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

Meenakshi Garments Pvt. Ltd. engages Ravi on piece work. The appropriate Government has fixed only a minimum time rate for this work and no minimum piece rate. What must the employer pay Ravi under the Code on Wages, 2019?

The employer must pay wages at not less than the minimum time rate. Where piece work is covered only by a minimum time rate and no minimum piece rate, the Code on Wages guarantees the time-rate floor regardless of the piece rate the employer prefers or agrees privately.

  1. AWages at not less than the minimum time rateCorrect
  2. BWages at the rate the employer and Ravi privately agree, even if lower
  3. COnly the piece rate the employer chooses, with no minimum guarantee
  4. DWages at twice the minimum time rate as a standard premium

Explanation

Section 12 says that where a person is on piece work and only a minimum time rate (not a minimum piece rate) has been fixed, the employer must pay wages at not less than the minimum time rate. A private agreement or employer-chosen rate cannot go below it. The double rate applies only to overtime, not to this situation.

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