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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 under a Scheduled Act, furnishes Form I and maintains Forms II and III as required. Later an inspector finds it did not maintain the registers prescribed under the Scheduled Act itself. What is the legal position?

Gupta Engineering is not liable to penalty under the Scheduled Act for failing to maintain its original registers. Where an employer furnishes Form I and maintains Forms II and III as the Act requires, the Scheduled Act cannot penalise the omission of the replaced returns and registers.

  1. AIt is liable to the penalty under the Scheduled Act for each missing register
  2. BNothing in the Scheduled Act renders it liable to penalty for failing to furnish or maintain those returns and registersCorrect
  3. CIt is liable only if Form I was filed late
  4. DIt loses the benefit of the Act permanently

Explanation

Section 4(5) provides that where the employer furnishes returns or maintains registers as provided in the proviso to section 4(1), nothing in the Scheduled Act makes the employer liable to penalty for failing to furnish those returns or maintain those registers under that Act. Hence penalty under the Scheduled Act for the missing registers is not attracted.

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