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

Sundaram Auto Ltd offers its workers under a long-standing settlement a notice period for retrenchment that is longer than the Industrial Relations Code, 2020 prescribes for this matter. During a labour law audit, the company secretary must advise on which benefit applies to the worker. What is the correct advice under the Code's provision on inconsistent laws in the relevant Chapter?

The worker continues to receive the more favourable benefit. Section 76(1) proviso of the Industrial Relations Code preserves more favourable entitlements under any award, contract or other instrument, even if the worker receives other benefits under the Code's Chapter.

  1. AThe worker continues to be entitled to the more favourable benefit under the settlement or contractCorrect
  2. BThe Code's lower benefit applies, as the Code overrides all other instruments without exception
  3. CThe employer may choose whichever benefit it prefers
  4. DThe worker loses the settlement benefit because he gets other benefits under the Code

Explanation

Section 76(1) says the Chapter overrides inconsistent laws and standing orders, but the proviso preserves more favourable benefits under any other Act, standing orders, award, contract or otherwise. This continues even if the worker receives benefits in other matters under the Chapter, so the last option is wrong.

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