Comprehension
Read the excerpts from an opinion piece entitled "Labour Law Suspension: Hit The Workers When They Are Down" by Pranab Bardhan, Professor of Graduate School at the Department of Economics at the University of California, Berkeley, published by Bloomberg Quint and answer the questions below:
It is interesting that while Indian states are trying to suspend labour protection and make it easier for employers to sack workers, many other countries are trying to minimise lay-offs in this period of crisis by giving wage subsidy to employers to induce them to keep the workers on the payroll. These programs are an effort to reduce displacement, distress, and loss of worker morale, and at the time of economic recovery less friction and de-skilling. The wage subsidies are quite substantial in Europe, Canada, Australia, and New Zealand. It is also being attempted in some developing countries like Argentina, Bangladesh, Botswana, China, Malaysia, Philippines, South Africa, Thailand, and Turkey.
In the continuing sordid saga of callousness and brutality with the millions of suddenly unemployed migrant workers over the last six weeks since lockdown, an interesting fact to note is that employers who mostly had stopped paying them over this period, thus causing widespread hunger and homelessness, have lobbied with state governments to stop sending them back to their villages so that they remain available when the industries restart. I am actually in favour of a thorough overhaul. The current labour laws, tangled and outdated as they are, serve the long-term interests of neither the employers nor the workers. At the beginning of this century, the Second National Commission of Labour made a whole set of sensible recommendations for such an overhaul, but they remain largely unimplemented. I would support abolishing the firm size limit on labour retrenchment altogether, provided there is a provision for adequate unemployment benefits, both for regular and contract workers, and there is something like a state-provided universal basic income supplement as a fall-back option for everybody. "Allowing more flexibility in hiring and firing has to be combined, as part of a package deal, with a reasonable scheme of unemployment compensation from an earmarked fund, to which employers and employees should both regularly contribute." For far too long businesses in India, with some notable exceptions, have considered labour as a necessary but troublesome cog in the production machine, and the focus is to squeeze the maximum out of it with minimum pay and benefits while brandishing the threat of job insecurity. Organised labour, often under politicised partisan leadership from outside, has played that adversarial game. It is in the long-term interests of both sides to see at the ground level that labour-friendly practices can actually enhance long- term productivity and profitability. If cooperation can replace mutual suspicion and labour representatives can be trusted to participate in corporate governance as is the practice, say, in Germany and a few other European countries labour organisations can play a responsible role in achieving mutually beneficial goals. Taking the cover of the pandemic to unilaterally whittle down labour protections is going the opposite way, to distrust, and labour unrest.
Question: 1

The Government of Uttar Pradesh and many other state governments promulgatedOrdinances for Temporary Exemption from Certain Labour Laws that would suspend theoperation of all labour laws applicable to factories and manufacturing establishments in their respective state for a period of three years, with the exception of

Updated On: Jul 10, 2026
  • Bonded Labour System (Abolition) Act, 1976
  • Employees‘ Compensation Act, 1923,
  • The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
  • All the above
Show Solution

The Correct Option is D

Solution and Explanation

  1. (A): Correct in isolation, the Bonded Labour System Abolition Act was one of the statutes kept outside the suspension.
  2. (B): Also correct alone, the Employees' Compensation Act protecting injured workers was similarly exempted.
  3. (C): Equally correct alone, welfare protections for construction workers under the 1996 Act were retained.
  4. (D): Since the ordinance exempted all three statutes together rather than just one, this is the only option that reflects the full exemption list.

The correct answer, capturing every exempted law, is (D) All the above.

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Question: 2

On which of the following areas, Central Government is exclusively competent to enact legislations?

Updated On: Jul 10, 2026
  • Trade unions; industrial and labour disputes
  • Social security and social insurance; employment and unemployment
  • Welfare of labour including conditions of work, provident funds, employers‘ liability, workmen‘s compensation, invalidity and old age pensions and maternity benefits.
  • Regulation of labour and safety in mines and oilfields.
Show Solution

The Correct Option is D

Solution and Explanation

  1. (A): Trade unions and industrial disputes sit in the Concurrent List, so states can legislate here too, ruling out exclusivity.
  2. (B): Social security and employment matters are also Concurrent List subjects, again open to both Parliament and states.
  3. (C): Welfare of labour, provident funds and compensation are Concurrent List entries as well, not reserved solely for the Centre.
  4. (D): Mines and oilfields safety regulation sits in the Union List, making it the one subject only Parliament can legislate on.

The subject of exclusive central competence is (D) Regulation of labour and safety in mines and oilfields.

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Question: 3

Which of the following laws has been enacted to prevent exploitation of inter-state migrant workers and, to ensure fair and decent conditions of employment for them?

Updated On: Jul 10, 2026
  • The Inter-State Migrant Workmen Act, 1979
  • Contract Labour (Regulation and Abolition) Act, 197
  • Bonded Labour System (Abolition) Act, 1976
  • Migrant Workers (Protection) Act, 1979
Show Solution

The Correct Option is A

Solution and Explanation

  1. (A): This Act specifically regulates recruitment and employment of workmen who migrate across state lines, with registration, licensing and equal-wage safeguards built in, exactly matching the question.
  2. (B): The Contract Labour Act deals with contract labour broadly, not the inter-state migration angle specifically.
  3. (C): The Bonded Labour Act targets debt-bondage, a different problem entirely.
  4. (D): No such Act as the "Migrant Workers (Protection) Act, 1979" actually exists, this is not a real statute.

The statute enacted for this purpose is (A) The Inter-State Migrant Workmen Act, 1979.

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Question: 4

The Employees‘ State Insurance Act, 1948 protects the interest of workers in contingencies such as —
I. Sickness 
II. Maternity, 
III. Temporary or permanent physical disablement, 
IV. Death due to employment injury resulting in loss of wages or earning capacity. 
Select the correct answer from the codes given bellow:

Updated On: Jul 10, 2026
  • I only
  • II only
  • I, III and IV
  • I, II, III and IV
Show Solution

The Correct Option is D

Solution and Explanation

  1. (A): Sickness alone is too narrow, the Act's coverage is broader than this single contingency.
  2. (B): Maternity alone is likewise only a fragment of the full scheme of benefits.
  3. (C): Leaving out maternity is a gap, since maternity benefit is expressly part of the Act's coverage alongside disablement and employment-injury death.
  4. (D): The ESI Act protects against all four, sickness, maternity, disablement (temporary or permanent) and death from employment injury, through its integrated benefit scheme.

All four contingencies are covered, so the answer is (D) I, II, III and IV.

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Question: 5

As per the provisions contained in Chapter VB of the Industrial Dispute Act, 1947 establishment employing _____________ persons or more are required to seek prior permission of Appropriate Government before effecting lay-off, retrenchment and closure.

Updated On: Jul 10, 2026
  • 50
  • 100
  • 250
  • 500
Show Solution

The Correct Option is B

Solution and Explanation

  1. (A): Fifty is the figure relevant to ordinary lay-off compensation provisions, not the special Chapter VB permission requirement.
  2. (B): Chapter VB, Sections 25K to 25S, kicks in for establishments with one hundred or more workmen, making prior government permission mandatory before lay-off, retrenchment or closure.
  3. (C): Two-fifty is a figure some states adopted by amendment, not the Central Act's own baseline.
  4. (D): Five hundred does not correspond to the statutory threshold at all.

The threshold under Chapter VB is (B) 100 workmen.

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Question: 6

First come last go and last come first go‟ is the principle of:

Updated On: Jul 10, 2026
  • Lay-off
  • Closure
  • Retrenchment
  • Dismissal
Show Solution

The Correct Option is C

Solution and Explanation

  1. (A): Lay-off is a temporary, blanket suspension of work, not a seniority-based individual selection process.
  2. (B): Closure shuts the whole establishment down, so no seniority ordering among workers arises.
  3. (C): Section 25G of the Industrial Disputes Act codifies exactly this rule for retrenchment, the most recently hired worker in a category is let go first, absent any contrary agreement.
  4. (D): Dismissal turns on individual misconduct, not on a seniority formula.

The maxim describes (C) Retrenchment.

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Question: 7

Which of the following is an illegal industrial action as per law?

Updated On: Jul 10, 2026
  • Mutual Insurance
  • Collective Bargaining
  • Lock out
  • Gherao
Show Solution

The Correct Option is D

Solution and Explanation

  1. (A): Mutual insurance is a lawful cooperative arrangement, not coercive in nature.
  2. (B): Collective bargaining is expressly encouraged by industrial law, the opposite of illegal.
  3. (C): Lock-out is a regulated but lawful weapon available to employers within the statutory scheme.
  4. (D): Gherao involves physically confining people to force compliance, which courts treat as wrongful restraint and therefore illegal.

The illegal industrial action is (D) Gherao.

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Question: 8

Choose the correct objective of the Industrial Disputes Act, 1947.

Updated On: Jul 10, 2026
  • To prevent illegal strikes
  • To promote measures for securing and preserving good relations between the employers and the employees
  • To provide relief to workmen in matters of lay - off,retrenchment, wrongful dismissals
  • All of the above
Show Solution

The Correct Option is D

Solution and Explanation

  1. (A): Preventing illegal strikes is a real objective but only one piece of the Act's purpose.
  2. (B): Promoting good employer-employee relations is genuine too, but again only part of the design.
  3. (C): Providing relief in lay-off, retrenchment and wrongful dismissal is likewise a true but partial objective.
  4. (D): The Act's Preamble and scheme combine all three aims together as one integrated purpose.

Since all three stated objectives are correct together, the answer is (D) All of the above.

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Question: 9

Contract Labour (Regulation and Abolition) Act, 1970 applies to every establishment/ contractor in which ____________ workmen are employed or were employed on any day ofthe preceding twelve months as contract labour.

Updated On: Jul 10, 2026
  • Ten or more
  • Fifteen
  • Twenty or more
  • Twenty-five or more
Show Solution

The Correct Option is C

Solution and Explanation

  1. (A): Ten does not match the Act's stated threshold.
  2. (B): Fifteen is not the figure used in Section 1(4) either.
  3. (C): Section 1(4) fixes the threshold at twenty or more contract workmen employed on any day in the preceding twelve months, for both establishments and contractors.
  4. (D): Twenty-five overshoots the actual statutory number.

The applicability threshold is (C) Twenty or more.

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Question: 10

The Contract Labour (Regulation and Abolition) Act, 1970 shall not apply to establishments in which work is of:

Updated On: Jul 10, 2026
  • An intermittent or casual nature
  • In nature of Permanent work
  • Both (a) and b)
  • None of the above.
Show Solution

The Correct Option is A

Solution and Explanation

  1. (A): Section 1(5) carves out exactly this category, work that is intermittent or casual falls outside the Act's application.
  2. (B): Permanent-nature work is not excluded, it is the kind of engagement the Act is meant to regulate.
  3. (C): Since permanent work is not excluded, a combined exclusion of both types cannot be right.
  4. (D): Since one category, intermittent or casual work, clearly is excluded, saying none applies is wrong.

The excluded category is (A) An intermittent or casual nature.

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