MCQs on The Code on Wages, 2019
Labour Laws in India
1. The Code on Wages, 2019 extends to:
(a) The whole of India except the State of Jammu & Kashmir.
(b) Only to establishments owned by the Central Government.
(c) The whole of India.
(d) Only to those States which adopt it by a resolution.
Answer: (c) The whole of India.
Explanation: As per Section 1(2), the Act extends to the whole of India.
2. According to the definition under Section 2, which of the following is explicitly included in the term “wages”?
(a) House Rent Allowance
(b) Gratuity payable on termination of employment
(c) Retaining Allowance
(d) Value of any travelling concession
Answer: (c) Retaining Allowance
Explanation: Section 2(y) includes (i) basic pay, (ii) dearness allowance, and (iii) retaining allowance. Items (a), (b), and (d) are specifically excluded under the clauses (f), (j), and (d) respectively of the exclusion list.
3. For the purpose of computing wages to ensure equal pay for all genders, which of the following emoluments, as per the second proviso to Section 2(y), shall be taken into account?
(a) Contribution paid by the employer to any provident fund.
(b) Any commission payable to the employee.
(c) House rent allowance.
(d) Any bonus payable under any law.
Answer: (c) House rent allowance.
*Explanation: The second proviso to the definition of “wages” under Section 2(y) explicitly states that for the purpose of equal wages to all genders, the emoluments specified in clauses (d) [conveyance allowance], (f) [house rent allowance], (g) [remuneration under award/settlement], and (h) [overtime allowance] shall be taken for computation.*
4. The term “contract labour” as defined in Section 2(g) does NOT include a worker who:
(a) Is hired through a contractor for work in an establishment.
(b) Is an inter-State migrant worker.
(c) Is regularly employed by the contractor and gets periodical increments and social security coverage.
(d) Is a part-time employee.
Answer: (c) Is regularly employed by the contractor and gets periodical increments and social security coverage.
*Explanation: Section 2(g) excludes a worker (other than a part-time employee) who is regularly employed by the contractor under mutually accepted standards of employment and receives periodical increments and social security benefits.*
5. In relation to an establishment of a banking company, who is the “appropriate Government” as per Section 2(d)?
(a) The State Government where the head office of the bank is located.
(b) The Central Government.
(c) The State Government where the specific work is being performed.
(d) The Reserve Bank of India.
Answer: (b) The Central Government.
Explanation: Section 2(d)(i) explicitly includes “banking and insurance company” under the purview of the Central Government as the appropriate Government.
6. Section 3 of the Code prohibits discrimination on the ground of gender. Which of the following actions by an employer is expressly prohibited under sub-section (2) of this section?
(a) Providing separate washroom facilities for male and female employees.
(b) Reducing the rate of wages of any employee to comply with the equal pay provisions.
(c) Conducting separate skill development programs.
(d) Requiring different dress codes.
Answer: (b) Reducing the rate of wages of any employee to comply with the equal pay provisions.
Explanation: Section 3(2)(i) explicitly prohibits an employer from reducing the rate of wages of any employee for the purpose of complying with the prohibition of discrimination on the ground of gender.
7. An individual employed mainly in a supervisory capacity drawing a wage of ₹18,000 per month is considered a “worker” under the Code, provided the Central Government has not notified a higher amount. Is this statement correct?
(a) Yes, because he is doing supervisory work.
(b) No, because he is employed in a supervisory capacity.
(c) No, because his wage exceeds fifteen thousand rupees per month.
(d) Yes, because the wage limit is only for clerical staff.
Answer: (c) No, because his wage exceeds fifteen thousand rupees per month.
Explanation: The definition of “worker” under Section 2(z) excludes a person employed in a supervisory capacity drawing a wage exceeding fifteen thousand rupees per month or an amount as may be notified by the Central Government.
8. If a dispute arises as to whether the work performed by two employees is of the “same or similar nature” under Section 3, who shall decide such a dispute?
(a) The Inspector-cum-Facilitator.
(b) The Supreme Court of India.
(c) An authority as notified by the appropriate Government.
(d) The Internal Complaints Committee of the establishment.
Answer: (c) An authority as notified by the appropriate Government.
Explanation: Section 4 clearly states that such a dispute shall be decided by an authority as may be notified by the appropriate Government.
9. The definition of “employee” under Section 2(k) excludes:
(a) A person employed on wages in a supervisory capacity.
(b) Any member of the Armed Forces of the Union.
(c) A person employed in a technical capacity.
(d) A person employed by a contractor.
Answer: (b) Any member of the Armed Forces of the Union.
Explanation: The definition of “employee” in Section 2(k) concludes with the phrase “but does not include any member of the Armed Forces of the Union.”
10. The Code provides for the appointment of:
(a) Inspector-cum-Adjudicator
(b) Inspector-cum-Facilitator
(c) Wage Inspector
(d) Labour Commissioner
Answer: (b) Inspector-cum-Facilitator
*Explanation: Section 2(r) defines “Inspector-cum-Facilitator” as a person appointed by the appropriate Government under sub-section (1) of section 51. This is a significant shift in nomenclature from the earlier “Inspector” to emphasize the advisory and facilitative role.*
High-Level MCQs on The Code on Wages, 2019 (2nd Set)
