Important Questions with Short Answer Labour Legislation In India (Labour Law)

Labour Legislation In India (Labour Law): Short Answer Type Questions and their Answer

Answer the Following Quesions;

(i)                  Who is an employer? Discuss under Workmen’s Compensation Act, 1923.

(ii)                Explain the term ‘Seaman’.

(iii)               Define the term ‘Miscarriage’.

(iv)              What is meant by sickness benefits?

(v)                Explain the term ‘Appropriate Government’ as discussed in Gratuity Act.

(vi)              State the main object of Payment of Gratuity Act.

(vii)             Write short note on Pension Fund.

(viii)           Write short note on ‘State Board’ as understood in Employees Provident Fund, 1952.

(ix)              What do you mean by minimum bonus?

(x)                Define the term ‘Available Surplus’ as per Payment of Bonus Act, 1965.

Suggested Answer

i)            Question: Who is an employer? Discuss under Workmen’s Compensation Act, 1923.

            Ans :   “Employer” includes anybody of persons whether incorporated or not and any managing agent of an employer and the legal representative of a deceased employer, and, when the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, means such other person while the workman is working for him;

            ii) Question:  Explain the term ‘Seaman’.                 

                   Ans:  "Seaman" means any person forming part of the crew of any ship, but does not include the master of the ship;

            iii)  Question:    Define the term ‘Miscarriage’.              

                      Ans: "Miscarriage" means the expulsion of the contents of a pregnant uterus at any period prior to or during the twenty-sixth week of pregnancy but does not include any miscarriage, the cause of which is punishable under the Indian Penal Code. 

            iv) Question: What is meant by sickness benefits?

                     Ans: Sickness Benefit(SB) : Sickness Benefit in the form of cash compensation at the rate of 70 per cent of wages is payable to insured workers during the periods of certified sickness for a maximum of 91 days in a year.  In order to qualify for sickness benefit the insured worker is required to contribute for 78 days in a contribution period of 6 months

v)               Question: Explain the term ‘Appropriate Government’ as discussed in Gratuity Act.

                 Ans: Appropriate Government under this Act means

             (i) In relations to an establishment :
(a) belonging to, or under the control of the Central Governments,
(b) having branches in more then one State,
(c) of a factory belonging to, or under the control of the Central Government,
(d) of a major port, mine, oilfield or railway company, the Central Government
(ii) any others case, the State Government [Section 2(a)]

vi)          Ques:  State the main object of Payment of Gratuity Act.   

                        The objects of the Payment of Gratuity Act, 1972 are mentioned below-
i) To provide for a Scheme for the payment of Gratuity to employees.
ii) To provide for matters connected with or incidental to the Scheme for payment of Gratuity.
iii) To provide retiring benefits to employees who have rendered continuous services to his employer and thereby contributed to his prosperity.
iv) To define the principles of payment of gratuity according to the prescribed formula.
v) To provide machinery for the employment of liability for payment of gratuity.

vii)          Question:Write short note on Pension Fund.

                           Ans: Pension Fund is a fund from which pensions are paid, accumulated from contributions from employers, employees, or both.

In the event of  the premature death of the employees the accumulation in the Provident Fund were too meager to the family of the deceased .Thus another social security benefit of providing Family Pension through the Employees' Family Pension Fund  Scheme , 1971 was introduced by amending the Act . At this stage , the Act was renamed as "The Employees' Provident Fund & Family Pension Act , 1952" and the Employees' Family Pension Scheme came into force on 1-3-1971.

viii)       Question: Write short note on ‘State Board’ as understood in Employees Provident Fund, 1952.

             Ans: State Board: According to Section 5-B of the Act The Central Government may, by a notification in the Official Gazette, constituent a State Board of Trustees for any state after consultation with the Government of that state in such manner as may be provided in the scheme. It shall exercise powers and perform such duties as the Central Government may assign to it from time to time.

ix)               Question: What do you mean by minimum bonus?

             Ans: Minimum bonus - Every employer shall be bound to pay to every employee in respect of any accounting year, a minimum bonus which shall be 8.33 per cent of the salary or wage earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year. Where an employee has not completed fifteen years of age at the beginning of the accounting year, the minimum bonus payable is 8.33% or Rs 60 whichever is higher. [Section 10].

x)               Question: Define the term ‘Available Surplus’ as per Payment of Bonus Act, 1965.

                 Ans: “Available surplus”.

The available surplus in respect of any accounting year shall be the gross profits for that year after deducting there from the sums referred to in section 6:

 Bonus payable under the Act is linked with profits. The employer has to calculate “gross profits” of his establishment in the manner specified in section 4. Then, from “gross profits” so calculated he has to deduct the sums referred to in section 6 as prior charges. The balance is called “available surplus”.