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CS Professional · Labour Laws and Practice · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988

Anand Engineering, a small establishment, files Form I and maintains Forms II and III as required. An Inspector later finds that it did not maintain a register prescribed under the Factories Act, 1948, but which is covered by the simplified forms. What is the position regarding penalty?

Anand is not liable to penalty under the Factories Act for the missing register. Section 4(5) states that an employer who furnishes the annual return and maintains the registers required by the proviso to Section 4(1) is shielded from penalty under the Scheduled Act for not maintaining the original registers.

  1. AIt is liable to the penalty under the Factories Act for the missing register
  2. BNothing in the Scheduled Act renders it liable to penalty for failing to maintain that register, since it complied with the Act's provisoCorrect
  3. CIt is liable only if it employs more than twenty persons
  4. DIt is liable to a penalty unless it also files a revised Form I

Explanation

Section 4(5) provides that where an employer furnishes returns or maintains registers as required under the proviso to Section 4(1), nothing in the Scheduled Act makes him liable to penalty for failing to furnish any return or maintain any register under that Scheduled Act. Anand has complied with the proviso, so it is protected.

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