Contracting Out Under the Code on Wages, 2019

Introduction The general connotation ascribed to the term ‘contracting out’ consenting to be excluded from a particular scheme or benefit. It requires a legal agreement that operates as a formal statement expressing a person’s intent to be excluded from an official plan or system. As a consequence, it means forgoing a right that one would ordinarily be entitled to. Most labour enactments in India provide that contracting-out is prohibited, meaning that employers cannot by agreement…

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