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CS Professional · Labour Laws and Practice · Law of Welfare and Working Condition

A factory owner in Pune offers to compound an offence under the Occupational Safety, Health and Working Conditions Code, 2020, and the composition amount is received. Under the Code, where must this amount be credited?

The composition amount goes to the social security fund established by the appropriate Government for the welfare of unorganised workers. The Code earmarks the money for this purpose, so it is not kept by the employer, the department or the factory's own staff funds.

  1. AThe social security fund for the welfare of unorganised workersCorrect
  2. BThe general revenue of the employer's State Labour Department
  3. CA reserve fund maintained by the factory for its own employees
  4. DThe Consolidated Fund of India without any earmarking

Explanation

Section 115 provides that the amount received from composition of an offence, as specified in section 114(4), is credited to the social security fund established by the appropriate Government for unorganised workers. It is not retained by the establishment or left unearmarked.

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