Labour and Industrial Law (Indian and Punjab Statutes)
This domain tests whether you can identify the correct statute, threshold and remedy for a workplace problem in India and Punjab. The central framework now sits alongside four Labour Codes-Wages (2019), Industrial Relations (2020), Social Security (2020) and Occupational Safety, Health and Working Conditions (2020)-though many older Acts still govern day-to-day administration until the Codes are fully enforced. For Punjab, also know the Punjab Shops and Commercial Establishments Act, 1958, the Punjab Industrial Establishments (National and Festival Holidays and Casual and Sick Leave) Act, 1965, and the Punjab Labour Welfare Fund Act, 1965.
Core rules
- Factories Act, 1948: an adult worker ordinarily works 48 hours a week and 9 hours a day, with a weekly holiday; overtime is payable at twice the ordinary rate.
- Minimum wages and payment of wages: wage period, authorised deductions, notified minimum rates and overtime under the Code on Wages at least twice the ordinary rate.
- Industrial disputes: conciliation, labour court or tribunal, notice before strikes or lock-outs, retrenchment compensation and certified standing orders.
- Code on Wages: “wages” excludes bonus, house rent allowance, conveyance and similar items; if exclusions exceed 50% of total remuneration, the excess is included.
Worked example
A worker’s daily wage is ₹600 for 8 hours and the worker puts in 10 hours. Ordinary hourly rate = 600 ÷ 8 = ₹75. Overtime = 2 hours × 2 × ₹75 = ₹300. Total payable = ₹900. The doubling applies to the ordinary rate; do not simply add the normal hourly wage again.
Traps that cost marks
- Applying the Factories Act to a shop: use the Punjab Shops and Commercial Establishments Act instead.
- Mixing thresholds and definitions from the Codes with those in the old Acts.
- Ignoring the “appropriate government” and Punjab amendments or notifications.
- Treating every allowance as “wages” without checking the statutory exclusions.