CS Executive · Setting Up of Business, Industrial and Labour Laws · Evaluation of Labour Legislation and need of Labour Code
Bharat Components Pvt. Ltd. has a settlement with its employees under which the minimum wage payable is lower than what the Code on Wages, 2019 requires. The management argues that the settlement binds the employees. Under the Code on Wages' provision on inconsistent laws and agreements, what is the correct position?
The Code on Wages, 2019 prevails over the settlement. It has effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service, so a settlement cannot reduce the wages the Code requires.
- AThe settlement prevails because it was agreed between the parties
- BThe settlement prevails if signed by a registered trade union
- CThe Code prevails, since it has effect notwithstanding anything inconsistent in any award, agreement, settlement or contract of serviceCorrect
- DThe settlement prevails for one year and the Code applies after that
Explanation
The Code on Wages provides that its provisions have effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service. A settlement that gives less than the Code requires is therefore overridden. The union-registration option adds a condition that the text does not contain.
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