Labour Laws & Labour Codes for the APFC Exam 2026: Notes, PYQs & MCQs
- The four Labour Codes came into force on 21 November 2025, consolidating 29 central labour laws; central rules followed on 8 May 2026.
- Labour, industrial relations and social security are the largest block of the APFC paper — about 15–20 questions.
- The four Codes are the Code on Wages, the Industrial Relations Code, the Code on Social Security and the OSH Code.
- India has not ratified ILO conventions 87 and 98; the “triple test” for industry comes from Bangalore Water Supply v. Rajappa.
- Key thresholds: EPF Rs 15,000 / 20+; ESI Rs 21,000 / 10+; gratuity 5 years / Rs 20 lakh; bonus 8.33–20%.
Labour laws and the four Labour Codes form the single most important topic for the EPFO Assistant Provident Fund Commissioner (APFC) exam. Because an APFC administers provident-fund and social-security law, the paper tests this subject four ways — by statute name, by exact threshold, by numerical application, and by case law. This guide covers the Code on Wages, Industrial Relations Code, Code on Social Security and OSH Code, the legacy Acts the older papers tested, industrial relations, wage policy, ILO conventions and landmark judgments — with solved previous-year questions (PYQs) and 40 practice MCQs at the end.
Why labour laws are the biggest topic in the APFC exam
Around 15–20 questions in the 2023 and 2025 papers came from labour laws, industrial relations and social security combined. The law changed fundamentally in late 2025, so you must know both the new Codes (current law) and the legacy Acts (what the 2016–2025 papers tested), and how they map to each other.
The four Labour Codes (2019–2020): the current law
India’s four Labour Codes came into force on 21 November 2025, consolidating 29 central labour laws. The central rules were notified on 8 May 2026, and the Industrial Relations Code (Amendment) Act, 2026 followed. Every legacy law below carries an “old Act → new Code” box so you can answer both older and newer questions.
Code on Wages, 2019
A single, uniform definition of wages, a universal minimum wage with a national floor, and the statutory bonus scheme — applicable to all employees in all sectors with no wage ceiling. Its signature rule: wages (basic + DA) must be at least 50% of total remuneration.
- Minimum Wages 1948; Payment of Wages 1936; Payment of Bonus 1965; Equal Remuneration 1976.
- Bonus: ceiling ₹21,000, calc on ₹7,000/min wage, 8.33–20%.
- One definition of wages; a national floor wage; the 50% rule caps excluded allowances.
- Bonus and equal-pay provisions retained; Code on Wages (Central) Rules, 2026.
Industrial Relations Code, 2020
Governs trade unions, standing orders, dispute settlement, strikes, lay-off, retrenchment and closure. The prior-permission threshold for lay-off/retrenchment/closure rose to 300 workers.
- Trade Unions 1926 (any 7 may register; optional); Standing Orders 1946; Industrial Disputes 1947.
- Prior permission for retrenchment at 100 workers.
- Prior permission at 300+ workers; standing orders at 300+.
- Negotiating union at 51%; strike notice across all industries; new re-skilling fund and fixed-term employment.
Code on Social Security, 2020
Consolidates nine social-security laws and, for the first time, brings gig and platform workers under statutory social security. The EPF, EPS, EDLI, ESI, gratuity, maternity and employees’-compensation provisions all now flow from this Code.
- EPF & MP 1952 (20+); ESI 1948 (10+); Gratuity 1972; Maternity Benefit 1961; Employees’ Compensation 1923.
- Single code; new EPF/EPS/EDLI Schemes, 2026; gig & platform workers covered via aggregator contributions; National Social Security Board.
Occupational Safety, Health and Working Conditions (OSH) Code, 2020
Consolidates 13 occupational-safety laws under one framework of registration, safety, health and working conditions, applying to establishments with 10 or more workers.
- Factories 1948 (10+ with power / 20+ without); Mines 1952; Contract Labour 1970 (20+); ISMW 1979; BOCW 1996; Plantations 1951.
- One registration/licence; contractor licensing; principal-employer responsibility; appointment letters; migrant-worker portability.
Labour Code to legacy-Act mapping
| Labour Code (2019–20) | Key legacy Acts it subsumes |
|---|---|
| Code on Wages | Minimum Wages 1948 · Payment of Wages 1936 · Payment of Bonus 1965 · Equal Remuneration 1976 |
| Industrial Relations | Industrial Disputes 1947 · Trade Unions 1926 · Standing Orders 1946 |
| Social Security | EPF & MP 1952 · ESI 1948 · Gratuity 1972 · Maternity Benefit 1961 · Employees’ Compensation 1923 · Unorganised Workers’ SS 2008 |
| OSH & Working Conditions | Factories 1948 · Mines 1952 · Contract Labour 1970 · Inter-State Migrant Workmen 1979 · BOCW 1996 · Plantations 1951 |
Legacy Labour Acts: the exact thresholds APFC papers ask
The 2016–2025 papers tested these Acts by name and by number. Even under the Codes, these are the figures examiners have historically drilled, so memorise them.
| Act | Applies to | Key figures |
|---|---|---|
| EPF & MP 1952 | 20+ employees | Contribution 12% + 12%; employer’s 8.33% to EPS, 3.67% to EPF; ceiling ₹15,000; cooperative societies without power 50+. |
| ESI 1948 | 10+ employees | Wage limit ₹21,000 (₹25,000 PwD); employee 0.75%, employer 3.25%; disablement decided by the Medical Board. |
| Payment of Bonus 1965 | 20+ persons | Eligibility ₹21,000; calc on ₹7,000/min wage; bonus 8.33–20%. |
| Gratuity 1972 | 10+ employees | 15 days’ wages per year, after 5 years; ceiling ₹20 lakh. |
| Maternity Benefit 1961 | 10+ employees | 26 weeks (12 for the third child onward). |
| Trade Unions 1926 | Any 7 may apply | Registration 10% or 100 workmen (whichever less); registration is optional. |
Employees’ Compensation Act, 1923: the calculation
For permanent total disablement, compensation = 60% × monthly wages × the age-based relevant factor, or ₹1,20,000, whichever is more. For death, it is 50% × monthly wages × relevant factor, or ₹1,20,000, whichever is more.
Compensation for an employee totally and permanently disabled, monthly wages ₹22,500, relevant factor 159.80.
60% × 22,500 × 159.80 = 13,500 × 159.80.
Answer — ₹21,57,300
An employee draws a fixed monthly wage of ₹9,000 under the Minimum Wages Act and is eligible for bonus at 10% for a full year. Bonus payable?
Computed on ₹7,000 or the minimum wage, whichever is higher; here ₹9,000: 10% × 9,000 × 12.
Answer — ₹10,800
Industrial relations, trade unions and wage policy
Know the approaches to industrial relations (unitary, pluralist, Marxist, systems, Gandhian, and the Giri approach favouring collective bargaining) and the dispute-settlement machinery: Works Committee → Conciliation Officer / Board → Court of Inquiry → Labour Court / Industrial Tribunal / National Tribunal. The right to strike is a statutory right, not a fundamental right.
| Federation | Formed | Affiliation |
|---|---|---|
| AITUC (oldest) | 1920 | CPI |
| INTUC | 1947 | Congress |
| HMS | 1948 | Socialist |
| BMS (largest today) | 1955 | Sangh Parivar / BJP |
| CITU | 1970 | CPI(M) |
| SEWA | 1972 | Self-employed women |
Wage policy: the hierarchy is minimum < fair < living wage, plus the need-based minimum wage and the new floor wage; dearness allowance is indexed to CPI-IW. Relevant Articles: 39(d) equal pay, 43 living wage, 43A workers’ participation. The Second National Commission on Labour (2002) shaped the four Codes.
ILO and India’s ratification status
The International Labour Organization (founded 1919) is the only tripartite UN agency; India is a founder member. Its eight core conventions cover freedom of association & collective bargaining (87, 98), forced labour (29, 105), child labour (138, 182) and discrimination (100, 111). In 2022 a safe and healthy working environment was added (155, 187), taking the fundamental conventions to ten. India has ratified six of the original eight but has not ratified conventions 87 and 98. Also know Convention 102 (social-security minimum standards, nine branches) and the Decent Work Agenda.
Landmark labour-law judgments for the APFC exam
- Bangalore Water Supply v. A. Rajappa (1978): the “triple test” for the definition of “industry” — systematic activity + employer–employee cooperation + production of goods/services for human wants.
- T.K. Rangarajan v. State of Tamil Nadu (2003): there is no fundamental, statutory or moral right to strike.
- RPFC v. Vivekananda Vidyamandir (2019): allowances universally paid to all employees form part of “basic wages” for provident-fund contributions.
- Randhir Singh v. Union of India (1982): equal pay for equal work, read into Articles 14, 16 and 39(d).
- Steel Authority of India v. NUWW (2001): abolition of contract labour does not lead to automatic absorption.
Precise-provisions quick reference
| Provision | Exact figure |
|---|---|
| Commissioner to dispose of a compensation case | within 3 months (Employees’ Compensation Act, s.25A) |
| Wage registers & records preserved | 3 years after last entry (Payment of Wages Act, s.13A) |
| Special Officer’s entry to survey a mine | not less than 3 days’ notice (Mines Act, s.8) |
| Statutory bonus to be paid | within 8 months of the accounting year-end |
| Gratuity to be paid once payable | within 30 days |
| Outsiders among trade-union office-bearers | not more than one-half (Trade Unions Act, s.22) |
Practice MCQs on labour laws for the APFC exam
Test yourself with 40 practice questions covering the Codes, legacy Acts, industrial relations, ILO and case law. Answers follow the set.
1-b 2-c 3-b 4-c 5-b 6-c 7-b 8-b 9-c 10-b 11-c 12-c 13-c 14-b 15-c 16-b 17-b 18-b 19-b 20-b
21-c 22-b 23-c 24-c 25-c 26-b 27-a 28-c 29-a 30-c 31-b 32-b 33-b 34-a 35-b 36-c 37-b 38-b 39-b 40-b
Frequently asked questions
When did the four Labour Codes come into force?
The four Labour Codes came into force nationwide on 21 November 2025, replacing 29 central labour laws. The central rules were notified on 8 May 2026.
How many questions on labour law appear in the APFC exam?
Labour laws, industrial relations and social security together account for roughly 15 to 20 questions in the recent APFC papers — the largest single block of the exam.
What are the four Labour Codes of India?
The Code on Wages 2019, the Industrial Relations Code 2020, the Code on Social Security 2020, and the Occupational Safety, Health and Working Conditions Code 2020.
What is the 50% rule under the Code on Wages?
Wages (basic pay plus dearness allowance) must be at least 50% of total remuneration. This raises the base on which provident fund, gratuity and bonus are calculated.
Which ILO core conventions has India not ratified?
India has not ratified ILO Convention No. 87 (freedom of association) and Convention No. 98 (right to organise and collective bargaining). It has ratified the other six core conventions.
What is the EPF wage ceiling for the APFC exam?
The EPF wage ceiling is Rs 15,000 per month under the EPF and Miscellaneous Provisions Act, 1952. Of the employer’s 12% contribution, 8.33% is diverted to the pension scheme (EPS).
Is registration of a trade union compulsory in India?
No. Registration under the Trade Unions Act, 1926 is optional (voluntary). Any seven members may apply to register a trade union.
Which case laid down the triple test for the definition of industry?
The Supreme Court laid down the triple test in Bangalore Water Supply v. A. Rajappa (1978).
