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

Kaveri Foods Ltd has an employment contract term that pays its staff less than what the Code on Wages, 2019 requires on a matter covered by it. The audit team asks which prevails. What is the correct position under the Code on Wages, 2019?

The Code on Wages, 2019 prevails. Section 61 says its provisions have effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service, so an inferior contractual term is a non-compliance for the auditor to report.

  1. AThe contract prevails because it was agreed by the employee
  2. BThe contract prevails if it was made before the Code commenced
  3. CThe Code prevails notwithstanding anything inconsistent in the contract of service, award, agreement or settlementCorrect
  4. DThe higher of the two prevails only if the employee complains

Explanation

Section 61 of the Code on Wages, 2019 states that the Code has effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service. So the inferior contract term cannot override the Code and the auditor should report the gap.

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