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CS Professional · Labour Laws and Practice · Law of Wages

The authority under the Code on Wages, 2019 determines that Ashok Engineering Ltd owes a worker a claim of ₹40,000. Considering the circumstances, the authority wishes to order the maximum compensation permitted in addition to the claim. What is the maximum compensation it may order?

The maximum compensation is ₹4,00,000. The authority may order compensation, in addition to the claim, extending up to ten times the claim determined, and ten times ₹40,000 equals ₹4,00,000. The claim amount itself is separate and not part of this cap.

  1. A₹1,20,000
  2. B₹4,00,000Correct
  3. C₹80,000
  4. D₹4,40,000

Explanation

Compensation in addition to the claim may extend to ten times the claim determined. Ten times ₹40,000 is ₹4,00,000. The figure ₹4,40,000 wrongly adds the claim itself to the compensation, which is not the cap asked for.

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