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

Which statement about the repeal of earlier laws by the Code on Wages, 2019 is correct?

The Code repeals the Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965 and Equal Remuneration Act 1976. Things done under them, including notifications and orders, are deemed done under the Code's corresponding provisions, and stay in force where not contrary to the Code.

  1. AOnly the Minimum Wages Act, 1948 is repealed; the other wage laws continue
  2. BThe Payment of Wages Act, 1936, Minimum Wages Act, 1948, Payment of Bonus Act, 1965 and Equal Remuneration Act, 1976 are repealed, and actions taken under them are deemed taken under corresponding provisions of the Code to the extent not contrary to itCorrect
  3. CThe four Acts are repealed and all actions taken under them lapse immediately
  4. DThe four Acts are repealed along with the Payment of Gratuity Act, 1972

Explanation

Section 69(1) repeals the four named Acts. Section 69(2) saves actions, notifications and orders, deeming them taken under the corresponding provisions of the Code to the extent not contrary to it. Option C is wrong because actions do not lapse; option D adds an Act not listed.

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