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

Kiran works on piece work in a unit where only a minimum time rate is fixed, which is by the day for an 8-hour normal day. One day he works 10 hours on piece work. Which statement best reflects the Code on Wages, 2019?

Kiran must get at least the minimum time rate for his piece work, and the two hours beyond the normal day attract overtime at not less than twice the normal rate of wages, because his minimum rate is fixed by the day.

  1. APiece work wages must be at not less than the minimum time rate, and the 2 extra hours attract overtime at not less than twice the normal rate of wagesCorrect
  2. BOnly the minimum time rate applies; overtime rules never apply to piece workers with a daily rate
  3. COvertime is paid at one and a half times the normal rate
  4. DThe minimum time rate is waived for the 2 extra hours

Explanation

Section 12 secures at least the minimum time rate for piece work. Section 14 applies to an employee whose minimum rate is fixed by the hour or day and who works beyond a normal working day, requiring overtime at not less than twice the normal rate for every hour or part of an hour. Here the rate is fixed by the day, so the overtime rule applies. One and a half times is below the statutory floor.

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