Schneider Electric Infrastructure Limited (SEIL) disclosed a Labour Court order imposing a penalty amounting to ₹39,12,965.41 for a wages dispute involving an ex-employee, Kamal Kapoor. The order came through the authority under the Payment of Wages Act, 1936, at Labour Court, Rohtak.

The incident involves withholding wages from the former employee due to non-completion of full and final handing over formalities. Following legal proceedings initiated in June 2024, the court ruled on November 14, 2024, reserving the order. SEIL’s Compliance Officer was officially notified on December 17, 2024.

Nature of the Order

The Labour Court, presided over by Sh. Rahul, imposed a ten times penalty on the deducted wages amounting to ₹39,12,965.41. This action stems from the company's decision to hold back the final settlement pending unresolved formalities by the ex-employee.

Details of the Violation

Schneider Electric withheld the wages of Kamal Kapoor under circumstances tied to non-compliance with handover processes. This action was deemed a contravention of Section 15 of the Payment of Wages Act, leading to the penalty.

Financial and Operational Impact

The financial impact of the order is quantified at ₹39.13 lakh, though the company assures stakeholders that routine operations remain unaffected. SEIL stated that the penalty will have no material impact on the organization’s financials or core business functions.

The company further clarified that it is actively evaluating legal remedies to challenge the order. This process underscores Schneider Electric's commitment to managing disputes while safeguarding shareholder interests.

Company’s Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEIL promptly disclosed this development to both BSE and NSE. The transparency reflects adherence to corporate governance standards and regulatory norms.

Company Overview: Schneider Electric Infrastructure Limited

SEIL specializes in electrical infrastructure solutions for utilities and industrial sectors, playing a pivotal role in power distribution and automation. Its operations are headquartered in Gurgaon, with registered offices in Vadodara, Gujarat.

With a strong market presence and robust compliance structure, the company maintains a balance between operational excellence and stakeholder trust.

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