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CMA Intermediate · Business Laws and Ethics · The Code on Wages, 2019

The appropriate Government has fixed only a minimum time rate, and no minimum piece rate, for a category of work. Ramesh, employed by a Pune firm on piece work in that category, earns less than the time rate on piece earnings in a day. What must the employer do under the Code on Wages, 2019?

The employer must pay Ramesh wages at not less than the minimum time rate. Where only a minimum time rate and no minimum piece rate has been fixed, piece workers are guaranteed the time rate, so lower piece earnings do not justify lower pay.

  1. APay him the piece earnings, since he was engaged on piece work
  2. BPay him wages at not less than the minimum time rateCorrect
  3. CPay him one and a half times the minimum time rate
  4. DPay him the average of piece earnings and the time rate

Explanation

Where a person is employed on piece work for which a minimum time rate and not a minimum piece rate has been fixed, the employer must pay wages at not less than the minimum time rate. Piece earnings alone cannot go below it, and no averaging or multiple is provided.

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