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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

Sunrise Textiles Pvt Ltd, a small establishment in Surat, files the annual return in Form I and keeps the registers in Forms II and III at the work spot, but it does not maintain the separate registers that the Factories Act, 1948 prescribes. Under the 1988 Act, what is its position on penalty for not keeping those registers?

The employer is not liable to any penalty under the Scheduled Act. Section 4(5) protects an employer who furnishes the annual return in Form I and maintains the prescribed registers as the proviso requires, so failure to keep the Scheduled Act's own registers carries no penalty.

  1. AIt is liable to the penalty under the Factories Act because the 1988 Act does not override Scheduled Acts
  2. BIt is not liable to any penalty under the Scheduled Act for failing to furnish those returns or maintain those registers, since it complied with the provisoCorrect
  3. CIt is liable only if the Inspector first issues a written notice
  4. DIt is liable to half the penalty under the Scheduled Act

Explanation

Section 4(5) says that where the employer furnishes returns or maintains registers as provided in the proviso to section 4(1), the Scheduled Act does not make him liable to any penalty for failing to furnish any return or maintain any register under that Act. Sunrise complied with the proviso, so no penalty arises. The option claiming liability ignores this protection.

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