UPSC EPFO (RO/APFC) Previous Year Question and Solution

 

Detailed Solution of Last Five Years Question Paper on Labour Laws and Social Security for UPSC EPFO (RO/APFC)

 

1. Works Committee, Safety Committee and Canteen Management Committee are examples of:

(a) Workers' participation in management

(b) Workers' education schemes

(c) Workers' cooperatives

(d) Workers' suggestion schemes

Ans (a) Workers' participation in management

 

Explanation-

Works Committee

·        Legal Basis: Section 3 of the Industrial Disputes Act, 1947

·        Purpose: Promote harmony between employers and workers by discussing matters of common interest.

·        Composition: Equal representation from management and workmen.

·        Applicability: Mandatory in establishments with 100 or more workmen.

·        Function: Consultative—not binding—on issues like working conditions, welfare amenities, and grievance resolution.

🛡️ Safety Committee

·        Legal Basis: Rule 61A of the Factories Act, 1948 (varies by state)

·        Purpose: Ensure occupational health and safety in the workplace.

·        Composition: Representatives from both the employer and employees, often including safety officers.

·        Applicability: Required in hazardous factories with ≥500 workers.

·        Function: Conduct safety audits, recommend preventive measures, and promote safety awareness.

🍽️ Canteen Management Committee

·        Legal Basis: Section 46 of the Factories Act, 1948

·        Purpose: Oversee the functioning of statutory canteens in large factories.

·        Composition: Includes worker representatives and management officials.

·        Applicability: Factories with ≥250 workers must provide a canteen.

·        Function: Monitor food quality, hygiene, pricing, and grievance redressal related to canteen services.

Workers' Participation in Management (WPM)

🧠 Core Concept

·        Definition: WPM is the mental and emotional involvement of workers in organisational decisions, encouraging them to contribute to goals and share responsibility.

·        ILO Perspective: It includes everything from information sharing and consultation to joint decision-making and even self-management.

🛠️ Forms of Participation

Level	Description
Informative	Management shares relevant data with workers (e.g., financials, policies).
Consultative	Workers are asked for their opinions, but the final decisions rest with management.
Associative	Workers’ views carry moral weight; management often implements them.
Administrative	Workers help execute decisions and may choose among options.
Decisive	Joint decision-making on key matters like production and welfare.

📚 Legal Framework in India

·        Works Committee – Industrial Disputes Act, 1947 (≥100 workers)

·        Joint Management Councils – Advisory bodies for cooperation

·        Shop Councils & Unit Councils – 1975 Scheme for participative management

·        Board-level Representation – Rare, but present in some public sector units

🎯 Objectives

·        Foster industrial harmony and reduce disputes

·        Enhance productivity through shared responsibility

·        Promote employee motivation and job satisfaction

·        Build trust between labour and management

🌍 Global Variants

·        Germany: Co-determination (Mitbestimmung)

·        Yugoslavia (historically): Self-management

·        France: Works Committees

·        USA: Union-management cooperation

 

2. Which one of the following is not part of the aims and purposes of the ILO as per the Philadelphia Declaration?

(a) Labour is not a commodity.

(b) Freedom of expression and of association are essential to sustained progress.

(c) Poverty anywhere constitutes a danger to prosperity everywhere.

(d) The war against want requires to be carried on with unrelenting vigour within each nation and is solely the responsibility of the government.

Ans- (d)

Explanation-

The Philadelphia Declaration, adopted on 10 May 1944 during the 26th session of the International Labour Organization (ILO), is a landmark document that redefined the ILO’s mission in the post-war world. It reaffirmed the organization's commitment to social justice and expanded its vision to include human rights, economic planning, and global cooperation.

v  Key Principles of the Declaration

v  Labour is not a commodity – Workers deserve dignity, not exploitation.

v  Freedom of expression and association are essential for progress.

v  Poverty anywhere is a threat to prosperity everywhere.

v  All human beings, regardless of race, creed, or sex, have the right to pursue material and spiritual well-being in conditions of freedom, dignity, economic security, and equal opportunity.

In 1946, the Declaration was annexed to the ILO Constitution, making it a binding part of the organization's foundational framework.

3. Which one of the following is an exception from the five functional types of unionism identified by Robert Hoxie?

(a) Business Unionism (b) Predatory Unionism (c) Revolutionary Unionism (d) Evolutionary Unionism

Ans- (d) Evolutionary Unionism

Explanation-

Robert Hoxie analyzed unions not just by their structure but by the social philosophies and methods they embody. He distinguished five principal functional types, each arising from a distinct group psychology and orientation toward existing economic and political order.

1. Business Unionism

Business unions—often called “bread-and-butter” unions—focus narrowly on improving wages, hours and working conditions for their own members through collective bargaining. They accept the capitalist system as given, rely heavily on strikes and voluntary arbitration, and give minimal weight to broader social or political change. ^[9]

2. Friendly or Uplift Unionism

Uplift unions combine economic goals with an idealistic mission to raise the moral, intellectual and social status of workers. They champion cooperative enterprises, profit-sharing plans and mutual insurance, while remaining law-abiding. Political action is embraced to secure these social and cultural improvements alongside collective bargaining. ^[9]

3. Revolutionary Unionism

Revolutionary unions reject private ownership of productive resources and the wage system. They are class-conscious rather than trade-conscious, aiming to overthrow capitalism through political or direct action (strikes, boycotts, sabotage, violence). Hoxie further divides them into:

·        Socialistic Unionism – Seeks a political path to socialism via mass party and state transformation.

·        Quasi-Anarchistic Unionism – Advocates decentralized, free industrial associations, using more spontaneous direct action. ^[9]

4. Predatory Unionism

Predatory unions lack any overarching ideology and pursue short-term gains by “whatever means seem most appropriate.” Their tactics range from collective bargaining to secret bribery, extortion or violence. Hoxie labels extreme forms that resist extermination by employers as guerrilla unionism, and more organized rackets as hold-up unions. ^[9]

5. Dependent Unionism

Dependent unions survive only through outside support—either from other labor groups or directly from employers.

·        Company Unions depend on management patronage and serve more to suppress genuine worker interests than to advance them.

·        Union-Label Unions thrive by marketing the “union‐made” label, relying on consumer goodwill rather than independent worker solidarity.

4. Which one of the following is the process in which representatives of workmen and employer involved in an industrial dispute are brought together before a third person or group of persons who facilitates/facilitates through mediation to reach a mutually satisfactory agreement?

(a) Arbitration

(b) Adjudication

(c) Conciliation

(d) Collective negotiation

Ans- (c) Conciliation

Explanation-

⚖️ (a) Arbitration

A voluntary dispute resolution process where a neutral third party (the arbitrator) gives a binding decision. It’s often quicker and more flexible than formal litigation.

🏛️ (b) Adjudication

A legal process carried out by a designated authority (such as a Labour Court or Industrial Tribunal) that issues a binding decision on disputes—especially when other methods fail.

🤝 (c) Conciliation

A non-binding method where a government-appointed officer or neutral party facilitates dialogue between disputing parties to reach a mutual agreement.

🤝 (d) Collective Negotiation (or Bargaining)

A process where trade unions and employers discuss employment terms like wages, hours, and working conditions, aiming for a collective agreement.

5. Questions relating to the application or interpretation of a standing order certified under the Industrial Employment (Standing Orders) Act, 1946 may be referred to:

(a) Industrial Tribunal

(b) Labour Commissioner

(c) Labour Court

(d) Industrial Employment Court

Ans- (c) Labour Court

Explanation-

The Industrial Employment (Standing Orders) Act, 1946 was enacted to bring clarity and uniformity to employment conditions in industrial establishments across India. Before this Act, workers often faced vague and inconsistent terms of employment, leading to disputes and job insecurity. The Act mandates employers to define and communicate the conditions of employment—such as classification of workers, working hours, leave policies, misconduct procedures, and grievance mechanisms—through Standing Orders that are certified by a designated authority.

📘 Key Features of the Act

·        Applicability: Industrial establishments with 100 or more workmen (some states have reduced this threshold to 50).

·        Standing Orders: Must cover matters listed in the Schedule (e.g., attendance, leave, misconduct, termination).

·        Certification Process: Employers submit draft Standing Orders to a Certifying Officer, who reviews and approves them after consulting workers or their unions.

·        Legal Status: Once certified, Standing Orders become binding on both employer and employees.

·        Modification: Can only be made after six months and with mutual agreement.

🏛️ Section 13A – Interpretation of Standing Orders

This section provides a mechanism to resolve disputes or ambiguities regarding the application or interpretation of certified Standing Orders.

·        Who can refer a dispute:

o   Employer

o   Workman

o   Trade union or representative body of workmen

·        Where to refer:

o   A Labour Court constituted under the Industrial Disputes Act, 1947, as notified by the appropriate government.

·        Process:

o   The Labour Court hears both parties and delivers a decision.

o   The decision is final and binding on all parties involved.

 

6. A union whose membership may cover workers employed in many industries, employment and crafts is known as:

(a) Industrial union

(b) General union

(c) Craft union

(d) Region-cum-industry level union

Ans- (b) General union

Explanation

🏭 (a) Industrial Union

An industrial union organizes all workers employed in the same industry, regardless of their specific job roles, skills, or departments. For example, a steel industry union might include furnace operators, welders, clerical staff, and maintenance workers—all under one umbrella. This strengthens collective bargaining by uniting diverse employees against common industrial issues.

🌍 (b) General Union

A general union is open to workers from any industry or occupation. It’s typically broader in scope, covering labor issues that cut across different sectors, such as wage laws, worker rights, and social security. It provides flexibility and wider representation, especially for unorganized or migratory labor forces.

🛠️ (c) Craft Union

This type of union is formed by workers who share the same skill or craft, regardless of the industry they work in. For instance, electricians across different sectors may unite in a craft union to standardize skill training, certification, and job conditions. It emphasizes maintaining technical standards and protecting specialized trades.

📍 (d) Region-Cum-Industry Level Union

This union is specific to a particular industry within a defined geographic region. It reflects both the nature of work and local concerns. For example, coal miners in Jharkhand or textile workers in Surat may form such unions to address region-specific labor conditions and industry trends.

7. Which one of the following perspectives of industrial relations is based on the assumption that both the parties strive (and have opportunity) to exercise economic (wages and benefits) as well as political (control) power?

(a) Pluralistic perspective

(b) Unitary perspective

(c) Radical perspective

(d) Trusteeship perspective

Ans- (a) Pluralistic perspective

Explanation-

🏭 (a) Pluralistic Perspective

·        Core Idea: The workplace is made up of diverse interest groups—primarily management and workers—with legitimate but often conflicting goals.

·        Conflict View: Conflict is natural and institutionalized, managed through collective bargaining, grievance procedures, and trade unions.

·        Example: In a large automobile company, the workers’ union negotiates wages and working conditions with management. Disputes are resolved through conciliation or arbitration, not suppressed.

·        Key Thinker: Alan Flanders

🧑‍🤝‍🧑 (b) Unitary Perspective

·        Core Idea: The organization is a single unified team with shared goals. Management is the sole authority, and conflict is seen as abnormal or due to poor communication.

·        Conflict View: Conflict is avoidable and undesirable.

·        Example: A startup where employees and founders work closely, share a common mission, and resolve issues informally without union involvement.

·        Key Traits: Emphasizes loyalty, teamwork, and direct communication.

🔥 (c) Radical Perspective (also known as Marxist Perspective)

·        Core Idea: Industrial relations are shaped by class struggle in a capitalist society. Employers exploit labor to maximize profit.

·        Conflict View: Conflict is inherent and structural, rooted in economic inequality.

·        Example: A garment factory where workers strike against unsafe conditions and low wages, viewing management as part of a capitalist system that prioritizes profit over people.

·        Key Thinker: Karl Marx

🕊️ (d) Trusteeship Perspective

·        Core Idea: Inspired by Mahatma Gandhi, this view sees both employers and workers as trustees of societal wealth. It promotes ethical responsibility, non-violence, and cooperation.

·        Conflict View: Conflict should be resolved through dialogue and moral persuasion, not coercion.

·        Example: A cooperative dairy in Gujarat where profits are reinvested for community welfare, and workers participate in decision-making as co-owners.

·        Key Traits: Focus on social justice, voluntary equity, and shared ownership.

 

 

8. The provision of workers' participation in management of industries is provided under:

(a) Article 39A of the Constitution of India

(b) Article 43A of the Constitution of India

(c) Article 42 of the Constitution of India

(d) Article 43B of the Constitution of India

Ans- (b) Article 43A of the Constitution of India

Explanation

🛠️ Article 43A of the Indian Constitution is a Directive Principle of State Policy introduced by the 42nd Amendment Act of 1976. It aims to promote industrial democracy by encouraging the participation of workers in the management of industries.

📜 Text of Article 43A

“The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings, establishments or other organisations engaged in any industry.”

 

9. Which one of the following is not a trade union security measure?

(a) Closed shop system

(b) Agency shop system

(c) Open shop system

(d) Union shop system

Ans- (c) Open shop system

Explanation

An open shop allows employees to choose union membership or not; it provides no security measure for union density. Closed, agency and union shops bind membership or dues as condition of employment.

🏭 (a) Closed Shop System

·        Definition: Employment is restricted to only those who are already union members.

·        Implication: An individual must be a union member before being hired.

·        Status in India: Not permitted due to constitutional protections for freedom of association.

📜 (b) Agency Shop System

·        Definition: Workers don’t have to join the union, but they must pay agency fees for union services.

·        Implication: Even non-union workers contribute financially, since they benefit from collective bargaining.

·        Status in India: Rarely practiced; controversial due to issues around compulsory payments without membership.

🔓 (c) Open Shop System

·        Definition: Employees are free to join or not join the union.

·        Implication: No pressure to associate, and no union dues are required from non-members.

·        Status in India: Most common setup, especially in private sector workplaces.

📋 (d) Union Shop System

·        Definition: Workers need not be union members when hired, but must join the union within a certain time after employment.

·        Implication: Promotes union strength while allowing initial flexibility.

·        Status in India: Limited adoption; often viewed as infringing on individual choice.

 

10. Which one of the following is statutory machinery functioning at the central level?

(a) Central Implementation and Evaluation Committee

(b) Central Board for Workers' Education

(c) Standing Labour Committee

(d) Employee's State Insurance Corporation

Ans- (d) Employee's State Insurance Corporation

Explanation-

What Is a Statutory Body?

A statutory body is an organization created and empowered by a specific law (statute) passed by Parliament or a State Legislature. It derives its authority directly from that Act, which defines its purposes, powers, structure, and responsibilities.

Key Characteristics

-   Established through an Act of Parliament or State Legislature, not by the Constitution or executive order.

-   Powers and functions are set out in its enabling legislation, which may authorize it to make regulations or rules within its field.

-   Operates with a degree of independence from direct government departments, while remaining accountable via annual reports and ministerial oversight.

-   Can be a corporate entity (statutory corporation) or a non-corporate body, depending on how its founding Act structures it.

Examples of Statutory Bodies in India

-   Employee's State Insurance Corporation- established under the ESI  Act, 1948

-   Reserve Bank of India (RBI) – established under the Reserve Bank of India Act, 1934

-   Securities and Exchange Board of India (SEBI) – under the SEBI Act, 1992

-   National Green Tribunal (NGT) – under the National Green Tribunal Act, 2010

-   University Grants Commission (UGC) – under the UGC Act, 1956

 

 

11. Which one of the following explains the 'citizen concept' of labour?

(a) Labour is largely regarded by the employers as operating organizations in industry.

(b) Labour is affected by the law of demand and supply.

(c) Labour has a right to be consulted in regard to the terms and conditions under which they are supposed to work.

(d) Labour is a cog in the machine.

Ans- Labour has a right to be consulted in regard to the terms and conditions under which they are supposed to work.

 

Explanation-

 

The 'citizen concept' of labour views workers not merely as economic agents or factors of production, but as industrial citizens with rights, dignity, and a legitimate voice in shaping their working conditions. Just as citizens in a democracy have inalienable rights and participate in governance, this concept extends similar principles to the workplace.

🧭 Key Features of the Citizen Concept

·        Consultative Rights: Workers have the right to be consulted on the terms and conditions of their employment—not just informed or directed.

·        Democratic Participation: Encourages participative decision-making, aligning industrial relations with democratic values.

·        Human-Centric View: Labour is seen as a human contributor, not a cog in the machine or a commodity governed solely by market forces.

·        Moral and Legal Recognition: Supports the idea that labour welfare is not just a managerial choice but a societal obligation.

🏛️ Philosophical Roots

This concept draws inspiration from democratic theory, social justice, and ILO declarations like the Philadelphia Declaration (1944), which asserts that “labour is not a commodity” and that “freedom of association and expression are essential to sustained progress.”

📌 Practical Implications

·        Inclusion of workers in Works Committees, Safety Committees, and Canteen Management Committees

·        Legal provisions like Article 43A of the Indian Constitution, which promotes workers’ participation in management

·        Recognition of collective bargaining rights, grievance redressal mechanisms, and fair employment standards

 

12. Who among the following can be appointed as the Chairman of the Central Advisory Board constituted by the Central Government under the Minimum Wages Act, 1948?

(a) One of the independent members of the Board

(b) One of the employers' representatives of the Board

(c) One of the employees' representatives of the Board

(d) A functionary of the Central Government nominated by the Government

Ans- (a) One of the independent members of the Board

Explanation-

Section 8 of the Minimum Wages Act, 1948 establishes the Central Advisory Board, which plays a key role in shaping wage policy across India.

🏛️ Section 8: Central Advisory Board

·        Purpose: To advise both Central and State Governments on:

o   Fixation and revision of minimum wage rates

o   Other matters related to the Act

o   Coordination of work between various Advisory Boards

·        Composition:

o   Equal representation from employers and employees in scheduled employments

o   Up to one-third independent members, nominated by the Central Government

o   One independent member is appointed as the Chairperson

📌 Why It Matters

·        Ensures tripartite consultation—a democratic approach involving all stakeholders

·        Promotes balanced wage policies that reflect economic realities and worker welfare

·        Acts as a bridge between policy formulation and ground-level implementation

 

13. Which one of the following comes under the 'State List' under the Seventh Schedule of the Constitution of India?

(a) Relief of the disabled and unemployable

(b) Regulation of labour and safety in mines

(c) Regulation and control of manufacture, supply and distribution of salt

(d) Social security and social insurance

Ans-(a) Relief of the disabled and unemployable

Explanation-

 

Option	Subject Area	List Placement	Explanation
(b) Regulation of labour and safety in mines	Labour Laws	Union List	Mines are governed centrally due to safety and resource concerns.
(c) Regulation and control of manufacture, supply and distribution of salt	Trade & Industry	Union List	Salt is strategically important and centrally regulated.
(d) Social security and social insurance	Welfare	Concurrent List	Both Centre and States can legislate on this jointly.

 

State List

The State List under the Seventh Schedule of the Constitution of India outlines subjects on which only State Legislatures can make laws, unless under exceptional circumstances. It’s a cornerstone of India’s quasi-federal structure, ensuring decentralization and regional autonomy.

📜 Constitutional Basis

·        Article 246(3): Grants exclusive legislative powers to States over matters in the State List.

·        Part of the Seventh Schedule, which divides powers into:

o   Union List (List I)

o   State List (List II)

o   Concurrent List (List III)

🗂️ Key Features of the State List

·        Originally had 66 subjects, now reduced to 61 after the 42nd Amendment Act, 1976, which shifted five subjects (like education and forests) to the Concurrent List.

·        Covers matters of local and regional importance.

·        Examples include:

o   Public order and police

o   Public health and sanitation

o   Agriculture and irrigation

o   Land revenue and taxes on agricultural income

o   Betting and gambling

o   Markets and fairs

o   Local government and municipal administration

o   State public services and pensions

o   Taxes on professions, trades, and entertainment

⚖️ Exceptions to Exclusivity

Parliament can legislate on State List subjects under special conditions:

·        Article 249: If Rajya Sabha passes a resolution in national interest

·        Article 250: During a national emergency

·        Article 252: If two or more States request Parliament to legislate

 

14. The assumption that "man is selfish and self-centered, and always tries to achieve his own ends even at the cost of others" explains which theory of labour welfare?

(a) Placating theory

(b) Police theory

(c) Religious theory

(d) Philanthropic theory

Ans- Police Theory

Explanation-

 

⚖️ (a) Placating Theory

This theory suggests that welfare measures are introduced to appease workers, especially when they become organized, militant, or assertive about their rights.

·        Employers provide welfare not out of goodwill but to prevent unrest, strikes, or union pressure.

·        It’s a reactive approach, aiming to maintain peace and cooperation.

·        Example: Setting up a canteen or health clinic after workers demand better conditions.

👮‍♂️ (b) Police Theory

This theory assumes that employers are inherently exploitative and will not provide even basic welfare unless compelled by law.

·        Welfare is enforced through legislation, supervision, and penalties.

·        The State acts like a policeman, ensuring minimum standards are met.

·        Example: Mandatory safety equipment under the Factories Act.

🙏 (c) Religious Theory

Rooted in the belief that man is a religious being, this theory sees welfare as a moral or spiritual duty.

·        Employers may offer welfare as a form of atonement or investment in good karma, hoping for divine reward.

·        Welfare is driven by faith, compassion, and ethical values, not legal obligation.

·        Example: Building a temple or offering free meals to workers during festivals.

❤️ (d) Philanthropic Theory

This theory is based on love for mankind—philanthropy.

·        Welfare is provided out of personal compassion, empathy, or social responsibility.

·        Employers voluntarily help workers to alleviate suffering and improve well-being.

·        Example: Robert Owen’s model villages for workers during the Industrial Revolution.

 

15. Dr. Aykroyd's formula is associated with determination of:

(a) Fair wage

(b) Minimum wage

(c) Living wage

(d) Real wage

 

Ans- (b) Minimum wage

Explanation-

 

🧮 Dr. Aykroyd’s Formula

Developed by Dr. Wallace Aykroyd, a renowned nutritionist, this formula was adopted by the 15th Indian Labour Conference (ILC) in 1957 to determine the need-based minimum wage. It considers:

·        Basic nutritional requirements: 2,700 calories per adult per day

·        Essential needs: food, clothing, housing, fuel, and miscellaneous expenses

·        Family unit: worker + spouse + two children = 3 consumption units

The need-based minimum wage is a concept that goes beyond basic subsistence—it aims to ensure that a worker and their family can live with dignity and efficiency, not just survival.

🧮 Key Features of Need-Based Minimum Wage

• Origin: Proposed by the 15th Indian Labour Conference (1957), based on Dr. Wallace Aykroyd’s nutritional guidelines.
• Purpose: To meet the essential needs of a standard working-class family.
• Family Unit Assumption: 1 earner + spouse + 2 children = 3 consumption units.

📊 Components Considered

Category	Standard Used
Food	2,700 calories per adult per day (adequate diet)
Clothing	18 yards per person annually
Housing	Rent based on subsidized housing schemes for low-income groups
Miscellaneous	20% of total wage for fuel, lighting, education, medical, recreation, etc.

🧠 Conceptual Insight

• It’s higher than statutory minimum wage, but lower than fair wage.
• It reflects social justice, not just economic feasibility.
• It’s used in Pay Commissions and labour policy to guide wage fixation.

 

 

16. "Everyone as a member of the society has the right to social security..." This statement emphasizing the importance of social security has been expressed in which of the following?

(a) Universal Declaration of Human Rights

(b) Philadelphia Declaration of the ILO

(c) Report of the First National Commission on Labour

(d) Directive Principles of State Policy of the Indian Constitution

 

Ans- (a) Universal Declaration of Human Rights

Explanation-

 

The statement "Everyone, as a member of society, has the right to social security..." is directly quoted from Article 22 of the Universal Declaration of Human Rights (UDHR), 1948.

·        It affirms that social security is a fundamental human right, essential for dignity and free development of personality.

·        The UDHR was adopted by the United Nations General Assembly and serves as a global standard for human rights.

 

17. For the first time in India, medical benefit as a non-cash benefit was provided under:

(a) The Employees' State Insurance Act, 1948

(b) The Factories Act, 1948

(c) The Maternity Benefit Act, 1961

(d) The Mines Act, 1952

 

Ans- (a) The Employees' State Insurance Act, 1948

Explanation-

 

The Employees' State Insurance (ESI) Act, 1948 was the first legislation in India to introduce medical benefits as non-cash benefits for workers.

·        It provides comprehensive social security, including medical care, sickness, maternity, disablement, and dependents’ benefits.

·        Medical benefits are offered in kind, such as free treatment, hospitalization, and medicines, rather than direct cash payments.

 

18. Which one of the following is the correct set of contingencies identified by William Beveridge in his comprehensive social security scheme?

(a) Want, disease, ignorance, squalor and idleness

(b) Want, sickness, disability, squalor and idleness

(c) Want, disease, old age, squalor and unemployment

(d) Disease, invalidity, old age, unemployment and ignorance

Ans- (a) Want, disease, ignorance, squalor and idleness

 

Explanation-

Sir William Beveridge, in his landmark Beveridge Report (1942), identified five major social evils—or contingencies—that needed to be tackled to build a comprehensive social security system. These became the foundation of the modern welfare state in the UK.

🛡️ The Five Giant Evils (Contingencies)

Contingency	Meaning
Want	Poverty and lack of basic income or resources
Disease	Ill health and lack of access to medical care
Ignorance	Lack of education and knowledge
Squalor	Poor living conditions and inadequate housing
Idleness	Unemployment and lack of productive work

🧠 Conceptual Insight

Beveridge believed that social insurance should be universal, covering all citizens “from cradle to grave,” and that the State must intervene to eliminate these evils through coordinated policies in health, education, housing, employment, and income support.

 

19. Which one of the following statements is not correct for Atal Pension Yojana?

(a) There is guaranteed minimum monthly pension ranging between ₹1,000 and ₹5,000.

(b) The benefit of minimum pension is guaranteed by the Government of India.

(c) Government of India co-contributes 50% of the subscriber's contribution or ₹1,000 per annum, whichever is lower.

(d) It is applicable to all citizens of India aged above 40 years.

Ans- (d) It is applicable to all citizens of India aged above 40 years.

 

Explanation-

The Atal Pension Yojana (APY) is a flagship social security scheme launched by the Government of India on May 9, 2015, aimed at providing retirement income to workers in the unorganised sector.

🧓 Key Features of APY

• Target Group: Unorganised sector workers (e.g., domestic workers, delivery personnel, farmers)
• Age Eligibility: 18 to 40 years
• Contribution Period: Minimum of 20 years
• Government of India Contribution Amount: 50% of the subscriber’s contribution or ₹1,000 per annum, whichever is lower (After FY 2019–20, the government stopped contributing, and APY became fully subscriber-funded.)
• Pension Range: ₹1,000 to ₹5,000 per month after age 60
• Mode of Payment: Monthly, quarterly, or half-yearly via auto-debit from savings account
• Administered By: Pension Fund Regulatory and Development Authority (PFRDA)

🛡️ Benefits

Benefit Type	Description
Guaranteed Pension	Fixed monthly pension from age 60 until death
Spouse Coverage	Same pension amount continues for spouse after subscriber’s death
Nominee Benefit	Accumulated corpus returned to nominee after death of both subscriber & spouse
Tax Benefits	Contributions eligible under Section 80CCD of Income Tax Act

📈 Latest Update (FY 2025–26)

• APY has crossed 8 crore enrolments, with 39 lakh new subscribers added this year.
• The scheme continues to expand its reach, especially among low-income households and women.

20. Which one of the following is the amount of annual premium of the Pradhan Mantri Suraksha Bima Yojana (PMSBY) for accident and disability cover up to ₹2,00,000?

(a) ₹100

(b) ₹50

(c) ₹20

(d) ₹12

Ans- (c) ₹20

Explanation-

🛡️ Pradhan Mantri Suraksha Bima Yojana (PMSBY) – Premium Details

·        Annual Premium: ₹20 per member

·        Coverage:

o   ₹2 lakh for accidental death or total permanent disability

o   ₹1 lakh for partial permanent disability

·        Eligibility: Individuals aged 18 to 70 years with a savings bank account

·        Payment Mode: Auto-debited from the bank account annually

This ultra-low premium makes PMSBY one of the most affordable accident insurance schemes in India, especially for workers in the unorganised sector.

 

 

21. The Maternity Benefit Act, 1961 provides for how many weeks' wages during the maternity period?

(a) 11 weeks

(b) 12 weeks

(c) 13 weeks

(d) 14 weeks

Ans- ***

Explanation-

Under the original provisions of the Maternity Benefit Act, 1961, a woman was entitled to 12 weeks of maternity benefit:

• 6 weeks before the expected date of delivery
• 6 weeks after the delivery

This benefit was paid at the rate of the average daily wage for the period of actual absence.

🔄 Note: The Act was amended in 2017, increasing the benefit to 26 weeks for the first and second child, but for the purpose of your question—based on the original Act—the correct answer remains 12 weeks.

 

22. Consider the following statements in respect of Atal Pension Yojana:

1.     Beneficiary must be in the age group of 18 to 40 years.

2.     Beneficiary will receive the pension only after he attains the age of 60 years.

3.     After the death of a beneficiary, his spouse continues to receive the pension.

4.     No nominee of the beneficiary is permitted. Which of the statements are correct?

(a) 3 and 4 only

(b) 1, 3 and 4 only

(c) 1, 2 and 3 only

(d) 1, 2, 3 and 4

Ans- (d) 1, 2, 3 and 4

 

Explanation-

-   Beneficiary must be in the age group of 18 to 40 years ✅ Correct – This is the prescribed entry age under Atal Pension Yojana (APY).

-   Beneficiary will receive the pension only after he attains the age of 60 years ✅ Correct – Pension under APY begins at age 60, after a minimum contribution period of 20 years.

-   After the death of a beneficiary, his spouse continues to receive the pension ✅ Correct – The same monthly pension is paid to the spouse until their death.

-   No nominee of the beneficiary is permitted ❌ Incorrect – A nominee is mandatory under APY (usually appointed during account setup). If both the subscriber and spouse pass away, the nominee receives the accumulated corpus.

 

23. Social Security may provide cash benefits to persons faced with:

1.     Sickness and disability

2.     Unemployment

3.     Crop failure

4.     Loss of the marital partner

Select the correct answer using the code below:

(a) 1, 2 and 3 only

(b) 1, 2 and 4 only

(c) 3 and 4 only

(d) 1, 2, 3 and 4

Ans- (b) 1, 2 and 4 only

Explanation-

Social Security systems, as understood under international and national frameworks like the ILO Convention No. 102, typically cover:

• ✅ Sickness and Disability — through sickness benefits and invalidity pensions.
• ✅ Unemployment — via unemployment insurance or assistance programs.
• ✅ Loss of the Marital Partner (Survivor’s Benefit) — providing financial aid to surviving dependents.

❌ Crop failure, however, is generally not covered under Social Security. It’s usually addressed through agricultural insurance schemes or disaster relief programs, not standard social protection mechanisms.

The International Labour Organization (ILO), through its landmark Social Security (Minimum Standards) Convention, 1952 (No. 102), identifies nine core branches of social security that every comprehensive system should ideally cover2:

🛡️ Nine Components of Social Security by ILO

No.	Component	Description
1️⃣	Medical Care	Access to preventive and curative health services without financial hardship
2️⃣	Sickness Benefit	Income support during temporary illness or incapacity to work
3️⃣	Unemployment Benefit	Financial assistance during periods of involuntary job loss
4️⃣	Old-Age Benefit	Pension or income support after retirement
5️⃣	Employment Injury	Compensation for work-related injuries or occupational diseases
6️⃣	Family Benefit	Support for families, especially for child-rearing and education
7️⃣	Maternity Benefit	Income and health protection during pregnancy and childbirth
8️⃣	Invalidity Benefit	Support for long-term or permanent disability
9️⃣	Survivors’ Benefit	Financial aid to dependents after the death of the breadwinner

 

 

24. Employees State Insurance Act, 1948 covers factors like:

1.     Factories and establishments with 10 or more employees.

2.     Provision of comprehensive medical care to employees and their families.

3.     Provision of cash benefits during sickness and maternity.

4.     Monthly payments in case of death or disablement. Which of the statements are correct?

(a) 1, 2 and 3 only

(b) 1, 2 and 4 only

(c) 3 and 4 only

(d) 1, 2, 3 and 4

Ans- (d) 1, 2, 3 and 4

Explanation-

The Employees’ State Insurance Act, 1948 is a comprehensive social security legislation that provides medical and cash benefits to employees in case of sickness, maternity, employment injury, and death.

All four statements are correct:

1.     Factories and establishments with 10 or more employees ✅ Covered under the Act, especially if the establishment uses power. Some states also extend coverage to establishments with 20 or more employees without power.

2.     Provision of comprehensive medical care to employees and their families ✅ Medical benefits include outpatient care, hospitalization, specialist services, and medicines. Family members are also covered.

3.     Provision of cash benefits during sickness and maternity ✅ Includes sickness benefit, maternity benefit, and extended sickness benefit for long-term illnesses.

4.     Monthly payments in case of death or disablement ✅ Known as dependents’ benefit and disablement benefit, these are paid monthly to the insured or their dependents.

 

 

25. Consider the following statements regarding the Pradhan Mantri Suraksha Bima Yojana:

1.     It is applicable for all bank account holders up to the age of 60 years.

2.     It is a life insurance cover.

3.     It is an accident insurance cover.

4.     The insurance covers death and permanent disability due to accident. Which of the statements are correct?

(a) 1 and 2 only

(b) 3 and 4 only

(c) 2 and 3 only

(d) 1 and 4 only

Ans-(b) 3 and 4 only

Explanation

-   It is applicable for all bank account holders up to the age of 60 years ❌ Incorrect. The scheme is available to individuals aged 18 to 70 years with a savings bank account.

-   It is a life insurance cover ❌ Incorrect. PMSBY is not a life insurance scheme. It is a personal accident insurance scheme.

-   It is an accident insurance cover ✅ Correct. The scheme provides coverage for accidental death and disability.

-   The insurance covers death and permanent disability due to accident ✅ Correct. It offers ₹2 lakh for death or total permanent disability, and ₹1 lakh for partial permanent disability.

 

26. Consider the following statements regarding the Pradhan Mantri Jeevan Jyoti Bima Yojana:

1.     It is applicable to all adults above the age group of 18 years.

2.     The premium is deducted from the account holder’s bank account through ‘auto debit facility’.

3.     The life insurance worth is decided by the account holder and he has to pay the annual premium accordingly.

4.     The life insurance amount is given to the family after the death of the subscriber. Which of the statements are correct?

(a) 1 and 3 only

(b) 1 and 4 only

(c) 2 and 4 only

(d) 2 and 3 only

Ans- (c) 2 and 4 only

Explanation-

-   Applicable to all adults above the age group of 18 years ❌ Incorrect. The scheme is available to individuals aged 18 to 50 years. Coverage continues up to age 55 if enrolled before 50.

-   The premium is deducted from the account holder’s bank account through ‘auto debit facility’ ✅ Correct. Premium of ₹436 per annum is auto-debited from the subscriber’s savings account.

-   The life insurance worth is decided by the account holder and he has to pay the annual premium accordingly ❌ Incorrect. The sum assured is fixed at ₹2 lakh, and the premium is uniform for all subscribers.

-   The life insurance amount is given to the family after the death of the subscriber ✅ Correct. The nominee receives ₹2 lakh in case of death due to any cause

 

27. Match List I with List II and select the correct answer using the code given below:

List I (Term) — List II (Explanation)

   A. Closure —                           1. Permanent closing down of a place of employment

   B. Workmen —                       2. Any person employed in any industry to do skilled,            

                                                        unskilled or manual work

   C. Strike —                             3. Temporary closing down of workplace by the management

   D. Lockout —                         4. Cessation of work by employees

Code;

 (a) A-1, B-2, C-4, D-3

(b) A-3, B-4, C-2, D-1

(c) A-1, B-4, C-2, D-3

(d) A-3, B-2, C-4, D-1

Ans- (a) A-1, B-2, C-4, D-3

Explanation-

🏁 Closure [Section 2(cc)]

·        Definition: Permanent shutting down of a place of employment or part thereof.

·        Key Provisions:

o   Section 25-FFA: Requires 60 days’ prior notice to the appropriate government if 50–99 workers are employed.

o   Section 25-O: For establishments with 100 or more workers, prior government permission is mandatory.

o   Section 25-FFF: Provides compensation to workmen as if retrenched.

👷‍♂️ Workmen [Section 2(s)]

·        Definition: Any person employed in an industry to do manual, skilled, unskilled, technical, operational, clerical, or supervisory work for hire or reward.

·        Exclusions:

o   Armed forces, police, prison staff

o   Managerial or administrative roles

o   Supervisory staff earning above ₹10,000/month or performing managerial functions

✊ Strike [Section 2(q)]

·        Definition: Cessation of work by a group of employees acting in combination or under a common understanding.

·        Types:

o   Legal Strike: Follows procedures under Sections 22 & 23

o   Illegal Strike: Violates these provisions or continues despite prohibitory orders

·        Conditions for Legality:

o   Prior notice (especially in public utility services)

o   No strike during conciliation or adjudication proceedings

·        Penalty for Illegal Strike: Up to 1 month imprisonment or ₹50 fine.

🚪 Lockout [Section 2(l)]

·        Definition: Temporary closure of employment, suspension of work, or refusal to employ workers by the employer.

·        Legal Requirements:

o   Notice to workers and government (especially in public utility services)

o   No lockout during conciliation or adjudication proceedings

·        Penalty for Illegal Lockout: Up to 1 month imprisonment or ₹1,000 fine.

 

 

28. Who is an 'Adolescent' as per the Factories Act, 1948?

(a) One who has completed 15 years but is less than 18 years

(b) One who is less than 18 years

(c) One who has completed 14 years but is less than 18 years

(d) One who has completed 16 years but is less than 18 years

Ans- (a) One who has completed 15 years but is less than 18 years

Explanation-

As per Section 2(ii) of the Act:

“Adolescent” means a person who has completed his fifteenth year of age but has not completed his eighteenth year.

This classification is essential for regulating working conditions and ensuring appropriate safeguards for younger workers in industrial settings.

 

 

29. What is a controlled industry?

(a) Any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest

(b) Any industry the control of which by the State has been declared by any State Act to be expedient in the public interest

(c) Any industry the control of which by the Municipal bodies has been declared by any Municipal Rules to be expedient in the public interest

(d) Any industry the control of which by the State has been declared by any Central Act to be expedient in the public interest

Ans- (a) Any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest

 

 

 

Explanation-

 

🏭 Controlled Industry

Under constitutional and statutory frameworks, a controlled industry is one where Parliament has declared through a Central Act that Union control is necessary in the public interest.

·        Referenced under Entry 52 of the Union List (List I), Schedule VII of the Constitution.

·        This enables the Central Government to regulate and administer such industries for uniformity and strategic governance.

·        Common examples include industries related to defense, energy, banking, and telecommunications, depending on the legislative declaration.

 

30. What is the minimum number of members required for registration of a Trade Union?

(a) 2 members

(b) 3 members

(c) 7 members

(d) 10 members

Ans- (c) 7 members

Explanation-

🤝 Trade Union Registration — Key Provision

Under the Trade Unions Act, 1926, specifically Section 4(1):

“Any seven or more members of a Trade Union may, by subscribing their names to the rules of the Trade Union and otherwise complying with the provisions of this Act with respect to registration, apply for registration of the Trade Union.”

 

31. Which of the following disputes is/are considered as trade disputes under the provision of the Trade Union Act, 1926?

Any dispute of any person connected with:

1.     Employment

2.     Non-Employment

3.     Conditions of Labour

Select the correct answer:

(a) 1 only

(b) 2 and 3 only

(c) 1, 2 and 3

(d) 1 and 3 only

 

Ans- (c) 1, 2 and 3

 

Explanation-

⚖️ Trade Dispute — As per Section 2(g) of the Trade Unions Act, 1926

“Trade dispute means any dispute between employers and workmen or between workmen and workmen… which is connected with the employment or non-employment or the terms of employment or with the conditions of labour…”

This broad definition ensures that all fundamental workplace issues—whether a person is being hired, terminated, or questioning working conditions—fall under the scope of a trade dispute.

 

31. An employee shall be covered under the provisions of the Payment of Wages Act, 1936, should the employee be drawing a maximum monthly wage of:

(a) ₹15,000

(b) ₹18,000

(c) ₹21,000

(d) ₹24,000

Ans- (d) ₹24,000

Explanation-

As per the latest amendment notified by the Central Government, the Act applies to employees whose monthly wages do not exceed ₹24,000.

• This wage ceiling was revised from ₹18,000 to ₹24,000 via notification dated 28 August 2017, effective from 29 August 2017.
• The revision is based on the Consumer Expenditure Survey conducted by the National Sample Survey Organisation (NSSO), as permitted under Section 1(6) of the Act.

 

32. A minimum rate of remuneration which shall be applied to an employee working on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis under the Minimum Wages Act, 1948 is known as:

(a) A minimum piece rate

(b) A guaranteed time rate

(c) A minimum time rate

(d) A guaranteed piece rate

Ans- (b) A guaranteed time rate

Explanation-

Guaranteed Time Rate — Explained

Under Section 3(2)(c) of the Minimum Wages Act, 1948, the guaranteed time rate is defined as:

“A minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis.”

🔍 Comparison of Wage Types

Wage Type	Description
Minimum Time Rate	Minimum wage for time-based work
Minimum Piece Rate	Minimum wage for each unit of output
Guaranteed Time Rate	Ensures piece-rate workers earn at least the minimum time-based wage
Guaranteed Piece Rate	Not defined under the Act

 

 

33. Which one of the following statements under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 is not correct?

(a) It makes provision for pension scheme including family pension.

(b) It makes provision for Employees' Deposit Linked Insurance Scheme.

(c) The provisions of the Act shall not be applicable to Cooperative Societies employing fifty or more persons working without the aid of power.

(d) The contribution by the employer to the Fund shall be on the basis of the basic wage, dearness allowance and retaining allowance (if any) of the employee.

Ans- (c) The provisions of the Act shall not be applicable to Cooperative Societies employing fifty or more persons working without the aid of power.

 

Explanation-

Under Section 16(1)(a) of the Employees' Provident Fund and Miscellaneous Provisions Act, 1952, the Act does not apply to cooperative societies that:

• Employ less than 50 persons, and
• Operate without the aid of power

So, the exemption is only for societies with fewer than 50 employees, not 50 or more. Hence, option (c) misstates the threshold and is not correct.

 

34. An adult worker who has joined on 15th January, 2022 in a factory and worked for 220 days during the year has been laid off for 25 days as per Standing Orders during the year. How many days of leave with wages shall he be entitled to during the calendar year 2023?

(a) Nil

(b) 10

(c) 12

(d) 11

Ans- (d) 11

Explanation-

For adult workers, leave is earned at the rate of 1 day for every 20 days actually worked. Only actual working days (220) are considered for earning leave.

 

 

 

 

35. As per the provisions of the Industrial Employment (Standing Orders) Act, 1946, standing orders shall come into operation after the expiry of how many days from the date on which copies of the order of the Appellate Authority are sent to the employer and to the trade unions?

(a) Seven days

(b) Ten days

(c) Fifteen days

(d) Thirty days

Ans- (a) Seven days

 

Explanation-

Industrial Employment (Standing Orders) Act, 1946

7. Date of operation of standing orders.—

Standing orders shall, unless an appeal is preferred under section 6, come into operation on the expiry of thirty days from the date on which authenticated copies thereof are sent under sub-section (3) of section 5, or where an appeal as aforesaid is preferred, on the expiry of seven days from the date on which copies of the order of the appellate authority are sent under sub-section (2) of section 6.

 

36. How many members are to be nominated by the Central Government to the National Social Security Board as per the provisions of the Unorganised Workers' Social Security Act, 2008?

(a) Eighteen

(b) Twenty

(c) Twenty-six

(d) Thirty-four

Ans- (d) Thirty-four

 

Explanation-

Under the Unorganised Workers’ Social Security Act, 2008, the National Social Security Board (NSSB) plays a central role in shaping and monitoring welfare schemes for unorganised workers across India.

🏛️ Composition of the National Social Security Board

·        Chairperson: Union Minister for Labour and Employment (ex officio)

·        Member Secretary: Director General (Labour Welfare) (ex officio)

·        34 Nominated Members:

o   7 representing unorganised sector workers

o   7 representing employers of unorganised sector

o   7 eminent persons from civil society

o   2 Members of Lok Sabha, 1 Member of Rajya Sabha

o   5 from Central Government Ministries

o   5 from State Governments

Members must be persons of eminence in labour welfare, law, finance, management, or administration.

 

📋 Functions of the Board

Function	Description
🧩 Scheme Recommendation	Suggest suitable welfare schemes for different sections of unorganised workers
🧠 Advisory Role	Advise the Central Government on matters related to the Act
📊 Monitoring	Oversee implementation of social welfare schemes administered by the Centre
🆔 Registration Review	Track progress of worker registration and issuance of identity cards
🗂️ Record Oversight	Review record-keeping at the State level
💸 Fund Review	Monitor expenditure under various schemes

📆 Operational Details

·        Tenure: 3 years

·        Meetings: At least three times a year

·        Allowances: Prescribed by rules for attending meetings

 

 

37. Which one of the following schemes is not a Social Security Scheme under the Unorganised Workers' Social Security Act, 2008?

(a) National Family Benefit Scheme

(b) Janshree Bima Yojana

(c) Employees' Pension Scheme

(d) Rashtriya Swasthya Bima Yojana

Ans- (c) Employees' Pension Scheme

 

Explanation-

 

The Unorganised Workers' Social Security Act, 2008 identifies several welfare schemes to safeguard informal workers. Among the options:

Scheme	Covered under the 2008 Act?	Notes
1.National Family Benefit Scheme	Yes	Offers one-time financial aid to a family upon the death of the breadwinner.
2.Janshree Bima Yojana	Yes	Insurance scheme targeting workers below and slightly above the poverty line.
3. Employees' Pension Scheme	No	Administered under the EPF & MP Act, 1952, meant for organised sector workers.
4.Rashtriya Swasthya   Bima Yojana	Yes	Health insurance for below-poverty-line families in the unorganised sector.

 

 

38. Which one of the following authorities constituted by the Central Government shall be the Appellate Authority under the Employees' Provident Fund and Miscellaneous Provisions Act, 1952?

(a) Employees Provident Funds Appellate Tribunal

(b) National Tribunal

(c) Labour Appellate Tribunal                          

(d) Industrial Tribunal

Ans- (a) Employees Provident Funds Appellate Tribunal

 

Explanation-

 

Under Section 7D of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Central Government is empowered to constitute one or more Employees' Provident Funds Appellate Tribunals. These tribunals serve as the Appellate Authority for disputes and appeals arising under the Act

 

 

Book For Labour Laws

English- "Labour Laws & Industrial Relation"

हिंदी में- "श्रम विधान एवं समाज कल्याण ”