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

Sharma Foods Ltd in Pune was convicted for underpaying an employee. Within five years of that offence, it is again found guilty of a similar underpayment offence. What is the punishment that may be imposed for this second offence?

The second offence is punishable with imprisonment up to three months or fine up to Rs 1,00,000, or both. This applies when an employer convicted of underpayment commits a similar offence within five years. The lower one-month and Rs 40,000 penalty relates to repeat breaches of other provisions.

  1. AFine up to Rs 50,000 only, with no imprisonment
  2. BImprisonment up to three months or fine up to Rs 1,00,000, or bothCorrect
  3. CImprisonment up to one month or fine up to Rs 40,000, or both
  4. DImprisonment up to six months and fine up to Rs 1,00,000

Explanation

For a repeat underpayment offence within five years, the Code allows imprisonment up to three months or fine up to one lakh rupees, or both. The one month and Rs 40,000 option is for repeat contravention of other provisions, which is the wrong clause.

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