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CS Professional · Labour Laws and Practice · Law of Wages

Meena Foods Ltd, Chennai, failed to maintain the prescribed wage records. The Inspector-cum-Facilitator gives a written direction with a time limit to comply, and the company complies within that time. What follows?

Prosecution shall not be initiated. For record-keeping offences, the Inspector-cum-Facilitator must first give a written direction with a compliance period, and if the employer complies within that time, section 54(3) bars prosecution. No compounding is needed.

  1. AProsecution is initiated and the fine is reduced to Rs 5,000
  2. BProsecution proceedings shall not be initiatedCorrect
  3. CProsecution is initiated but only imprisonment is barred
  4. DThe offence must be compounded at 50 per cent of the fine

Explanation

Section 54(3) requires the Inspector-cum-Facilitator to give an opportunity to comply by written direction before prosecution for such offences, including record maintenance under sub-section (2). If the employer complies within the period, the Inspector shall not initiate prosecution. Compounding is therefore unnecessary.

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