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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Apprentices Act, 1961

Meridian Steels Ltd received a notice for failing to engage its required number of apprentices and its explanation was found unsatisfactory. The shortfall continued for five apprenticeship months until seats were filled. Applying the section 30(1A) fine of Rs 500 per shortfall month for the first three months and Rs 1,000 per month thereafter, what total fine applies?

The total fine is Rs 3,500. The first three shortfall months attract Rs 500 each, giving Rs 1,500, and the remaining two months attract Rs 1,000 each, giving Rs 2,000, as section 30(1A) provides.

  1. ARs 2,500
  2. BRs 3,500Correct
  3. CRs 5,000
  4. DRs 4,000

Explanation

First three months: 3 x 500 = Rs 1,500. Remaining two months: 2 x 1,000 = Rs 2,000. Total = Rs 3,500. Rs 2,500 applies Rs 500 to all five months; Rs 5,000 applies Rs 1,000 to all five months.

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