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

Sunrise Textiles Pvt Ltd in Surat paid a machine operator Rs 4,000 less than the amount due under the Code on Wages, 2019. The employer has no earlier conviction. What is the maximum punishment the Code provides for this first offence?

For a first offence of paying an employee less than the amount due, the Code on Wages, 2019 prescribes a fine which may extend to Rs 50,000. Imprisonment comes in only on repeat offences within five years, and lower fines apply to other contraventions.

  1. AFine which may extend to Rs 50,000Correct
  2. BFine which may extend to Rs 20,000
  3. CImprisonment up to three months or fine up to Rs 1 lakh, or both
  4. DFine which may extend to Rs 10,000

Explanation

Paying an employee less than the amount due is punishable under section 54(1)(a) with fine up to fifty thousand rupees. The Rs 20,000 figure applies to contravention of other provisions. Imprisonment is available only for a repeat offence of the same kind within five years.

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