Dear friends If any body post the gist of the Honble Supreme Court Judgement in the case of M/s Air Freight Ltd vs State of Karnataka which deals with the EPF visa visa Minimum Wages.
From India, Hyderabad
14From India, Hyderabad
Hi,
I just happened to read the enitre judgement, the summary of it is :
1. Shops and commerical establishment act is covering all establishment where any commercial acitvity is carried out.
The judgement was given on the contention by the Airfrite & Cargo Corueir company claiming that it is not covered under shops & Commercial establishment act.
The Learned Judged clearified the meaning, the soul of the said act and with various exmples clarified that the establishment is covered.
2. The issue of applicable of Minimum wages act applicable for this said company was established as per defining " Minimum wages aCT".
The company's contention that as it pays Higher wages it does not come under the Min wage Act.
As per the act, state goverments were authorized the decided the minimum wages for a said period and decide the DA allowance.
The contention here was that " As per the Labor officer, the act defines Minimum wages into 2 separate parts :
Minimum wage and DA as 2 sepsare components.......
Here the said company was paying wages higher then the minimum wages prescribed but was issued notice by Labor officer that it has to issue DA allowance as per the ACT,
The company was paying various allowances ( City compens, HRA, medical, Insurance, Tiffin, Variable DA etc ) which when consolidated was pretty higher then the minimum wages amount.
The company did not agree with the Lobor officers definition and was fined by not fullfilling his order of payment of DA allowance with retro effect.
The Company went to appeal in Karnatak High courtagainst the order of Labor officer and lost the case.
The HC too defined that the Karnatac Minimum wages act defines basic & DA separatly and DA has to be compulsory paid as per the Govt notification.
In appeal at SC the Judgement was given that the High court order was wrong and the contetntion of Labor officer was erronous.
The Total wages paid to the employee ( exclusing any subsidies ) are to be considered for checking under Minimum wages act.
The ACT per say does not define separate breakup of Basic & DA and the total consolidated shoul be considred.
All business are covered by Shop & Estb act, & Minimum wages act across india.
From India, Mumbai
I just happened to read the enitre judgement, the summary of it is :
1. Shops and commerical establishment act is covering all establishment where any commercial acitvity is carried out.
The judgement was given on the contention by the Airfrite & Cargo Corueir company claiming that it is not covered under shops & Commercial establishment act.
The Learned Judged clearified the meaning, the soul of the said act and with various exmples clarified that the establishment is covered.
2. The issue of applicable of Minimum wages act applicable for this said company was established as per defining " Minimum wages aCT".
The company's contention that as it pays Higher wages it does not come under the Min wage Act.
As per the act, state goverments were authorized the decided the minimum wages for a said period and decide the DA allowance.
The contention here was that " As per the Labor officer, the act defines Minimum wages into 2 separate parts :
Minimum wage and DA as 2 sepsare components.......
Here the said company was paying wages higher then the minimum wages prescribed but was issued notice by Labor officer that it has to issue DA allowance as per the ACT,
The company was paying various allowances ( City compens, HRA, medical, Insurance, Tiffin, Variable DA etc ) which when consolidated was pretty higher then the minimum wages amount.
The company did not agree with the Lobor officers definition and was fined by not fullfilling his order of payment of DA allowance with retro effect.
The Company went to appeal in Karnatak High courtagainst the order of Labor officer and lost the case.
The HC too defined that the Karnatac Minimum wages act defines basic & DA separatly and DA has to be compulsory paid as per the Govt notification.
In appeal at SC the Judgement was given that the High court order was wrong and the contetntion of Labor officer was erronous.
The Total wages paid to the employee ( exclusing any subsidies ) are to be considered for checking under Minimum wages act.
The ACT per say does not define separate breakup of Basic & DA and the total consolidated shoul be considred.
All business are covered by Shop & Estb act, & Minimum wages act across india.
From India, Mumbai
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