Labour Law Notes

20 Multiple-Choice Questions (MCQs)

Unit-1: Minimum Wages Act, 1948
1. The Minimum Wages Act, 1948 was enacted to:
a) Provide uniform wages across states
b) Fix minimum rates of wages for scheduled employment
c) Regulate overtime payments
d) Eliminate child labour
Answer: b) Fix minimum rates of wages for scheduled employment
2. Fair wage is:
a) The same as minimum wage
b) Between minimum wage and living wage
c) Higher than living wage
d) Not defined under the Act
Answer: b) Between minimum wage and living wage
3. Time Rate means wages paid based on:
a) Number of hours worked
b) Quantity of work done
c) Per piece produced
d) Overtime hours only
Answer: a) Number of hours worked
4. The authority to fix and revise minimum wages lies with:
a) Central Government only
b) State Governments
c) Supreme Court
d) International Labour Organisation
Answer: b) State Governments
5. The procedure for hearing and deciding claims under Minimum Wages Act is
provided under:
a) Section 20
b) Section 15
c) Section 18
d) Section 25
Answer: a) Section 20
Unit-2: Payment of Wages Act, 1936
6. Payment of Wages Act, 1936 applies to employees drawing wages up to:
a) ₹1,000
b) ₹5,000
c) ₹24,000 (Amended)
d) ₹10,000
Answer: c) ₹24,000 (Amended)
7. The employer must pay wages by:
a) 10th of the next month
b) 7th or 10th of the next month, depending on employee strength
c) 15th of the next month
d) 30th of the next month
Answer: b) 7th or 10th of the next month, depending on employee strength
8. Maximum deduction from wages cannot exceed:
a) 50% of wages
b) 75% of wages
c) 25% of wages
d) No limit
Answer: a) 50% of wages
9. Under the Act, wage period must not exceed:
a) 15 days
b) 1 month
c) 7 days
d) 2 months
Answer: b) 1 month
10. Responsibility for payment of wages lies with:
a) Labour Commissioner
b) Trade Union
c) Employer
d) Government
Answer: c) Employer

Unit-3: Factories Act, 1948

11. Factory is defined under Section:
a) 2(a)
b) 2(m)
c) 2(l)
d) 2(c)
Answer: b) 2(m)
 12. The maximum working hours for adults per week is:
a) 48 hours
b) 44 hours
c) 60 hours
d) 54 hours
Answer: a) 48 hours
13. Annual leave with wages is provided after working for:
a) 120 days
b) 180 days
c) 240 days
d) 365 days
Answer: c) 240 days
14. Who is responsible for safety and health in the factory?
a) Factory Inspector
b) Owner
c) Occupier
d) Manager
Answer: c) Occupier
15. Employment of children below __ years is prohibited:
a) 14 years
b) 16 years
c) 18 years
d) 12 years
Answer: a) 14 years

Unit-4: Employees’ Compensation Act, 1923

16. The Act was earlier known as:
a) Workmen’s Compensation Act
b) Labour Welfare Act
c) Factory Compensation Act
d) Employees Protection Act
Answer: a) Workmen’s Compensation Act
17. Notional extension doctrine applies when:
a) Accident occurs on employer’s premises only
b) Accident occurs during official work beyond office hours
c) Employer is not liable for compensation
d) Accident happens during commute only
Answer: b) Accident occurs during official work beyond office hours
 18. Compensation is payable for:
a) Partial disablement only
b) Death, permanent disablement, and partial disablement
c) Death only
d) Medical treatment only
Answer: b) Death, permanent disablement, and partial disablement
19. Dependents under the Act include:
a) Only children
b) Only spouse
c) Children, spouse, parents, and siblings
d) All family members
Answer: c) Children, spouse, parents, and siblings
20. In case of fatal accident, the minimum compensation payable is:
a) ₹50,000
b) ₹1,20,000
c) ₹2,00,000
d) ₹1,00,000
Answer: c) ₹2,00,000

10 Fill in the Blanks

1. The Minimum Wages Act, 1948 aims to fix minimum wages for ____________.
Answer: scheduled employment
2. The Payment of Wages Act applies to employees drawing wages up to ₹________.
Answer: 24,000 (as per amendment)
3. Deductions from wages cannot exceed ______% of total wages.
Answer: 50%
4. Under the Factories Act, the term Factory is defined in Section __________.
Answer: 2(m)
5. The maximum working hours for an adult per week in a factory is ________.
Answer: 48 hours
6. The Employees’ Compensation Act, 1923 was earlier known as the ____________.
Answer: Workmen’s Compensation Act
7. The doctrine of notional extension is used to determine ____________.
Answer: employer’s liability for accidents outside the workplace
8. The employer is liable to pay compensation for ________, ________, and ________.
Answer: death, permanent disablement, partial disablement
9. Annual leave with wages is granted after working for ________ days in a calendar
year.
Answer: 240
10. The authority responsible for factory health and safety is the __________.
Answer: Occupier

10 True/False
1. The Minimum Wages Act, 1948 applies only to government employees.
False
2. The Payment of Wages Act prohibits wage deductions beyond 50% of total wages.
True
3. The Factories Act defines a factory as any premises with 20 or more workers without
power.
False (20 workers with power, 10 without power)
4. The maximum permissible working hours in a factory is 54 hours per week.
False (48 hours)
5. The Employees’ Compensation Act, 1923 applies only to factory workers.
False (It applies to all employees in certain employments)
6. The doctrine of notional extension is part of the Employees’ Compensation Act.
True
7. The employer is not liable to pay compensation in case of employee’s misconduct.
False (Employer is liable except in cases of willful disobedience or intoxication)
8. The Payment of Wages Act requires payment of wages within 15 days of wage period
closure.
False (It’s 7th or 10th of the next month)
9. The occupier is responsible for health and safety under the Factories Act.
True
10. The Minimum Wages Act provides for overtime pay at twice the ordinary rate.
True
2-Marks Questions (Short Answer Type)
1. Definition of Minimum, Fair, and Living Wages.
Answer- Minimum Wage:
The minimum wage is the lowest rate of wage that must be paid to an employee to meet the
bare necessities of life, such as food, clothing, and shelter. It ensures protection against
exploitation and is legally fixed by the government for different employments.
Fair Wage:
A fair wage is above the minimum wage but below the living wage. It is linked to the
capacity of the industry to pay and considers the productivity and economic conditions. It
allows a worker to have a decent standard of life, enabling access to basic comforts.
Living Wage:
A living wage is the highest standard of wage that enables a worker to maintain a reasonable
standard of living, including healthcare, education for children, insurance, and participation
in cultural and social activities. It ensures not just survival but a good quality of life.

2. Aims & Objective of Employer Compensation Act.

Answer- Aims:
• To provide financial protection and social security to employees or their dependents in
case of injury, disability, or death arising out of and during the course of employment.
• To ensure timely compensation without lengthy legal procedures.
• To recognize the principle that employment carries inherent risks, and it is the
employer’s legal responsibility to compensate for losses arising from such risks.

Objectives:
1. To compensate employees for:
o Injury (partial/total disability)
o Occupational diseases
o Death due to accidents during employment.
2. To reduce financial hardship for employees and their families in the event of
workplace accidents.
3. To ensure industrial justice by making the employer liable for risks inherent in the
job.
4. To promote safety consciousness among employers.
5. To create a sense of social security for employees in hazardous occupations.
 Key Principle:
The Act is based on the "No Fault Liability" principle, meaning that compensation is payable
even without the employee proving employer’s negligence.

3. Doctrine of notional extension.

Answer- This doctrine extends an employer’s liability for accidents outside the workplace,
provided there is a connection with employment. It means an employee is deemed to be in the
course of employment even while travelling to or from work, or in areas under employer’s
control.
• Employment starts not only within factory walls but also extends to areas not directly
controlled by the employer but which are a part of the employment.
• The liability extends to areas where employees are required to be for employment
purposes (e.g., employer-arranged transport, travel routes, etc.).

4. Duties of the Occupier under the Factories Act.

Answer- The Occupier of a factory is responsible for ensuring:
• Health, safety, and welfare of workers.
• Compliance with rules regarding cleanliness, lighting, ventilation, etc.
• Proper maintenance of machinery and safe working conditions.
• Appointment of safety officers (if applicable).
• Reporting of accidents and hazardous incidents to authorities.

5. Objectives of the Payment of Wages Act.

Answer-
• To ensure timely payment of wages to workers.
• To prevent unauthorized deductions from wages.
• To protect workers’ right to receive full wages.
• To promote industrial harmony by regulating wage payments.
• To provide a legal framework for wage payment and deductions.

6. Wages under the Payment of Wages Act.

Answer- Wages means all remuneration (whether by way of salary, allowances, or otherwise)
that a worker receives from an employer in return for work done or services rendered, but
does not include:
 • Bonus, commission, or any other incentive pay,
• The value of any house accommodation,
• Contributions to pension or provident funds,
• Gratuity, or
• Any other payment not directly linked to work done.
In simple terms, wages cover basic pay, dearness allowance, and other allowances directly
related to work, which are payable to a worker under the Act.

7. Eligibility Criteria for Employer's Provident Fund.

Answer-
• Establishment Size:
EPF applies to establishments employing 20 or more employees.
• Type of Establishment:
It covers factories, offices, and other establishments involved in manufacturing,
services, or trade.
• Employee Category:
All employees drawing wages up to ₹15,000 per month (as per recent amendments)
are generally eligible to become members of the EPF.
• Voluntary Coverage:
Establishments with fewer than 20 employees can voluntarily register for EPF.

8. Role of the Commission under the Minimum Wages Act.

Answer-
• The Commission (usually called the Minimum Wages Advisory Board or
Commission) advises the government on fixing and revising minimum wages for
different industries and occupations.
• It studies the cost of living, wages, and economic conditions of workers.
• The Commission recommends appropriate minimum wage rates to ensure workers
receive fair and adequate wages.
• It helps in monitoring and reviewing the implementation of minimum wages.
• The Commission may also suggest methods to improve wage payment systems and
ensure compliance with the Act.
 10-Mark Questions (Long Answer Type)
1. Duties and Rights of an Employer under the Employment Act.
Answer-
Duties of an Employer under the Employment Act
1. Provide Work and Wages:
Employers must provide work to employees and pay wages on time as agreed or as
per the law.
2. Safe Working Conditions:
Employers are responsible for providing a safe and healthy working environment, free
from hazards that could harm employees.
3. Compliance with Labour Laws:
Employers must comply with all applicable labour laws including those related to
working hours, wages, holidays, leave, and welfare measures.
4. Non-Discrimination:
Employers should ensure no discrimination in hiring, promotion, or termination based
on race, gender, religion, caste, or other prohibited grounds.
5. Maintain Records:
Employers must keep proper records of employees’ attendance, wages, leave, and
other employment details.
6. Notice and Termination:
Employers must give proper notice or wages in lieu of notice before terminating
employment, respecting the terms of the contract and law.
7. Provide Benefits:
Employers should provide all benefits and facilities entitled to employees such as
provident fund, gratuity, and medical facilities where applicable.
8. Redressal of Grievances:
Employers must establish mechanisms for handling employee grievances and disputes
in a fair and timely manner.

Rights of an Employer under the Employment Act

1. Hire and Terminate Employees:
Employers have the right to recruit employees based on their requirements and
terminate employees following due process under the law.
2. Discipline Employees:
Employers can discipline employees for misconduct, poor performance, or violation
of company policies, subject to fair procedures.
 3. Manage the Business:
Employers have the right to manage and control business operations, including setting
work schedules, duties, and workplace rules.
4. Ensure Productivity:
Employers can expect employees to perform their duties diligently and meet
productivity standards.
5. Protection of Property and Interests:
Employers have the right to protect their property, trade secrets, and confidential
information from misuse by employees.
6. Take Legal Action:
Employers can take legal action against employees for breach of contract,
misconduct, or any action causing loss to the business.

2. Provisions for payment of Wages under the Act.

Answer-
Provisions for Payment of Wages under the Payment of Wages Act
1. Time of Payment
o Wages must be paid on a fixed date, which should not be later than the
seventh day after the end of the wage period if the establishment employs
fewer than 1,000 workers.
o For establishments with 1,000 or more workers, wages should be paid within
10 days of the wage period.
2. Mode of Payment
o Wages should be paid in lawful money (cash) or through cheque, bank
transfer, or other authorized modes.
o Payment in kind (goods, vouchers, etc.) is generally prohibited unless
permitted by law.
3. Place of Payment
o Wages must be paid at or near the workplace or at a place convenient to the
employee.
4. Deductions from Wages
o Only authorized deductions are allowed, such as:
▪ Fines imposed according to law,
▪ Deductions for absence from duty,
▪ Damage or loss caused to the employer due to negligence or breach of
contract,
 ▪ House accommodation provided by the employer,
▪ Recovery of advances or loans given to the employee,
▪ Income tax deductions,
▪ Any other deductions authorized by the employee in writing or by any
other law.
o Deductions must be reasonable and as prescribed by the Act.
5. Payment in Case of Death or Discharge
o If an employee dies or is discharged, the wages due must be paid immediately
or within two hours from the time of death or discharge.
6. Fixing of Wage Period
o The employer must fix a wage period (weekly, fortnightly, monthly) during
which wages are earned and payable.
7. Prohibition on Withholding Wages
o Employers are prohibited from withholding wages or making unauthorized
deductions, ensuring workers receive full payment promptly.
8. Maintenance of Records
o Employers must maintain proper registers and records related to wages paid,
deductions made, and other related details for inspection by authorities.
9. Penalties for Non-Compliance
o Failure to comply with the provisions can lead to penalties including fines and
imprisonment as prescribed by the Act.

3. Procedure for fixing Minimum Wages.

Answer-
Procedure for Fixing Minimum Wages (Detailed)
1. Constitution of Advisory Board/Commission
• The government, either at the Central or State level, establishes a Minimum Wages
Advisory Board or Minimum Wages Commission.
• This body typically consists of representatives of employers, employees (workers),
and independent experts.
• Their primary role is to provide expert advice and recommendations regarding the
fixation and revision of minimum wages.
2. Submission of Report by Advisory Board/Commission
 • The Board or Commission conducts comprehensive research on the prevailing
economic and social conditions of workers.
• Key factors studied include:
o Cost of living (price of essential goods and services such as food, clothing,
housing, and fuel)
o Existing wage rates across various industries and regions
o Working conditions, hours of work, and health hazards
o Living standards and ability of workers to maintain a reasonable standard of
life
o The capacity of employers to pay wages without causing economic hardship
to the business
• After thorough analysis, the Board submits a detailed report with recommendations
for fixing or revising minimum wages in different scheduled employments.
3. Draft Notification of Minimum Wages
• The government, considering the Board’s report, prepares a draft notification
specifying the minimum wages applicable to different types of workers, industries,
and occupations.
• The draft details the minimum rates for various categories of workers, such as
skilled, semi-skilled, and unskilled workers.
4. Publication and Public Consultation
• The draft notification is published in the official Gazette to inform the public and all
stakeholders.
• The government invites objections, suggestions, and representations from
employers, trade unions, workers, industry associations, and the general public.
• This stage ensures transparency and allows affected parties to present their views or
concerns.
5. Consideration of Objections
• The government reviews all the feedback, objections, and suggestions received.
• If necessary, the Advisory Board or Commission may be asked to reconsider or
provide further clarification.
• The government balances the interests of workers and employers to arrive at a fair and
workable wage structure.
6. Final Notification
• After considering all inputs, the government issues the final notification fixing the
minimum wages.
 • This notification is published in the official Gazette and becomes legally binding on
all employers and employees in the scheduled employment.
• Employers must comply with the new minimum wage rates as per the final
notification.
7. Periodic Revision
• Minimum wages are not permanent and must be revised periodically to reflect
changes in economic conditions.
• Typically, the revision happens every 5 years, but the government can revise earlier if
necessary.
• During revision, the same procedure is followed: consultation with the Advisory
Board, publication of draft, public consultation, and final notification.

Additional Points:
• Scheduled Employments: The Act applies only to employments listed in the
schedule notified by the government. Wages for these scheduled employments are
fixed under this process.
• Minimum vs. Fair Wage: Minimum wages ensure a basic standard, but the
government may also consider a fair wage, which covers a living standard for
workers beyond the bare minimum.
• Fixation of Different Rates: Minimum wages may vary based on region, nature of
work, skill level, and working conditions to accommodate diverse economic realities.

4. Important provisions of the Minimum Wages Act.

Answer-
Important Provisions of the Minimum Wages Act
1. Fixation of Minimum Wages
o The government fixes minimum wages for scheduled employments after
consulting the Minimum Wages Advisory Board or Commission.
2. Scheduled Employments
o The Act applies only to employments notified as "scheduled employments" by
the government.
3. Minimum Wages for Different Classes
o Minimum wages can be fixed differently for skilled, semi-skilled, and
unskilled workers.
4. Review and Revision
 o Minimum wages must be reviewed and revised periodically (usually every 5
years).
5. Payment of Wages
o Employers must pay wages not less than the minimum wages fixed by the
government.
6. Prohibition of Payment Below Minimum Wage
o It is illegal for employers to pay less than the minimum wages to workers.
7. Inspection and Enforcement
o Inspectors appointed under the Act have the power to inspect premises and
ensure compliance.
8. Penalty for Non-Compliance
o Employers who fail to pay minimum wages or violate the Act can be punished
with fines and/or imprisonment.
9. Overtime Payment
o If workers work beyond normal hours, they are entitled to overtime wages as
per the Act or rules.
10. Employment of Children and Women
o The Act also includes provisions for protecting wages of women and child
workers in scheduled employments.
11. Dispute Resolution
o The Act provides mechanisms for settling disputes related to minimum wages.

5. Health and safety measures under the Factories Act/welfare.

Answer-
1. Health Measures
• Cleanliness: Factories must be kept clean and free from effluvia arising from any
drain, privy, or other nuisance.
• Disposal of Waste: Proper arrangements must be made for the disposal of wastes and
effluents.
• Ventilation and Temperature: Factories should have adequate ventilation, sufficient
supply of fresh air, and proper control of temperature to maintain a comfortable
environment.
• Lighting: Adequate lighting must be provided to ensure safe and efficient working
conditions.
 • Drinking Water: Safe and adequate drinking water must be supplied to workers.
• Precautions Against Dust and Fumes: Measures must be taken to prevent inhalation
of dust, fumes, or other harmful substances.
2. Safety Measures
• Fencing of Machinery: Dangerous parts of machinery must be securely fenced to
prevent accidents.
• Maintenance of Machinery: Machinery must be maintained in safe working
condition.
• Work on or Near Machinery in Motion: Special precautions must be taken when
work is done on or near machinery in motion.
• Handling of Dangerous Substances: Proper precautions must be taken in handling
hazardous substances like inflammable materials, explosives, and toxic chemicals.
• Safety Devices: Safety devices and protective equipment must be provided to
workers wherever necessary.
• Warning Signs: Proper warning signs must be displayed near dangerous machinery
or processes.
• Training and Supervision: Workers should be adequately trained and supervised,
especially when handling hazardous tasks.
3. Welfare Measures
• Facilities for Workers: Factories employing 50 or more workers must provide
welfare facilities including:
o Restrooms and lunchrooms,
o First aid appliances and trained personnel,
o Canteens (where applicable),
o Shelters and seating arrangements for outdoor workers,
o Creches for the children of women workers (where there are 30 or more
women employees).
• Working Hours and Rest Intervals: Adequate intervals for rest and meal breaks are
mandated.
• Leave and Holidays: Provisions for annual leave with wages and weekly holidays.
• Accommodation: Where necessary, proper arrangements for workers’
accommodation and sanitation facilities.

These measures are designed to ensure the health, safety, and welfare of workers in
industrial environments, minimizing risks and promoting well-being.
 6. Importance of Employees Provident Fund.
Answer-
1. Financial Security After Retirement
EPF provides employees with a regular and substantial corpus of funds
accumulated through monthly contributions by both the employee and employer
during the employee’s working life. This corpus acts as a retirement fund, ensuring
financial stability and independence after retirement when regular income stops.

2. Promotes a Habit of Savings

Since contributions are automatically deducted from the employee’s salary and
matched by the employer, EPF encourages workers to develop a disciplined and
consistent saving habit, which is essential for long-term financial planning.

3. Social Security and Welfare

EPF is a form of social security scheme that protects employees against uncertainties
like retirement, disability, or death. In case of the employee’s death, the accumulated
amount is payable to the nominee or legal heir, providing financial support to the
family.

4. Tax Benefits
Contributions made towards EPF are eligible for tax deductions under Section 80C
of the Income Tax Act (up to a prescribed limit). Moreover, the interest earned and
the amount received at maturity are also tax-free, making EPF a highly tax-efficient
saving instrument.

5. Loan and Withdrawal Facilities

EPF offers employees the facility to withdraw or take loans against their
accumulated balance for specific purposes such as medical treatment, education,
housing, marriage, or during emergencies. This feature adds liquidity and financial
flexibility to employees’ lives.

6. Compulsory Participation Ensures Broad Coverage

EPF applies to establishments with 20 or more employees, making it a mandatory
social security scheme for millions of workers, thereby extending financial
protection to a large workforce.

7. Promotes Formalization of Employment

Mandatory EPF contributions encourage employers to formalize employment
arrangements, reducing informal or unorganized labor and increasing the reach of
statutory protections and benefits.

8. Encourages Industrial Harmony

By providing a secure social security net, EPF contributes to employee satisfaction
and loyalty, reducing labor unrest and promoting better employer-employee relations.
 9. Helps in Financial Planning
The predictable and systematic accumulation of savings through EPF helps employees
plan for major life events and financial goals, such as children’s education, buying a
house, or retirement planning.

10. Government-Backed Security

EPF is managed by the Employees’ Provident Fund Organisation (EPFO), a
government body, ensuring safety, transparency, and reliability of funds.

7. Duties of an employer under the Employer Provident Act.

Answer-
1. Registration of Establishment
o The employer must register the establishment with the Employees’ Provident
Fund Organisation (EPFO) if it employs 20 or more employees.
2. Deduction and Deposit of Contributions
o The employer is responsible for deducting the employee’s contribution
(usually 12% of basic wages) every month.
o The employer must deposit both the employee’s and employer’s
contributions (12% each) along with any administrative charges to the EPFO
within the prescribed time (usually by the 15th of the following month).
3. Maintenance of Records
o Employers must maintain proper records and registers related to employees’
wages, contributions, and other relevant details as required under the Act.
4. Submission of Returns
o Employers are required to file monthly returns and other necessary
documents to the EPFO, showing details of employees, wages, and
contributions paid.
5. Providing Information to Employees
o Employers must inform employees about the EPF scheme, their contributions,
and provide them with annual statements of their EPF accounts.
6. Ensuring Correct Calculation of Wages
o Employers must ensure that wages are correctly calculated as per the Act’s
definition so that contributions are accurate.
7. Payment of Interest on Delay
o If contributions are not deposited on time, the employer must pay interest on
the delayed amount as per EPFO rules.
 8. Transfer and Settlement of EPF Accounts
o Employers must assist employees in the transfer of their EPF accounts when
changing jobs and in the settlement or withdrawal process after retirement or
resignation.
9. Compliance with EPFO Inspections and Notices
o Employers must cooperate with EPFO officials during inspections and comply
with notices and directives issued by the EPFO.
10. Avoidance of Unauthorized Deductions
o Employers must not make any unauthorized deductions from employees’
wages meant for EPF contributions.

8. Important provisions of the Payment of Wages Act.

Answer-
1. Applicability
o The Act applies to establishments employing less than 1,000 workers (this
limit can vary by state) and covers the payment of wages to certain categories
of workers.
2. Definition of Wages
o Wages include all remuneration capable of being expressed in money, such as
basic pay, allowances, bonuses, but exclude certain deductions and bonuses.
3. Time of Payment
o Wages must be paid on a fixed date, and no later than the seventh day after
the wage period for establishments with fewer than 1,000 employees. For
larger establishments, the period can extend to 10 days.
4. Mode of Payment
o Wages should be paid in lawful money or by cheque or electronic transfer, as
authorized.
5. Place of Payment
o Wages should be paid at or near the workplace or at a place convenient to the
employee.
6. Deductions from Wages
o Only authorized deductions are allowed, including:
▪ Fines,
▪ Absence from duty,
 ▪ Damage or loss caused to the employer,
▪ House accommodation,
▪ Recovery of advances,
▪ Income tax,
▪ Other deductions authorized by law or employee consent.
7. Prohibition of Unauthorized Deductions
o Employers cannot make deductions beyond those authorized by the Act or
agreed with the employee.
8. Fines
o Fines can only be imposed as per prescribed procedures and must be recorded.
9. Maintenance of Registers and Records
o Employers must maintain proper records of wages paid, deductions made, and
other relevant data.
10. Inspection and Enforcement
o Inspectors have the authority to ensure compliance, inspect records, and take
action against violations.
11. Penalties for Non-Compliance
o Employers who fail to pay wages on time or make unauthorized deductions
can face penalties including fines and imprisonment.
12. Payment in Case of Death or Discharge
o Wages due must be paid immediately or within two hours if the employee dies
or is discharged.

9. Penalty of non-payment of wages under the Payment of Wages Act.

Answer-
1. Timely Payment of Wages is Mandatory
• The Act mandates that wages must be paid on the appointed day without any delay.
For establishments employing fewer than 1,000 workers, this is usually within 7 days
after the wage period; for larger establishments, within 10 days.
• Failure to pay wages within this prescribed time frame constitutes an offense.
2. Unauthorized or Excessive Deductions are Illegal
• Employers can only make deductions that are expressly authorized under the Act or
with the consent of the employee.
 • Any deduction outside these provisions is illegal and attracts penalties.
3. Legal Penalties on Employers
• If an employer fails to pay wages or makes unauthorized deductions, they can be
prosecuted under the Act.
• The employer may be liable to a fine up to Rs. 1,000 (this amount may vary
depending on amendments and the state’s rules).
• In addition, the court may impose imprisonment up to 6 months, or both fine and
imprisonment.
• Repeated violations or willful default can lead to more stringent punishments.
4. Recovery of Wages and Fines
• The Act empowers wage inspectors or courts to order employers to pay the unpaid
wages along with fines or compensation.
• This ensures that workers receive their due wages promptly.
5. Role of Inspectors and Authorities
• The government appoints Inspectors under the Act to monitor compliance.
• Inspectors have powers to:
o Inspect wage records, registers, and premises,
o Summon employers and employees for inquiries,
o Initiate legal proceedings against defaulters.
6. Employee’s Right to Complaint
• Workers can file complaints with the Inspectors if wages are delayed or unauthorized
deductions are made.
• The complaint triggers an investigation and possible prosecution of the employer.
7. Protection Against Retaliation
• The Act indirectly protects employees from victimization or retaliation when they
raise wage-related grievances by empowering legal authorities to intervene.
8. Immediate Payment in Certain Cases
• In cases where an employee is discharged or dies, wages must be paid immediately or
within 2 hours of the event. Failure to do so also attracts penalties.
9. Appeals and Legal Remedies
• Employers or employees dissatisfied with an Inspector’s order can appeal to the
designated authority within a specified time.
• Legal remedies ensure fairness and due process in enforcement.
Summary:
The Payment of Wages Act aims to protect workers by ensuring timely payment of full
wages and preventing illegal deductions. The penalty provisions act as a deterrent against
employer negligence or exploitation, safeguarding the worker’s right to fair remuneration.

10. Duties of the Occupier under the Factories Act. (Detailed version for long
question)
Answer- The term “Occupier” is defined under the Factories Act as the person who has
ultimate control over the affairs of the factory. Usually, it is the owner or the manager who
exercises control over the factory operations.
The Act imposes several duties on the occupier to ensure the health, safety, and welfare of
workers employed in the factory.

1. Ensuring Health and Safety of Workers

• The occupier must provide and maintain a safe working environment. This includes:
o Ensuring the factory premises are clean and hygienic.
o Providing adequate ventilation, lighting, and temperature control.
o Preventing overcrowding and maintaining proper spacing.
o Ensuring safe handling, storage, and disposal of hazardous substances.
o Taking all necessary precautions to prevent accidents and injuries.
o Installing and maintaining proper safety devices on machinery.
2. Maintenance of Machinery and Equipment
• The occupier is responsible for ensuring that all machinery is properly maintained
and safe to use.
• Machinery must be equipped with guards or safety devices to protect workers from
injury.
• Regular inspections and repairs must be conducted to avoid breakdowns or hazards.
3. Compliance with Legal Provisions
• The occupier must ensure compliance with all provisions of the Factories Act and
any rules made under it.
• This includes timely registration of the factory, maintaining statutory registers, and
submitting returns to authorities.
4. Providing Welfare Facilities
• The occupier must provide welfare facilities for workers, such as:
 o Adequate and clean drinking water.
o Restrooms, washing facilities, and canteens (where applicable).
o Creches for children of women employees if the factory employs 30 or more
women.
o First aid appliances and trained personnel to administer first aid.
5. Ensuring Employment of Young Persons and Women as per Rules
• The occupier must ensure that employment of young persons and women complies
with the restrictions and provisions laid down under the Act.
• Working hours, rest intervals, and other conditions must be strictly followed to protect
vulnerable workers.
6. Providing Training and Supervision
• The occupier is responsible for providing adequate training and supervision to
workers, especially where hazardous machinery or processes are involved.
• Workers must be informed of safety measures and instructed on correct operating
procedures.
7. Reporting of Accidents and Dangerous Occurrences
• The occupier must immediately report any fatal or serious accidents and dangerous
occurrences to the relevant authorities.
• A detailed accident book must be maintained, recording all accidents and injuries.
8. Ensuring Payment of Compensation
• In case of injury or death due to accidents at the factory, the occupier is responsible
for ensuring that compensation is paid to the affected workers or their dependents as
per the Workmen’s Compensation Act or relevant laws.
9. Facilitating Inspection by Authorities
• The occupier must facilitate inspection of the factory premises by inspectors
appointed under the Act and provide all necessary assistance and documents.
10. Preventing Employment of Child Labour
• The occupier must ensure that no child below 14 years of age is employed in the
factory.
11. Ensuring Cleanliness and Sanitation
• The occupier must ensure the factory premises are kept clean and free from any
nuisance that can affect workers’ health.
12. Maintaining Registers and Records
• The occupier is responsible for maintaining all statutory registers, records, and
notices required under the Act and making them available for inspection.
Summary
The occupier under the Factories Act carries the ultimate responsibility for the safe and
lawful operation of the factory. This includes protecting the health, safety, and welfare of all
workers, ensuring legal compliance, maintaining machinery, providing necessary facilities,
and cooperating with authorities.