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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

A State Government composes several offences under the Code relating to the State Government. Into which fund is the amount received credited, and for whom is it to be used?

Amounts received from composition of offences relating to the State Government go into the State Social Security Fund, which is administered and spent for the welfare of unorganised workers as prescribed by the State Government. The Central fund receives only composition money relating to the Central Government.

  1. AThe State Social Security Fund, for the welfare of unorganised workersCorrect
  2. BThe Central Social Security Fund, for gig and platform workers only
  3. CThe Consolidated Fund of India, for general administration
  4. DThe Employees' Provident Fund, for organised workers

Explanation

Section 141(5) requires the State Government to establish a Social Security Fund for the welfare of unorganised workers, crediting amounts from composition of offences relating to the State Government and other prescribed sources. The Central fund draws only on composition of offences relating to the Central Government, so crediting it is wrong.

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