Employer can’t pay employee less than minimum wages fixed: High Court

Srinagar, May 25: The High Court of J&K and Ladakh has held that “an employer is legally bound to pay every employee wages at a rate not less than the minimum wages fixed.”

“Section 12 of the Minimum Wages Act casts a legally enforceable duty upon the employer to pay every employee wages at a rate not less than the minimum wages fixed,” a bench of Justice Sanjay Dhar said while allowing a petition filed by some casual labourers.

The casual labourers were engaged on need basis in a government department, who in their plea had sought court’s direction to the authorities to release the wages in their favour at the rate of Rs 300 per day from April 1, 2022 in light of Government Order No.121-F of 2022 dated 23 April 2022.

In their plea filed through advocate Aswad Attar, they had also sought court’s intervention to release the wages in their favour at the rate of Rs 225 per day from January 1, 2018 in terms of Government Order No.27-F of 2018 dated January 25, 2018 and at the rate of Rs 150 per day with effect from the year 2014 along with all consequential benefits.

The Court noted that since the minimum wages have been fixed by the Government of J&K in terms of Government Orders dated 25.01.2018 and 23.04.2022, as such the respondents (authorities) could not deny the benefit of the same to the petitioners.

“Doing so would be in violation of Section 12 of the Minimum Wages Act, which is impermissible in law.”

The court directed the authorities to calculate and disburse the wages, including the arrears at the aforesaid rates and for the period to the petitioners, within a period of three months, failing which, the arrears of wages shall carry interest the rate of 6% per annum till their realisation.

Earlier, the government in its reply to the petition said that the petitioners are working on a need basis and not as daily wagers or casual labourers saying, as such, the Government Order dated 23 April 2022 was not applicable to them. The government had stated that the need-based workers are being paid wages on a consolidated basis ranging from Rs 2000 and to Rs 4500 per month as such the Minimum Wages Act would not be applicable to them.