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HC tells companies to pay minimum wages

The HC has directed the companies to pay the minimum wages prescribed under the Minimum Wages Act.

india Updated: Sep 28, 2006 20:44 IST

The Gujarat High Court has directed three companies to pay the minimum wages prescribed under the Minimum Wages Act to all employees of their firms.

The three companies -- Luby Electricals Ltd, Luby Submersible Pumps Ltd and AP Motors -- had in in July this year challenged the order of the Authorities Under Minimum Wages Act that had asked them to pay minimum wages to their employees.

Hearing the case, Justice H K Rathod dismissed their petition and observed that the employer was obliged to pay minimum wages under all circumstances and "payment which is lesser than the minimum wages would amount to forced labour".

In the 67-pages judgement, Justice Rathod noted that the employer may pay any amount of remuneration or may agree to pay any amount of incentive wages under any scheme but the management cannot ignore the minimum rate of wages.

Commenting on the idea of incentive wages, the court observed, "this theory is nothing but colourful devise adopted by the mangagement for taking extra work from workmen, with temptation of getting incentive wages from the employer".

"It is for the workman to decide either to work on the incentive basis or not. Mangement cannot compel workman to work on incentive basis as per settlement. Such compulsion is against the very object of the Act".

First Published: Sep 28, 2006 20:09 IST