Seeking Clarity on 50% Back Wages and Retirement Benefits After Legal Victory – What Should I Expect?

Seeking Advice on 50% Back Wages and Retirement Benefits

I was appointed in a Co-op Society as an Accounts Clerk in 1969. However, in 1978, I was illegally terminated by the Society. I raised a dispute case in the Labour Court, which awarded in my favor after a long process in the Punjab and HYN High Court. In 2006, the single bench also ruled in my favor. Subsequently, in 2008, the double bench remanded it back to the Labour Court. Once again, the Labour Court awarded in my favor. Finally, in 2011, the single bench granted me an award of 50% back wages with continuity of service, considering the long period I served the society. My retirement date was December 2008. Now, I am seeking my claim as per the law, which involves 50% back wages.

Could you please advise me on the amount given under 50% back wages? My salary includes Basic, DP, various allowances, and EPF. Should all components of my salary be reduced by 50%, or is it 50% of Basic and DP with full allowances? What about retirement benefits such as gratuity, E.L, EPF – are these also reduced by 50%, or should they be paid in full?

I am looking for clarification on the meaning of 50% back wages as per the law and whether I can claim for my promotions, which would result in a significant difference. What is the procedure for claiming the difference in my promotions? Your prompt response would be highly appreciated.

Regards,
Sat Pal Aggarwal

Definition of Wages Under the Industrial Disputes Act 1947

Wages are defined in Section 2(rr) of the Industrial Disputes Act 1947. Wages mean all remuneration capable of being expressed in terms of money, which would be payable to a workman in respect of his employment or work done in such employment, if the terms of employment expressed or implied were fulfilled. This includes:

- Such allowances (including dearness allowance) as the workman is entitled to at that time.
- The value of any house accommodation, or supply of light, water, medical attendance, or other amenity, or any service, or any concessional supply of food grains or other articles.
- Any travelling concession.
- Any commission payable on the promotion of sales or business or both.

However, wages do not include:

(a) Any bonus.
(b) Any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workman under any current law.
(c) Any gratuity payable upon the termination of service.

If the award includes continuity in service, you are entitled to the promotion that you could have received if you had continued in service.

As an Accounts Clerk, I trust you will be able to calculate the wage arrears from 1978 based on the pay scale you were on at that time, considering any revisions to the pay scale over time.

For other benefits, please review the award attentively.