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.
- ARs 10,000Correct
- BRs 20,000
- CRs 40,000
- 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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