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CS Professional · Labour Laws and Practice · Industrial and Labour Laws Audit

Kaveri Engineering Pvt Ltd has a settlement with its workers giving a notice period for lay-off benefits that is more generous than the Industrial Relations Code, 2020 on that matter. During a labour law audit, how should the auditor treat this?

The auditor should accept that workers keep the more favourable benefit on that matter. The Industrial Relations Code, 2020 gives its Chapter overriding effect, but its proviso preserves more favourable entitlements under other laws, awards, contracts or standing orders, even if other matters are governed by the Code.

  1. AReport it as non-compliance because the Code overrides every settlement
  2. BTreat the Code as overriding it, but ask the employer to seek condonation
  3. CIgnore the settlement because audits cover only statutory benefits
  4. DAccept that the workers continue to be entitled to the more favourable benefit on that matter, while the Code applies to other mattersCorrect

Explanation

Section 76 of the Industrial Relations Code, 2020 gives the Chapter overriding effect, but its proviso lets a worker keep benefits under any other Act, standing orders, award, contract of service or otherwise that are more favourable on a matter. The auditor therefore records the more favourable benefit as valid. Treating it as non-compliance wrongly ignores the proviso.

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