Maternity, Gratuity & Wages Acts — Set 15

Correct Answer: C. Code on Social Security

The Payment of Gratuity Act 1972 is subsumed under the Code on Social Security 2020. Along with it, the Code on Social Security subsumes 8 other Acts including the Employees' Compensation Act 1923, ESI Act 1948, EPF Act 1952, Maternity Benefit Act 1961, Payment of Bonus Act 1965, and others. However, the implementation of the Labour Codes is still pending as states need to finalize their rules.

Correct Answer: C. Audited accounts as prescribed in the Act's schedule

Under the Payment of Bonus Act, the gross profit for purposes of calculating allocable surplus is calculated from the audited profit and loss account of the establishment. The Act has two schedules showing how to calculate gross profit for corporate bodies and non-corporate bodies. The gross profit calculation differs from the accounting profit and involves specific adjustments prescribed by the Act.

Correct Answer: B. Before delivery, stating the period of absence

Under Section 6 of the Maternity Benefit Act, a woman entitled to maternity benefit must give notice in writing to her employer stating that she will be absent from work for a period for which she is entitled to maternity benefit, and the date from which she will be absent. If the woman is not able to give advance notice before the delivery, the notice can be given as soon as possible after delivery. The notice must state the name of the nominee to receive the benefit.

Correct Answer: C. After completing Class 12

Under Rule 68-J of the EPF Scheme, an EPF member can withdraw from their account for education expenses of self or children after the child has passed the matriculation examination or is studying in Standard 10 or above. The member must have completed 7 years of service. The amount that can be withdrawn is up to 50% of the member's own contribution. This encourages higher education.

Correct Answer: B. Factory workers and those employed in industrial establishments

The Payment of Wages Act was originally designed to protect factory workers and employees in industrial establishments from exploitation through unauthorized deductions and delayed wage payments. Over time, its coverage was extended to workers in various other industries. After the 2017 amendment removing the wage ceiling, it now covers all employees regardless of their wage level, making it a comprehensive wage protection law.

Correct Answer: C. Benefit for the entire eligible period or until child's death if it dies earlier

Under Section 7(2) of the Maternity Benefit Act, if a woman dies during the delivery or within the period after delivery for which she is entitled to maternity benefit, the entire amount of benefit for which she was entitled shall be paid to her nominee. If the child is also alive, the benefit is paid for the period after the mother's death. If both the mother and the child die, the benefit is paid for all days before the child's death.

Correct Answer: C. Average daily wage over last 3 months

Under the Maternity Benefit Act, the maternity benefit is paid at the rate of average daily wages calculated on the basis of the wages earned by the woman in the three-month period immediately preceding the date from which she is absent. For piece-rate workers, the average daily earnings in the three preceding months are used. This ensures the benefit reflects the woman's actual earning capacity.

Correct Answer: C. Public sector establishments engaged in any industry other than departmental undertakings

The Payment of Bonus Act applies to public sector establishments that are carried on by or under the authority of the Central Government or State Government, except departmental undertakings. The Act does not apply to establishments of the Central Government or State Government if the employees are covered by separate bonus or bonus-equivalent schemes. However, CPSE (Central Public Sector Enterprises) are generally covered by the Act.

Correct Answer: B. He can direct payment with compensation

Under the Payment of Wages Act, an Inspector can direct the employer to pay wages that are due to the employee. The payment can be directed to be made with compensation of up to 10 times the amount of wages due. Additionally, the Inspector can file a complaint in a Magistrate's court against the employer for contravention of the Act's provisions. This enforcement mechanism ensures workers receive their due wages.

Correct Answer: C. Crèche facility

The Maternity Benefit (Amendment) Act 2017 made it mandatory for every establishment with 50 or more employees to provide a crèche facility either separately or along with other establishments. The employer must inform the woman employee about the crèche facility at the time of her initial appointment. The crèche is available for children below 6 years of age. Women employees are entitled to visit the crèche 4 times a day including rest intervals.