Section 60: Contracting out
Invalidates agreements by which an employee relinquishes a statutory right to wages, bonus or another protected amount.
Statutory identity
What the provision requires
Invalidates agreements by which an employee relinquishes a statutory right to wages, bonus or another protected amount.
Implementation control: Do not use waiver clauses, full-and-final language or contractor terms to contract below the Code.
Provision-level reading sequence
- Read each subsection, clause, proviso and explanation in the official text.
- Apply section 2 definitions before testing the obligation or exception.
- Identify the appropriate Government and the applicable Central or State rule.
- Check commencement, section-specific notifications and saved predecessor-law instruments.
- Document the factual test and the evidence supporting the conclusion.
Provision map — subsection, clause and qualification
This map decomposes the section into its operative tests. Use the linked India Code text for exact numbering and wording.
No waiver
An agreement relinquishing an employee’s Code entitlement is void to that extent.
Settlement review
Full-and-final language cannot waive minimum wages, overtime, bonus or another protected amount.
Higher benefits
More favourable terms remain relevant under section 61.
Linked Code on Wages (Central) Rules, 2026
No direct section citation was detected in the text of the 2026 Central Rules. The section may still operate with another rule, notification or State rule; verify the rule-making clause and current official library.
Authority, form and filing map
Evidence pack
- legal position note
- contract/award and historical records
- Government orders and correspondence
Compliance consequence
Apply the specific claims, recovery, adjudication, penalty and appeal provisions; do not infer a penalty solely from the section heading.
Remedy path: identify the claims authority, appellate authority, adjudicating officer, Inspector-cum-Facilitator or criminal court applicable to the issue.
Worked example
A settlement states that an employee waives statutory overtime for a lump-sum amount. The waiver cannot contract out of a protected minimum right.
Illustrative only. Apply actual wage notifications, contracts, dates, State rules and evidence.
Practical Q&A
Can an employment contract override this section?
Not where the contract reduces a statutory entitlement. Sections 60 and 61 must be considered, including any more favourable award, agreement or contract.
What should be checked before payroll or HR action?
Confirm coverage, appropriate Government, operative rate/order, the exact subsection and proviso, linked rule, evidence, approval and payment/filing deadline.
Primary sources
India Code — exact Section 60 text ↗
India Code — official consolidated Act PDF ↗
Ministry of Labour — Codes, Rules, notifications and FAQs ↗
Last official-source review: 16 July 2026.