Delhi High Court Ruling: Can Workers Claim Wages During Appeal if Self-Employed?

Delhi High Court Ruling on Labour Tribunal Awards

The Delhi High Court, in its judgment dated 16.5.2012 (copy attached), has ruled that workers who have received a labour tribunal award of reinstatement are entitled to wages last drawn, even if there is an appeal pending against the award. However, the workers cannot claim this benefit if they are receiving adequate remuneration from another employer.

In the case of Mrs. Kiran Uppal Prop. M/S Clas vs. Ashok Kumar, the employers alleged that their former workers were self-employed and therefore not entitled to the benefit under Section 17B of the Industrial Disputes Act. The workers countered by stating that they were engaged in small trade for their own and their family's survival. Accepting their submissions, the high court stated that the employer must prove that the workers were receiving adequate income. This was not done in this case. Consequently, the high court granted the workers' request, entitling them to wages from 2005, the date of the award when the industrial tribunal declared their termination illegal and ordered their reinstatement.

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Deductions for PF & ESI Under Section 17B Orders

Whether deductions are to be made in respect of PF & ESI when, as per orders under Section 17B, month-by-month wages—last drawn or minimum wages, whichever is higher—are being paid.