Dear friends,
Ministry of Labour & Employment had issued office memorandum in consultation with Legal Advisor to the Ministry of Law wherein it was stated that allowances are to be excluded from wages while calculating overtime. Accordingly, Tribunal gave its decision in favour of the company.
However, Madras High Court in its decision dated 30.11.2011 (copy attached) has held the aforesaid office memorandum is not legal and allowances have to be included in wages for the purpose of calculating overtime under Factories Act.
Thanks
Ministry of Labour & Employment had issued office memorandum in consultation with Legal Advisor to the Ministry of Law wherein it was stated that allowances are to be excluded from wages while calculating overtime. Accordingly, Tribunal gave its decision in favour of the company.
However, Madras High Court in its decision dated 30.11.2011 (copy attached) has held the aforesaid office memorandum is not legal and allowances have to be included in wages for the purpose of calculating overtime under Factories Act.
Thanks
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