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CS Professional · Labour Laws and Practice · Industrial and Labour Laws Audit

A State Government establishes a social security fund under the Occupational Safety, Health and Working Conditions Code, 2020. A compliance officer is asked what the fund is meant for and what can be credited to it. Which answer is correct?

The fund is for the welfare of unorganised workers. It is credited with amounts from composition of offences and specified penalties, and it may also be funded by other sources prescribed by the appropriate Government under the OSH Code, 2020.

  1. AIt is for welfare of unorganised workers, and receives composition amounts and specified penalty amounts, besides other prescribed sourcesCorrect
  2. BIt is for welfare of all employees of establishments, and receives only employer contributions
  3. CIt is for the administrative expenses of the Inspector-cum-Facilitator, and receives only Government grants
  4. DIt is for welfare of unorganised workers, and may not receive any money other than composition amounts

Explanation

Section 115 establishes the fund for welfare of unorganised workers, credited with composition amounts under section 114(4) and penalty amounts under section 111(6). Sub-section (2) allows other sources as prescribed, so the last option is wrong because it excludes them.

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