Delhi Minimum Wages Stay order case
The Delhi Government had issued a notification dated 3rd March 2017, wherein minimum wages for workmen in all scheduled employments were increased from Rs. 9,724/- to Rs. 13,350/- (unskilled category), Rs. 10,764 to Rs. 14,698/- (semi-skilled category) and Rs. 11,830 to Rs. 16,182 (skilled category).
The writ petition before the Delhi High Court challenging the legality of the notification. In it has contended that, while its members are not averse to and/or against a reasonable increase in minimum wages, the increase of the kind done by the Delhi Government is unprecedented, wholly arbitrary and seeks to put the whole industry, so far as the State of Delhi is concerned, in serious jeopardy. The Delhi High Court had passed a stay order stating that no coercive steps are taken by the Delhi Government.
In an interim order, the Supreme Court directed that a 37% hike in minimum wages be restored, thus reversing a Delhi High Court order of August that had scrapped the hike. However, the apex courts order was only a temporary respite because the hiked rates will be available only for three months during which, the Delhi Govt. will have to reconstitute the Minimum Wage Board and revise its method of fixing wages to arrive at new rates. Accordingly, the Delhi Government had constituted a Minimum Wages Advisory Committee in November 2018.
The Supreme Court, in its order, dated 14.10.2019 stated that:
- Till new notification (draft filed in S.C) comes into effect, the Notification dated 3.3.2017 shall prevail. Wages have to be paid w.e.f. 01.11.2018 as prescribed in the notification dated 3.3.2017 (as per order dated 31st October 2018).
- Once the revised notification is issued, new wages as prescribed therein will come into effect.
- The Supreme Court has clarified in its Order that no arrears need to be paid currently i.e. under prevailing notification dated 3.3.3017 but as and when the revised notification is made effective, arrears will be governed as per new wages as may be fixed.
Judgement
GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI VERSUS FLT LT. RAJAN DHALL CHARITABLE TRUST & ORS.
UPON hearing the counsel the Court made the following
O R D E R
On 31.10.2018, following directions were issued by this Court “Special leave petitions are kept pending.
the pendency of the special leave petitions, the minimum wages fixed as per notification dated 03.03.2017 will hold the field. We make it clear that, at this stage, no arrears need be paid but the current wages will be as per the said notification dated 03.03.2017.
Without prejudice to the rights of the respective parties, we direct the petitioner to re-do the exercise of fixing the minimum wages for the scheduled employment afresh following the route prescribed either under Section 5(1)(a) or 5(1)(b) of the Minimum Wages Act, 1948 as the petitioner may opt to adopt.
Shri Dushyant Dave, learned senior counsel for the petitioner, has stated before the Court that the aforesaid exercise will be completed within a period of two months.
Nonetheless, the Court is of the view that the petitioner should be given the benefit of another four weeks meaning thereby the exercise be completed at the end of three months from today and the result thereof i.e. notification that may be proposed to be issued be laid before the Court at the end of three months from today.
We also make it clear that the question of arrears under the notification dated 03.03.2017 will be governed by such wages as may be re-fixed pursuant to the fresh exercise ordered to be undertaken. We also make it clear that no recovery of amount paid shall be made by employer(s).
Needless to say, in the de novo exercise ordered to be carried out will be open for all the stake-holders to raise all issues as may be relevant.” In terms of said directions, the appropriate exercise was undertaken and the affidavit dated 26.08.2019 filed on behalf of the petitioner submits as under:
“5. In terms of Hon’ble Supreme Court order dated 31.10.2018, Labour Department opted for procedure for wage fixation/revision as provided u/s 5(1)(b) of the Minimum Wages Act, 1948."6. Based on the average prices of food items and clothing component and other prescribed percentage of other components i.e. housing, light & fuel and Education/social obligation as laid down in ILC-1957 and upheld by Hon’ble Supreme court in civil appeal no.4336 of 1991 titles as The Workmen represented by Secretary Vs. The Management of Reptakos Brett & Co. Ltd. And Anr., following proposed rates of minimum wages for different caegories of workers, supervisory and clerical staff have been worked out in respect of all scheduled employments in Delhi, which are:
7. The said proposed minimum wages rates have been uploaded on the website of Labour Department i.e. www.labour.delhigovt.nic.in on 12.11.2018 for inviting suggestions/views/inputs/comments from all stakeholders. As per Section 5(1)(b) of Minimum Wages Act, 1948, suggestions/views/inputs/comments are invited on the proposed minimum rates of wages for different categories from public which includes workers, trade unions, employers of commerce, NGOs, members of civil society. The proposed minimum rates of wages were also published in various newspapers on 13.11.2018 and 14.11.2018.
8. Various Trade Unions and market associations/factory owners associations/employer associations were requested vide letter dated 14.11.2018 to recommend/suggest name of one member who would be nominated as a member of the Delhi Minimum Wages Advisory Board to be constituted under section 7 of the Minimum Wages Act, 1948. After receiving nomination/names from these organizations, the Minimum Wages Advisory Board was constituted on 09.01.2019 after getting approval of Hon’ble Lt. Governor, NCT of Delhi. The Board has 15 Employees’ representatives, 15 Employers representative and two independent Members namely Shri Sanjay Bhatt, Professor, Delhi School of Social Work and
Dr. Paramjit, Associate Professor, Delhi School of
Economics.
9. The Minimum Wage Advisory Board held 4 meetings on
21.01.2019, 28.01.2019, 08.02.2019 and 15.02.2019 to
deliberate on the subject of wage revision taking into
account all the suggestions received from all the parties/
stakeholders.
10. Pursuant to the fresh exercise carried out by the
petitioner under Section 5(1)(b) of the Act as stated
above, the petitioner has drafted the proposed
notification as directed by this Hon’ble Court vide its
order dated 31.10.2018 ”… meaning thereby the exercise be
completed at the end of three months from today and the result
thereof i.e. notification that may be proposed to be issued be
laid before the Court at the end of three months from today.”
A copy of the said draft Notification is marked and
annexed as ANNEXURE A-1.
11. The present affidavit is being filed in compliance of
the order passed by this Hon’ble Court.”
Along with the affidavit, a copy of the Draft Notification has
also been annexed.
Mr. Dushyant Dave, learned Senior Advocate appearing for the
petitioner submits that since the exercise has been undertaken
under Section 5(1)(b) of the Act, the petitioner State be permitted
to give effect to the notification in a manner known to law.
Mr. V. Giri, learned Senior Advocate appearing for some of the
contesting respondents submits that the issue as to the correctness
of the view taken by the High Court would still be required to be
gone into.
It may be stated that in terms of the order dated 31.10.2018,
the minimum wages fixed as per the notification dated 03.03.2017
were directed to hold the field during the pendency of the matters.
Having considered the rival submissions, we allow the
petitioner State to take the Draft Notification, as stated above,
to the logical conclusion and direct that till said Notification
comes into effect, the relationship shall be governed by and in
terms of the Notification dated 03.03.2017 as directed in the order
dated 31.10.2018. Once the Notification is issued, the appropriate
legal consequence and sequitur shall follow. It goes without
saying that if any person is aggrieved by the Notification, he
shall be entitled to take recourse to legal remedies available in
law.
The correctness of the decision of the High Court, which is
presently under appeal shall be required to be considered.
We, therefore, grant special leave to appeal.
Let the hearing of the appeal be expedited.
(MUKESH NASA) (SUMAN JAIN)
COURT MASTER BRANCH OFFICER
Also Read Board HR earlier post on Delhi Minimum Wages : -
- Stay over Delhi Minimum Wages - Supreme Court
- Delhi Minimum Wages Notification 01.05.2017
- Stay Order - Delhi Minimum Wages March 2017
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