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CS Executive · Setting Up of Business, Industrial and Labour Laws · Evaluation of Labour Legislation and need of Labour Code

Sunrise Textiles Ltd., Surat, has a contract of service that gives its workers a more generous benefit on a matter than the Code on Social Security, 2020 provides. Under the Code's rule on inconsistent laws and agreements, what is the position of the workers on that matter?

Workers continue to receive the more favourable contractual benefit. The Code on Social Security, 2020 overrides inconsistent agreements generally, but its proviso protects any benefit that is better than the Code's on a given matter, even if the person also receives Code benefits on other matters.

  1. AThey lose the contractual benefit because the Code overrides every agreement
  2. BThey continue to be entitled to the more favourable benefitCorrect
  3. CThey must choose between the contractual benefit and all Code benefits
  4. DThey get the contractual benefit only if the appropriate Government approves it

Explanation

The Code on Social Security overrides inconsistent laws, awards, agreements and contracts of service. However, the proviso says that where a person is entitled to more favourable benefits on a matter, he continues to be entitled to them, even if he also receives Code benefits on other matters. The option saying he loses the benefit ignores this proviso.

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