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

Arvind Steels Ltd was earlier convicted for failing to pay compensation due to an injured employee. It again fails to pay compensation due under the Code on Social Security, 2020, and is convicted a second time. What is the punishment for this second offence?

Because repeat failure to pay compensation falls within the proviso, the punishment is imprisonment of at least two years extending to three years, plus a fine of three lakh rupees. The general repeat-offence penalty of up to two years and two lakh rupees does not apply.

  1. AFine up to fifty thousand rupees only
  2. BImprisonment up to two years and fine of two lakh rupees
  3. CImprisonment of at least two years, up to three years, and fine of three lakh rupeesCorrect
  4. DImprisonment of at least one year and fine of one lakh rupees

Explanation

The enhanced-punishment section gives imprisonment up to two years and fine of two lakh rupees for repeat offences generally. Its proviso covers repeat failure to pay contribution, charges, cess, maternity benefit, gratuity or compensation: imprisonment of not less than two years and up to three years, with fine of three lakh rupees. The general rule is therefore wrong here.

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