CS Professional June 2026 Question Paper Labour Laws and Practice

FOR CS PROFESSIONAL EXAM PREPARATION

CS Professional 2026
Question Paper ·
Labour Laws and
Practice
EXAM YEAR TYPE SUBJECT

CS Professional 2026 Question Paper Labour Laws and Practice
DATE

June 2026

Notes · Sample Papers · Previous Year Papers · Mock Tests

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Roll No. ..................................... OPEN BOOK EXAMINATION

Time allowed : 3 hours Maximum marks : 100

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Total number of questions : 4 Total number of printed pages : 12

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NOTE : Answer ALL Questions.

1. Case Study :

The Sivika Tech. Ltd. is an IT-enabled services company established in 2012 at Gurgaon. The

company employed 550 workers, including 350 software developers and technical staff (monthly

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salaries ` 30,000–` 80,000), 150 administrative and support staff (monthly salaries ` 8,000–

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` 18,000), 50 managerial and supervisory personnel (monthly salaries ` 60,000– ` 1,50,000).

s em outbreak and loss of major client contracts, the
la in January 2021. The Board of Directors decides to
Due to global economic recession, Covid-19

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company faces severe financial distress

implement cost cutting measures including workforce reduction, salary restructuring, and operational

downsizing. The management identifies 120 permanent employees for retrenchment (employed

since 2013), including : 50 junior developers (average service : 3 years, average monthly salary :

` 35,000), 40 administrative staff (average service : 5 years, average monthly salary : ` 12,000),

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30 senior developers (average service : 7 years, average monthly salary : ` 55,000) without

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c. o 2022 effective immediately, offering 15 days’ salary for every completed
e myear of service, one
stating the reason in the termination letter. The company issued termination letters on 1st October,

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month’s salary as notice pay, no prior consultation with workers or trade union. Affected

permanent employees approach the Regional Labour Commissioner alleging illegal retrenchment.

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During the retrenchment process, these 120 staff members went on strike immediately receiving
the termination letter on 1st October, 2022 without informing to the management. These 120

staff members did not file their complaint to the Works Committee and the matter was also

not referred to the Conciliation Officer. They directly filed the matter before the lndustrial Tribunal

on 1st January, 2023, the Industrial Tribunal passed an Award on 25th August 2025 without

holding a proper enquiry. While passing an Award it was also found that the Labour Audit is

pending since last two years, the Labour Inspector have not audited the company regarding

various statutory compliances, the company license was also due for renewal and found

irregularities in labour compliances.

But during the pendency of proceedings, the management changed some service conditions which

were unconnected with the dispute, without serving the notice to the workers. The management

made the changes in their standing orders too without informing to the workers, and to the

appropriate authority. The management made the alteration in the payment of subsistence

allowance, the change was that if any workmen is suspended by the employer where the

investigation or inquiry and the matter is pending before the court only nominal charges i.e. only

30 percent, will be paid to the workmen during the pendency of the proceedings. When the

workers got to know about the changes they threatened to the management and filed multiple

cases against the management.

Answer the following questions (a, b, c), keeping in view the above scenario :

(a) Sivika Tech. Ltd. recently retrenched a group of employees with immediate effect, failing

to serve prior notice to the affected workers or to the appropriate government. Based

on the Industrial Relations Code, 2020 :

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(i) Determine whether this act of retrenchment by the company is legal or illegal,
why ?

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(ii) Explain the statutory provisions and the conditions precedent that an employer

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ag Do employees have an absolute legal right to go on strike ? The employees of Sivika
(2+3=5 marks)

(b)
Tech. Ltd. went on strike without serving the requisite notice to the management or the
appropriate government. Will this act be considered legal or illegal under The Industrial
Relations Code, 2020 ? Substantiate your answer with relevant legal provisions.

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workers ? Additionally, outline the m
(c) Can management unilaterally modify standing orders without prior consultation with the

s e statutory provisions for subsistence allowance, discuss
g la Code, 2020.
a
under the Industrial Relations

(d) ST Technologies Pvt. Ltd., a digital platform company running an online food delivery
application across several metropolitan cities, engages a large number of delivery partners
to deliver orders placed through its platform. The company maintains that these delivery

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partners function as independent contractors associated with the platform and therefore

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are not eligible to receive statutory social security benefits. A group of delivery workers

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disputes this position and contends that, considering the nature of their work and their

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dependence on the platform, they should be treated as eligible beneficiaries under the
statutory framework governing gig and platform workers.

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Accordingly, they submit a representation before the competent authority seeking coverage

under the relevant social security schemes established under the Code on Social Security,

2020. Examine the legal issues involved and determine whether such delivery personnel

can claim social security protection under the Code on Social Security, 2020.

(e) RCD Chemicals Ltd., a factory engaged in the manufacture of industrial chemicals,

employs a large number of workers in processes that involve handling and exposure to

hazardous and toxic material. The workers are required to perform their duties in areas

where harmful chemical vapour and substances are frequently present. However, the

management allegedly fails to provide proper safety gear such as protective clothing,

masks and gloves and also neglects to arrange regular medical examination and health

monitoring for workers engaged in these dangerous operations. Over a period, several

workers develop serious health complications attributed to prolonged exposure to toxic

substances in the workplace. Alarmed by these incidents, the remaining workers submit

a complaint to the competent labour authority alleging that the employer has violated

statutory safety and health obligations prescribed under the Occupational Safety, Health

and Working Conditions Code, 2020.

What are the legal issues involved in the above case ? Also determine the action that

may be taken by the labour authorities under the relevant provisions of the Code.

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2. Ivory Mica & Minerals Ltd. (IMM) is a mid-sized, publicly traded mining company that mostly
works in the country’s underdeveloped, mineral-rich eastern area. The company specializes in

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the extraction and processing of low-grade coal and mica, which are highly sought after by the

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worldwide electronics, energy, and cosmetics industries. IMM has a superb reputation in the

s emFive years ago, IMM’s management implemented an aggressive outsourcing strategy
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stock market.

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to reduce overhead expenses and increase operational efficiency. IMM reorganized its operations
rather
labour contractors while keeping a small core staff of engineers and management. The unlicensed
primary contractor, “Surya Extractor Contractor Ltd.”, oversees the day-to-day mining operations
and is compensated at a set fee for each ton of extracted mineral. Surya Extractor further
subcontracts the work to unregistered local “gang leaders” (middlemen) in order to preserve

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their profit margin. These intermediaries hire labourers from underprivileged rural and tribal areas

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e to labour in the mines since they are paid piecemeal
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severely impacted by seasonal drought.

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(depending on the weight of the a
The middlemen encourage entire families
harvested minerals). The working environment is appalling. Instead
of being official contract labourers, the adult miners are categorized as “daily wage helpers”.
Mica mining frequently entails “rat-hole” mining, which entails excavating small, dangerous tunnels.
The intermediaries highly value children's ability to crawl into these tight shafts because of their
diminutive stature. Children under the age of 14 years make up about 30% of the informal

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m During an unplanned site visit to one of the far-off mines, Stelva, the Manager. of IMM, discovers
workforce. They perform 10-hour shifts in dangerous, dusty surroundings, often even at night.

c. o children shifting mica and carrying big loads. He also disclosed stheemintricate
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network of

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subcontracts designed to shield IMM from labour law requirements.
the local workers, Stelva learns that they are trapped in a cycle of debt servitude to the

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intermediaries. The manager, Stelva, claims that there isn't a single youngster or underpaid employee
at the IMM. Our payroll compliance is 100%. In our agreement with the independent business
company Surya Extractors, child labour is categorically forbidden. If their contractor and
subcontractor violate the law, it is their responsibility of law enforcement.

Based on the above scenario, answer following questions (a and b) :

(a) What is the legal validity where an unlicensed contractor recruits labour and sub-contracts
work to third parties, and what are the requirements for license acquisition by contractors
and sub-contractors. Mention the penal provisions that attach to such violations under
The Occupational Safety, Health & Working Conditions Code, 2020 ?

(b) Explain the general prohibition of employing contract labour in certain establishments under
Section 57 of The Occupational Safety, Health and Working Conditions Code, 2020.
Who can exempt such prohibition under special circumstances ?

(c) Aadish, a platform worker, has completed six years of continuous service with Swift
Logistics (an aggregator). Is he legally entitled to claim gratuity from Swift Logistics ?
Substantiate your reasoning with the appropriate provisions under the Code on Social
Security, 2020.

(d) A factory manager assigns a 17-year-old adolescent to work in a hazardous process
without any safety gear. Is this legally permissible ? Outline the specific restrictions placed
on an adolescent’s daily working hours and night shifts under the Child and Adolescent
Labour (Prohibition & Regulation) Act, 1986.

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(e) RR Electronics Ltd., a multinational manufacturing company, undertakes a restructuring

of its employee remuneration system. Under the revised structure, the management

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substantially reduces the basic pay component while increasing several allowances such

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as travel allowance, special allowance, and performance incentives. Consequently, the basic

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wage constitutes only about 39% of the total remuneration received by employees. The

ag workers contend that this restructuring has been intentionally designed to minimize the
employer’s statutory liabilities relating to bonus and other wage-linked benefits. They argue

that such a wage structure is inconsistent with the definition and principles governing

wages under the Code on Wages, 2019. Accordingly, the employees raise a dispute

before the Labour authorities alleging manipulation of wage components by the employer.

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authorities may take under the Code. on Wages, 2019.
Identify the legal issues arising from this situation and determine the action that the Labour

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3. Capital Motors Ltd. is a sizable manufacturing facility in Lucknow that produces a lot of

automobile parts like OEMs and others. The Mukesh Manpower Solutions’ headed by Mukesh,

a Jharkhand based unregistered labour contractor, hired approximate 100 unskilled workers

mostly from Jharkhand’s underprivileged communities with the promise of high-paying moulding

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and refined raw material work at the Capital Motors factory in Lucknow, 10 months ago. He

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c. o After reaching Lucknow, the reality was starkly different. The workers m were housed in
promised them a daily salary of ` 600, free lodging, and a round-trip train ticket.

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makeshift, unventilated tin sheds lacking basic sanitation, clean drinking water, clean floor, etc.

Their daily wage was reduced to ` 200 significantly lower than the local minimum wage

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of ` 500 paid to native automobile companies in Lucknow. Furthermore, the contractor
confiscated their Aadhaar cards and voter IDs for safekeeping and restricted them from leaving
the worksite.

When the workers demanded their promised wages and the statutory inter-state allowances to
send money back to their families, Capital Motors denied any responsibility, claiming the workers
were not their direct employees but rather “independent sub-contractees” of Mukesh Manpower
Solutions. Capital Motors Ltd. also claimed they had no legal obligation to register these workers
since the contractor was unregistered.

An NGO, “Shramik Adhikar Seva,” discovered the workers’ living conditions and filed a Public
Interest Litigation (PIL) under Article 32 of the Constitution of India directly before the Supreme
Court, naming both Capital Motors Ltd. and the Contractor, as respondents.

Answer the following questions (a, b), keeping in view the above scenario :

(a) Does the lack of registration of labour contractor nullify the principal employer’s statutory
duties towards inter-state migrant workers ? Enumerate the facilities that must be provided
by the employer to the inter-state migrant workers under Section 60 & 61 of The
Occupational Safety, Health and Working Conditions Code, 2020 ?

(b) Does the confiscation of identity documents, restriction of movement, and payment of
sub-minimum wages amount to ‘Forced Labour’ under Article 23 and a violation of the
Right to Life with Dignity under Article 21 of the Indian Constitution. Substantiate your
answer with landmark Supreme Court judgment.

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(c) In the ‘absence of strict domestic compliance’, can the Supreme Court directly read the
provisions of ILO Conventions (specifically regarding forced labour and discrimination)

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into the fundamental rights of the workers ?

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(d) Enumerate the various classes of employees and establishments to which the provisions

ag of Chapter IV (Payment of Bonus) do not apply, as mandated by Section 41 of the
Code on Wages, 2019.

(e) RST Constructions Ltd., a company engaged in executing a major infrastructure project,
recruits a number of labourers from Madhya Pradesh to work at its construction site

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located in another state. These workers are employed for the duration of the project

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e to provide suitable accommodation and does not
and perform various manual and technical
project, the employer allegedlysfails
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arrange for travel allowance
their native place in Odisha. The workers contend that such treatment amounts to a denial
of statutory protections guaranteed to inter-state migrant workers. They therefore
approach the labour authorities alleging that the employer has violated the provisions
relating to welfare and protection of migrant labour under the Occupational Safety, Health

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and Working Conditions Code, 2020.

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e Health and Working
Examine the legal issues arising in this situation and determine the appropriate action that

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may be taken by the labour authorities under the Occupational Safety,

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Conditions Code, 2020.

(5 Marks)

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4. In the case concerning Manjeet Singh and Indraprastha Gas Limited in the Delhi High Court,
the controversy emerged within Indraprastha Gas Limited, a public sector joint venture engaged
in the distribution of natural gas. Complainant served as Senior Executive Secretary to the Vice
President (HSE & JV). On 26 January 2016, following the Republic Day celebrations organized
by the company, she visited her superior’s office to attend to routine professional responsibilities.
During this time, Mr. Singh, who occupied a senior managerial position, was also present. It
was alleged that during the interaction he made remarks praising the attractiveness of foreign
women while making disparaging comparisons with Indian women, comments that caused
significant discomfort to the Complainant. The situation escalated when Mr. Singh insisted on
capturing her photograph on his mobile phone despite her reluctance and, according to the
allegations, attempted to embrace her without consent, an act she perceived as an intrusion upon
her personal dignity and professional boundaries.

Initially, Complainant discussed the incident informally with certain colleagues and members of
the Human Resources Department but refrained from immediately filing a formal grievance.
However, the experience continued to cause emotional distress, prompting her upon
encouragement from co-workers to submit a written complaint to the Managing Director of the
company on 8 February 2016. Acting in accordance with the Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act, 2013, the organization constituted an
Internal Complaints Committee (ICC) to examine the allegations. The Committee undertook a
formal inquiry, recording the statements of the complainant, the accused officer, and certain
individuals who were considered relevant witnesses in the matter.

Upon completion of its inquiry, the ICC concluded that although the conduct of Mr. Singh might
not have been deliberately pre-planned, his behavior displayed a “flirtatious” character that
exceeded the acceptable limits of workplace decorum. The Committee determined that the acts
complained of constituted sexual harassment within the meaning of the POSH Act. Based on

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the findings of the ICC, the disciplinary authority imposed a major penalty by demoting
Mr. Singh from the position of Vice President to that of Chief General Manager. His departmental

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appeal challenging the decision was subsequently rejected, thereby affirming the disciplinary sanction

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imposed by the employer.

Aggrieved m
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a He
a that the inquiry process had violated the principles of natural justice because he was
the procedural
argued
not permitted to cross-examine the complainant, and further contended that the allegations lacked
independent corroborative evidence. The High Court scrutinized the procedural framework
governing inquiries under the POSH Act and ultimately concluded that the proceedings were
vitiated due to the denial of an opportunity to cross-examine the complainant. Such denial, the

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Court held, undermined the fairness of the inquiry and prevented effective testing of the allegations.

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e orders arising from it, emphasizing that inquiries
Observing also the absence of sufficient corroborative material, the Court set aside the ICC

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report as well as the disciplinary and appellate

a
under the statute must strictly adhere
involved. Based on the facts of the case, answer the following (a, b & c) questions :

(a) Critically analyze the scope and limits of the powers of the Internal Complaints Committee
(ICC) under the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 in the context of the judicial review exercised by the Delhi

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High Court.

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Discuss the evidentiary standards applied by the Delhi High Court while reviewing the

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findings of the Internal Complaints Committee in the case cited abive.

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(c) What are the compliances to be made by the Employer under the Sexual Harassment
of Women Act ? Also state the disclosure requirements under the Annual Report of
Companies.

(d) Enumerate any 10 salient features of the Occupational, Safety, Health and Working
Conditions Code, 2020.

(e) MN Ltd., a logistics company conducting delivery operations across multiple states,
employs nearly 500 delivery personnel in its workforce. The Central Government has
notified a floor wage of ` 450 per day applicable across the country. However, the
State Government in which the company operates has fixed the minimum wage at ` 380
per day for the concerned category of employment. Relying upon the State notification,
the management of MN Ltd. continues to pay its delivery workers ` 380 per day. The
workers’ union contends that such payment is inconsistent with the statutory framework
governing wage regulation and therefore amounts to a violation of the Code on Wages,
2019. Consequently, the union lodges a complaint before the Labour Authority alleging
non-compliance with the provisions of the Code.

Under these circumstances, discuss the legal issues involved and determine the action
that the Labour Authority should initiate under the Code on Wages 2019.

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