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CMA Intermediate · Business Laws and Ethics · The Code on Wages, 2019

A firm fails to maintain wage records properly. Under the Code on Wages, 2019, what is the maximum fine for the offence of non-maintenance or improper maintenance of records?

The maximum fine is Rs 10,000. The Code specifically provides that non-maintenance or improper maintenance of records in the establishment is punishable with fine up to that amount, overriding the general Rs 20,000 fine for contravention of other provisions.

  1. ARs 10,000Correct
  2. BRs 20,000
  3. CRs 40,000
  4. DRs 50,000

Explanation

Section 54(2) provides, notwithstanding the general contravention penalty, that non-maintenance or improper maintenance of records is punishable with fine up to Rs 10,000. Rs 20,000 is the general first-contravention fine in clause (c), Rs 40,000 is a repeat fine, and Rs 50,000 is for underpayment.

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