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CS Professional · Labour Laws and Practice · Law of Welfare and Working Condition

Under the Occupational Safety, Health and Working Conditions Code, 2020, the appropriate Government sets up a social security fund. A State inspector compounds an offence by an employer, Sunrise Textiles Pvt. Ltd., and the composition amount is received. Where must this amount be credited, and for whose welfare is the fund meant?

The composition amount goes to the social security fund established by the appropriate Government. That fund exists for the welfare of unorganised workers, and the Code specifically provides that composition money and penalty amounts are credited to it.

  1. ATo the social security fund, for the welfare of unorganised workersCorrect
  2. BTo the general Consolidated Fund, for all employees of the State
  3. CTo the employer's own welfare fund, for its factory workers
  4. DTo the fund of the Employees' Provident Fund Organisation, for organised sector workers

Explanation

The Code requires the amount received from composition of an offence to be credited to the social security fund established by the appropriate Government. That fund is for the welfare of unorganised workers. The other options name destinations or beneficiaries that the section does not provide for.

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