Maternity, Gratuity & Wages Acts — Set 14
Labour Laws · प्रसूति, ग्रेच्युटी और मजदूरी अधिनियम · Questions 131–140 of 160
The Payment of Gratuity Act is administered and enforced by which authority?
Correct Answer: C. Controlling Authority (usually Assistant Labour Commissioner)
The Payment of Gratuity Act is administered and enforced by the Controlling Authority appointed by the appropriate government. In most states, the Assistant Labour Commissioner or the Labour Commissioner is designated as the Controlling Authority. Employees and employers can approach the Controlling Authority for resolution of disputes regarding gratuity. Appeals against the Controlling Authority's order lie to the Appellate Authority.
The Maternity Benefit Act was amended in which year to introduce significant changes including 26-week leave?
Correct Answer: C. 2017
The correct answer is 2017. The Maternity Benefit (Amendment) Act 2017 introduced significant changes: (1) Extended paid maternity leave from 12 to 26 weeks for the first two children; (2) Made creche facility mandatory for establishments with 50+ employees; (3) Allowed work from home option after maternity leave; (4) Made it mandatory for employers to inform women about maternity benefits at the time of appointment. This is the most significant amendment to the Act. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
Under the Payment of Wages Act, what are 'permissible deductions' from wages?
Correct Answer: C. Deductions specified in Section 7 including fines, absence, damage, amenities, advances, recovery of loans, housing, income tax, PF
Section 7 of the Payment of Wages Act provides an exhaustive list of permissible deductions. These include: fines (Section 8), deductions for absence from duty (Section 9), deductions for damage or loss to employer's goods (Section 10), deductions for services amenities provided (Section 11), recovery of advances (Section 12), recovery of loans (Section 13), deductions for housing accommodation (Section 13-B), income tax deductions, PF contributions, and ESI contributions. All other deductions are unauthorized.
What is the significance of Deductions in Indian labour law?
Correct Answer: C. Worker protection
The correct answer is Worker protection. Deductions is a crucial aspect of Indian labour law designed to protect worker interests and ensure fair practices in employment. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
Under the Payment of Bonus Act, for calculating bonus, what is the wage ceiling used?
Correct Answer: B. Rs. 7,000 or minimum wage, whichever is higher
Under the Payment of Bonus Act, for calculating the bonus amount, the wage is capped at Rs. 7,000 per month or the minimum wage notified for the establishment under the Minimum Wages Act, whichever is higher. This wage ceiling ensures that the bonus formula remains consistent. Even if an employee earns Rs. 20,000, their bonus is calculated as if their wage is Rs. 7,000 (or the applicable minimum wage if higher).
Under the Minimum Wages Act, the National Floor Level Minimum Wage is fixed by whom?
Correct Answer: B. Central Government
The National Floor Level Minimum Wage (NFLMW) is fixed by the Central Government. It serves as a reference point and no state should fix minimum wages below this level. The NFLMW is periodically revised to account for inflation and cost of living increases. However, it is advisory in nature and not strictly binding on states. The concept has been formalized in the Code on Wages 2019.
The EPFO (Employees' Provident Fund Organisation) is governed by which body?
Correct Answer: B. Central Board of Trustees
The EPFO (Employees' Provident Fund Organisation) is governed by the Central Board of Trustees which is a tripartite body consisting of representatives of employers, employees, and the Government. The Central Provident Fund Commissioner is the head of the EPFO. The EPFO operates under the Ministry of Labour and Employment. It is one of the largest social security organizations in the world.
Under the Payment of Bonus Act, the 'available surplus' is calculated as?
Correct Answer: C. Gross profit minus depreciation, development rebate, direct taxes, and amounts set off from previous years
Under the Payment of Bonus Act, the 'available surplus' in respect of an accounting year is the gross profit for that year after deducting therefrom the amounts referred to in Section 6. These deductions include depreciation (under Income Tax Act or Companies Act), development rebate or investment allowance, direct taxes payable, and amounts set off as per Section 15 from the previous years. The allocable surplus is then 67% (or 60% for banks) of this available surplus.
Under the Maternity Benefit Act, an employer cannot make the following change to a woman on maternity leave:
Correct Answer: C. Discharge her from service
Under Section 12 of the Maternity Benefit Act, an employer cannot discharge or dismiss a woman from service during the period when she is entitled to maternity leave and has exercised her right to take such leave. Any such discharge or dismissal is void in law. The woman is still entitled to all her maternity benefits. An employer can be prosecuted for this violation and may be required to pay compensation.
Under the Payment of Wages Act, what is the consequence if an employer fails to pay wages within the prescribed time?
Correct Answer: B. Employer pays wages plus compensation up to 10 times of unpaid wages
Under Section 15(3) of the Payment of Wages Act, if any employer without sufficient cause fails to pay wages within the prescribed time, the authority shall direct the employer to pay the wages plus compensation not exceeding ten times the amount of wages due. This compensation is in addition to the wages. The worker can apply to the authority within three months of the wage becoming due. This provision deters wage delay.