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    Question

    Under the provision of ‘The Code on Wages, 2019’,

    which of the following is true regarding imposition of fine by the employer?  1. Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.  2. All fines and all realisations shall be applied only to such purposes beneficial to the persons employed in the establishment.  3. No fine shall be imposed on any employee until such employee has been given an opportunity of showing cause against the fine. 
    A Only 1 and 3 Correct Answer Incorrect Answer
    B Only 3 Correct Answer Incorrect Answer
    C Only 2 and 3 Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    Under Section 19 of the Code on Wages, 2019, the legal provisions regarding imposition of fines on employees are as follows: Statement 1: Every fine shall be deemed to have been imposed on the day of the act or omission TRUE The Code clearly states that the fine is considered imposed on the actual date of the misconduct, even if recovered later. Statement 2: All fines realised must be used only for purposes beneficial to employees TRUE The employer cannot use fines for personal or business expenses. All collected fines must be deposited and spent solely for employee welfare. Statement 3: No fine shall be imposed unless the employee is given an opportunity to show cause TRUE Natural justice requires that the employee must be: • informed of the charges, and • given a chance to defend himself/herself before any fine is imposed.

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