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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act

Gupta Engineering, a small establishment, has duly furnished the Form I annual return and maintained Forms II and III. It did not maintain a register that a Scheduled Act would otherwise require. What is its exposure to penalty under that Scheduled Act for that failure?

There is no penalty. If the employer furnishes the annual return and maintains the registers as the Act prescribes, the Scheduled Act cannot penalise failure to furnish its own returns or maintain its own registers. The protection covers both returns and registers.

  1. ANone, since nothing in the Scheduled Act renders it liable to penalty for that failureCorrect
  2. BA penalty applies, reduced to half of the original amount
  3. CA penalty applies unless the Inspector grants a waiver
  4. DA penalty applies only for failing to furnish returns, not registers

Explanation

Section 4(5) states that where the employer furnishes returns or maintains registers as provided in the proviso to section 4(1), nothing in the Scheduled Act makes him liable to penalty for failing to furnish a return or maintain a register under that Act. So there is no penalty, and no reduction or waiver is involved.

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