L2 unit 1-6

Question 1

Hindustan Steel Works Construction Ltd. v. Commissioner of Labour, (1996) 10 SCC 599

Answer 1

The appellant would, however, be liable under Section 21(4) to pay to the workers any difference between the wages contracted for under its agreement with the 4th respondent-contractor and the lesser wages actually paid by the con-tractor to contract labour, and recover the same from the contractor,

Question 2

define wage

Answer 2

Wages means all remuneration whether by way of salaries, allowances / otherwise,
expressed in terms of money or capable of being so expressed which would, if the terms of
employment, express or implied, were fulfilled, be payable to a person employed in respect
of
his employment / of work done in such employment, and

Includes -

 basic pay;

 dearness allowance; and

 retaining allowance, if any,

but does not include –

 Bonus payable which does not form part of remuneration under the terms of employment
 Value of any house accommodation, any service which is excluded from the computation of wages by general / special order of appropriate Govt.
 Contribution paid by the Employer for any pension / provident fund and interest accrued
 any conveyance allowance or the value of any travelling concession*
 any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment
 house rent allowance*
any overtime allowance

Question 3

worker define

Answer 3

Worker means any person (except an apprentice) employed in any industry to do any
manual, unskilled, skilled, technical, operational, clerical or supervisory work for
hire
or reward, whether the terms of employment be express or implied, and
includes—

 working journalists and

 sales promotion employees and for the purposes of any proceeding under this Code in
relation to an industrial dispute, includes any such person who has been dismissed,
discharged / retrenched / otherwise terminated in connection with, or as a
consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to
that dispute,

but does not include any such person––

 who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act,
1957 or

 who is employed in the police service or as an officer or other employee of a prison or

 who is employed mainly in a managerial or administrative capacity or

 who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand
rupees per month or an amount as may be notified by the Central Government

Question 4

Rajendra Deva v. Hari Fertilizers

Answer 4

The question raised before this Court was whether minimum bonus payable under section 10 of the Payment of Bonus Act, 1965 falls within the ambit of the expression wages as defined in section 2(vi) of the Payment of Wages Act, 1936. and it does NOT fall uder wages.

Question 5

section 5 and 6

Answer 5

s.5- employer shall not pay less than minimum wage notified by govt
s.6=
The government (either state or central, depending on jurisdiction) is responsible for setting the minimum wage for workers.
The wages must be fixed according to the process mentioned in Section 8.
Minimum wages can be set for:
1. Time work (based on hours worked)
2. Piece work (based on output produced)
If workers are paid per piece of work, the government must ensure they still earn at least the minimum wage on a time-work basis.
Minimum wages can be set by the hour, day, or month.
While deciding minimum wages, the government considers:
1. Skill level (unskilled, semi-skilled, skilled, highly skilled)
2. Geographical location
3. Work conditions (such as extreme temperatures, hazardous work, underground work, etc.)
4. Cost of living allowance -adjusted for inflation

Question 6

Section 7 and Section 8
Process for Fixing or Revising Minimum Wages**

Answer 6

s7= The government can structure minimum wages in three ways:
1. Basic wage + cost of living allowance (adjusted based on inflation)
2. Basic wage + cost of living allowance + benefits (like subsidized essential items)
3. A single, all-inclusive wage covering everything

Section 8 – Process for Fixing or Revising Minimum Wages
To fix or change minimum wages, the government can either:
1. Form committees to investigate and give recommendations, or
2. Publish a proposal for public feedback before finalizing wages.

If a committee is formed, it must include:
Employers’ representatives Workers’ representatives (equal to employer reps)
Independent members (not more than one-third of the committee)

Once announced, new wages usually become effective after three months, unless stated otherwise.
Minimum wages must be reviewed/revised at least once every five years.

Question 7

section 9 and 10
**Section 10 – Wages for Shorter Work Hours*

Answer 7

Section 9 – Floor Wage
The Central Government sets a floor wage based on the minimum living standards of workers.
Different floor wages can be set for different regions.
State governments cannot set minimum wages lower than the floor wage. If their existing wages are higher, they cannot reduce them.

Before setting the floor wage, the Central Government may consult the Central Advisory Board and State Governments.

Section 10 – Wages for Shorter Work Hours
If a daily-wage worker works for less than the required hours in a day, they are still entitled to full-day wages.

Exception: If the worker chooses not to work (not due to lack of work from the employer), they won’t get full wages.

Question 8

section 11, 12

Answer 8

11. if an employee works 2 or more classes of work they will be paid for their time wrt to the different minimum rate for each class and not less.
12. Minimum time rate wages for piece work as fixed

Question 9

Fixing hours
of work for
normal
working day

Answer 9

s13- min rate of wages is fixed - the AG
1. fixes the no. of hours of work for one normal working day
2. provide for a day of rest period in 7 years and the remueration for the day of rest
3. payment for work on a day of rest is not less than overtime rate

Exceptions apply to:

1. Emergency workers.
2. Jobs requiring prep work outside normal hours.
3. Intermittent jobs with inactive periods.
4. Tasks that must be finished before a shift ends.
5. Work dependent on natural forces (e.g., tides, weather).

Question 10

State of Gujarat v. Gordhanbhai Rambhai,

Answer 10

State of Gujarat v. Gordhanbhai Rambhai, 1980 (1) SCC 713
The Supreme Court held that the fixation of minimum wages must consider various factors such as the skill of workers, the nature of work, and the geographical area.

Question 11

State of Andhra Pradesh v. S. Venkata Reddy, 1983 (2) SCC 250

Answer 11

tate of Andhra Pradesh v. S. Venkata Reddy, 1983 (2) SCC 250
The court ruled that the fixation of minimum wages should be done transparently and objectively, ensuring that workers are not exploited.

Question 12

NTPC Limited v. Larsen and Toubro Limited (Supreme Court of India, 5 January 2024)

Answer 12

The court ruled that incorporating performance and attendance bonuses in NTPC’s minimum wages computation violated the Act’s purpose of providing a minimum base wage.
The court argued that these bonuses should be paid alongside the minimum wage, ensuring workers receive a guaranteed minimum income.
The Supreme Court deemed bonuses deductible from the statutory minimum wage, safeguarding workers’ rights to a basic wage.

Question 13

Lakhbir Singh vs Gaurav Kaushik and Ors (Delhi High Court, 30 January 2017)

Answer 13

The Delhi High Court ruled that the state government’s revised minimum wages lacked procedural compliance, invalidating the new rates due to insufficient stakeholder input and the Advisory Board’s insufficient consultation.

Question 14

Manipal Academy of Higher Education v. PF Commissioner [(2008) 5 SCC 428]

Answer 14

The Supreme Court ruled that the Central Government’s power to set a floor wage is essential for worker welfare, but should be exercised proportionally, especially in private educational institutions.
The court emphasized the need for a balance between labor standards and institutional autonomy.

Question 15

Smt Darshan Devi vs Authority Under Minimum Wages Ors on 23 January, 2023 - Rajasthan High Court.

Answer 15

Smt Darshan Devi vs Authority Under Minimum Wages Ors on 23 January, 2023 - Rajasthan High Court.
The Rajasthan High Court ruled that employers cannot reduce minimum wages for partial hours worked unless worker actions or preferences were proven, emphasizing worker welfare over technical reductions.

Question 16

1. M/s Surya Roshni Ltd. V. Employees Provident Fund Organization (2021)
   SCC Online SC 639 (India)

Answer 16

The potential use of the exclusions specified in the Wage Code 2019 to
intentionally diminish the wage component in order to evade statutory benefits.
 The Wage Code 2019 delineates the term “wages” and enumerates certain
exceptions. These exclusions must not be used to diminish the wage component
below the level required to ensure statutory benefits.

13 | P a g e
 The court evaluated whether M/s Surya Roshni Ltd. was using the exclusions to
artificially reduce the pay component.
 The court determined that the firm was certainly aiming to diminish the wage
component to evade greater provident fund obligations.
 The court determined that the exclusions in the Wage Code 2019 must not be
used to artificially diminish the wage component.
 Employers must guarantee that the pay component is enough to afford mandated
benefits.

Question 17

sec 15,16

Answer 17

15. 5. All wages shall be paid in current coin or currency notes or by cheque or by
       crediting the wages in the bank account of the employee or by the electronic mode
16. The employer shall fix the wage period for employees either as daily or weekly or
    fortnightly or monthly subject to the condition that no wage period in respect of any employee shall be more than a month:

Question 18

section 17.- time limit

Answer 18

Time limit for
payment of
wages.
1. daily basis at the end of the shift
2. weekly basis last day of the week
3. fortnightly basis, before the end of the second day after the end of the
fortnight;
4. monthly basis- before the expiry of the 7th of the next months

If the employee has been retrenched, removed, dismissed, resigned or become unemployed due to closure of the establishment= wages to be paid within 2 days.

Question 19

sec 18.

Answer 19

Section 18 – Deductions from Wages

1. Employers can only deduct wages for specific reasons allowed by law.
2. Permissible deductions include:
   
   • Fines
   • Absence from duty
   • Damage or loss caused by the employee
   • House accommodation, loans, or advances provided by the employer
   • Taxes or other statutory payments
3. Total deductions cannot exceed 50% of the employee’s wages.
4. If deductions exceed 50%, the excess can be carried forward to the next wage period.

This section ensures that wage deductions are fair and regulated.

Question 20

section 19- fines

Answer 20

no fine shall be imposed on any employee for acts or omissions
1. A NOTICE specifying such acts
2. no fine shall be imposed without employee getting opportunity to show cause in accordance with procedure
3. total amt of fine for one wage period cannot exceed 3% of wages payable to him in that wage period
4. no fine to be imposed on employee under AGE 15
5. fines are not to be recovered in installments or after expiry of 90 day period
6. fines accrue from the day the act or omission occured
7. All fines and all realisations thereof shall be recorded in a register to be kept in such manner and form as may be prescribed

Question 21

section 20-22

Answer 21

Section 20 – Deductions for Absence from Duty
- If a worker is absent without leave, the employer can deduct wages for the period of absence.
- The deduction should be proportional to the period of absence. further if the employee is present but in pursuance of a stay-in strike- deductions will occur

Section 21 – Deductions for Damage or Loss
- If a worker causes damage or loss to the employer’s property due to negligence or a willful act, wages can be deducted.
- However, the worker must be given a opportunity to show cause before the deduction is made.

Section 22 – Deductions for Services Given by Employer
- Employers can deduct wages for house accommodation, amenities, or services provided to the worker.
- However, the deduction should be reasonable and not excessive.

Question 22

section 23-25

Answer 22

Section 23 and 24– Deductions for Recovery of Advances and Loans
- If a worker has taken an advance payment or loan, the employer can recover it through wage deductions.
- But the deductions must not exceed the limits set by the government.

Section 25 –provisions of this chapter do not apply to govt establishments unless the AG releases a notification

Question 23

section 26- bonus

Answer 23

1. Minimum Bonus 26(1)
   Who is eligible? Employees earning up to a specified amount per month (set by the government).
   Work requirement: Must have worked at least 30 days in the accounting year.
   Bonus amount:8.33% of wages or ₹100, whichever is higher.
   Even if the employer has no profit, the minimum bonus must be paid.

26(2)
Bonus Calculation for Higher Earners
if an employee earns more than the specified amount, the bonus is calculated as if their wage were the government-determined amount or minimum wage, whichever is higher

26(3)Bonus in Case of Profits
If the employer has extra allocable surplus, the bonus must be increased in proportion to wages.Maximum bonus = 20% of wages.

• allocable bonus is calculated after adjusting for previous years set off amounts

Bonus Above the Minimum
If employees demand extra bonus based on productivity, it must be settled through an agreement.
Total bonus cannot exceed 20% of wages.

Bonus for New Establishments (Sub-sections 6-8)- this also applies to new departments or undertakings or branches of existing establishments
First 5 years: Bonus only if the company makes a profit in that year.
6th & 7th years: Set-on/set-off is applied using past years’ data.
8th year onwards: Regular bonus rules apply like any other business.

Question 24

PROPORTIONATE REDUCTION IN BONUS IN CERTAIN CASES

Answer 24

if an employee has not worked for the whole of the working days
that comprise an accounting year, the minimum bonus will be reduced proportionately if it
exceeds 8.33% of the salary or wage received by the employee during the days that they have
worked in that accounting year.
This provision applies only if the employee has worked for at least some of the working days
that comprise the accounting year.

Question 25

SECTION 28 COMPUTATION OF NUMBER OF WORKING DAYS

Answer 25

employee shall be BE DEEMED to have WORKED if: 1. (a) he has been laid off under an agreement or under any law applicable to the establishment such as the industrial disputes act 2. has been on leave with salary or wafge 3. has been absent due to temporary disablemnt caused by accident arising from course of of employment 4. employee on maternity leave with salary or wages

Question 26

SECTION 29 DISQUALIFICATION FOR BONUS

Answer 26

**, the employee is ineligible to receive a bonus in accordance with the provisions of this Code:** 1. Engaging in fraudulent activities; 2. Participating in riotous or violent behaviour while on the premises of the establishment; 3. Committing theft, misappropriation, or sabotage of any property belonging to the establishment; 4. Being convicted of sexual harassment. (The information in question was not presented in the previous act).

Question 27

SECTION 31 PAYMENT OF BONUS OUT OF ALLOCABLE SURPLUS

Answer 27

The allocable surplus will be used as the funding source for the bonus, which will be distributed at a **rate of 60% for banking firms and 67% for other establishments, according to the amount** of surplus that is available. In situations in which there is a disagreement over the amount of a bonus, the appropriate government body that has jurisdiction is allowed to request that the employer produce the balance sheet for inspection.

Question 28

People's Union for Democratic Rights v. Union of India [AIR 1982 SC 1473]

Answer 28

The Supreme Court ruled that workers in Delhi factories and construction must be compensated for overtime work, under the Factories and Minimum Wages Acts, ensuring fair wages for extra hours.

Question 29

Sanjit Roy v Union of India [AIR 1983 SC 328]

Answer 29

The Supreme Court ruled that workers' right to fair compensation, regardless of employment type or conditions, applies to famine relief workers, even if they work on a relief basis, and maintains standard working hours.

Question 30

SECTION 32- 33

Answer 30

**Simplified and Concise Version:** **Gross Profits Calculation (Section 32):** - **For banking companies**, profits are calculated as per **rules set by the Central Government**. - **For other businesses**, profits are also calculated as per **Central Government regulations**. **Deductions from Gross Profits (Section 34):** Before finalizing profits, the following deductions apply: 1. **Depreciation** as per **Section 32(1) of the Income-tax Act** or applicable **agricultural income tax laws**. 2. **Direct taxes** payable by the employer for that year (**subject to Section 35**). 3. **Other deductions** as prescribed by the **Central Government**. **Direct Tax Calculation (Section 35):** 1. **No consideration** for: - Past losses carried forward. - Arrears of depreciation added to future allowances under **Section 32(2) of the Income-tax Act**. 2. **For religious/charitable institutions** (where **Section 41** doesn’t apply), exempted income is taxed as if the entity were a **publicly held company**. 3. **For individuals or Hindu Undivided Families (HUFs)**, tax is calculated **only on establishment income**. 4. **For export businesses**, tax rebates on export income are **excluded** from calculations. 5. **No account** for rebates/allowances except: - **Development rebate** - **Investment allowance** - **Development allowance** - Any other relief/deduction for **industry development** under tax laws. This keeps all the technical details intact while making it more readable! 🚀

Question 31

set on set off of bonus

Answer 31

1. Excess Surplus (Set-On) o If the allocable surplus **exceeds 20% of wages**, the extra amount is **carried forward for up to 4 years.** 2. Shortfall (Set-Off) o If the allocable surplus is less than the required bonus, **the deficit can be carried forward for 4 years**. 3. Order of Adjustment o **Oldest carried-forward amounts are adjusted first**.

Question 32

adjustment and deduction from bonus

Answer 32

**Adjustment of customary or interim bonus against bonus payable under this Code** If an employer **has already paid an employee** a “puja bonus” or **some other type of customary bonus before the designated payment date** or if they have already paid some or all of the bonus, employer **can deduct the amount** and may **pay the remainingbonus** owed to the employee for the **accounting year** **Deduction of certain amounts from bonus payable.** In the event that an employee is found to have **engaged in misconduct** during an accounting year. it is permitted for the employer to **deduct the corresponding loss** amount from the **bonus that would have been payable** to the employee in accordance with this Code **solely for that particular accounting year**

Question 33

Time limit for payment of bonus.

Answer 33

- NO LATER than **8 months** following close of financial year. this may be extended by order, **upon the employer's application and for legitimate reasons,** and the lenght of extension can be determined by the authority however the aggregate lenght of time **NOT MORE THAN 2 years** - be paid out within one month of the date on which the award becomes enforceable or the settlement takes effect ANy award regarding bonus- **PAID Within 1 month from date of award** if there is a **DISPUTE** for *better rate* the employer is required to compensate at rate **of 8.33% of earned wages and this payment has to be paid within 4 and 8 months following end of fiscal year**

Question 34

applicability and non applicibility of bonuses chapter

Answer 34

if a public sector establishment participates in the sale of goods/service in direct competition with a private sector establishment furing any accounting year and income generated from such activities accounts for atleast 20% of the establishments gross income for the year - then the regulations will be applicable to the public sector establishment -

Question 35

Advisory Boards (Section 42) central

Answer 35

The Central Government must form a Central Advisory Board to advise on wage related matters.  The Board consists of: **(a) Employers' representatives (b) Employees' representatives (equal in number to employer representatives) (c) Independent members (up to one-third of the total members) (d) Five State Government representatives (nominated by the Central Government) **  Women Representation: o **At least one-third of the Board members must be women. ** o The **Chairperson is chosen from the independent members by the Central Governmen**t.  Functions of the Central Advisory Board: (a)**Fixing or revising minimum wages** and other related issues. (b) Promoting **employment opportunities for women**. (c) Determining the **extent of female employment in specific industries**. (d) Any other wage-related issues as decided by the Central Government.  Government Action Based on Board’s Advice: o The Central Government may issue directives to State Governments based on the Board's recommendations.

Question 36

Muir Mills Co., Ltd vs Suti Mills Mazdoor Union, Kanpur

Answer 36

The Labour Appellate Tribunal considered whether workers**may get bonuses even if the company has not declared dividends or accumulated revenues in reserves.** Concerned about difficulties and corporations' potential to avoid incentive duties by not reporting dividends, the Tribunal rejected the idea of linking bonus remunerations to dividends. **Since an industrial enterprise's workforce fluctuates over time**, the **tribunal ruled that workers from a specific year cannot get a bonus based on profits from prior years**. The fiscal year in which profits were made determined the employee's bonus, and requests for pay from reserves from previous years would result in a duplicate bonus on the same earnings. **HOWEVER, The Supreme Court reversed the Tribunal's verdict and upheld the Industrial Court's, restoring the earlier verdict. Employees are entitled to a bonus based on their annual wages, and the Court stressed that social justice should not trump legal norms. **

Question 37

Responsibility for Payment of Various Dues - payment in case of death

Answer 37

1. Obligation to Pay Wages and Dues: o Every employer is responsible for paying all amounts required under this Code to every employee employed by them. **2. Liability in Case of Non-Payment: ** o If the employer fails to pay the required amount, **the following persons will be held responsible** for payment: (a) **The company, firm, association, or any other proprietor of the establishment.** 3. Explanation: o The term "firm" has the same meaning as assigned under the Indian Partnership Act, 1932. **Section 44 – Payment of Undisbursed Dues in Case of Death of an ** Employee 1. **If an Employee Dies Before Receiving Dues: ** o The employer must pay the due amount to: **(a) The nominated person (if the employee made a nomination as per government rules). (b) If no nomination exists or payment is not possible**, the **amount must be deposited with the prescribed authority**. 2. **Employer's Liability Ends Upon Payment:** o Once the employer has paid the due amount as per the above provisions, they are no longer liable for any further payment.

Question 38

Section 45 – Claims Under the Code and Procedure Thereof

Answer 38

1. Authority to Handle Claims: o The **Government shall appoint an authority (not below the rank of a Gazetted Officer**) to hear and resolve claims. 2. Power to Award Compensation: o The **authority can order compensation up to 10 times the claim amount,** depending on the circumstances. o The claim **should be resolved within three months.** 3. Recovery of Dues in Case of Non-Payment: o If the **employer does not pay the claim amount** and compensation, the authority will** issue a certificate of recovery to the Collector/District Magistrate, who will recover it as arrears of land revenue**. 4. Who Can File a Claim? o **(a) The employee. o (b) A registered trade union of which the employee is a member. o (c) The Inspector-cum-Facilitator. 5. Multiple Claims Allowed in One Application:** o Employees of the same establishment can file a single application for multiple claims. Time Limit to File a Claim-** within 3 years**, extension can be granted on valid grounds **Authority’s Legal Powers: o The authority and appellate authority under Section 49 have civil court powers** **Section 49 – Appeal 1. Right to Appeal:** o Any person aggrieved by an order under Section 45(2) may appeal within 90 days to the appellate authority (appointed by the government). 2. Extension of Appeal Period: o The appellate authority may allow a delayed appeal if a valid reason is provided Time Limit for Disposal of Appeal: o **The appeal should ideally be decided within 3 months.**

Question 39

Section 47 – Presumption About Accuracy of Balance Sheet and Profit and Loss Account

Answer 39

Presumption of Accuracy: o If a company’s balance sheet and profit & loss **account are audited by the Comptroller and Auditor General of India or a certified auditor, the statements are presumed to be accurate.** o The company **does not need to file affidavits or prove accuracy unless contested**. 3. Exception to Presumption: o If the authority/**Tribunal finds inaccuracy** in the financial statements, they may **take necessary steps to verify their correctness**. Trade Union’s Right to Seek Clarifications: o If employees or a trade union demand clarification on an audited financial statement, the authority may direct the company to provide details.

Question 40

Inspector cum facilitator

Answer 40

**Inspector-Cum-Facilitator in the Code of Wages, 2019** **Appointment (Section 51)** - Appointed by the **Central or State Government** to enforce compliance. **Powers & Duties (Section 52)** - **Inspect & Examine:** Can enter workplaces, review wage records, and question employees. - **Facilitate Compliance:** Guides employers on legal requirements instead of strict penalties. - **Report Violations:** Identifies non-compliance but focuses on **advisory over punitive** actions. - **Digital Oversight:** Encourages online compliance for transparency. 🔹 **Key Feature:** Shifts from punishment to **compliance facilitation**, ensuring fair wages and smooth labor law adherence.

Question 41

duty to maintain records

Answer 41

Employer’s Duty to Maintain Records: o Employers must keep a register with details of:  (a) **Employees employed.  (b) Muster roll.  (c) Wages paid.  (d) Any other prescribed details. 2. Display of Notices: ** o Employers must put up a notice displaying:  (a) **Abstract of this Code.  (b) Wage rates, periods, and payment dates.  (c) Inspector-cum-Facilitator details.**

Question 42

Section 51 – Appointment of Inspector-Cum-Facilitators and Their Powers

Answer 42

The Government will appoint Inspector-cum-Facilitators. 2. Duties and Powers: o (a) Inspect establishments based on government inspection schemes. o (b) Advise employers and workers on compliance. o (c) Report violations and enforce the law.

Question 43

Section 52 – Cognizance of Offences

Answer 43

1. Who Can File a Complaint? o No court can take up an offence under this Code unless: **(a) The complaint is made by or under the authority of the appropriate Government. (b) The complaint is made by an employee or a registered Trade Union. (c) The complaint is made by an Inspector-cum-Facilitator.** 2. Which Court Can Try Offences? o **Only a Metropolitan Magistrate or a Judicial Magistrate of the first class can try cases under this Code.**

Question 44

Section 54 – Penalties for Offences

Answer 44

Penalties for Different Offences: o If an **employer pays less than the due wages, they shall be fined up to ₹50,000.** o If the employer** commits the same offence again within five years**, they may face:  **Imprisonment up to 3 months, or  Fine up to ₹1,00,000, or both**. o If an employer **violates other provisions of the Code**, they may be **fined up to ₹20,000**. o If the employer **repeats** the same offence **within five years**, they may face: ** Imprisonment up to 1 month, or  Fine up to ₹40,000, or both.** o If the employer **fails to maintain records properly**, they may be fined up to **₹10,000.** 2. Opportunity to Rectify Before Prosecution: o Before **prosecuting an employer for record-keeping violations**, the Inspector-cum-Facilitator **must issue a written direction. ** o If the employer **complies** within the time given, **no legal action will be taken.** o If the employer **repeats the same** violation within **five years, prosecution will be initiated immediately**.

Question 45

Section 55 – Offences by Companies

Answer 45

Who is Responsible in a Company? (a) The company itself. (b) Every person in charge of business operations. EXCEPT IF: if they prove:  The offence happened without their knowledge.  They took all reasonable steps to prevent the offence. Offences Due to Negligence or Consent: o If an offence happens due to the consent, negligence, or connivance of a company officer (like a director or manager), that officer shall also be held guilty.

Question 46

Section 56 – Composition of Offences

Answer 46

Some offences can be settled (compounded) **by paying a fine of 50% of the maximum fine amount.** o A Gazetted Officer appointed by the Government will handle compounding applications. Restrictions on Compounding: o Offences **punishable with imprisonment only cannot be compounded**. o If a person has **committed the same offence within five years**, they **cannot compound the offence again.** Procedure: o If the **offence is compounded before prosecution, no case is filed.** o If the offence is **compounded after prosecution, the court will be informed**, and the **person will be discharged**. o If a person **fails to comply with the compounding order**, they will have to pay an **additional fine of 20% of the maximum fine.**

Question 47

burden of proof, employee rights,

Answer 47

Employer Must Prove Compliance: o If an **employee files a claim for unpaid wages, the burden of proof lies on the employer** to show that payment was made. **No Agreement Can Reduce Employee Rights** **Employer Not Liable in Certain Cases**: o If an employer proves that they **took all due diligence to prevent an offence** and **another person committed the violation, that person shall be held responsible** instead of the employer. **Employer’s Assets Cannot Be Seized in Certain Cases**: o The Government may protect an employer’s property from attachment (seizure) in specific situations.

Question 48

Hindustan Unilever Ltd. v. Union of India,

Answer 48

Issue - Could a **company's controlling director be held accountable under Section 54 for failing to pay wages?**  Rule - If an offense is committed **with the permission or carelessness of those in authority, Section 54 holds them accountable.**  Analysis - The **managing director must be held responsible**, the court ruled, finding that **their inaction contributed to the non-payment of wages.**  Conclusion - In conclusion, this case emphasizes the corporate accountability element of the Code, reaffirming that management carelessness is a crime.

Question 49

Maniben Maganbhai Bhariya vs District Development Officer Civil Appeal

Answer 49

Maniben Maganbhai Bhariya vs District Development Officer Civil Appeal No(S). 3153 of 2022 The Indian Supreme Court has ruled that temporary workers, even if not regularized, are entitled to benefits like permanent employees, based on the Industrial Disputes Act, 1947, and the Indian Constitution's Articles 14 and 16. The ruling confirms that labour laws apply equality principles to all workers, regardless of employment status, and emphasizes the protective nature of labour laws.

Question 50

Perumalla Madhusudhan Rao vs The Ap Transco

Answer 50

, on 26 February, 2021 The Court ruled that long-term contract workers are entitled to equal treatment under labour laws, highlighting the importance of these laws in protecting workers from unfair employment practices. The Industrial Disputes Act, 1947 and the Contract Labour (Regulation and Abolition) Act, 1970 were examined, ensuring fair working conditions and protecting workers' rights.

Question 51

Employees Provident Fund Organization vs M.S. Raven Beck Solutions (India) Ltd on 15 October, 2020- Kerala High Court

Answer 51

Employees Provident Fund Organization vs M.S. Raven Beck Solutions (India) Ltd on 15 October, 2020- Kerala High Court The Kerala High Court has ruled that contract workers are entitled to provident fund benefits under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. ▪ **The Act mandates provident fund contributions for workers across various sectors, regardless of their employment classification.** 3 ▪ The court emphasized that the primary **objective of labour regulations is to safeguard all workers, including those in contract employment, from financial precariousness.**

Question 52

Smt. Darshan Devi vs Authority Under Minimum Wages Act & Ors. (Rajasthan High Court, 23 January 2023)

Answer 52

High Court has declared that **categorization of workers as "casual" or "temporary" does not exempt employers from the statutory obligation to remunerate them at the minimum wage rate**. The court deemed employers' attempts to exploit this classification as a strategy to evade minimum wage requirements as an unfair labour practice. The ruling established that all workers are on equal footing and entitled to minimum wages.

Question 53

R. Gandhi vs The Union of India (Madras High Court, 26 February 2020)

Answer 53

▪ The Madras High Court has** ruled that government departments are responsible for contractors' short-changing workers and not paying minimum wages, violating labour rights and promoting inequality.** ▪ The court emphasized the need for strict regulatory checks and penalties for contractors convicted of wage violations.

Question 54

he State of West Bengal Represented ... vs Rajpath Contractors And Engineers Ltd on 8 July, 2024.

Answer 54

T The West Bengal High Court ruled in favor of employees, affirming their entitlement to the full minimum wage despite shortened workdays, stating that reduced hours were not at their discretion.

Question 55

Radhakrishan Jaikishan Ginning and Pressing Factory v Jamnadas Nursery Ginning and Pressing Co. Ltd. AIR 1940, Nagpur 228.

Answer 55

The court ruled that a company's unusual payment method violated statutory pay payment guidelines, highlighting the need for companies to adhere strictly to these guidelines for worker protection and preventing exploitation.

Question 56

Gujarat Mazdoor Sabha v. State of Gujarat, AIR 2020 SC 4601

Answer 56

The Supreme Court declared an ordinance granting companies longer time to pay salaries unconstitutional, stating that legislative guarantees on prompt pay are essential for workers' livelihoods and financial stability.

Question 57

United India Insurance Co. Ltd. v. Satinder Kaur @ Satwinder Kaur and Ors., ., No. 1234/2020 (India, decided June 30, 2020).

Answer 57

The court ruled that deductions from employee earnings for damage or loss caused by United India Insurance Co. LTD. were unwarranted due to insufficient proof of deliberate negligence or misbehaviour.

Question 58

Workmen of H.M.T and Another v. Presiding Officer, National Tribunal, Calcutta and Others, A.I.R. 1967 S.C. 2283 (India).

Answer 58

The court ruled that HMT** could proportionately lower the bonus paid to its workforce, despite meeting eligibility criteria** under the Payment of Bonus Act, 1965. The company's profitability determines the bonus amount, **but it can be reduced in certain circumstances, such as financial difficulties.** The court considered the company's profitability, financial situation, and legal justification for

Question 59

Project Manager, Oil & Natural Gas Commission v. Sham Kumar Sahegal, A.I.R. 2000 S.C. 1636 (India)

Answer 59

. The Payment of Bonus Act, 1965 **requires employees to work at least thirty working days in a financial year.** In a case involving the Oil & Natural Gas Commission (ONGC), the court ruled that **approved leave days should be counted as working days for bonus eligibility.** This decision strengthened the belief that every day an employee takes approved leave counts as days worked under the Act.

Question 60

Klj Plastics, Ltd., Jeedimetla v. Labour Court - III, Hyderabad, and Others A.I.R. 2000 S.C. 345 (India). Klj Plastics Ltd

Answer 60

KLJ PLASTICS. **argued that an employee's termination for fraud or crime within the year would prevent them from receiving a bonus**. The Labour **Court ruled that the employee's misbehaviour was not enough to disqualify him from the bonus,** emphasizing the **need for unambiguous proof of fraud or misbehavior** under the Payment of Bonus Act, 1965.

Question 61

Metal Box Company of India Ltd. v. Workmen1965,

Answer 61

case revolved around the Payment of Bonus Act, 1965, and the issue of whether profits should be deducted from specific expenses. **The company argued that certain expenses, such as management fees and staff welfare fund contributions, should be deducted from the gross income before computing the bonus.** **The court ruled in favor of the workers**, **only statutory deductions allowed under the Act, and expenses not explicitly approved by the Act should not be subtracted.**