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CS Professional · Labour Laws and Practice · Law of Wages

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

The maximum is a fine of up to Rs 50,000. Paying less than the amount due is punishable under section 54(1)(a) with fine only for a first offence. The Rs 20,000 fine applies to other contraventions, and imprisonment arises only on repeat offences.

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

Explanation

Paying an employee less than the amount due is punishable under section 54(1)(a) with fine which may extend to Rs 50,000. Rs 20,000 is the fine for contravening other provisions, so it applies to a different offence. Imprisonment arises only on repeat commission.

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