or of work done in such employment.

Wages Includes Wages Does not includes

Remuneration payable under any award or settlement between the parties or order of a Court.

Remuneration in respect of overtime work or holidays or for any leave period.

Any additional remuneration payable under the terms of employment (whether bonus or by any other name).

Any sum payable under any law on termination of employment but does not provide for the time within which the payment is to be made.

Any sum payable under any scheme framed under any law for the time being in force.

Any bonus.

The value of any house-accommodation or of the supply of light, water, medical a or of any service excluded from the computation of wages by a general or Special order of appropriate Government.

Any contribution paid by the employer to any pension or provident fund and interest accrued thereon

Any travelling allowance or the value of any travelling concession.

Any sum paid to defray special expenses entailed on him by the nature of employment.

Employed person Section 2 (ia)

Employed person includes the legal representative of a deceased employed person. Employer [Section 2 (ib)

Employer includes the legal representative of a deceased employer. Obligations of Employers Responsibility for Payment of Wages

Every employer shall be responsible for the payment of wages.

ln factories, the person named as manager under the Factories Act, 1948;

In industrial establishments, the person responsible for the supervision and control of the establishments.

ln railways (otherwise than in factories), if the employer is the railway administration, the person nominated by the railway administration for any local area.

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In case of a contractor, the contractor or a person designated by such contractor who is directly in charge of the contract.

In any other cases, a person designated by the employer for complying with the provisions of the Act

Fixation of Wages-Periods

Every person responsible for the payment of wages has to fix wage period.

No wage-period shall exceed one month. Time of Payment Sec. 5

Nature of employment Time of payment of wages

in any railway factory or industrial or otherestablishment in which less than 1000 persons areemployed

Before the expiry of the 7'" day after the last day ofthe wage-period.

in any other railway, factory or industrial or otherestablishment

Before the expiry of the 10th day, after the last dayof the wage-period.

In a dock, wharf or jetty or in a mine, the balance ofwages found due on completion of the final tonnageaccount of the ship or wagons loaded or unloaded

Before the expiry of the 7th day from the day ofsuch completion. (Normal wages shall be paid before expiry of the 10‘h dayof the wage-period)

In case of termination of employment by theemployer

Before the expiry of the 2"d working day from theday on which employment is terminated.

Mode of payment

All wages shall be paid in current coin or currency notes or in both.

The employer may, with written authorisation of the employee, pay him the wages by cheque or by crediting bank account.

Appeal [Section 17]

An appeal against an order dismissing an application may be preferred within 30 days of the date on which the order or direction was made, in a Presidency-town before the Court of Small Causes, and elsewhere before the District Court.

Where an employer prefers an appeal, the concern appealed authority shall withhold payment of any sum in deposit with it.

Offences and Penalties

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Offences Penalties

Delay in, or non-payment of, wages within the prescribedtime

Fine up to? 7500/(Minimum Fine 1500/-)

Making any unauthorized deduction or imposition of tines incontravention of the Act

As above

Failure to fix the wage period or make payment of wages ona working day and in current coins or notes.

Fine upto 3,750

Failure to maintain the registers of fines and deductions or display the prescribed notices.

As above

Failure to nominate or designate a person under section 3 ofthe Act

Fineupto3,000

Failure to maintain the prescribed returns and records,failure to furnish the required information or furnishing of ' false information.

Fine upto 7,500/(Minimum Fine 1,500/-)

Obstructing the Inspector or refusal to produce before himthe records/documents, for inspection.

As above

Deductions [Section 7] Wages shall be paid without deduction except as authorised by the Act. The Act however authorises the following deductions:

Fines.

For absence from duty.

For damage to or loss of goods expressly entrusted to the employed person for custody.

For loss of money which he is required to account and the loss is due to his neglect or default.

For house-accommodation supplied by the employer or by Government or any housing board.

For amenities and services supplied by the employer as the Appropriate Government may authorise.

For recovery of advances including interest due thereon if any.

For adjustment of over-payments of wages. For recovery of loans from any approved fund and interest due thereon.

For recovery of loans granted for house building and the interest due thereon.

Income-tax payable by the employed person.

Any amount as per order of a Court or other competent authority.

For contribution and repayment of advances from provident fund.

For payments to approved co-operative societies or insurance scheme of Post Office.

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Amount authorized by employee for payment of LIC premium.

Amount authorized by employee for purchase of Government securities.

Amount authorized by employee for deposit in Post Office Savings Bank.

Amount authorized by the employee for payment to any approved fund constituted by the employees.

Amount authorized by employee for payment to registered trade union for the welfare of the employees.

Amount authorized by the employee for payment to registered trade union.

Amount authorised by the employee for payment to the Prime Minister's National Relief Fund or any approved Fund.

For contributions to any insurance scheme framed by the Appropriate Government for benefit of its employees.

The following shall not be deemed to be a deduction from wages:

Withholding of increment or promotion (including stoppage of increment at an efficiency bar).

Reduction to a lower post or time scale or to a lower stage in a time scale.

Loss of wages due to suspension. MAXIMUM DEDUCTION

The total amount of deductions in any wage period shall not exceed 75% of such wages in case of payment to co-operative societies. .

In any other case, the deduction shall not exceed 50% of such wages. Fines [Section 8]

No fine shall be imposed for acts and omissions previously approved by the Appropriate Government.

Such notice shall be exhibited on the premises in which the employment is carried on. ’

No fine shall be imposed until an opportunity has been given of showing cause.

The total amount of fine in any one wage-period shall not exceed 3% of the wages payable for that wage-period.

No fine shall be imposed on any employed person under the age of 15 years.

No fine shall be recovered by installments or after the expiry of 90 days from the day on which it was imposed.

All fines and all realisations shall be recorded in a register.

All such realisations shall be applied only for purposes beneficial to the employees. Maintenance of registers Section 13A

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Every employer shall maintain registers and records of persons employed by him the work performed by them the wages paid to them the deductions made from their wages, the receipts given by them and such other particulars as may be prescribed.

Every such register and record shall be preserved for a period of 3 years after the date of the last entry made therein.

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1. The Payment of Wagon Act, 1038 came Into tone on ............ (a) 26.03.1937 (b) 01.04.1936 (c) 01.07.1947 (d) 04.6.1936 2. The Payment of Wages Act, 1938. was enacted on the recommendatlon of .................

(a) Labour Ministry (b) The Royal Committee on labour (c) Labour commissioner (d) International Labor Organisation 3. The Payment of Wages Act, 1936 applicable to the ............... (a) Whole of India (b) Whole of India except Jammu & Kashmir (c) Whole of India except Jammu 8. Kashmir and Union Territories (D) Whole of India except Union Territories 4: The term ‘factory' used in the Payment of wages Act. 1936 has the same meaning as in (a) lndustriai Dispute Act, 1947 (b) Minimum Wages Act, 1948 (c) Factories Act. 1948 (d) Equal Remuneration Act, 1976 5. Under the Payment of Wages Act, 1936 payment of wages of establishmentsempioying not more than 1000 employees shall be paid within of the wage month. (a) 10m day (b) 7„'1 day (c) 2"“ day (d) 15„" day 6. Appropriate Government in case of Railways is ............... (a) Central Government. (b) State Government. (c) Ministry of Railways. (d) Any of the above 7. Wages in defined under .......... (a) Section 2 (vi) (b) Section 2(ii) (c) Section 2(iiia) ((1) Section 2(xi)

8. Wages as per the Payment of Wages Act cannot be paid in................. (a) Currency notes (b) by transfer through NEFT/RTGS (c) Kinds (d) Cheques 9. A company to which the Payment of Wages Act, 1936 applies, fixed the wages period of 33 days. (a) Wage period cannot exceed one month (b) The Company is right (c) The wages period may be more than 30 days subject to approval of appropriate Government (d) Permission of the Chief Inspector is required 10.Deductions from wages may be made for (a) Fines (b) Income tax liability of the employee (c) House accommodation provided to the employee. (d) All of the above 11.An employee in a factory should not be under the age of ............ (a) 12 (b) 14 (c) 15 (d) 18 12.The total amount of fine on any employed person shall not exceed ........... of the wages payable to him. (a) 3% (b) 5% (c) 12% (d) 25% 13.Every ......... shall be responsible for the payment of all wages. (a) Employer. (b) Occupier (c) Manager (d) Managing Director 14. A company to which Payment of Wages Act, 1936 is applicable has 800 employees. it has been paying wages on 15m of following month. (a) The company has not violated the provisions of the Act.

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(b) The company should pay wages by 10th of the following month (c) The company should pay wages on the last day of the month (d) The company should pay wages by 7m of the following month 15. The total amount of deductions in any wage period from the wages shall not exceed in cases where such deductions are wholly or partly made for payments to co operativesocieties, ...... of such wages. (a) 75% (b) 50% (c) 65% (d) 30% 16. In case of termination of employment wages Shall be paid before the expiry of the ........from the day on which employment is terminated. (a) 2nd working day (b) 7th working day (c) 10nd“ working day (d) Any of the above 17. When any deduction is made by an employer, the employee shall make application to the authority within .......... for recovery of the same. (a) 3 months ('3) 6 months (c) 12 months d) 15 months 18.Every register under the Payment of Wages Act shall be preserved for ......... (i) 1 years (b) 3 years (c) 5 years (d) 7 years 19. ................ has power to make rules under the Payment of Wages Act, 1936 (a) Central Government (b) State Government (c) Appropriate Government (d) Local Administrator 20.Every Inspector appointed under the Payment of Wages Act. 1936 is deemed to be a .......... (a) Public servant

(b) Occupier (c) Labor officer (d) None of the above 21. The Inspector for the purpose of Payment of Wages Act, 1936 is appointed by .............. (a) Central Government (b) State Government (c) Appropriate Government (d) Local Government 22. Penalties for various offences under the Payment of Wages Act, 1936 are provided in (a) Section 10 (b) Section 15 (c) Section 18 (d) Section 20 23. The Payment of Wages Act, 1936 is applicable to persons employed in ............. (a) Factories (b) In railways (c) In other establishments specified in subclauses (a) to (g) of section 2(ii) of the Act. (d) All of the above 24. The State Government may, after giving ............. notice of its intention of so doing by notification in the Official Gazette, extend the provisions of the Act. (a) 30 days (b) 1 month (c) 3 months (d) 45 days 25. Nothing in the Payment of Wages Act shall apply to wages payable in respect of a wageperiod which, over such wage-period, average ............. a month or more. (a) R6,500 (b) R10,000 (C)R12,000 (d) R18.000 26. ............. perSOn includes his legal representative. (a) Employer. (b) Employed person (c) Both (a) and (b) (d) None of the above 27. Industrial or other establishment means (a) inland vessel. mechanically propelled (b) mine. quarry or oilfield

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(c) plantation (d) All of the above 28. Wages means all remuneration expressed in terms of money or capable of being so expressed and includes ...... . ......... (a) any remuneration payable under any award or settlement between the parties or order of a Court. (b) any remuneration to which the person employed is entitled in respect of overtime Work or holidays or any leave period. (c) any additional remuneration payable under the terms of employment. (d) All of the above 29. Wages does not include ............

(a) any bonus ' (b) the value of any house accommodation (c) any travelling allowance or the value of any travelling concession (d) All of the above 30. Every ............ shall be responsible for the payment to persons employed by him of all wages required to be paid. (a) Employer (b) Occupier (c) Manager (d) Any of the above 31. Tlmelelt for payment of wages In case or an establishment employing less than 1000 ersons .............. (a) Before expiry of 7'" working day after wage penod (b) Before expiry of 8'h working day 'after wage penod (c) Before expiry of 10'” working day after wage period , (d) Before expiry of the working day after wage penod 32. Time Limit for payment of wages in case of an establishment employing 1000 or more persons .............. (a) Before expiry of 10'h working day after wage pedod (b) Before expiry of 7"1 working day after wage penod (c) Before expiry of 9'" working day after wage pedod (d) On the last working day of wage period 33. Time Limit for payment of wages in case of termination of employee ....................

(a) Before expiry of 2"d working day after termination (b) Before expiry of 7m working day after the next wage period . (c) Before expiry of 10'" working day after next wage period (d) On the date of termination after the service 34. All wages shall be paid in ..................... (a) current coin (b) currency notes (c) in both (a) and (b) (d) In any manner as the Manager decides 35. The total amount of deductions in any wage period from the wages of any employed person shall not exceed .................. (a) In cases where such deductions are wholly or partly made for payments to co-operative societies. 75% of wages (b) in any other case, 50% of wages (c) Maximum 3% of wages (d) Both (a) and (b) 36. The total amount of fine which may be imposed in any one wage-period on any employed person shall not exceed .......... of the wages payable to him in respect of that wage-period. (a) 1% (b) 2% (C) 3% (d) 3.5% 37.An appeal against an order dismissing an application under Payment of Wages Act may be preferred within .......... of the date on which the order or direction was made. (a) 30 days (b) 45 days (c) 60 days (d) 90 days 38. Whoever being responsible for payment of wages contravenes any of the provisions of section 9 of Payment of Wages Act shall be punishable with fine which shall not be less than .......... but which may extend to . (a) ?1,000.?7,000 (b) t1.500,?7.500 (c) ? 1.500, ? 10,000 (d) {5000125000 39. Whoever contravenes .the provisions of section 6 or section 25 of Payment of Wages Act shall be punishable with fine which may

Page 46

extend to ................ (a) R 3.750 (b) R 5,000 (6) R 10,000 (d) R25,000 40. Whoever being required to nominate or designate a person under Section 3 of Payment of Wages Act fails to do so, such person shall be punishable with fine which may extend to .................. (aR 3.000 (b) R„ 5,000 (c) R10,000 (d) R 25,000 41. Section 13A of the Payment of Wages Act, 1936 provides that every register and record required to be maintained shall be preserved for a period of after the date of last entry made therein. (a) Five years (b) Three years (c) Eight years (d) One year (CS EP Dec. 2014) 42. As per section 6 of the Payment of Wages Act, 1936 all wages shall be paid in current coin or currency notes or in both. However, the employer may, after obtaining the written aurhotisation of the employed person, pay him the wages either by or by crediting the wages in his (a) Currency notes; post office passbook (b) Cheque; post office passbook (c) Draft; bank account (d) Cheque; bank account. (CS EP Dec. 2014) 43. The payment of wages of certain classes of employed persons is regulated by the (a) Equal Remuneration Act, 1976 (b) Minimum Wages Act. 1948 (c) Payment of Wages Act, 1936 (d) Employees' Compensation Act, 1923 (CS EP Dec. 2014) 44. Section 5 of the Payment of Wages Act,-1936 specifies that the wages of every person employed upon or in any railway factory or industrial or other establishment upon or in which less than one thousand persons are employed, shall be paid before the expiry of the day. The wages of every person employed upon or in any other railway factory or industrial or other establishment shall be paid

before the expiry cf the day, after the last day of the wage period in respect of which the wages are payable. (a) Seventh; seventh (b) Fifth; seventh (c) Seventh; tenth (d) Eighth; tenth (CS EP Dec. 2014) 45. Under the Payment of Wages Act, 1936 any premises including the precincts thereof whereon twenty or more workers are working, or were on a day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on is known as ~

(a) Factory (b) (b) Mobile unit belonging to the armed

forces (c) Railway running shed

(d) Hotel. restaurant or eating place (CS EP June 2015) 46. Which one of the following Acts prevents discrimination against women employees while making recruitment for the same work or work of similar nature, or in any condition of service subsequent to recruitment (a) The Minimum Wags Act. 1948 (b) The Payment of Wages Act. 1936 (c) The Equal Remuneration Act. '1 976 (d) The Maternity Benefit Act, 1961 (CS EP June 2015) 47. As per the Payment of Wages Act. 1936 wage period shall not exceed - (a) Half a month (b) One month (c) Two months (d) Three months (CS EP June 2015) 48. 48. According to the Payment of Wages Act. 1936 where the employment of any person is terminated by or on behalf of the employer. the wages earned by him shall be paid (a) Before the expiry of'the second working daY from the day on which his employment is terminated (b) Before the expiry of the fifth working day from the day on which his employments is terminated (c) Before the expiry of the seventh working day from the day on which his employment is teMinated (d) Before the expiry of the tenth working day from the day on which his employment is terminated.

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(cs EP June 2015) 49. As per section 13A of the Payment of Wages Act, 1936 every register and record required to be maintained shall preserved for a period of (a) Three year after the date of the last entry made therein r (b) Five years after the date of the last entry made therein (c) Eight years after the date of the last entry made therein (d) Nine years after the date of the last entry made therein (CS EP June 2015) 50. As per section 8 of the Payment of Wages Act, 1936 no fine shall be imposed on any employed person who is under the age of (a) Twenty one years (b) Fifteen years (c) Sixteen years (d) Eighteen years (CS EP June 2015) 51. As per section 2(ib) of the payment of Wages Act, 1936 ‘employer’ includes - (a) Wife of a deceased employer (b) Sons and daughters of a deceased employer (c) Legal representative of a deceased employer (d) Only (A) and (B) above. (CS EP Dec. 2015) 52. ‘Wages' under section 2(vi) of the Payment of Wages Act, 1936 does not include: Any sum to which the person employed is entitled under any scheme framed under any law for the time being in force Any contribution paid by the employer to any pension or provident fund and the interest which many have accrued thereon Any traveling allowance or the value of any traveling concession Any additional remuneration payable under the terms of employment whether called bonus or by any other name. Which of the above islarecorrect (a) (1) and (2) only (b) (2) and (3) only (c) (3) and (4) only (d) All of the above (C5 EP Dec. 2015) 53. As per section 4 of the Payment of Wages Act, 1936, no wage period shall exceed and as per section 5, the wages of every person employed upon or in any railway factory or industrial or other establishment upon or in which less than one thousand persons are employed shall be paid before the expiry of

(a) One month; fifth day (b) One month; seventh day (c) Three months; seventh day (d) Two months; seventh day (CS EP June 2016) 54. Section 15 of the Payment of Wages Act. 1936 deals with claims arising out of deductions from wages or delay in payment of wages. In this relation.which one of the following statements is incorrect - (a) Every application for such claim shall be presented within twelve months from the date on which the deduction was made or from the date on which the payment was due to be made (b) Such application may be admitted after the expiry of twelve months if there was sufficient cause for delay (c) Every claim shall be disposed of as far as practicable within a period of three months (d) Direction for the payment of compensation cannot be made in the case of delayed wages. (CS EP June 2016) 55. Consider the following statements under the provisions of the Payment of Wages Act, 1936 : (i)The employer is responsible for the payment of wages and in case of death of the employer his legal representative is liable (ii) The wage period fixed by the employer cannot exceed one month (iii) The employer cannot pay the wages either by cheque or by crediting the wages in the bank account of the employed person (iv) Fine can be imposed on any employed person without the previous approval of the State Government. . Select the correct answer from the options given below – (a) and (iii) (b) (ii) and (iv) (c) (i) and (ii) (d) (iii) and (iv) (cs EP June 2016) 56. 56. Under the Payment of Wages Act, 1936, the term ‘wages’ does not include— (a) Any travelling allowance or the value of any travelling concession (b) The value of any house accommodation (c) Any remuneration to which the person employed is entitled in respect of overtime work or holidays or any leave period (d) Any contribution paid by the employer to any pension or provident fund (CS EP June 2016)

Page 48

1. A

2. B

3. A

4. C

5. B

6. A

7. A

8. C

9. A

10. D

11. C

12. B

13. A

14. D

15. A

16. A

17. C

18. B

19. C

20. A

21. C

22. D

23. D

24. C

25. D

26. C

27. D

28. D

29. D

30. A

31. A

32. A

33. A

34. C

35. C

36. C

37. A

38. B

39. A

40. A

41. B

42. D

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43. C

44. C

45. A

46. C

47. B

48. A

49. A

50. B

51. C

52. b

53. B

54. D

55. C

56. A

1.

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Lesson 4 Equal remuneration Act 1976

Objectives

Article 39 of the Constitution of India envisages that the State shall direct its policy towards securing equal pay for equal work for both men and women.

To give effect to this constitutional provision, the Equal Remuneration Act, 1976 was enacted.

Scope and Coverage

The Act extends to the whole of India.

The Central Industrial Relations Machinery in the Ministry of Labour is responsible for enforcing the Act.

The Act aims to provide for payment of equal remuneration to men and women workers and for the prevention of discrimination on the ground of sex against women in the matter of employment.

The provisions of the Act shall have overriding effect of any other law or any award, judgment or contract of service.

Exemptions Section 15

The provisions of the Act shall not apply to employment of woman in complying with the requirements of any law giving special treatment to women.

It shall also not apply where special treatment is given to women in connection with

birth or expected birth of a child, or

retirement, marriage or death. Definitions Remuneration Section 2(g)

Remuneration means the basic wage or salary, and any additional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled. '

Same work or work of a similar nature Section 2 (h)

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Same work or work of a similar nature means work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions by a man or a woman.

The differences, if any, between the skill, effort and responsibility required of a man and a woman are not of practical importance in relation to the terms and conditions of employment.

Payment of Equal Remuneration Section 4

No employer shall pay to any worker remuneration at rates less favourable than paid to the workers of the opposite sex in such establishment for performing the same work or of a similar nature.

This means men and women are to be paid same remuneration for same or similar nature of work.

[Employer has the same meaning as in the Payment of Gratuity Act, 1972‘] No Discrimination in Recruiting Men and Women [Section 5]

No employer shall make any discrimination against women while making recruitment for the same or similar work, or changing service condition like promotions, training or transfer etc.

Advisory Committee Section 6

For the purpose of providing increasing employment opportunities for women, the appropriate Government shall constitute one or more Advisory Committees to advise it with regard to the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf.

Every Advisory Committee shall consist of not less than ten persons, to be nominated by the appropriate Government, of which one-half shall be women.

Claims and Complaints Section 7 The appropriate Government may, by notification, appoint such officers, not below the rank of a Labour Officer, as it thinks fit to be the authorities for the purpose of hearing and deciding

complaints with regard to the contravention of any provision of this Act;

claims arising out of non-payment of wages at equal rates to men and women workers for the same work or work of a similar nature, and may, by the same or subsequent notification, define the local limits within which each, such authority shall exercise its jurisdiction.

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Cognizance and Trial of offences [Section 12]

No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under the Act.

No court shall take cognizance of an offence punishable under this Act except upon

its own knowledge or upon a complaint made by the appropriate government or an officer authorized by it in this behalf, or

a complaint made by the person aggrieved by the offence or by any recognized welfare institution or organization.

Appeal

Any employer or worker aggrieved by any order made by any authority, may, within 30 days from the date of the order, make an appeal to the appellate authority.

The appellate authority may confirm, modify or reverse the order.

No further appeal shall lie against the order. Penalties

An employer shall be punishable with simple imprisonment for a term up to one month or with fine up to Rs. 10,000 or with both under the following circumstances:

if the employer omits or fails to maintain any register or other document in relation to workers employed by him.

if the employer omits or fails to produce any register, muster-roll or other docuument relating to the employment.

If the employer omits or refuses to gives any evidence or prevents his agent, servant, or any other person in charge of the establishment, or any worker, from giving evidence.

if the employer omits or refuses to give any information.

An employer shall be punishable with fine which shall not be less than ?10,000 but which may extend to {20,000 or with imprisonment for a term which shall be not less than 3 months but which may extend to one year or with both for the first offence, and with imprisonment which may extend to two years for the second and subsequent offences in the following cases:

if any person omits or refuses to produce to an Inspector any register or document or information, he shall be punishable with fine upto f 500.

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1.Equal Remuneration Ordinance was promulgated in ............ (a) 1975 (b) 1976 (c) 1956 (d) 1999 2.No discrimination for payment of wages shall be made to man and woman is Specified in ........ (a) The Payment of Wages Act (b) The Minimum Wages Act (c) The Equal Remuneration Act (d) The Maternity Benefit Act 3.Equal Remuneration Act, 1976 aims to provide for ............... (a) payment of equal remuneration to men and women workers (b) for the prevention of discrimination on the ground of sex against women in the matter of employment (c) Both of the above (d) None of the above 4.The provisions of the Equal Remuneration Act shall not apply to (a) employment of woman in complying with the requirements of any law giving special treatment to women (b) where special treatment is given to women in connection with birth or expected birth of a child (c) where special treatment is given to women in connection with retirement, marriage or death (d) All of the above 5.The term ‘same work or work of a similar nature” is mentioned in the ......... (a) Equal Remuneration Act, 1976 (b) Maternity Benefit Act, 1961 (c) Industrial Employment (Standing Orders) Act, 1946 (d) The Child Labour (Prohibition and Regulation) Actually, 1986 6.Men and women are to be paid same remuneration for same or ...... nature of work. (a) similar (b) equal (c) exact (d) None of the above

7...... of Equal Remuneration Act, 1976, empowered every employer to maintain registers and other documents in relation to the workers employed by him as prescribed by the Rules. The register shall be in Form D. (a) Section 8 (b) Section 9 (c) Section 10 (d) Section 11 8.Any employer or worker aggrieved by any order made by any authority under the Equal Remuneration Act, 1976. may, make an appeal to the appellate authority within (a) 15 days from the date of the order (b) 21 days from the date of the order (c) 30 days from the date of the order (d) 45 days from the date of the order 9.Under the Equal Remuneration Act, 1976 no employer shall pay to any worker remuneration at rates less favourable than paid by him to the workers of the ................. in such establishment for performing the same work or of a similar nature. (a) opposite sex (b) supervisory grade (c) officers (d) managers 10.No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate .......... shall try any offence punishable under the Act. (a) of the first class (b) of the second class (c) None of the above (d) Any of the above 11.The term 'same work or work of similar nature' is defined in Section ....... of the Equal Remuneration Act, 1976. (a) 2(c) (b) 2(e) (0) 2(h) (d) 2(k) 12.The term means work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or a woman and the differences, if any, between the skill,_effort and responsibility required of a man and those required of a woman are not of practical importance in relation to the terms and conditions of employment; is defined under the

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(a) Same work; Maternity Benefit Act, 1961 (b) Same work or work of a similar nature; Equal Remuneration Act, 1976 (c) Standing work; Equal Remuneration Act, 1976 (d) Occupation; The Child Labour (Prohibition and Regulation) Act, 1986. , (CS EP Dec. 2014) 13.Under the Equal Remuneration Act, 1976 the basic wage or salary and any additional emoluments whatsoever payable, either in cash or in kind, to a person employed in respect of employment or work done in such employment, if the terms of the contract of employment, express or implied, were fulfilled is defined as (a) Wages (b) Remuneration (c) Salary (d) Contract of employment (CS EP June 2015) 14.Under the Equal Remuneration Act, 1976 work in respect of which the skill, effort and responsibility required are the same, when performed under similar working conditions, by a man or a woman and the differences, if any, between the skill, effort and responsibility required of a man and those required of a woman are not of practical importance in relation to the terms and conditions of employment is defined as (a) Equal work or work of a same nature (b) Equal work or work of a similar nature (c) Same employment or employment of a similar nature (d) Same work or work of a similar nature. (CS EP June 2015) 15.While making recruitment for the same work or work of similar nature, no discrimination shall be made by the employer against women except where the employment of women in such work is prohibited or restricted under any law for the time being in force. This has been provided under the Equal Remuneration Act, 1976 in

(a) Section 4 (b) Section 5 (c) Section 8 (d) None of the above. (CS EP Dec. 2015) 16The appropriate government is empowered under section 7 of the Equal Remuneration Act, 1976 to appoint the authorities for hearing and deciding the claims and complaints not below the rank of - (a) Labour Commissioner

(b) Labour Officer (c) Labour Inspector (d) Assistant Labour Commissioner. (CS EP Dec. 2015) 17.Consider the following statements under the Equal Remuneration Act, 1976; (i)The executive power to ' enforce the provisions of the Act are available to both the governments, i.e., the Central Government and the State Governments (ii) The provisions of the Act are applicable to all categories of employment (iii) Under section 3, the provisions of the Act do not have overriding effect (iv) The Act prevents discrimination made in favour of scheduled castes or scheduled tribes Select the correct answer from the options given below - (a) (i) and (ii) (b) (ii) and (iii) (C) (iii) and (iv) (d) (i) and (iv) (cs EP June 2016)

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1. A

2. C

3. C

4. D

5. A

6. A

7. A

8. C

9. A

10. A

11. C

12. B

13. B

14. D

15. B

16. B

17. D

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Lesson 5 Employees State Insurance Act 1948

Objectives

In order to provide benefits to employees in case of sickness, maternity, employment injury etc. the government thought to regularize the process through legislation.

The Employees’ State Insurance Act, 1948 was enacted for this purpose.

The Act came into force on 19.04.1948. Scope and Coverage

The Act extends to the whole of India. ' It is applicable to non-seasonal factories employing 10 or more persons.

The Scheme has been extended to shops, hotels, restaurants, cinemas including preview theatres, road-motor transport undertakings and newspaper establishments employing 20 or more persons.

The Scheme has also been extended to Private Medical and Educational institutions employing 20 or more persons in certain States and Union Territories.

Exemption The Act does not apply to the following:

Seasonal factories

Factories or establishments under the control of the Government getting better benefits

Indian Army, Navy and Air Force Factories where less than 10 workers are employed

Mines

Railway running shed

Employees drawing wages exceeding Rs. 15,000/per month.

Employees Entitled

Every employee (Including casual and temporary employees), whether employed directly or through a contractor, who is in receipt of wages upto 21000/p.m. (excluding remuneration for overtime work), is entitled to be insured under the ESL Act

Persons engaged as apprentices [Including those whose period of training is extended by period of time] are also covered.

However, apprentices engaged under the Apprentices Act are not entitled to the ESI benefits.

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Employee as per section 2(9) of the ESI Act means any of the following persons employed for wages in or in connection with the work of a factory or establishment to which the Act applies:

Any person who is directly employed by the principal employer whether such work is done in the factory or establishment or elsewhere.

Any person who is employed by or through an immediate employer or under the supervision of the principal employer or his agent which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment.

whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service ;

Employees includes Employees does not includes

any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products of, the factory or establishment or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 and includes such person engaged as apprentice whose training period is extended to any length of time

any member of the lndian Naval, Military or Air Forces ;

any person so employed whose wages (excluding remuneration for overtime work) exceed such wages as may be prescribed by the Central Government.

An employee whose wages (excluding remuneration for overtime work) exceed such wages as may be prescribed by the Central Government at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period.

The Central Government has since prescribed by a Notification under Rule 50 of the ESL Rules, 1950 wage limit for coverage of an employee under Section 2(9) of the Act 10,000 per month.

Further, it is provided that an employee whose wages (excluding remuneration for overtime work) exceed 10,000 a month at any time after and not before the beginning of the contribution period, shall continue to be an employee until the end of the period.

Dependent Section 2(6A) Dependent means any of the following relatives of a deceased insured person namely:

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a widow, a legitimate or adopted son who has not attained the age of twenty-five years,, an unmarried legitimate or adopted daughter,

a widowed mother,

if wholly dependent on the earnings of the insured person at the time of his death, a legitimate oradopted son or daughter who has attained the age of 25 years and is infirm;

if wholly or in part dependent on the earnings of the insured person at the time his death:

a parent other than a widowed mother,

a minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate or adopted or illegitimate if married and minor or if widowed and a minor,

a minor brother or an 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 grand parent if no parent of the insured person is alive. Meaning of Employer

Employer means the following:

Owner of the factory;

Head of the department in case of Government department;

Person responsible for supervision and control in the case of any other establishment.

In case of contracted labour, primary liability of ESI contribution is that of principal employer.

However, he can recover the contribution paid by him from the contractor.

Immediate Employer and Principal Employer

“Immediate Employer” in relation to employees employed by or through him means a person

who has undertaken the execution on the premises of a factory or an establishment to which

this act applies or under the supervision of principal employer or his agent, of the whole or any

part of any work which is ordinarily part of the work of the factory or establishment of the

principal employer or is preliminary to the work carried on, in or incidental to the purpose of

any such or establishment

“Principal Employer” means the following:

In a factory, owner or occupier of the factory and includes the managing agent of such

owner or occupier, the legal representative of a deceased owner or occupier and where

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a person has been named as the manager of the factory under the Factory Act, 1948,

the person so named;

In any establishment under the control of any department of any Government in India,

the authority appointed by such Government in this behalf or where no authority is so

appointed the head of the Department.

In any other establishment, any person responsible for the supervision and control of

the establishment.

Wages Section 2(22) Wages means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled.

Wages includes Wages does not includes

any payment to an employee in respect of any period of authorised leave, lock-out, strike which is not illegal or lay-off and other additional remuneration, if any, paid at intervals not exceeding two months.

Any contribution paid by the employer to any pension fund or provident fund, or under the ESl Act

Any travelling allowance or the value of any travelling concession.

Any sum paid to defray special expenses by the nature of employment.

Any gratuity payable on discharge.

Wage period Section 2(23)

Wage period means the period in respect of which wages are ordinarily payable whether in terms of the contract of employment, express or implied or otherwise.

Contribution Section 2(4) Contribution means the sum of money payable to the Corporation by the principal employer in respect of an employees and includes any amount payable by or on behalf of the employee in accordance with the provisions of the Act.

Contribution is payable by the employer and also the employee.

Contribution is paid in respect of each wage period. RATE or CONTRIBUTION

Employer’s : 4.75% of the wages

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Employee's : 1.75% of the wages. (TO be rounded off to the next higher rupee) Employees’ State Insurance Act, 1948 Time and Mode of Deposit

The amount of contribution should be paid be paid into the ESL Account with an authorised branch of State Bang of lndia, through an E.S.lchallan in quadruplicate, on or before the 21st of the month following the calendar month in which the wages fall due.

The aggregate amount should be rounded off to the next higher rupee. Levy of Interest Interest shall be payable @ 12% pa. in respect of each day of default or delay in payment of contributions. Standard Benefit Rate Thebenefit available under the ESI Scheme are linked to the standard benefit rate which is in turn linked to the 'average daily wages' of the employee. Standard benefitrate = Total wages paid during the Contribution period

No. of days for which these wages were paid Benefits 1. Medical Benefit

An insured person or a member of his family whose condition requires medical treatment shall be entitled to receive medical benefit.

The medical benefit may be given either in the form of out-patient treatment in authorised hospital or dispensary, clinic or other institution or by visits by doctor to the home of the insured person or treatment as in-patient in hospital or other institution.

An insured person whoceases to be in insurable employment on account of permanent disablement shall continue to receive medical benefit till the date on which he would have vacated the employment on attaining the age of superannuation.

An insured person, who has attained the age of superannuation, and his spouse, shall be eligible to receive medical benefit subject to payment of contribution.

2. Sickness Benefit

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Dependant benefit is paid @90% of wage in the form of monthly payment to the dependant of a deceased insured person in cases where death "occurs due to employment injury or occupational hazards.

6. Other Benefits Funeral Expenses An amount of ?10,000/is payable to the dependents or to the person who performs last rites from day one of entering insurable employment. Confinement Expenses An Insured Women or an |.P.in respect of his wife in case confinement occurs at a place where necessary medical facilities under ESI Scheme are not available. Benefits Payable on Death Section 71

If a person dies during any period for which he is entitled to a cash benefit, the amount of such benefit up to and including the day of his death shall be paid to his nominee.

If there is no such nomination, to the heir or legal representative of the deceased person.

Employer not to Dismiss or Punish employee During Period of Sickness, etc. Section 73

No employer shall dismiss, discharge or punish an employee during the period he is in receipt of sickness benefit or maternity benefit.

It shall not dismiss, discharge or punish an employee during the period he is in receipt of temporary disablement benefit or is under medical treatment for sickness or is absent from work for illness arising out of the pregnancy '

Employees Insurance Court

Constitution

Section 74 of the Act provides that the State Government shall by notification in the Official Gazette constitute an Employees’ Insurance Court for such local area as may be specified in the notification.

The Court shall consist of such number of judges as the State Government may think fit.

Any person who is or has been judicial officer or is a legal practitioner of 5 years standing shall be qualified to be a judge of E.I. Court.

The State Government may appoint the same Court for two or more local areas or two or more Courts for the same local area and may regulate the distribution of business between them.

Adjudication of disputes

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The Employees’ Insurance Court has jurisdiction to adjudicate disputes, namely, whether any person is an employee under the Act, rate of wages/contribution, as to who is or was the principal employer, right of a person to any benefit under the Act.

Adjudication of claims

The E.I Court also has jurisdiction to decide claims for recovery of contribution from principal employer or immediate employer, action for failure or negligence to pay contribution, claim for recovery of any benefit admissible under the Act.

Proceedings in both the above cases can be initiated by filing application in the prescribed form by the employee or his dependent or employer or the corporation depending who has cause of action.

No Civil Court has power to decide the matters falling within the purview/ jurisdiction of E.I. Court.

Appeal

An appeal shall lie to the High Court against an order of an Employees’ Insurance Court, if it involves a substantial question of law. The appeal should be preferred within 60 days.

Offences and Penalties

Giving False statements Imprisonment upto 6 months, or with fine not exceeding 2000, or with both

Failure to pay contributions, etc Imprisonment for a term up to 3 years and shall also fine of 5000.

in other cases Imprisonment upto one year or with fine upto 4000 or with both under the following circumstances:

if employer's contribution is deducted from the wages of employee.

If wages or any privileges or benefits admissible to an employee is reduced.

if an employee is dismissed, discharged, reduced or otherwise punished during the period of receipt of disablement/ maternity benefit.

If there is failure or refusal to submit any return or makes a false return.

if there is obstruction to any Inspector or other official of the Corporation in the discharge of his duties.

If here is contravention of or non-compliance with any of the requirements of the Act or the rules or the regulations in respect of which no special penalty is provided.

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Offences by Companies Section 86A

If a company commits an offence, the company and every person, who at the time the offence was committed was in charge of and was responsible for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to punishment.

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1. Any expense on Audit of the accounts of the ESI Corporation is borne by the............... (a) ESlCorporation. (b) Central Government (c) State Government (d) Companies covered under the ESI Act 2. The Annual Report of the Corporation is submitted to the.................... (a) Central Government (b) State Government (c) Ministry of Health (d) Chief Labour Commissioner 3. The Chairman of the ESI Corporation is appointed by the ................. (a) Central Government (b) State Government (c) ESI Corporation (d) Ministry of Labour 4. Wages under the ESI Act does not include (a) any contribution paid by the employer to any pension fund or provident fund (b) any traveling allowance or the value of any travelling concession (c) any sum paid to the person employed to defray special expenses (d) all the three 5. Under ESI Act, 1948 a disablement of a permanent nature that reduces the earning capacity of an employee in every employment which he was capable of undertaking at the time of the accident resulting in the disablement is ............. . (a) permanent partial disablement (b) permanent total disablement (c) temporary partial disablement (d) temporary total disablement 6.Under ESI Act, 1948 a person shall be qualified to claim sickness benefit if the contribution is paid for not less than ................. in the contribution period. (a) 30 days (b) 60 days (c) 78 days (D) 98 days 7.Under ESI Act. 1948 a person shall be punishable if he fails to pay any contribution with imprisonment for a term up to........... Years and shall also fine of

(a) 3. : 5000 (b) 5. (5000 (c) 3. : 2500 (d) 5. {2500 8. Under ESI Act, 1948 every injury specified in........... shall be deemed to result in permanent partial disablement. (a) Part I of the Second Schedule (b) Part ll of the Second schedule (c) PartiesFirst schedule (d) Part ii of First schedule 9.Under ESI Act. 1948 the sickness benefit in the form of cash compensation is paid at the rate of ............... % of wages. (a) 50% (b) 60% (c) 70% (d) 100% 10Under ESI Act, 1948 sickness benefit is paid for a maximum period of ............. in a year. ( a) 45 days (b) 60 days (c) 78 days (d) 91 days 11. Under ESI Act, 1948 maternity benefit is payable for a period of ......... . (a) 1 months (b) 3 months (c) 9 months (d) 12 months 12. Under ESI Act, 1948 dependents benefit is paid at the rate of (a) 100% of wages (b) 90% of wages (c) 75% of wages (d) 50% of wages 13.Under ESI Act, 1948 temporary disablement benefit is paid at the rate of ........ (a) 100% of wages. (b) 90 % of wages. (c) 80% of wages. ,, . (d) 70% of wages 14.Under E8I Act. 1948 permanent diublemem benefit le paid at the rate 0! ...... ....... oi wages. (a) 100%

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(b) 90 % (C) 80% (d) 70% 15.Under ESI Act. 1948 employment INJU'Y " defined In Section ................. (a) 2(3) (b) 2(8) (Cl 2(11) (d) 2(14) 16.............. is an employee who is not liable under ESI Act to pay the employee's contribution. (a) Exempted employee (b) Casual employee (c) Contract employee (d) Child employee 17. Family means all or any of the following Relatives of an insured person ................ (a) a spouse; (b) dependent parents (c) a minor legitimate or adopted child dependent upon the insured person (d) All of the above 18.............. means a person who is or was an employee in respect of whom contributions are or were payable under the ESI Act and who is entitled to any of the benefits‘ provided by the Act. (a) Insured person (b) Dependent (c) Spouse (d) Any of the above 18. Under ESI Act, 1948 .................. means such disablement of a permanent nature as incapacitates an employee for all work which he was capable of performing at the time of the accident resulting in such disablement. (a) permanent total disablement (b) permanent partial disablement (0) temporary total disablement (6) Any of the above 20.Under ESI Act. 1948 seasonal factory mean! a factory which is exclusively engaged in .pecified manufacturing processes and includes a factory which is engaged for a period not exceeding ............... in a year in any process of blending, packing or repacking oi tea 0r coffee. (a) three months

(b) five months (6) seven months (d) nine months 21. The ES! Corporation shall consist of ................... representing employees. (a) three persons (b) five persons (c) ten persons (d) equal number of persons 22. The Standing Committee of the ESI Corporation shall consist of ............. representing employers. (a) three persons (b) live persons to) ten persons (d) equal number of persons 23.Any insured Persons making wrong I false statements with a View to take any benefit which is not admissible under the Est Act shall be punishable with imprisonment for a term which may extent to months or with tine which may extend to or with both. (a) 3,R.2.000 (b. 6.R.2.000 (c). 6R.5.000 (d) 6. R.10,000 24. An insured person under the Employees’ State Insurance Act. 1948 is entitled to receive certain benefits. But the insured person is - (a) Not entitled to receive more than one benefit for the same period. (b) Entitled to receive more than one benefit for the same period on compassionate ground. (c) Entitled to receive one been partly in cash and receive the other benefit in kind for the same period (d) Entitled to receive more than one benefit on wool 01 authorities concern (cs EP Dec 2008) 25.The dispute: relating to benefit: under the Employee' State Insurance Act. 1948 are required to be filed in (a) Civil Court (b) Employees' Insurance Court (c) Labor Court (d) Industrial Tribunal (CS EP June 2009) 26.‘Dependent' under the Employees' State Insurance Act. 1948 does not mean any of the

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following relatives of a deceased insured person (a) A Widowed mother (b) A widowed grandmother (c) A widowed daughter in law (d) A widow (05 EP Dec 2010) 27. Every factory or establishment to which the Employees‘State Insurance Act. 1948 applies has to be registered within - (a) 15 Days (b) 30 Days (c) 45 Days (d) 60 Days (CS EP June 2011) 28. The term ‘wages' under the Employees' State Insurance Act, 1948 does not include (a) Incentives (h) Over-time wages (c) Travelling allowance (6) Any other additional remuneration (CS EP June 2011) 29. The rate of employee' and employer: contributions in the Employee' State Insurance Scheme is (A) 4.75% and 1.75% respectively (B) 1.65% and 5.61% respectively (C) 1.75% and 4.75% respectively (d) 5.75% and 1.25% respectively. (CS EP Dec. 2014) 30. Certain benefits are provided to employees in case of sickness, maternity and employment injury and provisions for certain other matters in relation thereto have been detailed under (A) The Factories Act. 1948 (B) The Employees' State Insurance Act 1948 (C) The Employees Compensation Act. 1923 (D) The Maternity Benefit Act. 1961 (cs 5? Dec. 2014) 31.Which of the following is not a ‘depcndont' as per section 2(6A) of tho Employees' State Insurance Act, 1948 (A) A Widowed daughter In law (b) A minor child of a pre deceased son (C) A minor child of a pre deceased daughter where no parent of the child is alive (D) A paternal grandparent. if parent of the insured person is alive (cs EP Dec‘ 2014) 32. According to section 40 of the Employee’ State Insurance Act, 1948 it is incumbent upon the principal employer to pay both the

employer's contributions and the employee's contribution in respect of every employee whether directly employed by him or by or through (A) Insurable employment (8) Insured person (C) Immediate employer (D) Seasonal factory. (CS EP Dec. 2014) 33. The Employees’ State Insurance Corporation to function efficiently has been provided with two wings namely (a) Benefit Committee and Corporation Committee (b) Corporation Committee and Medical Benefit Council (c) Workers Committee and Standing Committee (‘d) Standing Committee and Medical Benefit Council (CS EP Dec. 2014) 34. Under section 29 of the Employees’ State Insurance Act, 1948 Employees' State Insurance Corporation is empowered to : (i) Acquire and hold property, both movable and immovable (ii) Invest any money and reinvest or realize such investment (iii) Raise loans and discharge loans Select me correct answer from the options given below - (a) (I) only (b) (I) and (u) only (c) (u) and (In) only (d) (i) (II) and (m) (CS EP Dec. 2014) 35. An insured person the Employees' State Insurance Act. 1948 is entitled to receive certain benefits. But the insured person is (a) Not entitled to receive more than one benefit for the same period (b) Entitled to receive more than one benefit for the same period on compassionate grounds (c) Entitled to receive one benefit partly In cash and receive the other benefit in kind for the same period (d) Entitled to receive more than one benefit on approval of authorities concerned (CS EP June 2015) 36. The employer‘s contribution rate in every wage period under the Employee's State Insurance Act, 1948 is 1.25% of the wages paid/payable 1.75% of the wages paid/payable 4.25% of the wages paid/payable

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4.75% of the wages paid/payable (CS EP June 2015) 37. Which of the following benefit is not covered under the Employees' State Insurance Act. 1948 Sickness benefit Maternity benefit Disablement benefit Recreational benefit (CS EP June 2015) 38.A factory which is engaged in any process of blending, packing or repacking of tea or coffee for a period not exceeding seven months in a year under section 19(A) of the Employees’ State Insurance Act, 1948 is known as (a) Seasonal factory (b) Non-seasonal factory (c) Manufacturing process (d) Scheduled employment (CS EP June 2015) 39. The Employees' State Insurance Corporation shall be a body corporate under section 3 of the Employees' State Insurance Act. 1948. The other main feature(s) of the Employees' State Insurance Corporation islare (a) It shall have perpetual succession (b) It shall have an uncommon seal (c) It can sue but cannot be sued In Its own name (‘d) All the above (CS EP Doc. 2015) 40. Which of the following is covered by the 1“ Category of dependent under the Employees' State Insurance Act. 1948 - (a) A widow (b) A legitimate as well a illegitimate son who has not attained the age of twenty {we years (c) An unmarried legitimate as well as Illegitimate or adopted daughter (d) None of the above (CS EP Dec. 2015) 41.For an employee to be insured under the Employees’ State Insurance Act, 1948.it is mandatory that:

(1) He must be employed in a factory or establishment to which this Act applies (2) Contribution must be paid by him towards 'insurance fund’ through the employer (3) Employer is not liable to pay any sum of amount in ‘insurance fund' Which of the above statement ls incorrect - (a) Only (1) (h) Only (2) (c) Only (3) (d) None of the above. (CS EP Dec. 2015)

42.Under section 74 of the Employees’ State Insurance Act, 1948, who is empowered to constitute an Employees ‘insurance Court (a) Central government (5) State government (6) Appropriate government (d) All of the above (cs 5p Dec. 2015) 43. The Employees' State Insurance Act. 1948 Provides for certain benefits to the employees in case of : (1) Sickness l2) Maternity (3) Employment injuryWhich of the above lslare correct

(a) and (3) only (b) (2) and (3) only (c) (1 only (d) (1) (2) and (3) (CS EP 0932015) 44. Which one of the following statements is incorrect as per the provisions of the Employees‘ State Insurance Act. 1948 - (a) It IS the first maior legislation on socral security in independent India (b) The Employees State Insurance Corporation established by the State Governments IS the premier SOClal security organisation (c) Employees State Insurance Fund has been created which IS held and administered by the Employees State Insurance Corporation (d) The Act guarantees reasonably good medical care to workers and their Immediate dependents (CS EP June 2016) 45. Which one of the following statements is Incorrect within the meaning of ‘employee' Under the Employees' State Insurance Act, 1948 Person who is directly employed on any work by the principal employer of the factory Person employed in zonal offices and branch offices of a factory Person whose services are temporarily let on hire to the principal employer Person who is a member of the armed forces and working in the Ordinance Depot. (CS EP June 2016) 46. Under the Employees' State Insurance Act. 1948 to determine whether an injury is ‘employment injury' or not, the basic test to be applied is that --

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Injury was sustained by a person within the premises or the concern where a person works There was visible injury in the form of some wound Injury sustained was not caused by negligence There is a nexus between the circumstances of the accident and the employment (03 EP June 2016) 47. Which of the following relations of an insured Person will be included in the ‘family' under Section 2(11) of the Employees' State Insurance Act. 1948 - Spouse A minor legitimate child An adopted child dependent upon the Insured person All of the above (CS EP June 2016) 48. Under section 2(3) 0' the Employeee‘State Insurance Act. 1948 the term 'contentment' means (a) Confinement of employees Within the premises of the establishment during specmed period (b) Confinement ofmanufacturing process Within the premises of the establishment (c) Labour resulting In confinement on account of Injury during the course of employment (d) Labour resulting In the Issue of alrvrng child or labour after 26 weeks of pregnancy Resulting in the issue of child (CS EP June 2016) 49. Which one of the following I: not a qualification to be a judge of the Employees' Insurance Court -- (a) Judicial officer with minimum of five years standing (b) Legal practitioner with minimum of five years standing (c) Judicial officer as well as legal practitioner wrth minimum of five years standing (d) Special legal officer with minimum of five years standing. (CS EP June 2016) 50. under section 2 of the Employees' State Insurance Act. 1948 ‘permanent partial disablement' means (a) Such disablement of a permanent nature as Incapacitates an employees for all work which he was capable of performing at the time of the accident resulting in such disablement

(b) A condition which requires medical treatment and attendance and necessitates abstention from work on medical grounds (c) Disablement of a permanent nature, as reduced the earning capacity of an employee in every employment which he was capable oi undertaking at the time of the accident resulting in the disablement (d) A condition resulting from an employment injury which requires medical treatment and renders an employee as a result oi such injury. Temporarily incapable of doing the work which he was doing prior to or at the time of injury. (CS EP June 2016) . 51.Undersection 38 of the Employee' State Insurance Act, 1948, consider the following

statement: Insurance of all employeeeInfactories or applies, is compulsory Exempted employees are not liable to pay omployees' contribution It is moral obligation ol the employer to pay his own contribution Any dispute, in this relation, shall be settled by the court of Chief Judicial Magistrate Select the Incorrect answer from the options given below (a) and (ii) (b) (ii) and (iii) (c) (iii) and (iv) (d) (iv) and (i). (CS EP June 2016)

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1. A

2. B

3. C

4. A

5. A

6. B

7. D

8. A

9. A

10. D

11. D

12. A

13. C

14. A

15. B

16. C

17. D

18. D

19. B

20. B

21. B

22. B

23. A

24. D

25. A

26. A

27. C

28. C

29. A

30. B

31. A

32. B

33. B

34. A

35. C

36. C

37. B

38 C

39 D

40 D

41 A

42 D

43 D

44 A

45 A

46 D

47 C

48 B

49 D

50 D

51 D

52 D

53 D

54 D

55 D

56 C

57 C

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Lesson 6 Employees Provident Funds and Miscellaneous

Provisions Act 1952 Objectives

The Employees‘ Provident Funds and Miscellaneous Provisions Act, 1952 came 'nto force on 1‘ November 1952

It is a social security measure meant for providing provident fund, famiiy pension and deposit linked irsurm benefits to employees.

Both the employee and employer contribute to the Fund equally timughout the covered persons’ employment

The amount is payable normally on retirement, superannuation or death. Scope and Coverage

The Act extends to the whole of India except the State of Jammu and Kashmir.

The Act applies to the following establishments:

Every factory engaged in any industry specified in Schedule l and in which 20 or more persons are employed. .

Any other establishment employing 20 or more persons. 0 Any class of establishments which the Central Government by notification Specifies.

As per Section 1. an establishment to which the Act applies shall continue to be governed by the Act even if the number of employee at any time falls below 20.

The Act is administered by the Central Government through the Employees Provident Fund Organisation.

Non-applicability of the Act Section 16

Any establishment registered under the Co-operative Societies Act, 1912, or under any other State law relating to co-operative societies employing less than 50 persons and working without the aid of power.

Any other establishment belonging to or under the control of the Central or State Government and whose employees are entitled to the benefit of contributory provident fund or old age pension in accordance with any Scheme framed by the Government.

Any other establishment set up under any Central or State Act and whose employees are entitled to the benefits of contributory provident fund or old age pension in accordance with any scheme framed under that Act.

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Section 16 does not restrict the scope of the Act.

The Central Government having regard to the financial position of any class of establishments or other circumstances may exempt such establishment prospectively or retrospectively from operation of the Act for any period.

Employee [Section 2(f)]

Any person who is employed for wages in any kind of work, manual or otherwise.

Any person who gets his wages'directly or indirectly from the employer.

Employee includes Employee does not includes

Any person employed by or through a contractor in or in connection with the work of the establishment;

An apprentice, not being an apprentice under the Apprentices Act, 1961 or under the standing orders of the establishment.

An employee who has withdrawn the full amount of his PF :

on retirement from service after attaining the age of 58 years or

before migration from India for permanent settlement abroad or for taking employment abroad.

An employee whose pay at the time he is entitled to become a member of the Fund exceeds ' 25,000 per month.

An apprentice.

Superannuation Section 2(ll)

Superannuation in relation to an employee, who is the member of the Pension Scheme, means the attainment of the age of 58 years by the said employee,

Basic Wages [Section 2(b)]

Basic wages means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in accordance with the contract of employment and which are paid or payable in cash to him.

Basic wages does not include the following:

The cash value of any food concession.

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Dearness allowance, house-rent allowance, overtime allowance, bonus, commission or any other allowance payable to the employee in respect of his employment or of work done in such employment.

Any presents made by the employer. Employer Section 2(a)

The owner or occupier of the factory, including the agent of such owner or occupier.

The legal representative of a deceased owner or occupier.

A person named as a manager of the factory under the Factories Act, 1948.

The person or the authority which has the ultimate control over the affairs of the establishment

Where the affairs are entrusted to a manager, managing director, such manager, managing director.

Different Schemes Three schemes have been framed by the Central Government under the Act:

Employees Provident Fund Scheme, 1952

Employees Pension Scheme, 1995

Employees Deposit-Linked Insurance Scheme, 1976. Provident Fund Scheme Membership of Fund

Every employee employed in any factory or other establishment to which the Scheme applies shall be entitled to join the Scheme and become a member of the Scheme.

Exempted employees are excluded. Voluntary contribution

Any employee if so desires may contribute voluntarily to the Fund in excess of his statutory contribution.

The amount shall not exceed 10% of his basic wages, dearness allowance and retaining allowance (if any).

The employer may not make any contribution for such voluntary contribution.

Wages for contribution means basic wages, dearness allowance and retaining allowance (if any). cash value of any food concession allowed to the employee.

Investment of Fund

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All moneys belonging to the Fund shall be deposited in the Reserve Bank of India or State Bank of India Or any Scheduled Banks approved by the Central Government from time to time. '

The fund shall be invested in the securities referred to in Section 20 of the Indian Trusts Act, 1882.

Advance and withdrawal The EPF Scheme allows members to obtain advances or to withdraw the PF balance under following circumstances:

In case a factory or other establishment has been locked up or closed down for more than 15 days and its employees are rendered unemployed without any compensation.

In case an employee does not receive his wages for a continuous period of 2 months or more.

Advance from the Fund for illness in certain cases.

Advance from the Fund for marriages or post-matriculation education of children.

Grant of advances in abnormal conditions like floods, earthquakes or riots, etc.

Grant of advance to members affected by cut in the supply of electricity.

A member may be allowed a non-refundable advance if there is a cut in the supply of electricity to a factory or establishment in which he is employee.

A physically handicapped member may get non-refundable advance for purchasing equipment required to minimize the hardship on account of handicap.

Pension Scheme

Under the EPF Act, the Central Government framed Employees‘ Pension Scheme, 1995 for payment of pension to the employees of any establishment to which the Act applies.

The scheme also covers payment of widow or widower's pension, children pension or orphan pension payable to the beneficiaries of such employees. Pension is payable on

(i) superannuation, (ii) retirement, (iii) permanent total disablement, (iv) death.

Normal superannuation pension is payable on attaining 58 years of age.

0n attaining 50 years of age, pension may be paid at discounted rate.

Minimum 10 years of pensionable service is required to get pension.

Pension is payable only if contribution is paidotherwise the liability rests with the employer.

Calculation of pension

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Pension amount is calculated as [Pensionable salary x (Pensionable service+2)]/70.

Where the pensionable service is more than 10 years but less than 20 years, pension shall be calculated considering pensionable service as 20 years.

The amount so arrived shall be reduced @3% per year by which the pensionable service is shorter than 20 years subject to maximum of 25%.

Insurance Benefits

The benefit provided under the EDLlS is called Assurance Benefit.

On the death of the member while in service, the nominee or any other person entitled to receive the Provident Fund benefits will, in addition to the Provident Fund, receive the Assurance Benefit under EDLIS.

The amount of Assurance Benefit is equal to the average balance in the amount, of deceased in the Fund during the preceding 12 months or during the period of his membership whichever is less.

However, where the average balance exceeds 50,000/-, amount payable shall be 50,000lplus 40% of the amount in excess of 50,000/subject to a selling of 1,00,000/-.

contributions

Schemes Employees Contribution Employers Contribution

Provident Fund Scheme 12% of wages, 10 % in specific industries

3.67%

Pension Scheme 0 8.33% of employee’s wages

Employee Linked Insurance Scheme

0 0.5% of employee’s wages

EPF Administrative Charge 0 0.85%

EDLI Administrative Charge 0 0.01%

UNDER EPF

The contributions are payable on maximum wage ceiling of it 25000/by employee and employer.

The employee can pay at a higher rate and in such case employer is not under any obligation to pay at such higher rate.

To pay contribution on higher wages, a joint request from Employee and employer is required [Para 26(6) of EPF Scheme]. In such case employer has to pay administrative charges on the higher wages (wages above 25000/-)

For an International Worker, wage ceiling of 25000/is not applicable. UNDER EPS

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Contribution is payable out of the employer's share of PF and no contribution is payable by employee.

Pension contribution not to be paid:

When an employee crosses 58 years of age and is in service (EPS members ceases on completion of 58 years).

When an EPS pensioner is drawing Reduced Pension and re-joins as an employee.

In both the cases the Pension Contribution @ 8.33% is to be added to the Employer Share of PF. (Pension contribution is not to be diverted and total employer share goes to the PF).

In case an employee, who is not existing EPFIEP member joins on or after 01-09-2014 with wages above 15000

In these cases the pension contribution part will be added to employee share, EPF.

In all other cases Pension Contribution is payable. A member joining after 50 years age, if not a pensioner does not have choice of not getting the Pension Contribution on grounds that he will not complete 10 years of eligible service. The social security cover is applicable till he/she is a member.

For lntemational Worker, higher wage ceiling of 15000/is not applicable from 11-09-2010.

UNDER EDLI

Contribution to be paid on upto maximum wage ceiling of 15000/even if PF is paid on higher wages.

Each contribution is to be rounded to nearest rupee. (Example for each employee getting wages above 15000, amount will be ? 75/-)

EDLI contribution to be paid even if member has crossed 58 years age and pension contribution is not payable. This is to be paid as long as the member is in service and PF is being paid.

[Contribution is rounded to the nearest rupee for each employee, for the employee share, pension contribution and EDLI contribution] '

Procedure for determination of money from employer in case of any dispute

When any employee is dissatisfied with any PF money received from the authorities, he may approach the PF authorities for settlement.

The Central Provident Fund Commissioner, any Additional Central Provident Fund Commissioner, any Deputy Provident Fund Commissioner, any Regional Provident Fund Commissioner or any Assistant Provident Fund Commissioner may determine the amount due from any employer under any provisions of the Act. the Scheme or the Pension Scheme or the insurance Scheme, as the case may be.

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The officer conducting the inquiry shall have the same powers as vested in a court under the Code of Civil Procedure, 1908, for trying a suit.

Such inquiry shall be deemed to be judicial proceeding. Review of order Review of order

Any person aggrieved by an order of the Provident Fund authorities for which no appeal has been preferred may apply for a review of that order to the officer who passed the order.

Such review shall be preferred under the following circumstances:

When new and important matter or evidence which, after the exercise of due diligence was not within his knowledge or could not be produced by him at the time when the order was made was discovered.

When, on account of some mistake or error apparent on the face of the record, such review is required.

When there is any other sufficient reason for such review. Recovery of money from contractors (Section 8A)

The amount of contribution and other charges paid by an employer in respect of an employee employed by contractor may be recovered by such employer from the contractor, either by deduction from any amount payable to the contractor or as a debt payable by the contractor.

A contractor, from whom the amount may be recovered in respect of any employee employed by him, may recover the employee’s contribution from such employee by deduction from his wages.

No contractor shall be entitled to deduct the employer's contribution or the charges from the wages payable to an employee.

Appeals to the Tribunal [Section 7-l]

Any person aggrieved by a notification issued by the Central Government, or an order passed by me Central Government, or any authority, except an order rejecting an application for review, may prefer an appeal to a Tribunal against such order. The Tribunal may, after giving the parties an opportunity of being heard, pass such orders as it thinks fit, confirming, modifying or annulling the order appealed against

Penalties For avoiding payment

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Whoever avoids payment, knowingly makes false statement or false representation, shall be punishable with imprisonment up to one year, or with fine of 5,000, or with both. For not paying charges

An employer who contravenes, or makes default in payment of inspection or administrative charges, shall be punishable with imprisonment up to 3 years. This shall not be less than one year and fine of 10000 in case of default in payment of employees' contribution which has been deducted by the employer from the employees' wages; six months and fine of 5000, in any other case.

The court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term.

For not paying inspection charges An employer who contravenes, or makes default in complying with, the provisions in so far as it relates to payment of inspection charges, shall be punishable with imprisonment for a term which may extend to one year but which shall not be less than six months and shall also be liable to line which may extend to 5000. The court may, for any adequate and special reasons to be recorded in the judgment, impose a sentence of imprisonment for a lesser term. Sepaarate penalty by schemes Subject to the EFF Act, the Schemes may provide for penalty for contravenes of the Schemes, shall be punishable with imprisonment upto one year, or with line up to 4000 or with both. Offences and penalties by companies (Section 14A) If a company commits any offence under the EFF Act, the Scheme, the Pension Scheme or the Insurance Scheme, the company and every person, who at the time the offence was committed was in charge of and responsible to the company for the conduct of the business shall be deemed to be guilty of the offence and punished accordingly. EPF Appellate Tribunal [Section 7D]

The Central Government is empowered to constitute the Employees’ Provident Funds Appellate Tribunal.

A Tribunal shall consist of one person only to be appointed by the Central Government.

A person shall not be qualified for appointment as a Presiding Officer of a Tribunal unless he is or has been Or is qualified to be (i) a Judge of a High Court; or (ii) a District Judge.

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The Presiding Officer of a Tribunal shall hold office for a term of 5 years or until he attains the age of 62 years, Whichever is earlier.

Attachment of PF [Section 10]

The amount standing to the credit of any member in the Provident Fund shall not in any way be assigned or charged or attached under any decree or order of any Court in respect of any debt or liability incurred by the member.

Neither the official assignee nor any receiver shall be entitled to any claim on any such amount.

Any amount standing to the credit of a member in the provident fund at the time of his death and payable to his nominee vests in the nominee and shall not be liable to attachment under any decree or order of any Court

The above provisions shall apply to the family pension or any amount payable under the Pension Scheme and Insurance Scheme.

Exempted Establishment [Section 17]

Exempted establishment means an establishment in respect of which an exemption has been granted under section 17 from the operation of all or any of the provisions of any Scheme or the Insurance Scheme.

Section 17 provides that the Central Government may, on application by the employer and the majority of employees in relation to an establishment employing 100 or more persons, authorise the employer to maintain separate provident fund account in relation to the establishment.

No such authorisation shall be made if the employer had committed any default in the payment of provident fund contribution or had committed any other offence under the Act during the 3 years immediately preceding the date of such authorisation.

Application of the Act to international workers

The Employees Provident Fund Scheme, 1952 and Employees Pension Scheme, 1995 was amended enlarging the ambit of the schemes to include international workers.

international Worker means the following persons:

An lndian employee having worked or going to work in a foreign country with which India has a Social Security Agreement and is eligible to avail the benefits under a social security programme of that country under the said agreement.

a An employee, other than an lndian employee, holding other than an Indian passport and working for all establishment in lndia to which the EPF Act applies.

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1.The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 came into force on ............ (a) 1‘l April 1952 (b) 1“June1952 (c) 15' November 1952 (d) 1st December 1952 2.The EPF Act extends to .............. (a) whole of India (b) whole of lndia except the State of Jammu and Kashmir (c) whole of India except North eastern states (d) States applying the Act 3.The EPF Act applies to the following establishment(s): (a) Every factory engaged in any industry specified in Schedule | and in which 20 or more persons are employed (b) Any other establishment employing 20 or more persons (c:) Any class of establishments which the Central Government by notification specifies (d) All of the above 4.As per Section 1, an establishment to which the Act applies ............ continue to be governed by the Act even if the number of employee at any time falls below 20. (a) shall (b) shall not (c) may (d) may not 5.Employees employed in coal mines are covered under the .............. (a) Coal Mines Provident Fund Act, 1948 (b) Employees Provident Fund Act, 1952 (6) Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (d) None of the above 6.Membership of the Fund is compulsory for an employee drawing salary up to ............. per 10. month at the time of joining the services of the establishment. (a) R6500 (b) R10000 (c) R12000 (d) R5000 7.The EPF Act is not applied to any establishment registered under the CO< operative Societies Act, 1912. or under any

other State law relating to co-operatlvesocieties employing less than ............persons and working without the aid of power. (a) 20 (b) 50 (c) 100 (d) 500 8.An Indian employee having worked or going to work in a foreign country with which India has a Soclal Security Agreement and is eligible to avail the benefits under a social security programme of that country under the said agreement ................. (a) is covered under the EFF Act (b) is not covered under the EFF Act (c) may be covered under the EFF Act (d) None of the above 9.Superannuation in relation to an employee. who is the member of the Pension Scheme. means the attainment of the age of ................ by the said employee. (a) 57 years (b) 58 years (c) 60 years (d) 62 years 10.Basic wages does not Include the following: (a) The cash value of any food concession (b) Dearness allowance. House-rent allowance to) overtime allowance, bonus. commission (d) All ol the above 11.Contribution to PF is payable .................. of the basic pay, DA, Cash value 01 food concession and retaining allowance. If any, s“bloat to a maximum wages of {15000lper month of the employee. (a) @ 8% (b) @ 10% (c) @ 12% (d) @ 12 5% 12.Contribution in respect of establishment engaged in manufacturing of (a) Jute , (b) Beedi , (c) Brick is payable ..................... (a) @ 8% (b) @ 10% (c) @ 12% (d) @ 125% 13.The employer .................. make any contribution for voluntary contribution by any employee.

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(a) may (b) may not (c) shall (d) Shall not 14.The EPF Scheme allows members to obtain advance: or to withdraw the PF balance in one a factory or other establishment has been looked up or closed down for more than ................ and its employees are rendered unemployed without any compensation. (a) 15 days (b)) one month (c) 45 days (d) 60 days 15.Out of employer‘s share of Provident Fund contributions. an amount ............ upto the wage: limited of 1 15000] per month is segregated and credited to the Employees' Peneien Fund. (a) @ 5% (b) @ 8% (c) @ 8.33% (d) @10% 16.For the Employeee' Deposit-linked lnaurance Scheme, the employer paye ............. of the wages of the employee upto I maximum wage limlt or (15000 of each employee. (a) @ 0 5% (b) @ 1% (c) @ 1 5% (d) @ 2% 17................. of the EFF Act empowers the employer to recover the amount of contribution paid by an employer in respect of an employee employed by contractor from any amount payable to the contractor. (a) Section 8 (b) Section 8A (c) Section 10 (d) Section 17 18.The amount standing to the credit of any member in the Provident Fund ................ in any way be assigned or charged or attached. (a) shall (b) shall not (c) may (d) may not 19.An employer who contravenes. or makes default in complying with. the provisions in so

far as it relates to payment of inspection charges, shall be punishable with imprisonment for a term which may extend to """"""""""" but which shall not be less than six months and shall also be liable to fine which may extend to ................. (a) one year R5000 (b) one year R15000 to) one year R25000 (6) None of the above 20.Exempted establishment is detined under section .............. of the EFF Act. (a) 2(6) (b) 2(0 (6) 200 (d) 2(ffl) 21.Exempted establishment means an establishment in respect of which In exemption has been granted under ................. from the operation of all or any of the provisions of any Scheme or the Insurance Scheme. (a) section 7 (b) section 11 (c) section 17 (d) section 21 22.The Employees“ Provident Funds and Miscellaneous Provisions Act. 1952 la applicable to commercial establishments employing "I ................. (a) 10 or more employees (b) 20 or more employees (c) 50 or more employees (d) 100 or more employees (CS EP June 2009) 23.Minimum ............... years of contributory service is required for entitlement of pension under the Employees' Provident Funds and Miscellaneous Provisions Act. 1952. (a) 5 (b) 7 (c) 8 (d) 10 (CS EP June 2009. Dec 2009) 24.The membership of provident fund scheme ls compulsory for employees drawing a pay not exceeding ............... per month. (a) R 6,000 (b) R 6,500 (c) R 7.500 (d) R 10.000 (CS EP June 2010)

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25.Superannuation In relation to an employee, who is a member of the pension scheme. means the attainment of the age of .................. years. (a) 57 (b) 58 (c) 60 (d) 62 ‘ (cs EP June 2010) 26.‘Baeic wages' under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 does not Include (a) Emoluments earned by an employee on leave (b!) Emoluments earned by an employee on holiday with wages (c) The cash value of any food concession (d) Emoluments earned by an employee which are payable In cash (CS EP Dec 2010) 27.The Employees' Provident Fund and Miscellaneous Provisions Act. 1952 is applicable to all tactories and certain establishments employing ..................... (a) 20 or more persons (b) 50 or more persons (c) 10 or more persons (d) Without any limit (CS EP Dec 2011) 28.Under the Employees Deposit-Linked Insurance Scheme, employers are required to pay contribution for the insurance fund at the rate of ................... of the total emoluments. (a) 05% (b) 1% (c) 1.5% (d) 1.75% (CS EP Dec 2011) 29.Under the Employees' Provident Funds and Miscppaneous Provisions Act. 1952. whatperdntage of the basic wage, deamess allowance and retaining allowance of an employee is paid or contributed by the employer ..................

(a) 8% (b) 10% (c) 12% (d) 13% (CS EP June 2012,2013) 30.The authority which has been constituted by the Central Government to preside over the cases regarding determination of monies due from employers under the Employee' Provident Funds and Miscellaneous Provisions Act. 1952 is .................

(a) Employees Provident Fund Appellate Tribunal. (b) Employees Provident Fund Consultancy Tribunal. (c) Employees Provident Fund Help Desk. (d) Employees Provident Fund Information Centre. (CS EP Dec 2012) 31.A minimum of ................. years contributory service ls required for entitlement of pension under the Employeee' Pension Scheme. (a) 10 (b) 20 (C) 30 (d) 35 (Cs EP June 2013) 32.A: per the Employees' Pension Scheme. 1995 members on attaining the age of and having rendered a minimum of of contributory service qualify for pension from superannuation fund. (a) Fifty eight years, 15 years (b) Fifty eight years, 10 years (c) Sixty years. 15 years (d) sixty years, 10 years (CS EP Dec. 2014) 33.Section 6B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 empowers the Central Government to frame a Scheme for the purpose of providing life insurance benefit to the employees of any establishment or class of establishments to which the Act applies, known as the - (a) Employees‘ Contribution Scheme (b) Employees“ Retirement Scheme (c) Employees' Deposit-Linked Insurance Scheme (d) Employees' Pension Scheme (CS EP Dec. 2014) 34.The statutory wage ceiling under the Employees' Deposit-Linked Insurance Scheme, 1976 is (a) R 6.500 per month (b) R10,000 per month (c) R15,000 per month ((d) (25,000 per month (CS EP June 2015) 35.Excluded employee under Employees' Provident Funds Scheme, 1952 means an employee drawing pay exceeding - (a) R 6.500 per month (b) R 15,000 per month (c) R 10,000 per month (d)Rt 20.000 per month (CS EP June 2015) 36.The insurance benefit under the Employees'

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Deposit Linked Insurance Scheme. 1976 has increased by in addition to the existing admissible benefits w.e.f. 1stl September. 2014. (a) 20% (b) 25% (c) 50% (d) 70% (cs EP June 2015) 37.As per Section 2(ll) of the Employees‘ Provident Funds and Miscellaneous Provisions Act, 1952 superannuation in relation to an employee, who is the member of the Pension Scheme. mean: the attainment, by the said employee. of the ago 01 (a) Filly eight years (b) Fitlyfive years (c) Sixty year (d) Sixty two years (CS EP June 2015) 38.The provision imposing obligation on the employer for not reducing wages of any employee either directly or indirectly to whom the scheme or insurance scheme applies is given in the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 under (a) Section 10 (b) Section 11 (c) Section 12 (d) Section 13. (CS EP Dec. 2015) 39.The Employees‘ Deposit Linked Insurance Scheme, 1976 is applicable to --- (a) All factories/establishments to which the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 applies (b)) All the employees who are members of the provident fund in exempted establishment are covered under the scheme (c) All the employees who are members of the provident fund in unexampled establishment are covered under the scheme (d) All of the above (CS EP June 2016) 40.Under section 2 of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. ‘basic wages' includes (a) Emoluments earned by an employee while on duty and which are paid or payable in cash to him (b) The cash value of any food conceSSion (c) Any dearness allowance (d) Any presents made by the employer (CS EP June 2016) 41.Section 1 of the Employees‘ Provident Funds

and Miscellaneous Provisions Act. 1952 states that - (a) The State Government can extend the provisions of this Act to any establishment (b) The provisions of this Act cannot be applied ‘0 cooperative societies (c) Once an establishment falls within the Purview at this Act. It shall continue to be governed by this Act notwithstanding that the number of person ‘ Employ therein at any time falls below twenty. (4) Where an establishment to which this Ac applied was drvrded among the partners the Act would not apply to the part of each ex partner it the number of persons employed in each part in less than twenty (CS EP June 2016) 42.Which authority has been constituted by the Central Government to preside over the cases regarding determination of monies due from the employers (a) Employees' Provident Funds Appellate Tribunal (b) Employees' Provident Fund Consultancy Tribunal (c) Employees' Provident Fund Help Desk (d) Employees' Provident Fund Information Center. (CS EP June 2016) 43.In relation to section 1(3) of thoEmployeu' Provident Funds and Miscellaneous Provisions Act. 1952. the Rajasthan High Court hold in the case of Bikancr Cold Storage Co. Ltd. V. Regional Provident Fund Commissioner. Rajasthan (1979) that (a) All types of workmen should be included for the purpose of ascertaining the strength of workmen (b) Persons employed in the normal course of the business of the establishment should not be consudered as the persons employed for the purpose of this provisuon (c) Persons employed for a short duration or on account of urgent necessity Wthh is not a regular feature of the busmess cannot be considered as employees (d) Casual workers are covered under this provisvon. (CS EP June 2016)

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1. C

2. B

3. D

4. A

5. A

6. D

7. B

8. A

9. B

10. D

11. C

12. B

13. B

14. A

15. C

16. A

17. B

18. B

19. A

20. D

21. C

22. B

23. A

24. B

25. B

26. C

27. A

28. A

29. C

30. A

31. A

32. B

33. C

34. C

35. B

36. A

37. A

38. A

39. A

40. A

41. C

42. A

43. C

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Lesson 7 Payment of bonus Act 1965

objectives

The Payment of Bonus Act, 1965 was enacted to pay bonus to certain categories of employees. The broad frameworks of the Act are the following:

To impose statutory liability on employer to pay bonus.

To provide for minimum and maximum bonus.

To prescribe means for determination of bonus.

To prescribe machinery for administration and enforcement of liability. Scope and Coverage

The Act applies to

every factory; and

every other establishment in which 20 or more persons are employed on any day during an accounting year_

An establishment to which the Act applies shall continue to be governed by the Act even if the number of persons employed therein falls below 20.

In deciding the number of persons all employees even though they are getting salary above the eligible amount is to be considered.

The appropriate government may after giving not less than two months' notice, apply the provisions of the Act with effect from such accounting year specified in the notification, to any establishment or class of establishments, including a factory employing less than 20 persons but not less than 10 persons.

Employees Entitled

Employee means as per section 2(13) of the Act any person (other than an apprentice) employed on a salary or wage not exceeding. ?21,000 per month in any industry to do any skilled or unskilled, manual, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied.

As per Section 21, employee includes a person who is entitled to bonus under the Act but who is no longer in employment.

Definitions

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Salary or Wages Section 2(21)

Salary or wages means all remuneration (other than remuneration for over-time work) capable of being expressed in terms of money, which would be payable to an employee in respect of his employment or of work done in such employment, if the terms of employment, express or implied, were fulfilled.

It includes dearness allowance.

Salary or wages does not include the following:

Any allowance.

The value of any house accommodation or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles.

Any traveling concession.

Any bonus including incentive, production and attendance bonus.

Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit at the employee under any law for the time being in force.

Any retrenchment compensation or any gratuity or other retirement benetit payable.

Any ex-gratia payment made to him. (viii) Any commission payable to the employee.

Where the employer gives an employee in lieu of the whole or part of the salary or wages free food allowance or free food, such food allowance or the value of such food shall be deemed to form part of the salary or wages.

Allocable Surplus [Section 2(4)] Allocable surplus is as follows:

ln relation to a non-banking company which has not made the arrangement for the declaration and payment within india of dividends payable out of its profits 67% of the available surplus in an accounting year;

In any other case -60% of such available surplus.

The allocable surplus is the amount which is eligible to be distributed as bonus to the employees.

Eligibility of Bonus Minimum working days (Section8) Every employee who has worked in the establishment for not less than 30 working days in a year shall be entitled to bonus from his employer in that accounting year. SalaryLimitSection 2 (13)

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An employee earning more than f 21,000 per month is not eligible to bonus.

As per Section 12, where the salary of an employee exceeds 21,000 per month, it bonus is paid to such employee, it shall be calculated as if his salary is seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher

Determination of Bonus

Payability of bonus is to be determined on the basis of allocable surplus of the establishment.

Allocable surplus is to be arrived at from the available surplus.

Available surplus is derived from the gross profit calculated under section 6.

The gross prams in respect of any accounting year shall be computed in the case of a banking company in the manner specified in the First Schedule and in any other case, in the manner specified in the Second Schedule.

Disqualification for Bonus (Section 9) An employee shall not be entitled to get bonus, if he is dismissed from service on the following ground:

Fraud.

Riotous or violent behavior while on the premises of the establishment.

Theft, misappropriation or sabotage of any property of the establishment. Calculation of number of working days [Section 14] In calculating the number of working days the following shall be considered as working days:

When the employee has been laid off under an agreement or as permitted by standing orders or under the Industrial Disputes Act, 1947, or under any other law applicable to the establishment.

When the employee has been on leave with salary or wages.

When the employee has been absent due to temporary disablement caused by accident arising out of and in the course of his employment.

When the employee has been on maternity leave with salary or wages. Customary Bonus [Section 17]

Customary bonus generally means a bonus paid by an establishment to its employees for a long time.

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Section 17 of the Act provides that where in any accounting year an employer has paid any puja (festival) bonus or other customary bonus to an employee then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable to the employee under the Act in respect of that accounting year and the employee shall be entitled to receive only the balance.

Applicability of the Act to establishments in Public Sector Establishment in public sector means an establishment owned, controlled or managed by the following:

A Government Company.

A Corporation in which not less than 40% of its capital is held whether singly or taken together by (i) the Government; or (ii) the Reserve Bank of India; or (iii) a Corporation owned by the Government or the Reserve Bank of India.

If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both is not less than 20% of the gross income of the establishment for that year, the provisions of the Act shall apply to such establishment as they apply in relation to a like establishment in private sector. Minimum Bonus irrespective of Loss An employer is required to pay minimum bonus irrespective of profit or loss. Such bonus is payable as under:

Employee above 15years of age (Section 10)

Every employer shall be bound to pay minimum bonus to every employeeabove 15 years of age @ 8.33% of the salary or wages earned by the employee during the accounting year or 100/whichever is his her.

EmpIoyeenotcompleted 15 years of his age (Section 10)

Where an employee has not completed 15 years of age at the beginning of the accounting year, he shall be entitled to minimum bonus @ 8.33% of salary or wages or z 60/whichever is higher.

Maximum Bonus [Section 11]

Where in any accounting year, the allocable surplus exceeds the minimum bonus payable to the employees, the employer shall pay to every employee bonus for that accounting year proportion to the salary earned by the employee subject to a maximum of 20% of such salary.

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In computing the allocable surplus the amount of set on or set off shall be taken into account.

Time of Payment of Bonus

Bonus shall be paid in cash within 8 months from the close of the accounting year.

Where there is a dispute regarding payment of bonus pending before any authority, bonus shall be paid within one month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute.

The appropriate government may, on application by the employer and for sufficient reasons extend the period of 8 months to such further period or periods as it thinks fit so that the total period so extended shall not In any case exceed 2 years.

Set on of allocable surplus

Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment, the excess shall be carried fonrvard subject to a limit of 20% of the total salary or wages of the employees employed in the establishment-in that accounting year.

Such carried forward amount are to be added to the available surplus in the succeeding accounting year and so on up to and inclusive of the 4m accounting year for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule. '

Set off of allocable surplus

Where for any accounting year, there is no available surplus or the allocable surplus falls short of the amount of minimum bonus payable and there is no amount or sufficient amount carried forward before which could be utilised for the purpose of payment of the minimum bonus, then the deficiency shall be carried forward and set off in the succeeding accounting year up to and inclusive of the 4th accounting year in the manner illustrated in the Fourth Schedule.

Order of set on/set off ,

Where in any accounting year any amount has been carried forward and set on or set off, in calculating bonus for the succeeding accounting year, the amount carried forward from the earliest accounting year shall first be taken into account.

Deduction [Section 6] The following sums shall be deducted from the gross profit.

Depreciation admissible under the Income-tax Act, or agricultural Income-tax law.

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Development rebate or investment allowance or development allowance under the Income-tax Act

Direct tax which the employer is liable to pay for the accounting year on his income, profits and gains.

Such further sums as specified in respect of the employer in the Third Schedule. Deduction from Bonus from Misconduct Section 18

Where in any accounting year an employee is found guilty of misconduct causing f nancral loss to the employer, the employer can deduct the amount of such loss from the bonus payable to the employee in respect of that accounting year only

Bonus Linked with Production or Productivity Section 31A

Where an agreement or a settlement has been entered into between the employees and the employer for payment of annual bonus linked with production or productivity in lieu of bonus based on profits payable under the Payment of Bonus Act, such employees shall be entitled to receive bonus under such agreement.

Such bonus shall be more than the minimum bonus as per the Act.

Such bonus shall also not be more than 20% of the salary. Newly Set up Establishment In a newly set up establishment, bonus shall be paid as under:

In the first five accounting years -In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment. No set off and set on is allowable.

For the sixth accounting year -Set on or set off shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency of the allocable surplus set on or set off in respect of the fifth and sixth accounting years.

For the seventh accounting year -Set on or set off shall be made in the manner illustrated in the Fourth Schedule taking into account the excess or deficiency of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

From the eighth accounting year -From the eighth accounting year the provisions of set off and set on shall apply in relation to such establishment as they apply in relation to any other establishment.

An establishment shall not be deemed to be newly set up merely by reason of a change in its location, management, name or ownership. '

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Penalty

Offence by any person- if any person contravenes any of the provisions of the Act or if any person to whom a direction is given or a requisition is made under the Act fails to comply with the direction or requisition, he shall be punishable with imprisonment up to six months, or with fine up to 1000, or with both.

Offence by company- Where a company commits an offence, the company and every person who, at the time when the offence was committed was in charge of and was responsible for the conduct of its business shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Such person shall not be liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

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1.The Payment 01 Bonus Act 1965 appllos to ............. (a) every factory (b) every other estabhshment m which 20 or more persons are employed on any day dunng an accounting year (c) both (a) and (b) (d) None of the above 2.The broad frameworks of the Payment of Bonus Act 1965 islare the tollowing: (a) To umpose statutory liablllly on employer to pay banus (b) To provrde for minimum and maximum bonus (c) To prescrlbe means for determrnatvon of bonus (6) All of the above 3.Payment of Bonus Act. 1965 shall apply to every factory; and every other establishment in which ......... are employed on any day during an accounting year. (a) 20 Or more persons (b) 25 or more persons (c) 30 or more persons (d) 50 or more persons 4.Every employs who has worked tn the utablishmsnt for not less than working days in a year shall be entitled to bonus from his employer in that accountlng year. (a) 30 (b) 35 (c) 60 (d) 365 5.Anapprentice’s…bonus. (I) not entitled to (b) entltled to (c) may get (d) may not 6.As par Payment of Bonus Act. 1966. employees drawing salary or “"9“ not axcssdlng ..... per month In any lndustrysrasllglble for bonus. aI) R 21. 000/ (b R 15, 000/ (c)R 18, 000/ (d) R 10,000; 7.The Payment of Bonus Act, 1965 does not apply to .............

(a) employees employed by universmes and other educational institutions (b) employees employed by Institutions (including hospitals chambers of commerce and somal welfare institutions) established not for purposes of profit (c) employees employed by the Reserve Bank of © emplndla (d) All of the above 8.Who amongst the following are eligible for bonus under the Payment 0! Bonus Act. 1965? (a) Ward boys of Distract Hospitals (b) Peons oi University (c) Printers in newspaper press (d) Pilots of Indian Air Force 9.Allocable surplus in rslatlon to a non banking company which has not made the arrangement (or the declaration and payment within India of dividends payable out of its profits is ......... (a) 60% of the available surplus m an accounting year (b) 67% ol the available surplus m an accounting year (c) 20% ol the available surplus In an accounting year (d) 100% of the available surplus in an accounting year 10.Salary or wages under the Payment of Bonus Act is ................ (a) all remuneration (b) allremunerationother than remuneration for overtime work (c) all remuneration other than remuneration for over-lime work and Includes dearness allowance (d) all remuneration other than commission 11.Salary or wages under the Payment of Bonus Act is defined in ............. (a) section 2(20) (b) section 2(21) (c) section 2(22)

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(d) section 2(29) 12.Salary or wages does not include the following (a) The value of any house accommodation or oi supply of light, water. medical attendance or other amenity or of any service or of any concessional supply of food grains or other articles (b) Any traveling concession (c) Any commission payable to the employee (d) All of the above 13.An employee shall not be entitled to get bonus, if he is dismissed from service for ............ (a) fraud (b) riotous or violent behaviour while on the premises of the establishment (c) theft. misappropriation or sabotage of any property of the establishment (d) All of the above 14.In calculating the number of working days the following shall be considered as working days: (a) When the employee has been laid off under an agreement or as permitted by standing orders or under the Industrial Disputes Act, 1947 (b) When the employee has been on leave with salary (c) When the employee has been absent due to temporary drsablement caused by accrdentansmg out oi and in the course of his employment (d) All 0! the above 15.Every employer shall be bound to pay minimum bonus to every employee above 15 years of age ............. of the salary or wages earned by the employee during the accounting year or .......... whichever is higher. (a) @ 8 33%. (100/ (b) @ 8 33%. {1000/ (c) @ 8 33%. Z 2500/ (d) @ 8 33% 3 10000] 16.Where an employee has not completed 15 years of age at the beginning of the accounting year, he shall be entitled to minimum bonus ........ of his salary or wages or ........ whichever is higher.

(a) @ 8 33%, I 50/ (b) @ 8 33%, t 60/ (c) @ 8 33%. (100] (d) @ 8 33%, I 500/ 17.Where in any accounting year, the allocable surplus exceeds the minimum bonus payable to the employees, the employer shall pay to every employee bonus for that accounting year proportion to the salary earned by the employee subject to a maximum of ...... ._ of such salary. (a) 10% (b) 20% (c) 25% (d) 30% 18.Bonus is based on ............ (a) Gross profit. (b) Net profit. (c) Available surplus. (d) Allocable surplus 19.The following sum(s) shall be deducted from the gross profit in calculating allocable surplus. (a) Depreciation admissuble under the Incometax Act, or agricultural Income-tax law (b) Development rebate or investment allowance or development allowance under the Income tax Act (c) Direct tax which the employer is liable to pay for the accounting year on hIS Income. proflls and gains (d) All of the above 20.In a newly set up establishment. bonus shall be paid in the first live accounting years following the accounting year in which the employer sells the goods produced 0r manufactured by him or renders services, bonus shall be payable only in respect of the accounting year .............. (a) in which the employer derives profit from such establishment (b) after 5 years (c) after 7 years (d) after 10 years 21.Bonus shall be paid in cash within .......... from the close of the accounting year. (a) 3 months (b) 6 months (c) 8 months (d) 9 months

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22.If any person contravenes any of the provisions of the Act or if any person to whom a direction is given or a requisition is made under the Act fails to comply with the direction or requisition, he shall be punishable with imprisonment up to ......... or with fine up to ........ , or with both. (a) 6 months, R 1000 (b) 6 months R10000 (c) 12 months R 21000 (d) None of the above 23.When the salary exceeds the limit of Rs. ............ or the minimum wages fixed for the scheduled employment, bonus shall be calculated as (a) z 21.000; r 7.000 or the minimum wages fixed for the scheduled employment. Whichever is higher? (b) ? 25.000; ? 10,000 or the minimum wages fixed for the scheduled employment. Whichever is higher? (c) t 30.000, 1 18.000 or the minimum wages fixed lot the scheduled employment. Whichever is higher (d) I 35000, 2 21.000 or the minimum wages fixed lot the scheduled employment. Whichever is higher. 24.Scheduled employment rtlerred to in uctlon 12 of the Payment of Bonus Act munocheduled employment stated In (I) The Minimum Wage. Act (b) Payment of Wages Act (c) industrial Disputes Act (d) Payment of Bonus Act. 25.An employee is entitled to receive bonus provided he has worked in an accounting year in the establishment for not less than ................ (a) 30 working days (b) 1 year (c) 8months (d) 4 months (08 EP June 2009) 26.An application for the recovery of bonus from an employer shall be made within ........... (a) six months from the date on which the money became due (b) one year from the date on which the money became due (c) 60 days from the date on which the money became due (d) 90 days from the date on which the money became due (CS EP June 2010)

27.An employee is entitled to receive bonus provided he has worked in an accounting year in the establishment for not less than ........... (a) 30 working days (b) One year (c) 6Months (d) 8 Months (CS EP Dec 2010) 28.An employee is not entitled to bonus if (a) he has worked for less than 6 months (b) he is guilty of any misconduct (c) he is in managerial cadre (d) he is a part time permanent employee (CS EP Dec 2011) 29.Which of the following Is not a type of ‘bonua‘ under the Payment of Bonus Act. 1965 (aI) Profit based bonus (b’) Customary bonus (c) Attendance bonus (d) Voluntary bonus (CS EP June 2012) 30.From the close at the accounting year. the bonus should be paid within (a) one month (b) two month! (c) twelve months (d) eight months (CS EP Dec 2012) 31.Bonus should be paid to the employees within how many months from the close of the accounting year ............ (a) 2 Months (b) 6 Months (c) 8 Months (d) 10 Months (cs EP June 2013) 32.For the purposes of calculation of bonus, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which he has been absent due to ............ caused by accident arising out of and in the course of his employment.

(a) temporary disablement (b) leave (c) absent (d) All of the above. (CS EP June 2013) 33.According to section 10 of the Payment of Bonus Act, 1965 every employer shall be bound to pay to every employee in respect of any accounting year a minimum bonus which shall be of the salary or wage earned by the employee during the accounting year or , whichever is higher. whether or not the

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employer has any allocable surplus in the accounting year. (a) 8 33%. R 100 (b) 8 33%, R 1.000 (c) 20% R100 (d) 20%. R 1,000 (03 EP Dec. 2014) 34.Every employee shall be entitled to be paid by his employer in an accounting yoar, bonus. in accordance with the provisions of the Payment of Bonus Act. 1965 provided M has worked in the establishment in that year for not less than - (a) 45 Working days (b) 30 Working days (c) 180 Working days (d) 270 Working days (CS EP Dec. 2014) 35.Under section 2(4) of the Payment of Bani-II Act, 1965 ‘allocable surplus' means (a) i" relation to an employer. being a company (other than a banking company) which has not . made the arrangements prescribed under the Income tax Act, 1961 for the declaration and payment within India. of the dividends payable out of its profits in accordance with the provisions of section 194 of that Act, of the available surplus in an accounting year; (b) In any other case of such available surplus. (a) 67%, 50% (b) 60% 61% (c) 50%. 60% (d) 67%. 60% (CS EP Dec. 2014) 36.The Payment of Bonus Act, 1965 applies to (a) every factory; and (b) every other establishment in which persons are employed on any day during an accounting year. The appropriate Government may, by notification in the Official Gazette specify any establishment or class of establishment (including an establishment being a factory within the meaning of sub-clause (ii) of clause (in) of Section 2 of the Factories Act. 1948) employing such number of persons as may be specified in the notification; so. however, that the number of persons so specified shall in no case be less than (a) Ten or more; twenty (b) Twenty or more; ten (c) Twenty or less than twenty. Two (d) Less than twenty. twenty (CS EP Dec. 2014)

37..As per the Payment of Bonus Act, 1965 the bonus should be paid within how many months from the close of the accounting year (a) One month (b) Two months (c) Twelve months (d) Light months (CS EP June 2015) 38.Under the Payment of Bonus Act. 1965 'accounting year' in relation to a corporation means (a) 1he year commencmg on the 1" day 01 Apnl (b) The period in respect of which any profit and loss account of the company IS lald before the annual general meeting, whether that period Is a year or not © The year ending on the day on which the books of account of the corporation are to be closed and balance. (d)The year commencing on the 1

st day of January

( CS EP June 2015)

39.The Payment of Bonus Act. 1965 applies to every factory and every other establishment in which persons are employed on any day during an accounting your. (a) Twenty or more (b) Twenty (we or more (c) Fifty or more (d) Hundred or more (CS EP June 2015) 40.The provisions of 'penalty' for contravaning any of the provisions oi the Payment of Bonus Act, 1965 or (or not complying the directions given under this Act are given under (a) Section 27 (b) Section 28 (c) Section 29 (d) Section 30 (CS EP Dec. 2015) 41.An employee. under section 9 of the Payment 0t Bonus Act, 1965 shall be disqualified from receiving bonus if he is dismissed from service for (a) Strike (b) Riotous or Violent behaviour while on the premises of the establishment (c) Fast unto death In lavour of his demand (d) All of the above (CS EP Dec. 2015) 42.Under the Payment of Bonus Act, 1965, who will be entitled for bonus to be paid by the employer in an accounting year: (1) Every employee

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(2) Every employee who has worked (or not less than thirty working days in that year (3) Even a suspended employee, whose Suspension is ultimately set aside later on Which of the above islarecorrect (a) 0n|y (1) (b) (1)and (2) only (C) (2 and (3) only (d) (1) and (3) only (CS EP Dec. 2015) 43.One of the schemes of the Payment of Bonus Act. 1965 is to prescribe the maximum and minimum rates of bonus together with the scheme of 'set olf' and 'aet-on'. It was set by Justice Shah of the Supreme Court in the matter 0! (a) Mumbai Kamgar Sabha v, AbdulbhaiFaizullabhai (b) Jaian Trading Co (Pvt) Ltd v Ml“ Mazdoor Sabha (c) Both (A) and (8) above (d) Neither (A) nor (B) (CS EP Dec. 2015) 44.According to the Payment of Bonus Act, 1965. 'bonus‘ should be paid to employees within (a) One .month from the close of the accounting year (b) Three months trom the close of the accounting year (c) Eleven months from the close of the accounting year (d) Eight months from the close of the accounting year, (CS EP Dec. 2015) 45.Consider the following statements under the Payment of Bonus Act.1965 : (i) A suspended employee. subsequently reinstated with full back wages is not eligible for bonus (ii) An employee dismissed from service for any act of misconduct is eligible for bonus (iii) Statutory bonus and customary bonus operate in two fields and do not clash with each other (iv) The employer is not entitled to deduct ‘puja bonus' from the amount of bonus payable by him to the employee. Select the incorrect answer from the options given below

(a) (i), (ii) and (iii) (b) (ii), (iii) and (iv) (c) iii). (IV) and (l) (d) (v). (i) and (ii) (CS EP June 2016) 46.According to section 2(13) of the Payment of Bonus Act. 1965, 'employees‘ means any person (other than an apprentice) employed on a salary or wages not exceeding per month in any industry to do any skilled or unskilled. manual. supervisory, managerial. administrative. technical or clerical work 0f hire or reward. whether the terms of Omployment be expressed or (a) R 10,000. implied (b:) R15,000, tacut (c)R 181000.implied and tacrt (d) 2 20.000. implied or tacrt (CS EP June 2016) 47.Which one of the following statements is correct under the Payment 0! Bonus Act, 1965 (a) The Sums deductible from gross profits do not include any amount by way of deprecrationadmrssrble under the Income tax Act. 1961 (b) The sums deductible from gross profits include any amount by way 01 development rebate for which the employer IS entitled under the Income tax Act. 1961 (c) In calculating direct tax payable by the employer. account shall be taken of any loss incurred by the employer in respect of any prevrous accounting year (d) The available surplus in respect of any accounting year shall be the gross profit for that year before deducting the sum under section 6‘ (CS EP June 2016) 48.The provisions of the Payment of Bonus Act. 1965 do not apply to the following classes of employees (a) Employees employed by an insurer carrying on general insurance business (b) Employees employed by universities and other educational institutions

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(a) Every other establishment inwhich twenty or more persons are employed on any day during an accounting year

(b) Both (A) and (B) above (CS EP June 2016) 49. Which one of the following statements ls incorrect regarding recovery of bonus from an employer under the Payment of Bonus Act. 1965 (a) An application for recovery of bonus is required to be submitted to the State Government (b) An application for recovery of bonus shall be made within one year from the date on which the money becomes due

(C) After the expiry of mutation period of one year, an application for recovery of bonus may be entertained on the ground of sumcient cause (d) Mode of recovery of bonus under section 21 is available only if bonus sought to be to be recovered is under settlement or an award or an agreement. (CS EP June 2016)

1. D

2. A

3. A

4. A

5. A

6. D

7. C

8. B

9. C

10. B

11. D

12. D

13. D

14. D

15. A

16. B

17. B

18. D

19. D

20. A

21. C

22. A

23. A

24. A

25. A

26. B

27. A

28. B

29. D

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30. D

31. C

32. A

33. A

34. B

35. D

36. B

37. D

38. C

39. A

40. B

41. B

42. C

43. B

44. D

45. D

46. A

47. B

48. D

49. A