Skip to content

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

Ravi Textiles Pvt Ltd, Surat, wants to recover from a worker's wages a sum of money that the worker paid to a supervisor as a 'gift' for being allocated a better shift. Under the Code on Wages, 2019, how is a payment made by an employee to the employer or his agent treated?

Any payment made by an employee to the employer or the employer's agent is deemed to be a deduction from wages under the Code on Wages, 2019. It is therefore lawful only if it falls within the purposes the Code authorises; otherwise it is unauthorised.

  1. AIt is deemed to be a deduction from his wagesCorrect
  2. BIt is treated as a voluntary contribution outside the Code
  3. CIt is treated as a bonus adjustment
  4. DIt is treated as a fine only if the worker complains

Explanation

The Explanation to section 18(1) says any payment made by an employee to the employer or his agent is deemed to be a deduction from wages. Such deductions are lawful only if authorised under the Code. The 'voluntary contribution' view is wrong because the Code deems the payment a deduction.

Did you get it right without looking?

One question tells you little. A timed set on The Code on Wages, 2019 shows your real accuracy, how long you take and where you lose marks.

Practise The Code on Wages, 2019Free diagnostic mock

More The Code on Wages, 2019 questions