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

Priya, a company secretary, is advising a start-up on the Code on Wages, 2019. Which statement about the territorial extent of the Code is correct?

The Code on Wages, 2019 extends to the whole of India. Its extent clause contains no limit by State, Union territory or establishment size, so it applies across the country, subject to the provisions being brought into force.

  1. AIt extends to the whole of IndiaCorrect
  2. BIt extends only to establishments employing ten or more workers
  3. CIt extends only to the notified industrial States
  4. DIt extends to India excluding Union territories

Explanation

The Code states in its extent provision that it extends to the whole of India. It is not restricted by State, size of establishment or type of territory. The option limiting it to notified States is wrong because the extent clause has no such limitation.

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