If an employer fails to pay contribution within the period specified under Regulation 31, or any other amount payable under the Act, the Corporation may recover damages, not exceeding the rates mentioned below, by way of penalty:
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Period of delay Rate of damages in per cent
per annum of the amount due
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(i) Upto 2 months 5%
(ii) 2 months and above but less than 4 months 10%
(iii) 4 months and above but less than 6 months 15%
(iv) 6 months and above 25%
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Provided that the Corporation, in relation to a factory or establishment which is declared as sick industrial company and in respect of which a rehabilitation scheme has been sanctioned by the Board for Industrial and financial Reconstruction, may:
(a) in case of a change of management including transfer of undertaking(s) to workers cooperatives(s) or in case of merger or amalgamation of sick industrial company with a healthy company, completely waive the damages levied or leviable ;
(b) in other cases, depending on its merits, waive up 60 per cent damages levied or leviable;
(c) in exceptional hard cases, waive either totally or partially the damages levied or leviable.
Contributions
ESI (Employee State Insurance)
