Payment of Wages Act: Hidden Pitfall
labour bar_exam advanced trick_questionMany students get this question wrong in the Bar Exam and AIBE, and most of them fall into a trap. Question: X, who was employed as a labourer, was paid Rs 10,000 as lump sum for 30 days of work at the end of the month. However, he was not paid any wages for the month of May, as the factory was closed due to labour unrest. Later, it was discovered that the factory had a provision in its service agreement to pay labourers an equal amount of money to compensate for any period of closure during the year. The labourer X claimed Rs 10,000 for the month of May under the Payment of Wages Act. What is his entitlement?
The trap here is that students think that since X was paid Rs 10,000 as lump sum for 30 days, it automatically covers the period of closure.