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

Meridian Components Pvt Ltd's contract of service says its workers' wages and benefits will follow an old private agreement that conflicts with a provision of the Code on Wages, 2019. In the audit scope, which position is correct?

The Code on Wages, 2019 prevails. It has effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service, so a labour law auditor tests wage practices against the Code, not against a conflicting private agreement.

  1. AThe agreement prevails because it was signed first
  2. BThe Code on Wages prevails over inconsistent terms of any award, agreement, settlement or contract of serviceCorrect
  3. CThe agreement prevails if the workers signed it voluntarily
  4. DThe Code applies only if the Labour Commissioner orders it

Explanation

Section 61 of the Code on Wages, 2019 states that its provisions have effect notwithstanding anything inconsistent in any other law or in the terms of any award, agreement, settlement or contract of service. Hence the audit must test wage practices against the Code, not the conflicting agreement. Voluntary signing does not change this.

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