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CS Professional · Labour Laws and Practice · Law of Wages

Kaveri Engineering Ltd, Pune, was convicted of short-paying wages. Within five years of that offence it again short-pays an employee. Which punishment is available for the second offence?

The second offence is punishable with imprisonment up to three months or fine up to Rs 1 lakh, or both. Section 54(1)(b) applies when short-payment is repeated within five years of the earlier offence. The one-month option applies to repeated other contraventions.

  1. AFine up to Rs 50,000 only
  2. BImprisonment up to one month or fine up to Rs 40,000, or both
  3. CImprisonment up to three months or fine up to Rs 1 lakh, or bothCorrect
  4. DFine up to Rs 10,000 only

Explanation

Under section 54(1)(b), a repeat of short-payment within five years after conviction under clause (a) attracts imprisonment up to three months or fine up to Rs 1 lakh, or both. The one month and Rs 40,000 option relates to repeat of other contraventions under clause (d).

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