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CS Professional · Labour Laws and Practice · Law of Wages

Meera, a monthly-paid employee of Kaveri Textiles Ltd, resigns with effect from Wednesday, 10 June. Assuming no other law or government notification provides a different time limit, within what time must her wages be paid under the Code on Wages, 2019?

Meera's wages must be paid within two working days of her resignation. The Code overrides the ordinary monthly seventh-day timeline when employment ends by resignation, retrenchment, removal, dismissal or closure. The eight-month period applies only to bonus, not wages.

  1. ABefore the expiry of the seventh day of the succeeding month
  2. BWithin two working days of her resignationCorrect
  3. CAt the end of the shift on her last day only
  4. DWithin eight months from the close of the accounting year

Explanation

Where an employee resigns, is retrenched, is removed or dismissed, or becomes unemployed due to closure, wages payable must be paid within two working days of the event. The seventh-day rule applies to ongoing monthly employment, so it does not govern here. The eight-month limit relates to bonus.

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