sridharan venkataraman

Dear Experts:
In one litigation, the Trade Union filed Petition on behalf of 80 workmen claiming difference in emoluments in terms of the wage settlement entered between the Management and the recognized Union during the year 1988. The said 80 workmen of the said Trade Union have not offered their acceptance of the terms of agreement in writing as required of the terms of the settlement. Hence, they were not paid the said difference in wage by the Management. Now the court of law has finalized the issue partly allowing the petition of the Union by granting relief of 75% of the claim of each workmen. Since the issue was a long pending one, the Management has now decided to go by the verdict of the court in making payment. The Trade Union also in acceptance of the said verdict of court of law. In this matter my queries are as follows:

1. Whether the Management to disburse the amount directly to the workmen concerned or to disburse the same thro' The Trade Union. If thro Trade Union whether the Management draw cheque / dd in favour of the Trade Union.

2. Whether the trade union seeks payment from the Management to draw cheque / dd in favour of Trade Union President's Name by passing a resolution so as to disburse the same by the Trade Union President himself? If so, whether the Management is liable to draw dd/cheque in favour of the Trade Union President's Name?

3. Any other suggestion

Request expert views in this matter.

V Sridhar

From India, Mumbai
Labour Law & Hr Consultant
Seasoned Ir Professional


Since the amount due is difference of wages, the same should be calculated separately for each worker and paid to them separately. We cannot pay the amount to the Union with a direction that then union can disburse it among the workers. Therefore, whatever is the amount due to each worker, the same should be paid directly to the employee either by cheque or by credit to their bank account just like their salary is credited. This will discharge your liability. The Union will not demand that the cheque should be drawn in their favour. If you draw a cheque in favour of the Union, it will show as a creditor. Moreover, the consideration for payment is absent in such transaction. Therefore, pay it to workers individually as arrears of salary after deducting taxes, if applicable.
From India, Kannur
Babu Alexander

While disbursing the arrears in the acknowledgment / receipt, you may add a wordings as follows:-

As per the orders of the Honorable court ( name) and also fully accepting the clauses of the earlier settlement dated …..with the Union, we the undersigned acknowledge for having received the amount mentioned against each, as full and final settlement all our claim, in respect of differential wages.

From India, Madras

In any Collective Dispute u/s 2(k) of the IDA,1947, the trade union, if any, espousing the cause of the workmen concerned is only a representative. Therefore, only the workmen who were represented by the trade union in the said dispute are eligible to get the benefits, if any, arising out of the award or orders of the tribunal. In case of impossibility of disbursement like the subsequent death of any workmen, the financial benefit shall be paid over to their legal heirs. In any case of non-traceability, the amount due shall be deposited in the State Labor Welfare Fund.
From India, Salem
sridharan venkataraman

I am very much thankful to all for offering valid inputs in disbursing the amount. It has been decided to pay the amount to the individual workman concerned. V Sridhar
From India, Mumbai

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