Labour Law II · Paper 401
The Exam Priority Guide
Decoded from 16 Osmania University question papers, 2011 to 2025.
16
Papers analysed
5
Units covered
10.5 hrs
Covers the paper
1. Where the Marks Live
Every unit, ranked by its real share of the paper across 16 years.
| Unit | Focus | Weight |
|---|---|---|
| Unit III | Social Security, ESI & Compensation | 26% |
| Unit I | Wages & Code on Wages 2019 | 22% |
| Unit V | Factories Act & Child Labour | 22% |
| Unit IV | Gratuity, Maternity & Provident Fund | 18% |
| Unit II | Bonus | 12% |
Unit III is the heaviest unit: ESI Benefits is the single most reliable Part B question and compensation problems repeat most in Part C. Three Part B topics alone (ESI Benefits, Gratuity Act, Minimum Wages) cover 30 marks. Bonus is light on total marks but dense in Part A short notes.
2. Part A: Short Note Questions (6 marks)
Answer any 5 of 8 · ranked by frequency across 16 papers.
Social Security / ESI Corporation
ILO concept. Three pillars: social insurance, social assistance, social service. ESI Corporation: tripartite body, composition and functions.
Maternity Benefit
80 days eligibility. 26 weeks paid leave after 2017 Amendment. S.12: dismissal during maternity leave prohibited.
Whitley Commission Recommendations
Royal Commission on Labour 1929-31. Living wage, works committees, arbitration machinery, welfare measures. Foundation of Indian labour legislation.
ESI Corporation
Statutory corporation under ESI Act 1948. Tripartite: government, employers, employees. Administers the ESI fund and medical benefits.
Child Labour / Rights of Child
Article 24: no child below 14 in factory, mine, hazardous work. Child Labour Act 1986, 2016 Amendment. Article 21A right to education.
Welfare of Labour / Labour Welfare
Directive Principles: Articles 38, 39, 41-43. Statutory welfare under Factories Act Ch.V. Intramural and extramural welfare.
Full Bench Formula
Three-tier pyramid: gross profit, available surplus, allocable surplus. LAT formula from Millowners v Rashtriya Mill Mazdoor Sangh.
Wages concept (Living / Fair / Minimum)
Minimum wage: bare subsistence, non-negotiable floor. Fair wage: between minimum and living. Living wage: frugal comfort. Fair Wages Committee 1948.
Set-on and Set-off of Allocable Surplus
S.15 Payment of Bonus Act. Excess surplus carried forward 4 years (set-on); deficiency adjusted from future (set-off).
Gratuity
Payment of Gratuity Act 1972. 5 years continuous service. 15 days wages per completed year. Death/disablement exemption from 5-year rule.
Authorized Deductions
S.7 Payment of Wages Act: fines, absence, damage, house accommodation, advances. Total cap: 50% of wages (75% with cooperative).
Bonus: concept and eligibility
Deferred wage, share in prosperity. Eligibility: Rs.21,000 salary cap, 30 working days. Minimum 8.33%, maximum 20%.
Notional Extension
Employment extends beyond factory gates in time and place when nexus with work exists. Commuting accident compensation doctrine.
3. Part B: Essay Questions (15 marks)
Answer any 2 of 4 · the high-value essays.
ESI Act Benefits (detailed)
All benefits: sickness, maternity, disablement, dependants, medical, funeral. The single most reliable Part B question in this paper.
Payment of Gratuity Act (salient features)
Definition, eligibility (5 years), calculation formula, forfeiture, nomination, controlling authority. Appeared every year 2016 to 2023.
Minimum Wages: fixation and revision
Procedure under Code on Wages 2019: advisory boards, tripartite committees, notification method. Bijay Cotton Mills: minimum wage overrides freedom of contract.
Employer's Liability / Compensation
S.3 Employees' Compensation Act: arising out of and in the course of employment. Nexus test, notional extension, occupational diseases.
Child Labour Act (detailed)
Constitutional base: Articles 21A, 24, 39(e), 45. 1986 Act framework, 2016 Amendment: adolescent category, hazardous list.
Authorized Deductions / Payment of Wages
Permissible deductions catalogue, wage period, time of payment, remedy for unauthorized deduction.
Bonus Act (detailed)
Concept, eligibility, disqualification, computation of gross profit, allocable surplus, Set-on and Set-off.
Factories Act: Health, Safety, Welfare
Ch.III Health (SS.11-20), Ch.IV Safety (SS.21-41), Ch.V Welfare (SS.42-50). Occupier duties, inspector powers.
EPF Act / Provident Fund
EPF Act 1952 schemes: provident fund, pension, deposit-linked insurance. 12% contribution structure.
4. Part C: Problem Questions (10 marks)
Answer any 2 of 4 · the most recycled problems.
Woman worker: night shift refusal / maternity termination
S.66 Factories Act: no woman works 7pm to 6am. S.12 Maternity Benefit Act: dismissal during maternity leave void. Termination illegal in both variants.
Worker agrees to work below minimum wage
Agreement void: S.25 Minimum Wages Act / Code on Wages. Bijay Cotton Mills: minimum wage is not negotiable, Article 23 dimension.
Compensation: accident while commuting (bicycle / transport)
Notional extension of employment. Nexus of time, place and circumstance. Employer liable when journey incidental to employment.
Child below 14: domestic servant / factory / workshop
Article 24 + Child Labour Act. 2016 Amendment: domestic work in hazardous list. Parental consent is no defence. Penalty on employer.
Gratuity: death or termination before 5 years
S.4(1) proviso: 5-year requirement waived on death or disablement. Nominee entitled. Rejection of claim illegal.
Deduction for breakage / damaged appliance
S.7(2)(c) Payment of Wages Act: deduction only for loss directly attributable to neglect or default, after show-cause. Cap applies.
Equal wages / equal remuneration dispute
Equal Remuneration Act 1976: same or similar work, no gender discrimination in recruitment or pay. Randhir Singh: equal pay as constitutional goal.
5. Topics Due for Return
Long gaps since last appearance. These cycle back.
Factories Act: wives substituting husbands after 7pm (problem)
Classic S.66 problem. Appeared 4 times, longest current gap in Part C rotation.
Gratuity: broken periods / retrenched re-engaged employee
Continuous service computation problem. Overdue by rotation cycle.
Set-on and Set-off (detailed essay)
Part A regular; full Part B treatment due. Pairs with Bonus Act question.
Full Bench Formula
Two-year cycle across 16 papers. Due in 2026.
Whitley Commission
Two-year Part A cycle; 2024 saw Part B form. Short note due.
6. The Study Plan: 10.5 Hours
Ten topic blocks covering ~99 marks of likely questions. The paper asks for 80.
| Priority | Topic | Time |
|---|---|---|
| 1 | ESI Benefits (Part B write-ready) | 2 hrs |
| 2 | Gratuity Act (features + below-5-years problem) | 2 hrs |
| 3 | Minimum Wages fixation + below-minimum-wage problem | 1.5 hrs |
| 4 | Woman night shift + maternity termination (Part C) | 1 hr |
| 5 | Child Labour: short note + Act + Part C problem | 1 hr |
| 6 | Compensation: commuting accident + notional extension | 1 hr |
| 7 | Social Security + ESI Corporation (Part A) | 0.5 hrs |
| 8 | Maternity Benefit short note | 0.5 hrs |
| 9 | Whitley Commission (Part A) | 0.5 hrs |
| 10 | Full Bench Formula + Bonus concept + Set-on/Set-off | 0.5 hrs |
7. Model Answers
Complete answers for Part A, B, and C. Free to download.
8. Predicted Paper 2026
Read this first. This is a pattern-based prediction built from 16 years of past papers. It is not a leaked paper and not a guarantee. Frequency is not certainty. Use it to prioritise revision, never as a substitute for full preparation.
FACULTY OF LAWLL.B. (3-YDC) IV-Semester Examination, 2026
Labour Law II
Max. Marks: 80 · Time: 3 Hours
Labour Law II
Max. Marks: 80 · Time: 3 Hours
PART A — Answer any FIVE (5 x 6 = 30)
- Fair Wage
- Whitley Commission Recommendations
- Full Bench Formula of Bonus
- ESI Corporation
- Maternity Benefit
- Child Labour
- Gratuity
- Authorized Deductions
PART B — Answer any TWO (2 x 15 = 30)
- Explain the procedure for fixation and revision of Minimum Wages under the Code on Wages, 2019.
- Explain the concept of Bonus and Set-on and Set-off of Allocable Surplus under the Payment of Bonus Act.
- Explain the various benefits available to employees under the Employees State Insurance Act, 1948.
- Discuss the salient features of the Payment of Gratuity Act, 1972.
PART C — Answer any TWO (2 x 10 = 20)
- A woman worker is terminated from services for refusal to do the night shift work in a factory. Advise her.
- An employee goes to attend work riding on a bicycle and is involved in an accident in the course of the journey and lost his right leg. Discuss whether the employer is liable for compensation.
- A child below 14 years of age is engaged as a domestic servant in a household for a meager wage without any holiday or rest. Decide.
- An employee died after rendering continuous service of three years. The claim for gratuity filed by the nominee was rejected by the employer on the ground that the deceased employee had not completed five years of continuous service. Decide.
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Built from 16 Osmania University papers (2011–2025) · lawstories.in
Frequency is a guide, not a guarantee. Verify section numbers against the new Labour Codes.
Frequency is a guide, not a guarantee. Verify section numbers against the new Labour Codes.