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CS Professional · Labour Laws and Practice · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act, 1988

Rao Engineering was a small establishment until its headcount rose and it ceased to be one. Before that, in a period when it was small, an Inspector found a lapse under a Scheduled Act and proceedings had begun. Under the savings provision, what is the position?

The proceedings continue and are disposed of in accordance with the relevant Scheduled Act. Section 5 saves rights, obligations, penalties and legal proceedings arising under a Scheduled Act before the relevant period, so the 1988 Act does not extinguish or restart them.

  1. AProceedings lapse because the Act's commencement wipes out earlier liabilities
  2. BProceedings continue and are disposed of in accordance with that Scheduled ActCorrect
  3. CProceedings must be restarted under the 1988 Act
  4. DProceedings continue only if the employer consents

Explanation

Section 5 provides that commencement of the Act does not affect rights, liabilities, penalties or legal proceedings incurred under a Scheduled Act before the relevant period, the period during which an establishment is or was small or very small. Such investigations or proceedings are instituted, continued or disposed of under that Scheduled Act. Nothing lapses automatically.

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