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

Under the Code on Wages, 2019, an employee is engaged on piece work, and the appropriate Government has fixed only a minimum time rate (and no minimum piece rate) for that work. What must the employer pay this employee?

The employer must pay at least the minimum time rate. Where only a time rate has been fixed for piece work, the Code guarantees the piece worker wages not below that time rate, even if output-based earnings would be lower.

  1. AWages at not less than the minimum time rateCorrect
  2. BWages only according to the number of pieces produced, whatever the amount
  3. CWages at the average of the time rate and the piece earnings
  4. DWages at the minimum time rate only if the employee works overtime

Explanation

Section 12 states that 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. Paying purely by output could result in earnings below that rate, which is not allowed.

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