judgment for Minimum wage act-Airfreight case

Dear Memberes,

Feedback is urgent!!!


The interesting point is the court said that the total wage paid to the employee including the wage is the criterion

The interesting point is the court said that the total wage paid to the employee including the wage is the criterion.. If you go through the judgment you can see when the employer pays more than any sum fixed under Minimum wage act there is no illegality. Under the PF act only for Basic and DA, the contribution is payable

But There is no provision in the act that minimum contribution payable under the act. In absence of that whatever is agreed under contract of employment it will prevail

Kindly give me your feed back urgent

dear Satya,

Sorry, I cannot understand what you are saying. Please attach the copy of judgement.

Regards,
SC

Dear SC,

Give me ur mail id i will send u because the attachement volume is big

Satya

Dear Satya,

My email is

Regards,
SC

hi
The Airfreight judgement arose over the split up of the salary into basic,da and other allowances.With the introduction of the Da component the labour authorities started insisting that the basic and da should be consistent with the minimum wages act.The other components were not included to determine the wages.By virtue of this judgement the components are totalled as minimum wages.
There is no minimum fixed for determining PF.Though the act specifies that there shall be no reduction in the contribution.Hence while drawing the contract the splits have to be worked out without casting doubts on the authorities that the splits are done deliberately to avoid payment of contribution.
There is no scope to this on account of ESi as more or less all allowances are covered for contribution.
On PF there is a gujarat high court judgement which speaks similarly.If this comes to effect it will open a pandora box on contributions.The outflow being unimaginable!!!!
hrg-rajaram

Dear Sc,

I have forward the Jundgment copy to ur mail adress

Iam waiting for ur reply
satya

Dear Satya,

kindly send me a copy of the judgement. You have my mail id.


Regards,
Shyamali

Shyamali


Give me ur mail id

Satya

Hi,

What is your problem?

Personally and professionally I am familiar with the case you are referring to. All that you have said about the case is largely true. The salient points as regards the judgement and how to operationalize it are:

1) Whatever the split up you may adopt, the components you inculde in your structure must be those permitted by the definition fo "wage" in the MW Act.

2) The Minimum Wages Act and the Employees Provident Funds Act are two independent legislations.

3) The Minimum Wage, as constituted in the Minimum Wages Act has two components, viz: "Minimum Rate of Wages" and the "Special Allowance". The Statutory Minimum Wage is supposed to be inclusive of HRA.

4) The mischief lies here! The enforcement agancies, force the employers to treat "minimum Rate of Wage" as "BASIC" wage and the "Special Allowance" as the "D.A." In law there is NO SUPPORT for such treatment, but gullible employers fall for it and follow wrong practices and over a period of time become captives of this evil!

5) The judgement/s in question have adequately underscored that position the law considers as "right"!

6) The only way out for the employers is to follow these judgements, try to convince the enforcing agencies of the "rightness" of own action and failing the approach let the enforcing agencies prosecute the employer on this ground, and thus let the court affirm these judgements.

To uphold what is right some pain is inevitable and such risks must be taken. I would suggest that before following what is stated in this mail, an opinion of a senior practicing lawyer in labour be obtained. I know, I am right, but not being a qualified lawyer I am showing a direction and asking all to take suitable precautions.

Let the position be thus clear!!!

Regards
samvedan
August 4, 2006

Samavadan

Could you pls. give me your Mobile No.Email Adress

satya