Q.1 Which of the following is a fundamental principle of labour law?
Ensuring maximum profits for employers
Protecting workers' rights and welfare
Eliminating all taxes for businesses
Guaranteeing employment for life
Explanation - Labour law primarily aims to protect workers’ rights, regulate employment conditions, and promote fair treatment in the workplace.
Correct answer is: Protecting workers' rights and welfare
Q.2 The term 'minimum wage' refers to:
The highest salary an employee can earn
The lowest salary an employer can legally pay
A wage set by the employee
A wage that excludes overtime
Explanation - Minimum wage laws set the lowest amount an employer can legally pay their workers, ensuring a basic standard of living.
Correct answer is: The lowest salary an employer can legally pay
Q.3 Which act governs the conditions of employment and workers’ rights in India?
Industrial Disputes Act, 1947
Companies Act, 2013
Contract Act, 1872
Negotiable Instruments Act, 1881
Explanation - The Industrial Disputes Act, 1947, regulates employment conditions, settlement of disputes, layoffs, retrenchments, and strikes in India.
Correct answer is: Industrial Disputes Act, 1947
Q.4 Which of the following is NOT typically considered an employment contract term?
Salary
Working hours
Employee’s favorite color
Leave entitlements
Explanation - Employment contracts include terms like salary, working hours, and leave entitlements. Personal preferences like color choices are irrelevant.
Correct answer is: Employee’s favorite color
Q.5 What is the primary purpose of the Employees’ Provident Fund (EPF)?
To fund corporate bonuses
To provide retirement savings for employees
To pay government taxes
To finance company expansions
Explanation - The EPF is a retirement benefits scheme where both employee and employer contribute a portion of salary, securing post-retirement income.
Correct answer is: To provide retirement savings for employees
Q.6 Which of the following is a type of unfair labour practice?
Encouraging lawful union formation
Refusing to hire someone because they joined a union
Providing safety equipment to workers
Paying overtime wages as per law
Explanation - Discrimination against employees for union membership is an unfair labour practice prohibited under labour law.
Correct answer is: Refusing to hire someone because they joined a union
Q.7 The term 'industrial dispute' refers to:
Conflict between two companies over profits
Conflict between employers and employees relating to employment terms
Personal disagreements among employees
Government disputes with foreign companies
Explanation - An industrial dispute involves disagreements between employers and employees concerning employment conditions, wages, or rights.
Correct answer is: Conflict between employers and employees relating to employment terms
Q.8 Maternity leave under the Maternity Benefit Act, 1961 in India is generally:
6 weeks
12 weeks
26 weeks
52 weeks
Explanation - The Maternity Benefit Act provides 26 weeks of paid maternity leave for eligible women employees to ensure health and recovery.
Correct answer is: 26 weeks
Q.9 Which authority is responsible for resolving industrial disputes in India?
Industrial Tribunal
High Court
Supreme Court
Income Tax Department
Explanation - Industrial Tribunals are quasi-judicial bodies constituted under the Industrial Disputes Act to settle industrial disputes between employers and employees.
Correct answer is: Industrial Tribunal
Q.10 Which of the following is considered a form of termination of employment?
Resignation
Promotion
Transfer
Salary increment
Explanation - Termination of employment can occur through resignation, retirement, retrenchment, or dismissal.
Correct answer is: Resignation
Q.11 What is the maximum weekly working hours permitted under Indian labour law?
36 hours
40 hours
48 hours
60 hours
Explanation - The Factories Act, 1948 and other labour laws typically set the maximum working hours at 48 per week, ensuring employee welfare.
Correct answer is: 48 hours
Q.12 Gratuity is a benefit provided to an employee:
Only when promoted
Upon retirement or leaving after continuous service
On every monthly salary
For overtime work
Explanation - Gratuity is a lump-sum payment given to employees as a token of appreciation for long-term service, under the Payment of Gratuity Act, 1972.
Correct answer is: Upon retirement or leaving after continuous service
Q.13 Which of the following laws protects employees from sexual harassment at the workplace in India?
Sexual Harassment of Women at Workplace (Prevention) Act, 2013
Factories Act, 1948
Payment of Wages Act, 1936
Companies Act, 2013
Explanation - This Act provides a legal framework to prevent, prohibit, and redress sexual harassment of women in workplaces.
Correct answer is: Sexual Harassment of Women at Workplace (Prevention) Act, 2013
Q.14 Employment contracts can be terminated due to:
Mutual agreement
Retirement
Misconduct
All of the above
Explanation - Contracts can end by mutual consent, completion of term, retirement, misconduct, or redundancy, as per employment law.
Correct answer is: All of the above
Q.15 Which of the following is a statutory benefit provided to employees in India?
Bonus under Payment of Bonus Act
Free gym membership
Company shares
Company car
Explanation - The Payment of Bonus Act mandates that eligible employees receive a minimum bonus based on profits or productivity.
Correct answer is: Bonus under Payment of Bonus Act
Q.16 Trade unions primarily function to:
Promote employer profits
Protect and negotiate workers' rights
Manage company accounts
Hire managers
Explanation - Trade unions represent employees, negotiate collective agreements, and ensure fair labour practices.
Correct answer is: Protect and negotiate workers' rights
Q.17 The Payment of Wages Act, 1936, ensures that:
Employees are paid timely and without unauthorized deductions
Companies pay taxes
Employers get subsidies
Employees work extra hours
Explanation - This Act protects employees by ensuring wages are paid promptly and correctly, with restrictions on deductions.
Correct answer is: Employees are paid timely and without unauthorized deductions
Q.18 Which of the following is a key feature of the Factories Act, 1948?
Regulates working conditions, safety, and health of workers
Provides retirement pensions
Controls company profits
Promotes business expansion
Explanation - The Factories Act sets standards for hours, health, safety, and welfare of factory workers.
Correct answer is: Regulates working conditions, safety, and health of workers
Q.19 Layoff refers to:
Permanent termination of employment
Temporary suspension due to shortage of work
Promotion to a higher post
Transfer to another department
Explanation - Layoffs are temporary suspensions or retrenchments due to business slowdown, lack of work, or economic reasons.
Correct answer is: Temporary suspension due to shortage of work
Q.20 Which of the following benefits is generally NOT mandatory under Indian labour law?
Provident Fund
Health insurance
Minimum wages
Gratuity
Explanation - While PF, gratuity, and minimum wages are statutory benefits, health insurance is not mandatory for all employees under Indian law.
Correct answer is: Health insurance
Q.21 Overtime work is typically compensated at:
The same rate as regular work
Half the regular rate
Higher than the regular rate
Only with leave
Explanation - Labour laws require that work beyond standard hours be paid at a higher rate to compensate employees for extra work.
Correct answer is: Higher than the regular rate
Q.22 Which of the following is true regarding contract labour in India?
They are entitled to the same benefits as permanent employees
They are not covered under any labour law
They only work in private companies
They can be employed without a written contract
Explanation - Contract labourers are covered under the Contract Labour (Regulation and Abolition) Act, 1970, ensuring welfare benefits similar to permanent employees.
Correct answer is: They are entitled to the same benefits as permanent employees
Q.23 Which of the following is a form of employee dispute resolution?
Mediation
Litigation
Arbitration
All of the above
Explanation - Employee disputes can be resolved through mediation, arbitration, or litigation depending on the nature of the conflict and applicable laws.
Correct answer is: All of the above
Q.24 Which of the following is an example of a statutory labour right?
Right to form a trade union
Right to choose vacation destination
Right to select company management
Right to work in any country
Explanation - Labour laws protect the right of employees to form or join trade unions to collectively negotiate with employers.
Correct answer is: Right to form a trade union