Saturday 9 May 2015

Reduction in minimum wages through settlement or by notice of change

This question i.e. “can the establishment reduce the minimum wages paid to the employees by way of notice of changes under Industrial Dispute Act, 1947 or by settlement?” has also got lots of views from different individuals and has different answers for same.


To answer this question we can say it cannot be. This is because it is correct that an employer has right to effect any change in the condition of service related to any employee in respect of any matter specified in the Fourth Schedule of Industrial Dispute Act, 1947 by giving notice of change. It is moreover true that wages is an item specified in the Fourth Schedule of Industrial Dispute Act, 1947. It is also correct that no notice of change is required if the change is effected in pursuance of any settlement or award. The management can revise the wage structure to the prejudice of the employees in case where due to financial trouble it is unable to bear the burden of the existing wage. However, in an industry or employment where the wage structure is at the level of minimum wage no such alteration / revision to the prejudice of employees at all are permissible, not even on the basis of any financial difficulty or incapacity.

To get the supporting case law for this do write us on girishvivalkar979@gmail.com

Hope this small write up will give insight about pertained subject.


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