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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Wages, 2019

An Inspector-cum-Facilitator finds that Rao Engineering failed to display a notice required under the Code on Wages, 2019, a first violation of this nature. Before starting prosecution, what must the Inspector-cum-Facilitator do?

The Inspector-cum-Facilitator must first give the employer a written direction setting a time period for compliance. If the employer complies within that period, prosecution is not initiated. This opportunity is not given if a violation of the same nature is repeated within five years of the first violation.

  1. AGive a written direction fixing a time for compliance, and not prosecute if the employer complies in timeCorrect
  2. BFile a complaint immediately in the Magistrate's court
  3. CImpose compensation of ten times the claim
  4. DRefer the matter to the Collector for recovery as land revenue arrears

Explanation

For contravention of other provisions and for record-keeping offences, the Inspector-cum-Facilitator must first give a written direction with a compliance period. If the employer complies in that period, no prosecution is started. Compensation and recovery certificates relate to claims, not this step.

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