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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Wages, 2019

A State Government is fixing minimum wages for workers employed on piece work in a textile unit. Under the Code on Wages, 2019, what must the Government do in fixing the rate for such piece workers?

The Government must fix a minimum rate for piece workers so that it secures them a minimum rate of wages on a time work basis. This ensures piece-rate earners are protected by a time-based floor, as the Code on Wages requires.

  1. AFix a minimum rate that secures them a minimum rate of wages on a time work basisCorrect
  2. BFix only a monthly lump sum without reference to time work
  3. CLeave the rate to be settled by each employer for every worker
  4. DFix the rate by reference to the employer's profits for the year

Explanation

Section 6(3) provides that for employees on piece work, the appropriate Government shall fix a minimum rate of wages for securing them a minimum rate on a time work basis. Section 6(2) permits fixing for time work or piece work. Leaving it to employers or linking to profits is not what the Code provides.

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