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CS Professional · Labour Laws and Practice · Law of Wages

Sunil is employed on piece work in a factory. The State has fixed a minimum time rate but no minimum piece rate for his work. What must the employer pay him?

The employer must pay Sunil wages at not less than the minimum time rate. Where only a time rate is fixed for piece work, the Code requires that rate as the floor, regardless of agreed piece rates or output.

  1. AWages at not less than the minimum time rateCorrect
  2. BWages at any piece rate agreed between the parties
  3. CHalf of the minimum time rate, as no piece rate exists
  4. DNothing in excess of actual output value

Explanation

Section 12 states that where a person is on piece work and only a minimum time rate has been fixed, the employer shall pay not less than that minimum time rate. Section 5 also bars paying below the notified minimum.

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