Labor & Employment Law in Business # MCQs Practice set

Q.1 Which legislation primarily governs minimum wages and working conditions in India?

Factories Act, 1948
Minimum Wages Act, 1948
Industrial Disputes Act, 1947
Payment of Gratuity Act, 1972
Explanation - The Minimum Wages Act, 1948 is designed to ensure workers receive minimum wages for their work and safeguard working conditions.
Correct answer is: Minimum Wages Act, 1948

Q.2 What is the main purpose of the Industrial Disputes Act, 1947?

Regulate working hours
Resolve disputes between employers and employees
Provide pension to retired employees
Control minimum wages
Explanation - The Industrial Disputes Act, 1947, provides a legal framework for resolving industrial disputes and maintaining industrial peace.
Correct answer is: Resolve disputes between employers and employees

Q.3 Which of the following benefits is guaranteed under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952?

Annual bonus
Medical insurance
Pension and provident fund
Paid leave
Explanation - This Act ensures financial security of employees by providing a pension and provident fund after retirement or under certain conditions.
Correct answer is: Pension and provident fund

Q.4 Which body primarily handles complaints regarding sexual harassment at the workplace in India?

Labor Court
Internal Complaints Committee
Employee Provident Fund Organization
National Industrial Tribunal
Explanation - As per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, organizations must set up an Internal Complaints Committee to handle complaints.
Correct answer is: Internal Complaints Committee

Q.5 Which type of employment contract provides a fixed duration of employment?

Permanent contract
Temporary contract
Casual contract
Internship agreement
Explanation - A temporary employment contract is valid for a specified duration, after which it either ends or may be renewed.
Correct answer is: Temporary contract

Q.6 The Factories Act, 1948 is primarily concerned with:

Payment of wages
Employee provident fund
Health, safety, and welfare of workers
Trade union formation
Explanation - The Factories Act ensures the safety, health, and welfare of workers employed in factories.
Correct answer is: Health, safety, and welfare of workers

Q.7 Which Act governs maternity benefits for women employees in India?

Maternity Benefit Act, 1961
Payment of Bonus Act, 1965
Factories Act, 1948
Employees' State Insurance Act, 1948
Explanation - The Maternity Benefit Act, 1961 provides paid maternity leave and protects the employment of women during and after pregnancy.
Correct answer is: Maternity Benefit Act, 1961

Q.8 Which of the following is NOT a function of a trade union?

Negotiating wages
Providing legal aid
Making government policies
Ensuring welfare of employees
Explanation - Trade unions represent employees' interests but do not create government policies; they can influence but not legislate.
Correct answer is: Making government policies

Q.9 What is the maximum number of hours a worker can be required to work in a week under Indian labor law?

40 hours
48 hours
60 hours
72 hours
Explanation - The Factories Act, 1948 limits the maximum working hours to 48 hours per week to ensure worker welfare.
Correct answer is: 48 hours

Q.10 Which law mandates gratuity payments to employees who have completed a minimum period of service?

Payment of Gratuity Act, 1972
Factories Act, 1948
Minimum Wages Act, 1948
Industrial Employment Act, 1946
Explanation - The Payment of Gratuity Act ensures a financial benefit to employees who have served an organization for at least five years upon termination or retirement.
Correct answer is: Payment of Gratuity Act, 1972

Q.11 Which law regulates the formation and functioning of trade unions in India?

Industrial Disputes Act, 1947
Trade Unions Act, 1926
Factories Act, 1948
Payment of Bonus Act, 1965
Explanation - The Trade Unions Act, 1926 provides legal recognition to trade unions and governs their registration, rights, and liabilities.
Correct answer is: Trade Unions Act, 1926

Q.12 Which of the following is considered unfair labor practice?

Providing safety equipment
Refusing to recognize a trade union
Conducting annual appraisals
Paying minimum wages
Explanation - Unfair labor practices include actions that hinder employee rights to organize or engage in collective bargaining.
Correct answer is: Refusing to recognize a trade union

Q.13 Which Act provides insurance for employees in case of sickness, maternity, and employment injury?

Employees' State Insurance Act, 1948
Factories Act, 1948
Minimum Wages Act, 1948
Payment of Gratuity Act, 1972
Explanation - The ESI Act provides social security benefits to employees in case of sickness, maternity, or work-related injuries.
Correct answer is: Employees' State Insurance Act, 1948

Q.14 Which of the following is an essential feature of a valid employment contract?

Offer and acceptance
Government approval
Witness signatures
Employee union consent
Explanation - Like all contracts, an employment contract requires offer, acceptance, lawful consideration, and mutual consent to be valid.
Correct answer is: Offer and acceptance

Q.15 Which of the following laws protects the rights of contract laborers?

Contract Labour (Regulation & Abolition) Act, 1970
Factories Act, 1948
Payment of Bonus Act, 1965
Employees' Provident Fund Act, 1952
Explanation - This Act regulates the employment of contract labor and provides welfare measures and working conditions.
Correct answer is: Contract Labour (Regulation & Abolition) Act, 1970

Q.16 What is the primary aim of the Payment of Bonus Act, 1965?

Ensure annual bonus for employees
Regulate working hours
Provide social security
Define trade union roles
Explanation - The Payment of Bonus Act ensures that employees receive a fair bonus linked to profits or productivity of the organization.
Correct answer is: Ensure annual bonus for employees

Q.17 Which of the following types of leave is typically available to employees under Indian labor law?

Casual leave, sick leave, and earned leave
Study leave, sabbatical, and maternity leave
Unpaid leave only
Leave without pay
Explanation - Employees in India are entitled to different types of leave such as casual leave, sick leave, and earned leave under various labor laws.
Correct answer is: Casual leave, sick leave, and earned leave

Q.18 Which law regulates working conditions for women employees at factories?

Factories Act, 1948
Maternity Benefit Act, 1961
Minimum Wages Act, 1948
Payment of Gratuity Act, 1972
Explanation - The Factories Act contains provisions related to the welfare, working hours, and employment conditions of women in factories.
Correct answer is: Factories Act, 1948

Q.19 Which of the following can constitute wrongful termination?

Firing without notice in violation of employment contract
Retirement after completing 60 years
End of temporary contract term
Employee resignation
Explanation - Wrongful termination occurs when an employer dismisses an employee without following legal procedures or violating contractual terms.
Correct answer is: Firing without notice in violation of employment contract

Q.20 Which Indian law aims to provide social security to unorganized sector workers?

Unorganized Workers Social Security Act, 2008
Factories Act, 1948
Minimum Wages Act, 1948
Industrial Disputes Act, 1947
Explanation - This Act provides benefits like health care, maternity, and old-age protection to workers in the unorganized sector.
Correct answer is: Unorganized Workers Social Security Act, 2008

Q.21 Which of the following is considered a statutory benefit?

Provident fund
Performance bonus
Company car
Reimbursement of fuel expenses
Explanation - Statutory benefits are mandated by law, like the Employees' Provident Fund, whereas others are contractual or discretionary benefits.
Correct answer is: Provident fund

Q.22 Which of the following best defines collective bargaining?

Negotiation between a group of employees and employer over wages and working conditions
Employer setting rules unilaterally
Government determining minimum wages
Employee individually negotiating salary
Explanation - Collective bargaining is a process where trade unions negotiate with employers to improve wages, benefits, and working conditions for employees.
Correct answer is: Negotiation between a group of employees and employer over wages and working conditions

Q.23 What is the key purpose of the Employees' Compensation Act, 1923?

Compensation for work-related injuries or death
Payment of provident fund
Annual bonuses
Employee training
Explanation - The Act ensures that employees or their dependents receive compensation for injuries or death caused due to employment-related accidents.
Correct answer is: Compensation for work-related injuries or death

Q.24 Which of the following is true about probationary employment?

It is a trial period for assessing suitability of an employee
It guarantees permanent employment
It does not have termination clauses
It is only for interns
Explanation - Probation is a period during which an employee’s performance and suitability for permanent employment are evaluated.
Correct answer is: It is a trial period for assessing suitability of an employee

Q.25 The Payment of Wages Act, 1936 ensures that:

Wages are paid on time without unauthorized deductions
Employees get annual bonuses
Trade unions are recognized
Working hours are regulated
Explanation - The Act regulates timely payment of wages and protects workers from illegal deductions by employers.
Correct answer is: Wages are paid on time without unauthorized deductions

Q.26 Which law governs employment of young persons and adolescents in factories?

Child Labour (Prohibition and Regulation) Act, 1986
Factories Act, 1948
Minimum Wages Act, 1948
Employees' State Insurance Act, 1948
Explanation - This Act prohibits employment of children below 14 years and regulates employment of adolescents in hazardous occupations.
Correct answer is: Child Labour (Prohibition and Regulation) Act, 1986