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

Sundaram Auto Components has a standing order giving workers a more generous benefit on a matter covered by the Industrial Relations Code, 2020 than the Code itself provides. During a labour law audit of the relevant Chapter, how should the auditor treat this?

The auditor should accept the more favourable standing order benefit. Section 76 of the Industrial Relations Code, 2020 gives the Chapter overriding effect, but its proviso lets a worker keep benefits on any matter that are more favourable than the Code provides, so there is no non-compliance.

  1. AReport it as non-compliance because the Code overrides all standing orders without exception
  2. BAccept that the worker continues to be entitled to the more favourable benefit on that matterCorrect
  3. CRequire the benefit to be reduced to the Code level before certifying compliance
  4. DIgnore it because standing orders are outside labour law audit

Explanation

Section 76 of the Industrial Relations Code, 2020 gives the Chapter overriding effect, but the proviso says a worker entitled to more favourable benefits under standing orders, awards or contract continues to be entitled to them on that matter. Reporting it as a breach would be wrong.

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