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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers by Certain Establishments) Act

Rao Foods, a small establishment, faithfully furnishes the Form I annual return and maintains Forms II and III. It failed to maintain a register that the Scheduled Act would otherwise have required. What is the legal position under Section 4?

The employer is not liable to any penalty under the Scheduled Act for not furnishing the replaced return or maintaining the replaced register, because Section 4(5) protects an employer who complies with the Form I, II and III requirements.

  1. AIt is liable to the penalty under the Scheduled Act for the missing register
  2. BIt is not liable to any penalty under the Scheduled Act for failing to furnish that return or maintain that registerCorrect
  3. CIt must pay a penalty only if the Inspector requests the register
  4. DIt loses the exemption for the next twelve months

Explanation

Section 4(5) says that where the employer furnishes returns or maintains registers as provided in the proviso to sub-section (1), nothing in the Scheduled Act renders him liable to any penalty for failing to furnish any return or maintain any register under that Scheduled Act. Section 4(4) keeps other provisions, such as inspection, applicable, but not penalty for the replaced records.

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