Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act

Kaveri Textiles in Coimbatore employed 38 persons on most days, but on one day in the preceding twelve months it had 42 persons. Under the definitions in the 1988 Act, what is the position?

It is not a small establishment. The definition looks at persons employed on any day of the preceding twelve months, with a ceiling of forty. Since 42 persons were employed on one day, the ceiling was crossed, and average strength is irrelevant to the test.

  1. AIt is a small establishment, since the average strength is below forty
  2. BIt is a very small establishment, since most days had fewer than ten extra workers
  3. CIt is a small establishment, since the limit applies only on the date of filing
  4. DIt is not a small establishment, since 42 persons were employed on one day of the preceding twelve monthsCorrect

Explanation

The definition of small establishment covers not less than ten and not more than forty persons employed on any day of the preceding twelve months. Having 42 persons on one day takes the establishment outside the limit. Averaging is not the test, so option A is wrong.

Did you get it right without looking?

One question tells you little. A timed set on The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act shows your real accuracy, how long you take and where you lose marks.

Practise The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) ActFree diagnostic mock

More The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act questions