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Section 40 Code on Wages 2019: Application of this Chapter to establishments in public sector

Section 40 (Application of this Chapter to establishments in public sector in certain cases) under Chapter IV (Payment of Bonus) of the Code on Wages, 2019.—

❝(1) If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both, is not less than twenty per cent. of the gross income of the establishment in public sector for that year, then, the provisions of this Chapter shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector.

(2) Save as otherwise provided in sub-section (1), nothing in this Chapter shall apply to the employees employed by any establishment in public sector.❞



(1) The Code on Wages, 2019, an Act of Parliament received the assent of the President on the 8th August, 2019, and was published for general information in the Gazette of India (Extraordinary, Part II - Section 1) by the Ministry of Law and Justice (Legislative Department) on 8th August, 2019.

(2) The Act extends to the whole of India.

(3) Effective Date: The Act shall come into force on such date as the Central Government may, by notification in the Official Gazette appoint; and different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the coming into force of that provision.

This page was created/ last updated on 8th August, 2019.

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