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CS Professional · Labour Laws and Practice · Law of Industrial Relations

Under the Industrial Relations Code, 2020, a worker at Bharat Forge Works has a service contract giving retrenchment benefits more favourable than the Code's Chapter on lay-off and retrenchment. What is the effect?

The worker keeps the more favourable contractual benefits. Section 76 of the Industrial Relations Code, 2020 overrides inconsistent laws, but its proviso lets a worker continue to enjoy more favourable benefits in a matter, even while receiving other benefits under the Chapter.

  1. AThe Code overrides the contract entirely and the worker gets only Code benefits
  2. BThe worker continues to be entitled to the more favourable benefits in that matterCorrect
  3. CThe worker must choose between the contract and the Code for all matters
  4. DThe contract prevails over the Code for all other matters too

Explanation

Section 76(1) gives the Chapter overriding effect, but the proviso preserves more favourable benefits under any other law, standing orders, award, contract of service or otherwise. This holds even if the worker gets benefits on other matters under the Chapter, so no forced choice arises.

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