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

A State Government sets up a social security fund for unorganised workers under the OSH Code. Which of the following correctly describes a feature of that fund?

The fund is established by the appropriate Government for unorganised workers' welfare. It is credited with composition amounts and specified penalties under the Code, may draw on other prescribed sources, and can be applied for welfare, including transfers to funds under other laws.

  1. AIt is established by the Central Government alone and receives only budget grants
  2. BIt is credited with amounts from composition of offences and penalties specified in the Code, and may also be funded from other prescribed sourcesCorrect
  3. CIt is meant for welfare of all employees of factories and cannot be spent on unorganised workers
  4. DIt cannot transfer money to any fund under another law

Explanation

The fund is established by the appropriate Government and is credited with composition amounts under section 114(4) and penalty amounts under section 111(6). Other sources may be prescribed. It is spent for unorganised workers' welfare, including transfers to funds under other laws, so options A, C and D are wrong.

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