Labour Laws are a crucial part of the UPSC EPFO APFC syllabus. To help you sharpen your exam readiness, here are 30 high-quality MCQs crafted specifically for conceptual clarity and exam-standard practice. Each question includes four options, the correct answer, and a detailed 50-word explanation.

1. The Factories Act was enacted in which year?

A. 1950
B. 1948
C. 1960
D. 1936

Answer: B. 1948
Explanation: The Factories Act, 1948, is a major labour welfare legislation regulating working conditions in factories. It covers safety, health, welfare, working hours, and employment of women and young persons. It replaced the Factories Act of 1934. The Act ensures humane working conditions for labour employed in manufacturing units.

2. Minimum Wages Act applies to which type of employment?

A. Government jobs
B. Scheduled employments
C. Private IT companies
D. All employments

Answer: B. Scheduled employments
Explanation: The Minimum Wages Act, 1948, mandates minimum wages only for employment listed under its schedule, known as “scheduled employments.” Governments periodically revise these wages. The Act aims to prevent exploitation of workers by ensuring they are not paid below the legally fixed wage rates in designated occupations.

3. The Payment of Wages Act applies to employees earning wages below:

A. ₹18,000 per month
B. ₹24,000 per month
C. ₹15,000 per month
D. No wage limit

Answer: B. ₹24,000 per month
Explanation: Originally enacted with lower wage limits, the Payment of Wages Act now applies to employees earning below ₹24,000 per month, as per government notifications. The Act ensures the timely payment of wages without unauthorized deductions and protects employees from unfair wage practices by employers.

4. Which Act regulates gratuity payments?

A. EPF Act
B. Payment of Gratuity Act
C. Bonus Act
D. Payment of Wages Act

Answer: B. Payment of Gratuity Act
Explanation: The Payment of Gratuity Act, 1972, provides for gratuity — a lump-sum benefit paid to employees completing at least five years of service. It applies to factories, shops, mines, and establishments with ten or more workers. Gratuity is a statutory right acknowledging long-term service.

5. Maternity Benefit Act provides maternity leave of:

A. 12 weeks
B. 26 weeks
C. 30 weeks
D. 20 weeks

Answer: B. 26 weeks
Explanation: The Maternity Benefit (Amendment) Act, 2017, increased paid maternity leave from 12 to 26 weeks for women employees. This reform aims to support maternal health, infant care, and workforce participation. It applies to establishments employing ten or more persons, ensuring adequate maternity protection.

6. Under the Payment of Bonus Act, the minimum bonus payable is:

A. 10%
B. 8.33%
C. 15%
D. 20%

Answer: B. 8.33%
Explanation: The Payment of Bonus Act mandates a minimum bonus of 8.33% of wages or ₹100, whichever is higher, for eligible workers. The Act aims to share profits between employers and employees, promoting industrial harmony. The maximum bonus can go up to 20% depending on allocable surplus.

7. Which Act deals with provident fund regulation?

A. ESI Act
B. EPF & MP Act
C. ID Act
D. Bonus Act

Answer: B. EPF & MP Act
Explanation: The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 regulates provident fund, pension, and insurance schemes for employees. It applies to establishments with 20 or more employees. The Act ensures financial security through long-term savings contributed jointly by the employer and employee.

8. The term “retrenchment” is defined under which Act?

A. ID Act
B. EPF Act
C. Contract Labour Act
D. Factories Act

Answer: A. Industrial Disputes Act (ID Act)
Explanation: The Industrial Disputes Act, 1947, defines “retrenchment” as the termination of a worker’s service for any reason other than disciplinary action, superannuation, or voluntary retirement. The Act regulates conditions for retrenchment, including notice period and compensation, to protect workers from arbitrary layoffs.

9. ESI Act provides benefits for:

A. Pension
B. Medical care
C. Bonus
D. Gratuity

Answer: B. Medical care
Explanation: The Employees’ State Insurance Act, 1948, provides medical benefits, sickness benefits, maternity benefits, and accident-related compensation to insured workers. Funded through employer and employee contributions, ESI ensures affordable healthcare and social protection for workers earning below the wage threshold.

10. Child Labour Prohibition Act prohibits employment of children below:

A. 10 years
B. 12 years
C. 14 years
D. 16 years

Answer: C. 14 years
Explanation: The Child Labour (Prohibition and Regulation) Act prohibits the employment of children below 14 in all occupations. It also regulates working conditions for adolescents aged 14–18. The law aims to protect children from exploitation and ensure access to education as mandated by the Right to Education Act.

11. Apprentices are governed under:

A. Factories Act
B. Apprentices Act
C. Bonus Act
D. Shops Act

Answer: B. Apprentices Act
Explanation: The Apprentices Act, 1961, regulates the training of apprentices in various trades. It outlines rules for contracts, obligations of employers, and stipend payments. The Act aims to develop skilled manpower and formalize vocational training through structured apprenticeship programs.

12. Which Act covers contract workers?

A. ID Act
B. Contract Labour Act
C. Bonus Act
D. Shops Act

Answer: B. Contract Labour Act
Explanation: The Contract Labour (Regulation & Abolition) Act, 1970 regulates the employment of contract labour and prohibits it in certain processes. It mandates registration of establishments and licensing of contractors. The Act ensures welfare provisions like canteens, restrooms, and first-aid for contract workers.

13. Maximum weekly working hours under Factories Act:

A. 40 hours
B. 44 hours
C. 48 hours
D. 50 hours

Answer: C. 48 hours
Explanation: The Factories Act limits weekly working hours to 48, ensuring humane work conditions. Daily working hours cannot exceed 9. The Act includes provisions for rest intervals, overtime wages, and weekly holidays to protect workers’ health and work-life balance in industrial settings.

14. Lay-off compensation is paid under which Act?

A. ESI Act
B. ID Act
C. EPF Act
D. Payment of Wages Act

Answer: B. ID Act
Explanation: The Industrial Disputes Act defines lay-off and mandates compensation when workers are laid off for reasons like breakdown of machinery or shortage of raw materials. Workers are entitled to 50% of their basic wages plus dearness allowance during lay-off periods.

15. Maternity benefit is payable to women who have worked at least

A. 80 days
B. 30 days
C. 90 days
D. 160 days

Answer: A. 80 days
Explanation: Under the Maternity Benefit Act, a woman is eligible for maternity leave and benefits if she has worked for at least 80 days in the 12 months preceding her expected delivery date. This provision ensures adequate protection for working mothers.

16. Under the Payment of Gratuity Act, maximum gratuity payable is:

A. ₹10 lakhs
B. ₹5 lakhs
C. ₹20 lakhs
D. ₹15 lakhs

Answer: C. ₹20 lakhs
Explanation: The ceiling for gratuity under the Payment of Gratuity Act has been enhanced to ₹20 lakhs. This limit applies to both government and private sector employees, offering improved social security for long-term service.

17. The term “appropriate government” appears in:

A. Maternity Act
B. ID Act
C. Factories Act
D. Mines Act

Answer: B. ID Act
Explanation: The Industrial Disputes Act uses the term “appropriate government” to differentiate jurisdiction between the Central and State governments. This classification determines which authority handles industrial disputes, especially in large or nationally significant industries.

18. Which Act provides for equal pay for equal work?

A. Equal Remuneration Act
B. EPF Act
C. Bonus Act
D. Wages Act

Answer: A. Equal Remuneration Act
Explanation: The Equal Remuneration Act, 1976, mandates equal pay for men and women workers performing similar work. It prohibits discrimination in recruitment and conditions of employment. The Act promotes gender equality in the workplace.

19. Standing Orders Act applies to establishments with at least:

A. 50 workers
B. 100 workers
C. 20 workers
D. 500 workers

Answer: B. 100 workers
Explanation: The Industrial Employment (Standing Orders) Act requires establishments with 100 or more workers to define rules regarding work conditions, misconduct, disciplinary procedures, and termination. Certified standing orders promote transparency between employers and employees.

20. Workmen’s Compensation Act is now known as:

A. ESI Act
B. Employees’ Compensation Act
C. EPF Act
D. Factories Act

Answer: B. Employees’ Compensation Act
Explanation: The Workmen’s Compensation Act was renamed the Employees’ Compensation Act, 1923. It provides compensation for injury, disability, or death due to workplace accidents. Employers must compensate workers or their dependents under defined circumstances.

21. Overtime wages under the Factories Act are paid at:

A. Single rate
B. Double rate
C. 1.5 times
D. Triple rate

Answer: B. Double rate
Explanation: The Factories Act mandates that overtime for work beyond nine hours a day or 48 hours a week be paid at twice the ordinary wage rate. This provision discourages excessive work hours.

22. ESI applies to establishments with minimum:

A. 10 employees
B. 20 employees
C. 15 employees
D. No limit

Answer: A. 10 employees
Explanation: The ESI Act applies to establishments with 10 or more employees, subject to wage limits. It ensures social security through medical benefits and insurance.

23. Minimum age for hazardous work under Child Labour Act:

A. 14
B. 18
C. 16
D. 21

Answer: B. 18
Explanation: Adolescents (14–18 years) are prohibited from hazardous occupations under the Child Labour Act. This protects young workers from unsafe conditions.

24. Which Act mandates canteen facilities?

A. Contract Labour Act
B. ESI Act
C. Factories Act
D. Bonus Act

Answer: C. Factories Act
Explanation: The Factories Act requires canteen facilities in factories employing 250 or more workers, ensuring access to hygienic food.

25. Bonus Act applies to establishments with:

A. 10+ employees
B. 20+ employees
C. 50+ employees
D. No minimum limit

Answer: B. 20+ employees
Explanation: The Payment of Bonus Act applies to establishments with 20 or more employees, ensuring profit-sharing with workers.

26. Register of wages is maintained under:

A. EPF Act
B. Payment of Wages Act
C. Maternity Act
D. Bonus Act

Answer: B. Payment of Wages Act
Explanation: Employers must maintain wage registers under the Payment of Wages Act to ensure transparency.

27. Safety Officers are mandatory for factories employing:

A. 100 workers
B. 500 workers
C. 1000 workers
D. 250 workers

Answer: C. 1000 workers
Explanation: Factories employing 1000+ workers must appoint Safety Officers to ensure workplace safety.

28. Which Act regulates working journalists?

A. ID Act
B. Working Journalists Act
C. Shops Act
D. Factories Act

Answer: B. Working Journalists Act
Explanation: The Working Journalists Act governs service conditions for journalists.

29. Shops & Establishments Acts are enacted by:

A. Central Government
B. State Governments
C. Both
D. Supreme Court

Answer: B. State Governments
Explanation: Shops and Establishments Acts are state-specific laws regulating conditions for shops and commercial establishments.

30. Industrial dispute settlement includes:

A. Arbitration
B. Adjudication
C. Conciliation
D. All of these

Answer: D. All of these
Explanation: Industrial disputes may be resolved through conciliation, arbitration, or adjudication under the ID Act.

Conclusion

Labour Laws form a scoring area in UPSC EPFO APFC. Practicing well-structured MCQs helps improve conceptual clarity and exam confidence. Keep revising key Acts, amendments, and numerical limits, as these frequently appear in the exam.