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Labour Law | Industrial Disputes Act | MCQ Quiz with Answers | Test Your Legal Knowledge

BySridhar Insights October 9, 2026October 9, 2026

Labour Law MCQ Quiz – Industrial Disputes Act

Labour Law MCQ Quiz – Industrial Disputes Act, 1947 (1–50)

(1). [AIBE 2021] The primary objective of the Industrial Disputes Act, 1947 is to:

[A]. Maximize corporate profits
[B]. Investigate and settle industrial disputes to ensure industrial peace
[C]. Arrest trade union leaders
[D]. Prevent citizens from forming unions

(2). A Works Committee under Section 3 of the IDA is required to be constituted in industrial establishments employing at least:

[A]. 10 workmen
[B]. 50 workmen
[C]. 100 workmen
[D]. 500 workmen

(3). [CLAT-PG 2019] If conciliation proceedings fail, the Conciliation Officer must submit a failure report to the:

[A]. High Court
[B]. Appropriate Government
[C]. Supreme Court
[D]. Trade Union

(4). The government’s power to make a reference of a dispute under Section 10 of the IDA is:

[A]. A judicial function
[B]. A quasi-judicial function
[C]. An administrative function based on subjective satisfaction
[D]. A legislative function

(5). [AIBE 2023] The landmark judgment that established the “Triple Test” for defining an Industry under Section 2(j) is:

[A]. State of Bombay v. Hospital Mazdoor Sabha
[B]. Bangalore Water Supply & Sewerage Board v. A. Rajappa
[C]. University of Delhi v. Ram Nath
[D]. Sundarambal v. Government of Goa

(6). According to the Triple Test, which of the following is NOT an essential requirement for an establishment to be an Industry?

[A]. Systematic activity
[B]. Profit motive or capital investment
[C]. Cooperation between employer and employee
[D]. Production/distribution of goods and services

(7). [CLAT-PG 2020] Under the current interpretation of Section 2(j), which of the following is absolutely EXCLUDED from the definition of an Industry?

[A]. Hospitals
[B]. Educational institutions
[C]. Sovereign functions of the State (e.g., defense, police)
[D]. Municipal corporations

(8). Section 2(k) defines “Industrial Dispute”. Which of the following is NOT an industrial dispute?

[A]. Dispute between employers and employers
[B]. Dispute between employers and workmen
[C]. Dispute between workmen and workmen
[D]. Dispute between a landlord and a tenant

(9). [AIBE 2018] Before the introduction of Section 2A, the dispute of an individual workman regarding dismissal was:

[A]. Automatically an industrial dispute
[B]. Not an industrial dispute unless espoused by a union or a substantial number of workers
[C]. Dealt with by the Supreme Court directly
[D]. Considered a criminal offense

(10). Section 2A of the IDA explicitly deems which of the following actions against an individual workman as an industrial dispute?

[A]. Denial of a specific uniform color
[B]. Dismissal, discharge, retrenchment, or termination
[C]. Change in shift timings
[D]. Refusal to grant casual leave

(11). [CLAT-PG 2022] Which of the following persons is expressly EXCLUDED from the definition of a “Workman” under Section 2(s)?

[A]. A person doing manual work
[B]. A person doing clerical work
[C]. A person employed in a managerial or administrative capacity
[D]. A highly skilled technical worker

(12). An employee working in a supervisory capacity is NOT a workman if their monthly wages exceed:

[A]. ₹1,000
[B]. ₹5,000
[C]. ₹10,000
[D]. ₹25,000

(13). [AIBE 2019] The failure, refusal, or inability of an employer to give employment to a workman on the muster roll due to a shortage of coal, power, or raw materials is defined as:

[A]. Retrenchment
[B]. Lockout
[C]. Closure
[D]. Lay-off

(14). What is the statutory compensation payable to a laid-off workman under Section 25C of the IDA?

[A]. 100% of basic wages and DA
[B]. 50% of basic wages and DA
[C]. 25% of basic wages and DA
[D]. Zero compensation

(15). [CLAT-PG 2021] Retrenchment under Section 2(oo) means termination of service of a workman by the employer for any reason, but EXCLUDES:

[A]. Termination due to economic downsizing
[B]. Termination inflicted as a punishment by way of disciplinary action
[C]. Termination due to introduction of new technology
[D]. Termination due to closure of a specific department

(16). Under Section 25F, a precondition for valid retrenchment is the payment of compensation equal to:

[A]. 1 month’s pay for every completed year of service
[B]. 15 days’ average pay for every completed year of continuous service
[C]. 6 months’ salary in advance
[D]. 10 days’ wages

(17). [AIBE 2022] The rule of “Last come, first go” applicable to retrenchment is statutorily enshrined in which section?

[A]. Section 25F
[B]. Section 25G
[C]. Section 25H
[D]. Section 2(oo)

(18). Chapter V-B of the IDA, which requires prior permission of the government for lay-off, retrenchment, and closure, applies to industrial establishments employing not less than:

[A]. 20 workmen
[B]. 50 workmen
[C]. 100 workmen
[D]. 500 workmen

(19). [CLAT-PG 2018] If an employer subject to Chapter V-B retrenches workers without obtaining the prior permission of the appropriate government, the retrenchment is:

[A]. Valid but requires a fine
[B]. Void and illegal, and workmen are entitled to all benefits as if they had not been retrenched
[C]. Valid after a 6-month delay
[D]. Validated by the Labour Court automatically

(20). The permanent closing down of a place of employment or part thereof is defined under the IDA as:

[A]. Lay-off
[B]. Lockout
[C]. Closure
[D]. Strike

(21). [AIBE 2023] A temporary closing of a place of employment or refusal by an employer to continue to employ any number of persons, used as a weapon to coerce workers, is called a:

[A]. Closure
[B]. Lay-off
[C]. Lockout
[D]. Retrenchment

(22). Which of the following involves a concerted refusal to work by a body of persons employed in an industry?

[A]. Lockout
[B]. Strike
[C]. Closure
[D]. Lay-off

(23). [CLAT-PG 2019] Under Section 22 of the IDA, workers in a Public Utility Service cannot go on strike without giving notice to the employer within:

[A]. 2 weeks before striking
[B]. 6 weeks before striking
[C]. 10 days before striking
[D]. 3 months before striking

(24). An employer in a Public Utility Service cannot declare a lockout until the expiry of how many days of giving the notice?

[A]. 7 days
[B]. 14 days
[C]. 30 days
[D]. 60 days

(25). [AIBE 2020] Under Section 23, a general prohibition of strikes and lockouts applies to all industrial establishments during the pendency of:

[A]. An election
[B]. Conciliation proceedings before a Board, and 7 days after the conclusion of such proceedings
[C]. An internal management meeting
[D]. A factory inspection

(26). Any strike or lockout commenced in contravention of Sections 22 or 23 is declared illegal under:

[A]. Section 10
[B]. Section 24
[C]. Section 25F
[D]. Section 2A

(27). [CLAT-PG 2022] An “Award” under Section 2(b) refers to the final determination of an industrial dispute by a:

[A]. Conciliation Officer
[B]. Labour Court, Industrial Tribunal, or National Tribunal
[C]. High Court Judge
[D]. Trade Union President

(28). An Award published by the appropriate government becomes enforceable upon the expiry of:

[A]. 15 days from publication
[B]. 30 days from publication
[C]. 60 days from publication
[D]. Immediately upon signature

(29). [AIBE 2018] Unlike a private contract that binds only the signatories, a settlement arrived at in the course of conciliation proceedings, or an award, binds:

[A]. Only the trade union leaders
[B]. All parties to the dispute, and all present and future workmen of the establishment (Section 18)
[C]. The government alone
[D]. Only the temporary workers

(30). A Labour Court constituted under Section 7 is typically tasked with adjudicating disputes listed in:

[A]. Schedule I
[B]. Schedule II (e.g., propriety of an employer’s order, dismissal of workmen)
[C]. Schedule III
[D]. Schedule IV

(31). [CLAT-PG 2021] Adjudication of wider disputes relating to wages, compensatory allowances, and hours of work (listed in Schedule III) falls primarily under the jurisdiction of:

[A]. Works Committees
[B]. Industrial Tribunals (Section 7A)
[C]. Conciliation Officers
[D]. Civil Courts

(32). Which adjudicatory body is appointed by the Central Government to decide disputes involving questions of national importance?

[A]. Supreme Court
[B]. National Tribunal (Section 7B)
[C]. State Labour Court
[D]. Central Board of Conciliation

(33). [AIBE 2019] If the termination of a workman is found by a Labour Court to be unjustified, the primary remedy traditionally awarded is:

[A]. Imprisonment of the employer
[B]. Reinstatement with full back wages
[C]. A simple apology letter
[D]. Transfer to a different company

(34). The exception to Retrenchment explicitly covering the termination of service due to non-renewal of a fixed-term employment contract is found in:

[A]. Section 2(oo)(bb)
[B]. Section 2(kkk)
[C]. Section 2A
[D]. Section 25F

(35). [CLAT-PG 2023] The voluntary reference of disputes to an independent arbitrator, formalized in a written agreement before the dispute is referred to a Labour Court, is governed by:

[A]. Section 10A
[B]. Section 22
[C]. Section 25O
[D]. Section 33

(36). Can a civil court issue an injunction against an ongoing strike by a registered trade union?

[A]. Yes, automatically under the CPC.
[B]. No, the jurisdiction to adjudicate legality of strikes and industrial disputes lies exclusively with the machineries under the IDA.
[C]. Only if the strike is peaceful.
[D]. Yes, if requested by the police.

(37). [AIBE 2021] The termination of a workman’s services on the ground of continued ill-health is:

[A]. Treated as Retrenchment
[B]. Expressly excluded from the definition of Retrenchment
[C]. An illegal lockout
[D]. Grounds for criminal prosecution

(38). The legal mechanism where workers attend the workplace but deliberately reduce the normal output of work is known as:

[A]. Go-slow (often treated as misconduct or illegal strike)
[B]. Lockout
[C]. Lay-off
[D]. Closure

(39). [CLAT-PG 2020] A “Pen-down” or “Tool-down” strike involves:

[A]. Workers staying at home
[B]. Workers entering the premises but refusing to perform any work
[C]. Workers resigning en masse
[D]. Employers shutting the factory gates

(40). The power to prohibit a strike or lockout in an establishment where the dispute has already been referred to a Board or Tribunal is vested in the:

[A]. Appropriate Government (Section 10(3))
[B]. Police Commissioner
[C]. Trade Union leader
[D]. District Magistrate

(41). [AIBE 2017] For the purpose of lay-off compensation, a workman must have completed at least:

[A]. One month of continuous service
[B]. One year of continuous service
[C]. Five years of continuous service
[D]. Ten years of continuous service

(42). If a workman refuses to accept alternative employment offered by the employer during a lay-off period (in the same or nearby establishment), the workman:

[A]. Is entitled to double compensation
[B]. Forfeits the right to claim lay-off compensation (Section 25E)
[C]. Must be immediately arrested
[D]. Is deemed retrenched automatically

(43). [CLAT-PG 2019] Notice of closure of an undertaking (not falling under Chapter V-B) must be given to the appropriate government at least:

[A]. 15 days before intended closure
[B]. 30 days before intended closure
[C]. 60 days before intended closure (Section 25FFA)
[D]. 90 days before intended closure

(44). The legal distinction between a Lockout and a Closure is that:

[A]. Lockout is permanent; Closure is temporary.
[B]. Lockout is a temporary coercive measure against workers; Closure is a permanent, irrevocable shutdown of business.
[C]. Lockout is initiated by workers; Closure by employers.
[D]. There is no legal distinction.

(45). [AIBE 2022] Does the term “Workman” include a person dismissed from service whose dismissal is the subject matter of an industrial dispute?

[A]. No, dismissal severs all ties permanently.
[B]. Yes, the definition under Section 2(s) explicitly includes any person who has been dismissed, discharged, or retrenched in connection with the dispute.
[C]. Only if the employer agrees.
[D]. Only if they are a union member.

(46). To claim the benefit of the “Last come, first go” rule under Section 25G, the workman must belong to a particular category of workmen, and the employer must retrench the workman who was:

[A]. The most highly paid
[B]. The last person to be employed in that category
[C]. The oldest person
[D]. The trade union president

(47). [CLAT-PG 2021] If a public utility service strike is commenced without the mandatory 14-day notice, the strike is:

[A]. Valid but unprotected
[B]. Absolutely illegal under Section 24
[C]. Deemed a lockout
[D]. A fundamental right

(48). A settlement arrived at otherwise than in the course of conciliation proceedings binds:

[A]. All workers in the state
[B]. Only the parties to the agreement (Section 18(1))
[C]. Future employees
[D]. The government

(49). [AIBE 2023] The ultimate jurisprudential objective of defining lay-offs, retrenchment, and closure strictly under the IDA is to:

[A]. Ruin the employer financially
[B]. Provide statutory financial security to workmen against arbitrary job loss and sudden economic distress
[C]. Make firing employees completely impossible
[D]. Promote unlimited corporate downsizing

(50). The synergy of the entire IDA 1947 framework demonstrates that the Indian State shifted from laissez-faire contracts to a regime of:

[A]. Absolute corporate autocracy
[B]. Compulsory adjudication, structured dispute resolution, and welfare-oriented job security
[C]. Unregulated wildcat strikes
[D]. Purely voluntary, unwritten settlements

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