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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Wages, 2019

Mehta Textiles Pvt Ltd in Surat paid a worker Rs 8,000 less than the amount due under the Code on Wages, 2019. This is the first such offence by the employer. What is the maximum fine that may be imposed?

The maximum fine is Rs 50,000. Under section 54 of the Code on Wages, paying an employee less than the amount due is punishable with a fine up to fifty thousand rupees on a first offence. Imprisonment and the higher fine apply only to repeat offences within five years.

  1. ARs 10,000
  2. BRs 20,000
  3. CRs 50,000Correct
  4. DRs 1,00,000

Explanation

Paying an employee less than the amount due is punishable with a fine that may extend to fifty thousand rupees. Rs 20,000 is the fine for contravening other provisions, so it does not apply to underpayment. Rs 1,00,000 applies only to repeat underpayment within five years.

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