Skip to content

CMA Intermediate · Business Laws and Ethics · The Code on Wages, 2019

A State Government appoints a committee to recommend minimum wages under the Code on Wages, 2019. It has 6 members representing employers. Which composition is consistent with the Code?

Employee representatives must be equal in number to employer representatives, so six here, and independent persons must not exceed one-third of the total members of the committee. Any composition with unequal employer and employee members breaches the Code.

  1. A6 employee representatives and up to 6 independent persons
  2. B6 employee representatives and independent persons not exceeding one-third of the total membersCorrect
  3. C4 employee representatives and 2 independent persons
  4. D8 employee representatives and 2 independent persons

Explanation

Employee representatives must equal employer representatives in number, so there must be 6. Independent persons must not exceed one-third of the total. With 12 representatives, up to 6 independents would make a total of 18, and 6 is exactly one-third, but the safe statement is the rule itself; option 1 wrongly says up to 6 without reference to the cap rule, and others break equality.

Did you get it right without looking?

One question tells you little. A timed set on The Code on Wages, 2019 shows your real accuracy, how long you take and where you lose marks.

Practise The Code on Wages, 2019Free diagnostic mock

More The Code on Wages, 2019 questions