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

Sunrise Logistics Ltd. cannot pay bonus within the normal period and applies to the appropriate Government for more time, citing sufficient reasons. The Government grants extensions twice. Under the Code on Wages, 2019, what limit applies to the extension?

The appropriate Government may extend the eight-month bonus payment period for sufficient reasons on the employer's application, by one or more orders, but the total extended period can never exceed two years. So repeated extensions are permitted only within that overall ceiling.

  1. AThe total extended period may not exceed two yearsCorrect
  2. BEach extension may be up to two years, with no overall cap
  3. COnly one extension of up to six months is allowed
  4. DExtension is not permitted under the Code

Explanation

The proviso to section 39(1) lets the appropriate Government extend the eight-month period for sufficient reasons on application, but the total extended period cannot in any case exceed two years. Option B wrongly removes the overall cap.

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