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CS Executive · Setting Up of Business, Industrial and Labour Laws · Evaluation of Labour Legislation and need of Labour Code

A company's contract of service pays a worker less than the minimum the Code on Wages, 2019 requires, and the contract was signed before the Code came into force. What is the effect of the Code on that contract term?

The Code on Wages overrides the inconsistent contract term. Its provisions apply notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service, so the earlier date or worker consent does not preserve the lower pay.

  1. AThe Code has effect notwithstanding the inconsistent term in the contractCorrect
  2. BThe contract term prevails because it was made earlier
  3. CThe term prevails if the worker consented
  4. DThe term is valid until the contract expires

Explanation

Section 61 states the Code's provisions have effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service. Timing of the contract or consent does not save it.

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