Roll No.

R760218115
SAP ID 500071424
UNIVERSITY OF PETROLEUM AND ENERGY STUDIES
Mid Semester Examination, Sept 2021
Online – Through Blackboard Learning Management System

Course: Labour Law II Course Code: CLCC 4013

Programme: B.COM.LLB TL/MEL/ BSC.LLB /BBA.LLB CORPORATE LAW Semester: VII

Time: 02 hrs. Max. Marks: 100 (weightage 20% in the grade sheet)

Instructions:
As this examination is in online mode with open book system, the students are expected to demonstrate a very high degree of
Academic Integrity and not copy contents from resources referred. Instructors would look for understanding of the concept by
the students and any similarity found from resources online/ offline shall be penalized in terms of deduction of marks and even
cancellation of paper in requisite cases. The online examination committee of the School would also look for similarity of two
answer scripts and if answer scripts of two or more students are found similar, both the answer scripts shall be treated as copied
and lead to cancellation of the paper. In view of the aforesaid points, the students are advised that they should desist from using any
unfair means.

Instructions: Read the questions carefully and then answer. Don’t exceed the word limit mentioned in each
question.

S. No. Marks CO
1 “The concept of Minimum wage aims to prevent exploitation of Workers”. (Max.
word limit 1500)
Do you agree with the statement? Can the Appropriate government revise the 25 1
(8+5+12)
minimum wage once fixed? Discuss the procedure of fixation and revision of
Minimum wages in the light of the Code on wages 2019.

Ans. Minimum wages are described as "the bare minimum of payment that an employer is
obligated to pay wage earners for labour completed during a particular time, which
cannot be decreased by collective bargaining or individual contracts."
This term relates to the fact that minimum wages are legally obligatory, regardless of
how they are set. Minimum wages are determined by legislation, a competent
authority's judgement, a wage board, a wage council, or industrial or labour courts or
tribunals. Minimum wages can also be established by making elements of collective
bargaining agreements enforceable by law.
The objective of minimum wages is to safeguard workers from receiving inequitably
low compensation. They contribute to ensuring that everyone receives a fair and
equal share of the benefits of progress, as well as a minimum living wage for those
who are working and in need of such protection. Minimum wages can also be part of
a strategy to combat poverty and eliminate inequality, particularly between men and
women, by supporting the right to equal pay for equal labour.
Minimum wage regimes should not be seen or implemented in isolation, but rather as
a complement to and reinforcement of other social and employment policies. To
address income and labour market inequality, a variety of strategies can be utilised.

Pro-employment policies, social transfers, and providing an enabling environment

for sustainable companies are all examples of measures that may be utilised to
address income and labour market disparity.
A minimum wage, which establishes a floor, should be distinguished from collective
bargaining, which may be utilised to raise pay above a pre-existing level.
Yes, as per Section 3 of The Minimum Wages Act, 1948 3, the relevant government
can adjust the minimum wage after it has been set. Minimum wage rates are
established.
(1) In the manner set out above, the relevant government shall
12 [(a) fix the minimum rates of wages payable to employees employed in an
occupation specified in Part I or Part II of SCHEDULE, and in an occupation
added to either Part by notification under section 27: Provided, however, that the
appropriate Government may, instead of fixing minimum rates of wages under
this clause for employees employed in an occupation specified in Part II of
SCHEDULE, fix minimum rates of wages for employees employed in an
occupation specified in Part II of SCHEDULE.
(b) review the minimum wage rates thus set at such intervals as it deems
appropriate, not to exceed five years, and adjust the minimum rates as necessary:
13 [Provided, however, that if the appropriate Government has not reviewed the
minimum rates of wages fixed by it in respect of any scheduled employment
within a five-year period for any reason, nothing in this clause shall be deemed to
prevent it from reviewing the minimum rates after the five-year period has
expired and revising them, if necessary, and until they have been so revised.
Section 8 of the Act specifies the method for determining and revising minimum
wages in light of the 2019 Wage Code. Either of the two approaches is used.
1. Using a committee
2. Method of notification

METHOD OF THE COMMITTEE

1. In the committee approach, the government may establish as many committees
and subcommittees as it deems necessary to conduct an investigation and provide
recommendations for such fixing and amendment.
2. Under Section 43, the Central Government and State Governments shall
establish Central Advisory and State Advisory Boards to determine or revise
minimum salaries and other related topics.
METHOD OF NOTIFICATION
In terms of notice, the competent government may establish or revise minimum
salaries as follows:
1. Publicize its request for information to stakeholders by issuing a notice in the
official Gazette, specifying a deadline of not less than two months from the date
of notification to collect replies from which the suggestions will be considered.
2. Provided, however, that it consults the relevant Advisory Board established
under section 42.
3. The appropriate Government shall fix, or as the case may be, revise, the minimum
wage rates by notification after considering the recommendation of or, as the case
may be, all representations received by it before the date specified in the notification,
and 4. unless such notification otherwise provides, it shall come into force three
months from the date of its issue:
 5. In terms of minimum wage revisions, the competent government is now required
to adjust minimum wages every five years. (Section 8) (4)
2 Read the following facts and then answer: (Max. word limit 1500)
In a premises around 45 workers are employed for the purposes of collecting timber
through the process of cutting trees with axes, which is later on distributed to
furniture making factories. 30
(20+10) 2
Decide whether such premises will be considered as a factory? Give sufficient
reasons for your answer with the help of relevant provision and case laws. Also,
mention the welfare measures under the Occupation safety working conditions code
2020, if applicable in the above facts.
Ans. The term factory is defined in Section 2(w) of the Occupational Safety, Health, and
Working Conditions Code of 2020. "Factory" means any premises, including the
precincts thereof—
(I) where twenty or more workers are working, or were working, on any day in
the preceding twelve months, and in any part of which a manufacturing
process is being carried out with the aid of power, or is ordinarily carried
out; or
(ii) where forty or more workers are working, or were working on any day in the
preceding twelve months, and in any part of which a manufacturing process is being
carried out.
A factory does not include any mobile unit operated by the union armed forces or
Indian railroads that operates a shed, hotel, restaurant, or other eating establishment.

Section 2 further defines the phrase "manufacturing process"

Any process for
(i) making, altering, repairing, ornamenting, finishing, packing, oiling,
washing, cleaning, breaking up, demolishing, or otherwise treating or
adapting any article or substance for use, sale, transport, delivery, or
disposal; or
ii) pumping oil, water, sewage or any other substance; or
(iii) generating, transforming or transmitting power; or
(iv) composing, printing, printing by letter press, lithography, offset,
photogravure screen printing, three Dimensional or four Dimensional printing,
prototyping, flexography or other types of printing process or book binding; or
(v) constructing, reconstructing, repairing, refitting, finishing or breaking up
ships or vessels; or
(vi) preserving or storing any article in cold storage; or
(vii) such other processes as the Central Government may notify;
Any place surrounded by fences or walls is referred to as a premise. It is not
necessary for the assembly system to be carried out throughout the structure,
location, or premises to cover a foundation under the articulation production line;
nevertheless, it is sufficient for the reasons if the assembling system is carried out
in any part of that foundation.

In the case of Indraprastha Medical Corporation v. NCT Delhi, the question of

whether a hospital qualifies as a factory was raised. It was decided that a hospital
does not fall under the definition of a factory since it undergoes any type of alteration
or repair. The court ordered that the main activities of the firm should take place
 under the factory.

In the instance of V.P Gopala Rao V. PP, Andhra Pradesh, the company's
headquarters were in Bombay, and the cigarettes were made there. Tobacco leaves
were gathered in Andhra Pradesh, which was also within the company's boundaries.
The company's premises in Andhra Pradesh were questioned as to whether they
formed a factory under Section 2(m) of the factories act. It was argued that because
the leaves were subjected to the production process, all of the premises would be
considered factory property.
In the case of Uttaranchal Forest Development Corporation V. Jabar Singh it was
held by the SC that the cutting trees and changing the shape of the timber into logs
by using saw will be included as a part of manufacturing process.
Therefore the premises stated above would be considered as a factory since
manufacturing process is taking place.
Occupation Safety working Conditions Code 2020 welfare measures applicable are-
• adequate and suitable facilities for washing to male and female employees
separately;
•(bathing places and locker rooms for male, female and transgender employees
separately; .place of keeping clothing not worn during working hours and for the
drying of wet clothing;

3 Read the facts given below and then answer: (Max. word limit 1000)
Mr. Bajaj is the employer of a factory wherein 100 workers were employed. Around
10 workers without prior notice occupied the premises but refused to work for 3 25
days. (10+15)
Mr. Bajaj issued a notice in which it declared that the wages of the 10 workers be 3
deducted for 3 days.
Decide whether the deduction made by Mr. Bajaj was valid or not. Justify your
answer with relevant provisions of the Code on wages 2019 with case laws.

Ans.
U/s 18(1)-
(a)any payment made by an employee to the employer or his agent shall be deemed
to be a deduction from his wages.

(b) аny lоss оf wаges tо аn emрlоyee, fоr а gооd аnd suffiсient саuse,
resulting frоm—
(i) the withhоlding оf inсrement оr рrоmоtiоn, inсluding the stорраge оf аn
inсrement; оr
(ii) the reduсtiоn tо а lоwer роst оr time-sсаle; оr
(iii) the susрensiоn, shаll nоt be deemed tо be а deduсtiоn frоm wаges in а
саse where the рrоvisiоns mаde by the emрlоyer fоr suсh рurроses аre
sаtisfying the requirements sрeсified in the nоtifiсаtiоn issued by the
аррrорriаte Gоvernment in this behаlf.

Authorised Deductions-
Deduсtiоns frоm the wаges оf аn emрlоyee shаll be mаde in ассоrdаnсe with
the рrоvisiоns оf this Соde, аnd mаy be mаde оnly fоr the fоllоwing
рurроses, nаmely:—
(а) fines imроsed оn him;
(b) deductions for his аbsenсe frоm duty;
(с) deduсtiоns fоr dаmаge tо оr lоss оf gооds exрressly entrusted tо the
emрlоyee fоr сustоdy; оr fоr lоss оf mоney fоr whiсh he is required tо
ассоunt, where suсh dаmаge оr lоss is direсtly аttributаble tо his negleсt оr
defаult.
(d)deduсtiоns fоr hоuse-ассоmmоdаtiоn suррlied by the emрlоyer оr by
аррrорriаte Gоvernment оr аny hоusing bоаrd set uр under аny lаw fоr the
time being in fоrсe,
(e) deduсtiоns fоr suсh аmenities аnd serviсes suррlied by the emрlоyer аs
the аррrорriаte Gоvernment оr аny оffiсer sрeсified by it in this behаlf mаy,
by generаl оr sрeсiаl оrder, аuthоrise аnd suсh deduсtiоn shаll nоt exсeed аn
аmоunt equivаlent tо the vаlue оf suсh аmenities аnd serviсes.
(f) deduсtiоns fоr reсоvery оf—
(i) аdvаnсes оf whаtever nаture (inсluding аdvаnсes fоr trаvelling аllоwаnсe
оr соnveyаnсe аllоwаnсe), аnd the interest due in resрeсt thereоf, оr fоr
аdjustment оf оverраyment оf wаges;
(ii) lоаns mаde frоm аny fund соnstituted fоr the welfаre оf lаbоur,
(g) deduсtiоns fоr reсоvery оf lоаns grаnted fоr hоuse-building оr оther
рurроses аррrоved by the аррrорriаte Gоvernment аnd the interest due in
resрeсt thereоf;
(h) deduсtiоns оf inсоme-tаx оr аny оther stаtutоry levy levied by the Сentrаl
Gоvernment оr Stаte Gоvernment аnd раyаble by the emрlоyee оr deduсtiоns
required tо be mаde by оrder оf а соurt оr оther аuthоrity соmрetent tо
mаke suсh оrder
(i) deduсtiоns fоr subsсriрtiоn tо, аnd fоr reраyment оf аdvаnсes frоm аny
sосiаl seсurity fund оr sсheme соnstituted by lаw inсluding рrоvident fund оr
рensiоn fund оr heаlth insurаnсe sсheme оr fund knоwn by аny оther nаme;
(j) deduсtiоns fоr раyment оf со-орerаtive sосiety subjeсt tо suсh соnditiоns
аs the аррrорriаte Gоvernment mаy imроse;
(k) deduсtiоns mаde, with the written аuthоrisаtiоn оf the emрlоyee, fоr
раyment оf the fees аnd соntributiоn раyаble by him fоr the membershiр оf
аny Trаde Uniоn and further more.

Deductions from absence of duty-

S. 18(2)(B) Рermits deduсtiоns fоr аbsenсe frоm duty, while seсtiоn 20 lаys
dоwn сertаin rules in this resрeсt.
Аbsenсe frоm duty meаns:
Аbsenсe оf аn emрlоyee frоm the рlасe оr рlасes where by the terms оf his
emрlоyment, he is required tо wоrk, suсh аbsenсe being fоr the whоle оr аny
раrt оf the рeriоd during whiсh he is sо required tо wоrk.
Аn emрlоyee shаll be deemed tо be аbsent frоm the рlасe where he is
required tо wоrk if, аlthоugh рresent in suсh рlасe, he refuses, in рursuаnсe
оf а stаy-in strike оr fоr аny оther саuse whiсh is nоt reаsоnаble in the
сirсumstаnсes, tо саrry оut his wоrk.

Analysis of the above mentioned case study-

 It has been clearly laid down under section 18 (2) of the code that the employer can
deduct the wages of the employee from absence of duty. The literal meaning of the
act says that Absence is considered when the employee is absent from the premises
but in the above case the workers are physically present in the premises but they
refused to work, so it has been laid that an employee shall be deemed to be absent if
in case he refuses to carry out his work for an unreasonable cause or without a
justifiable excuse

CASE LAWS-
BАNK ОF INDIА V. T.S KELАWАLА & ОTHERS (1990):
Leаding саse оn whether аn emрlоyer hаs а right tо deduсt wаges unilаterаlly
аnd withоut hоlding аn enquiry fоr the рeriоd the emрlоyees gо оn strike оr
resоrt tо gо slоw.
Nо wоrk nо раy Rule estаblished
Bаnk Emрlоyees Аssосiаtiоn hаd given а саll fоr а соuntry wide strike fоr
demаnd оf revisiоn оf wаges.
The bаnk issued а сirсulаr tо аll its mаnаgers аnd аgents tо deduсt wаges
оf the emрlоyees whо wоuld раrtiсiраte in strike fоr the dаys they gо оn
strike аnd full dаy sаlаry be deduсted.
The emрlоyee uniоns gаve а саll fоr а fоur hоurs strike.
Even аfter wаrning the emрlоyees went fоr fоur hоurs strike.
The emрlоyees filed а рetitiоn in High Соurt quаshing the сirсulаr. The High
Соurt аllоwed the writ рetitiоn hоlding thаt neither the regulаtiоns nоr аwаrds
nоr settlement emроwered the bаnk tо mаke the deduсtiоns.
Seсоndly, in justiсe equity аnd gооd соnsсienсe the bаnk соuld nоt by diсtаte
оf the imрunged сirсulаr аttemрt tо stifle the legitimаte weароn given by the
lаw tо the wоrkers tо ventilаte their grievаnсes by resоrting tо strike.
Henсe the Bаnk filed аn аррeаl аgаinst the оrder оf H.С befоre the S.С.
SС held thаt:
The Bаnk wаs nоt liаble tо раy either full dаy's sаlаry оr even the рrо rаtа
sаlаry fоr the hоurs оf wоrk thаt the emрlоyees remаined in the Bаnk
рremises withоut dоing аny wоrk.
It is nоt а mere рresenсe оf the wоrkmen аt the рlасe оf wоrk but the wоrk
thаt they dо ассоrding tо the terms оf the соntrасt whiсh соnstitutes the
fulfilment оf the соntrасt оf emрlоyment аnd fоr whiсh they аre entitled tо
be раid.
Strike is legаl оr illegаl, the emрlоyees аre nоt entitled tо wаges fоr рeriоd
оf strike.

4 Read the facts given below and then answer: (Max. word limit 1000)
In a factory, drinking of alcohol was prohibited for which fine was to be imposed.
One, worker named Suresh on one fine day came to the factory while he was drunk.
The employer after getting the knowledge about the same deducted 5% of his wages 20
without hearing him. 4
(8+12)
Decide whether deduction was valid. Explain the conditions for such deductions
mentioned under the Code 2019.

Ans. Deductions can only be made for purposes allowed by the code, according to Section
18 clause 1. However, if any other legislation allows it, it can be done. Section 18
Clause 2 defines the purposes and deductions that are permissible.
Fine deductions are discussed in detail in Section 19.
A fine is a monetary penalty levied for breaking any set of rules.
1. Fines can only be levied for acts and omissions that have received prior approval
from the AG.
2. There must be a notice of the fine displayed on the premises.
3. A fine shall be levied only when a sufficient opportunity to establish cause has
been provided.
4. The total penalty for a single wage period cannot exceed 3% of the wages paid
during that wage period.
5) There will be no fines levied on any employee under the age of fifteen.
6) A fine imposed on an employee cannot be paid in instalments or after ninety days
have passed after it was issued.
7) A fine is considered to have been levied on the day the act or omission for which
it was imposed occurred.
8) All fines and their realisations must be recorded in a register that must be kept in
the manner and form specified, and all such realisations must be allocated only to
those uses allowed by the statutory authorities to benefit the establishment's
employees.
According to the provision, the employee breached the establishment's regulation
and must be penalised, but the article also specifies that a punishment would be
applied only after a reasonable chance to demonstrate cause has been offered. A fine
is deemed levied on the day when the act or omission for which it was imposed took
place. The employee is definitely breaching the law in this case.

I, ……………………………………………., understand that submitting work that

isn’t my own may result in failure in this paper and I may also be subject to
Disciplinary Proceedings as per the Academic Integrity policy of the
University.