Other Business-Related Laws
Scope
This domain samples labour, consumer, competition, foreign exchange and anti-money-laundering laws. Questions usually test coverage thresholds and one calculation.
Labour law anchors
Factories Act, 1948: a factory uses power with 10 or more workers, or 20 or more without power. Normal hours are 48 per week and 9 per day; overtime is twice the ordinary rate. Payment of Wages Act, 1936: wage period cannot exceed one month; total deductions generally cannot exceed 50% of wages, or 75% where specified deductions apply. Bonus Act, 1965: eligibility ceiling is 21,000 per month; minimum bonus 8.33% and maximum 20%, with a calculation ceiling. Gratuity Act, 1972: five years' continuous service; 15 days' wages per year, computed as last wages x 15/26 x years, subject to the statutory ceiling. PF: 12% employee and 12% employer contributions; ESI: employee 0.75% and employer 3.25% within the wage ceiling.
Other regimes
Industrial Disputes Act, 1947 provides authorities, strike and lockout rules, lay-off and retrenchment conditions. Consumer Protection Act, 2019 covers goods, services and e-commerce, with district, state and national commissions and product liability. Competition Act, 2002 prohibits anti-competitive agreements, abuse of dominance and combinations causing appreciable adverse effect on competition. FEMA, 1999 regulates foreign exchange, with current account transactions generally free and capital account transactions regulated. PMLA, 2002 targets proceeds of crime and imposes KYC and reporting duties on reporting entities.
Worked example
An employee has 10 years' service and last drawn wages of 26,000 per month. Gratuity is 26,000 x 15/26 x 10 = 1,50,000, subject to the statutory maximum. Her bonus eligibility is separate: if monthly wages exceed 21,000, she is outside the Bonus Act's eligibility ceiling, even though gratuity applies.
Traps
Bonus eligibility and calculation ceilings are different. Five years, not ten, is the gratuity threshold. ESI and PF wage ceilings are not the same. Consumer commission pecuniary limits are revised, so use the current limits.