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The Payment of Wages Act, 1936 MCQs Set-2
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1. Section 7(2)(k) permits deductions for purchase of securities of:
a. Only private companies
b. Government of India or any Appropriate Government
c. Foreign Governments only
d. Trade unions only
2. Deposit in a Post Office Savings Bank under Section 7(2)(k) must be:
a. For any personal purpose
b. In furtherance of a savings scheme of the Government
c. Approved by the employer only
d. Made without written consent
3. Deduction for contribution to a welfare fund constituted by an employer or registered trade union requires:
a. Written authorisation of the employed person and approval of the Appropriate Government
b. Approval of the employer only
c. Approval of the employee's family members
d. No approval or authorisation
4. A deduction for membership fees of a registered trade union under Section 7(2)(kkk) requires:
a. Written authorisation of the employed person
b. Approval of the employer
c. Approval of the Court
d. Approval of the police authority
5. A welfare fund deduction under Section 7(2)(kk) may continue:
a. Only for one year
b. During the continuance of approval by the Appropriate Government or specified officer
c. Without any approval
d. Only until termination of employment
6. Under Section 7(2)(l), deductions may be made for payment of:
a. Health insurance premium
b. Fidelity Guarantee Bond insurance premium
c. Life insurance premium only
d. Pension contribution only
7. Under Section 7(2)(m), deductions may be made for losses sustained by a railway administration due to:
a. Delay in promotion of an employee
b. Acceptance of counterfeit or forged currency notes by an employed person
c. Employee's resignation
d. Absence due to illness
8. A railway administration can recover losses through wage deductions where the employee fails to:
a. Invoice, bill, collect or account for appropriate charges due to the administration
b. Attend office regularly
c. Complete personal assignments
d. Apply for leave
9. Losses caused to a railway administration due to incorrect rebates or refunds granted by an employee may be deducted from wages when:
a. The employer merely suspects negligence
b. Such loss is directly attributable to the employee's neglect or default
c. The employee refuses to pay voluntarily
d. The loss is caused by another employee
10. Deduction for contribution to the Prime Minister’s National Relief Fund requires:
a. Approval of the employer only
b. Written authorisation of the employed person
c. Order of the Court
d. Approval of the trade union
11. Under Section 7(2)(q), deductions may be made for contributions to:
a. Any private insurance scheme
b. Any insurance scheme framed by the Central Government for its employees
c. Any scheme created by the employer without approval
d. Any foreign insurance scheme
12. The maximum amount of deductions in a wage-period where deductions are wholly or partly made for payments to co-operative societies may be:
a. 25% of wages
b. 50% of wages
c. 75% of wages
d. 100% of wages
13. In cases other than deductions for payments to co-operative societies, the maximum permissible deduction in a wage-period is:
a. 25% of wages
b. 50% of wages
c. 75% of wages
d. 90% of wages
14. If authorised deductions exceed the prescribed limit of 75% or 50% of wages, the excess amount:
a. Is automatically cancelled
b. May be recovered in the prescribed manner
c. Cannot be recovered under any circumstances
d. Becomes a fine
15. Section 7(4) provides that nothing in Section 7 prevents an employer from recovering:
a. Any amount payable by the employee under any other law in force
b. Any personal expenses of the employer
c. Any unofficial penalty imposed by the employer
d. Any amount without legal authority
16. Under Section 8(1) of the Payment of Wages Act, a fine may be imposed on an employed person:
a. For any act or omission decided by the employer
b. Only for acts and omissions specified by notice with prior approval of the appropriate authority
c. Without giving any reason
d. Only by order of a Court
17. Before specifying acts and omissions for which fines may be imposed, the employer must obtain previous approval of:
a. Labour Court only
b. Appropriate Government or prescribed authority
c. Trade Union only
d. District Magistrate only
18. The acts and omissions for which fines may be imposed must be specified by:
a. Oral instructions
b. Notice issued by the employer
c. Court judgment
d. Government notification only
19. A notice specifying acts and omissions for imposing fines must be exhibited:
a. Only in the employer’s office
b. In the prescribed manner at the premises where employment is carried on
c. At the employee’s residence
d. Before the Labour Court
20. In the case of persons employed upon a railway (otherwise than in a factory), the notice regarding fines shall be displayed:
a. At any railway station
b. At prescribed place or places
c. At the employee’s home
d. At the headquarters only
21. Before imposing a fine, an employed person must be given:
a. An opportunity to resign
b. An opportunity of showing cause against the fine
c. A promotion opportunity
d. A written warning only
22. The procedure for imposition of fines must be:
a. Decided solely by the employer
b. In accordance with the prescribed procedure
c. Approved by employees only
d. Fixed by the trade union
23. The maximum fine that may be imposed in any one wage-period shall not exceed:
a. 1% of wages payable
b. 2% of wages payable
c. 3% of wages payable
d. 5% of wages payable
24. Under Section 8(5), no fine shall be imposed on an employed person who is:
a. Above 18 years of age
b. A temporary employee
c. Under the age of fifteen years
d. A contract worker
25. Which statement is correct regarding fines under the Payment of Wages Act?
a. Fine can be imposed without giving an opportunity of hearing.
b. Fine can be imposed for any act considered wrong by the employer.
c. Fine cannot exceed three percent of wages payable for that wage-period.
d. Fine can be imposed on children below fifteen years.
26. Under Section 8(6), a fine imposed on an employed person cannot be recovered:
a. In cash only
b. By installments or after expiry of ninety days from the day of imposition
c. Through bank transfer
d. Before the expiry of seven days
27. The period within which a fine must be recovered after its imposition is:
a. Thirty days
b. Sixty days
c. Ninety days
d. One hundred and twenty days
28. According to Section 8(7), a fine shall be deemed to have been imposed on:
a. The date of recovery
b. The date of approval by the Government
c. The day of the act or omission for which it was imposed
d. The date of entry in the register
29. Every fine imposed and every realisation thereof must be recorded in:
a. The employee’s service book
b. A register maintained by the person responsible for payment of wages under Section 3
c. A Government register
d. A court record
30. The form of the register for recording fines and realisations shall be:
a. Prescribed under the Act
b. Decided by the employee
c. Fixed by the employer without rules
d. Determined by the trade union
31. The person responsible for maintaining the register of fines is:
a. Labour Inspector
b. Employer’s accountant only
c. Person responsible for payment of wages under Section 3
d. Appropriate Government
32. The amount realised as fines shall be applied:
a. For the personal benefit of the employer
b. For any purpose decided by the management
c. Only for purposes beneficial to employed persons and approved by the prescribed authority
d. To increase company profits
33. When employees of a railway, factory or establishment are part of a larger staff under the same management, realisations from fines may be:
a. Distributed among employees directly
b. Credited to a common fund maintained for the staff as a whole
c. Transferred to the employer’s account
d. Deposited with the Government
34. The common fund created from fine realisations shall be used:
a. For any purpose decided by the employer
b. Only for purposes approved by the prescribed authority
c. Only for payment of wages
d. For payment of government taxes
35. Which statement is correct regarding fines under Section 8?
a. Fine can be recovered after any period decided by the employer.
b. Fine realisations may be used for any business purpose.
c. Fine realisations must be recorded and used only for approved beneficial purposes.
d. Fine is deemed imposed on the date of recovery.
36. Under Section 9, deduction for absence from duty is permitted under which clause of Section 7(2)?
a. Clause (a) – Fines
b. Clause (b) – Deductions for absence from duty
c. Clause (c) – Damage or loss
d. Clause (d) – House accommodation
37. Deduction for absence from duty can be made when an employed person is absent from:
a. His residence
b. The place or places where he is required to work under the terms of employment
c. Any public place
d. The employer’s office only
38. Under Section 9(1), absence may be:
a. Only for the entire wage-period
b. Only for one working day
c. For the whole or any part of the period during which the employee is required to work
d. Only with prior permission of the employer
39. The amount of deduction for absence from duty shall bear to wages payable:
a. No relation with the period of absence
b. The same proportion as the period of absence bears to the total required working period
c. Double the proportion of absence
d. A fixed percentage decided by the employer
40. Under Section 9(2), deduction for absence from duty cannot exceed:
a. The entire monthly wages
b. The proportionate amount relating to the period of absence
c. Ten days’ wages in every case
d. Fifteen days’ wages
41. When ten or more employed persons acting together absent themselves without due notice and without reasonable cause, the deduction may include:
a. Wages for thirty days
b. Wages for fifteen days
c. An amount not exceeding wages for eight days
d. Entire wages for the month
42. The special deduction for concerted absence by ten or more employees is subject to:
a. Rules made by the Appropriate Government
b. Approval of the Supreme Court
c. Decision of the employer alone
d. Approval of the trade union
43. For the purpose of Section 9, an employee shall be deemed absent if:
a. He is on approved leave
b. He is present at the workplace but refuses to work during a stay-in strike without reasonable cause
c. He arrives late by five minutes
d. He works overtime
44. A deduction for absence from duty is valid only when the absence occurs during:
a. Any period chosen by the employer
b. The period during which the employee was required to work under the terms of employment
c. Holidays only
d. The notice period only
45. Which statement is correct regarding Section 9?
a. Presence at the workplace always prevents deduction for absence.
b. An employee participating in an unreasonable stay-in strike may be deemed absent.
c. Any absence permits deduction of full wages.
d. No deduction can be made for partial absence.
46. Under Section 10, deductions for damage or loss are covered under which clauses of Section 7(2)?
a. Clauses (a) and (b)
b. Clauses (c) and (o)
c. Clauses (d) and (e)
d. Clauses (f) and (g)
47. A deduction made for damage or loss caused by an employed person shall:
a. Exceed the amount of loss caused
b. Not exceed the amount of damage or loss caused to the employer
c. Always be equal to one month’s wages
d. Be fixed by the employee
48. Under Section 10(1), damage or loss must be caused due to:
a. Employer’s negligence
b. Employee’s neglect or default
c. Government action
d. Natural causes only
49. Before making a deduction under Section 10(1A), the employed person must be given:
a. An opportunity to resign
b. An opportunity of showing cause against the deduction
c. A promotion opportunity
d. A written warning only
50. Deduction under Section 10(1A) cannot be made except according to:
a. The employer’s internal policy
b. The procedure prescribed under the Act
c. The employee’s consent only
d. The decision of a trade union
51. The opportunity of showing cause before deduction is required for deductions under clauses:
a. (c), (m), (n) and (o) of Section 7(2)
b. (a), (b), (d) and (e) of Section 7(2)
c. Only clause (a) of Section 7(2)
d. Only clause (j) of Section 7(2)
52. Under Section 10(2), deductions for damage or loss and their realisations must be recorded in:
a. A Government register
b. A register maintained by the person responsible for payment of wages under Section 3
c. The employee’s service book
d. The employer’s profit register
53. The form of the register for recording deductions for damage or loss is:
a. Prescribed under the Act
b. Decided by the employee
c. Fixed by the employer without rules
d. Determined by the Court
54. Which of the following is a condition for making deductions under Section 10?
a. The deduction must be more than the loss suffered.
b. The employee must be given an opportunity to explain before deduction.
c. Approval of the employee is always mandatory.
d. Deduction can be made without following any procedure.
55. Section 10 primarily deals with:
a. Fines imposed on employees
b. Deductions for absence from duty
c. Deductions for damage or loss caused by employee’s neglect or default
d. Payment of bonus
56. Section 11 of the Payment of Wages Act deals with:
a. Deductions for fines
b. Deductions for absence from duty
c. Deductions for services rendered
d. Deductions for income tax
57. A deduction under Section 11 relates to which clauses of Section 7(2)?
a. Clause (a) and (b)
b. Clause (d) and (e)
c. Clause (f) and (g)
d. Clause (j) and (k)
58. A deduction for house accommodation or services supplied by the employer can be made only when:
a. The employer decides it is necessary
b. The employee has accepted it as a term of employment or otherwise
c. The employee is a permanent worker only
d. The Government directs it in every case
59. Under Section 11, deduction for house accommodation, amenity or service shall not exceed:
a. One month’s wages
b. Half of the wages
c. An amount equivalent to the value of the accommodation, amenity or service supplied
d. Any amount decided by the employer
60. Acceptance of house accommodation or service by an employed person may be:
a. Only through a written contract
b. As a term of employment or otherwise
c. Only through Government approval
d. Only through a court order
61. Deduction under clause (e) of Section 7(2) for amenities and services shall be subject to:
a. Conditions imposed by the Appropriate Government
b. Approval of the employee’s family
c. Decision of the employer alone
d. Approval of the trade union only
62. Which of the following is correct regarding deductions under Section 11?
a. Deduction may exceed the value of the service supplied.
b. Deduction can be made without acceptance by the employee.
c. Deduction cannot exceed the value of the house accommodation, amenity or service supplied.
d. Deduction is always prohibited.
63. The authority empowered to impose conditions regarding deductions under clause (e) is:
a. Labour Court
b. Appropriate Government
c. Employer
d. Civil Court
64. A deduction for house accommodation supplied by an employer is valid when:
a. The employee has accepted such accommodation
b. The employer provides notice only
c. The employee is unaware of the deduction
d. It is imposed as a penalty
65. Section 11 acts as a restriction on deductions by ensuring that:
a. Employers can deduct unlimited amounts
b. Deductions correspond to accepted services and their actual value
c. Employees cannot receive amenities
d. All services must be free of cost
66. Section 12 of the Payment of Wages Act deals with:
a. Deductions for fines
b. Deductions for recovery of advances
c. Deductions for absence from duty
d. Deductions for services rendered
67. Deductions under Section 12 relate to which clause of Section 7(2)?
a. Clause (c)
b. Clause (d)
c. Clause (f)
d. Clause (j)
68. Recovery of an advance of money given before employment began shall be made from:
a. Any wage payment decided by the employer
b. The first payment of wages in respect of a complete wage-period
c. The last payment of wages
d. The employee’s bonus
69. Recovery of advances given before employment began shall NOT be made when such advances were given for:
a. Medical expenses
b. Travelling expenses
c. House construction
d. Education expenses
70. Recovery of an advance of money given after employment began shall be subject to:
a. Conditions imposed by the Appropriate Government
b. Approval of the employee’s family
c. Decision of the employer only
d. Order of the civil court only
71. Recovery of advances of wages not already earned shall be regulated by:
a. Rules made by the Appropriate Government
b. Rules made by the employer
c. Employee’s personal agreement only
d. Court orders only
72. Rules regarding recovery of advances of wages not already earned may regulate:
a. Only the rate of wages
b. The extent to which advances may be given and installments of recovery
c. The employee’s working hours
d. The employee’s promotion
73. Section 12A deals with:
a. Recovery of fines
b. Recovery of loans
c. Recovery of taxes
d. Recovery of penalties
74. Deductions for recovery of loans under Section 12A relate to:
a. Clause (fff) of Section 7(2)
b. Clause (a) of Section 7(2)
c. Clause (b) of Section 7(2)
d. Clause (j) of Section 7(2)
75. The Appropriate Government may make rules regarding loans under Section 12A relating to:
a. Extent of loans and rate of interest payable
b. Appointment of employees
c. Working hours of employees
d. Payment of gratuity
76. Deductions under Section 13 relate to which clauses of Section 7(2)?
a. Clause (a) and (b)
b. Clause (j) and clause (k)
c. Clause (c) and (d)
d. Clause (f) and (g)
77. Conditions for deductions under clauses (j) and (k) of Section 7(2) may be imposed by:
a. Employer
b. Appropriate Government
c. Labour Court
d. Trade Union
78. Under Section 13A, every employer is required to maintain:
a. Only attendance records
b. Registers and records containing prescribed particulars of employed persons
c. Only wage slips
d. Only employment contracts
79. Which of the following particulars must be included in registers maintained under Section 13A?
a. Work performed by employees
b. Personal property details of employees
c. Family details of employees
d. Educational qualifications only
80. Registers and records maintained under Section 13A must be preserved for:
a. One year after the last entry
b. Two years after the last entry
c. Three years after the last entry
d. Five years after the last entry
81. An Inspector of Factories appointed under Section 8(1) of the Factories Act, 1948 shall be an Inspector under the Payment of Wages Act for:
a. All factories within his assigned local limits
b. All factories throughout India
c. Only government factories
d. Only railway factories
82. The Appropriate Government may appoint Inspectors under the Payment of Wages Act for persons employed upon:
a. Shops only
b. Railways otherwise than in a factory
c. Banks only
d. Private offices only
83. Inspectors under Section 14(3) may be appointed by the Appropriate Government through:
a. Oral order
b. Notification in the Official Gazette
c. Court order
d. Employer’s request
84. An Inspector under Section 14 may enter, inspect and search premises:
a. At any time without restriction
b. At any reasonable time for carrying out the object of the Act
c. Only after permission from the employer
d. Only after a court warrant
85. Which of the following is NOT a power of an Inspector under Section 14(4)?
a. Examining and inquiring into compliance with the Act
b. Inspecting and searching premises
c. Seizing relevant registers or documents relating to offences
d. Imposing punishment directly on employers
86. An Inspector may require production of registers or records:
a. By oral request only
b. By written order at the prescribed place
c. Only through a court order
d. Only through police authority
87. No person shall be compelled by an Inspector to:
a. Produce records
b. Answer questions or make statements tending to incriminate himself
c. Show attendance records
d. Provide wage information
88. The provisions of which law apply to searches or seizures made by Inspectors under Section 14(4A)?
a. Civil Procedure Code, 1908
b. Code of Criminal Procedure, 1973
c. Evidence Act, 1872
d. Factories Act, 1948
89. Every Inspector appointed under the Payment of Wages Act shall be deemed to be:
a. A private employee
b. A public servant within the meaning of the Indian Penal Code
c. A judicial officer
d. A government contractor
90. Under Section 14A, every employer is required to provide Inspectors:
a. Financial assistance
b. All reasonable facilities for entry, inspection, supervision, examination or inquiry
c. Legal representation
d. Personal security
91. The duty to provide facilities to Inspectors under Section 14A is imposed upon:
a. Employees
b. Trade unions
c. Every employer
d. Appropriate Government
92. Section 14A relates to:
a. Appointment of Inspectors
b. Powers of Labour Courts
c. Facilities to be afforded to Inspectors
d. Recovery of fines
93. Under Section 15(1), the Appropriate Government appoints authorities for deciding claims by:
a. Notification in the Official Gazette
b. Private agreement
c. Court order only
d. Executive instruction
94. Claims under Section 15 may arise out of:
a. Termination of employment only
b. Deductions from wages or delay in payment of wages
c. Promotion disputes only
d. Industrial strikes only
95. The Appropriate Government may appoint as an authority under Section 15:
a. Commissioner for Workmen’s Compensation
b. Police Inspector
c. District Collector only
d. Company Secretary
96. An Assistant Labour Commissioner of the Central Government can be appointed as an authority under Section 15 if he has:
a. One year’s experience
b. Two years’ experience
c. Five years’ experience
d. Ten years’ experience
97. A State Government officer eligible for appointment as an authority under Section 15 must not be below the rank of:
a. Labour Inspector
b. Assistant Labour Commissioner
c. District Magistrate
d. Secretary
98. A Presiding Officer of which institution may be appointed as an authority under Section 15?
a. Civil Court only
b. Labour Court or Industrial Tribunal constituted under the Industrial Disputes Act, 1947
c. Consumer Forum only
d. Revenue Court only
99. An officer with experience as a Judge of a Civil Court or Judicial Magistrate may be appointed as:
a. Inspector
b. Authority to hear wage claims
c. Employer representative
d. Conciliation officer only
100. The authority appointed under Section 15 can decide claims relating to:
a. Only deduction from wages
b. Only delay in payment of wages
c. Both deductions from wages and delay in payment of wages
d. Appointment disputes
101. The authority appointed under Section 15 may hear claims for:
a. Any area in the country without specification
b. A specified area
c. Only one establishment
d. Only government departments
102. Where necessary, the Appropriate Government may appoint:
a. Only one authority for the whole State
b. More than one authority for a specified area
c. No authority
d. Only a Supreme Court Judge
103. If more than one authority is appointed under Section 15, the Appropriate Government may provide for:
a. Cancellation of claims
b. Distribution or allocation of work among authorities
c. Transfer of employees
d. Payment of compensation
104. An inquiry conducted under Section 15 shall be deemed to be:
a. An administrative proceeding
b. A judicial proceeding
c. A departmental proceeding
d. A civil dispute
105. The judicial proceeding status under Section 15(4B) is for the purposes of sections:
a. 186, 187 and 188 of IPC
b. 193, 219 and 228 of IPC
c. 302, 304 and 307 of IPC
d. 420, 421 and 422 of IPC
106. Section 15(4B) of the Payment of Wages Act refers to:
a. Recovery of wages
b. Nature of inquiry conducted by the authority
c. Appointment of Inspectors
d. Fixation of wage periods
107. An amount directed to be paid under Section 15 may be recovered:
a. Only through civil court proceedings
b. As if it were a fine imposed by a Magistrate
c. Only through employer’s consent
d. Through trade union action
108. If the authority under Section 15 is a Magistrate, the amount directed to be paid shall be recovered:
a. As a civil decree
b. As if it were a fine imposed by him as Magistrate
c. Through police recovery only
d. By attachment of wages
109. If the authority under Section 15 is not a Magistrate, recovery shall be made by:
a. The employer
b. The Magistrate to whom the authority applies
c. The Labour Inspector
d. The Appropriate Government
110. Under Section 16, employed persons belong to the same unpaid group when:
a. They work in different establishments but have similar wages
b. They are employed in the same establishment and deductions or unpaid wages relate to the same cause and wage period
c. They belong to the same trade union
d. They are employed by the same owner only
111. A single application under Section 15 may be presented on behalf of:
a. Only one employed person
b. Any number of employed persons belonging to the same unpaid group
c. Only government employees
d. Only permanent employees
112. Persons belonging to the same unpaid group may include those whose:
a. Wages have remained unpaid after the day fixed under Section 5
b. Wages were increased by the employer
c. Employment was terminated
d. Contracts were renewed
113. In a single application filed under Section 16, each person may be awarded:
a. Unlimited compensation
b. Maximum compensation up to the limit specified under Section 15(3)
c. Only actual wages without compensation
d. No compensation
114. The authority under Section 16 may treat separate pending applications relating to the same unpaid group as:
a. Rejected applications
b. A single application under Section 16(2)
c. Separate criminal cases
d. Appeals
115. Section 16 primarily deals with:
a. Appointment of authorities
b. Single application in respect of claims from unpaid groups
c. Deductions for fines
d. Maintenance of registers
116. An appeal under Section 17 may be preferred against:
a. Only an order imposing fine
b. Order dismissing an application under Section 15 or direction made under Section 15(3) or 15(4)
c. Order of an Inspector
d. Appointment of an authority
117. The period for filing an appeal under Section 17 is:
a. Fifteen days
b. Thirty days
c. Sixty days
d. Ninety days
118. The limitation period for an appeal under Section 17 begins from:
a. Date of filing the claim
b. Date of appointment of authority
c. Date on which the order or direction was made
d. Date of payment of wages
119. In a Presidency-town, an appeal under Section 17 shall lie before:
a. District Court
b. High Court
c. Court of Small Causes
d. Labour Court
120. Outside a Presidency-town, an appeal under Section 17 shall lie before:
a. Civil Judge
b. District Court
c. Labour Tribunal
d. Magistrate Court
121. An employer may appeal under Section 17 when the total sum directed to be paid by way of wages and compensation exceeds:
a. ₹100
b. ₹200
c. ₹300
d. ₹500
122. An employer may also appeal when the direction has the effect of imposing financial liability exceeding:
a. ₹500
b. ₹1,000
c. ₹5,000
d. ₹10,000
123. An employed person may appeal under Section 17 when the total amount of wages claimed to have been withheld exceeds:
a. ₹10
b. ₹20
c. ₹50
d. ₹100
124. In case of an unpaid group, an appeal by an employed person may be preferred when the wages claimed to have been withheld exceed:
a. ₹25
b. ₹50
c. ₹100
d. ₹300
125. An appeal under Section 17 may also be preferred by:
a. Only the employer
b. Only the employee
c. Any person directed to pay a penalty under Section 15(4)
d. Only the Inspector