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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 Pvt Ltd in Surat has a contract with its worker Meena that gives her benefits on a matter that are more favourable than what the Code on Social Security, 2020 provides. Under that Code, what is the position of Meena's entitlement on that matter?

Meena keeps the more favourable contractual benefit. The Code on Social Security overrides inconsistent contracts generally, but its proviso protects a person entitled to better benefits on a matter, and it allows agreements granting more favourable rights than the Code.

  1. AShe loses the contractual benefit because the Code overrides every contract of service
  2. BShe continues to be entitled to the more favourable benefit in respect of that matterCorrect
  3. CShe must choose between the contract and the Code for all matters
  4. DThe contract is valid only if the appropriate Government approves it in writing

Explanation

The Code on Social Security, 2020 has an overriding effect over inconsistent laws and contracts. The proviso to Section 161(1) protects a person who is entitled to more favourable benefits under a contract, and Section 161(2) permits agreements granting better rights. So Meena keeps the better benefit. The first option ignores this proviso.

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