Skip to content

CS Professional · Labour Laws and Practice · Law of Wages

Lotus Retail Ltd, Jaipur, contravened a provision of the Code on Wages for which the maximum fine is Rs 20,000. It has no earlier compounded or convicted offence and applies for compounding. What sum is payable to the specified Gazetted Officer?

Rs 10,000 is payable. Section 56(1) allows compounding of a fine-only offence for fifty per cent of the maximum fine, and half of Rs 20,000 is Rs 10,000. The twenty per cent addition applies only if the compounding order is not complied with.

  1. ARs 5,000
  2. BRs 20,000
  3. CRs 10,000Correct
  4. DRs 12,000

Explanation

Under section 56(1), an offence punishable with fine only may be compounded for 50 per cent of the maximum fine. 50% of Rs 20,000 is Rs 10,000. Rs 12,000 wrongly adds 20% penalty that applies only on non-compliance with the compounding order.

Did you get it right without looking?

One question tells you little. A timed set on Law of Wages shows your real accuracy, how long you take and where you lose marks.

Practise Law of WagesFree diagnostic mock

More Law of Wages questions