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.

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

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Personal driver of a Manager – claim of reinstatement against the Establishment / Company

This is one of the debatable issue and have different opinions among most of individuals. However, this depends upon the facts and circumstances of each case.

As per the ratio of decision of the Supreme Court of India, in this type of issue, the direction and control are the important factors to decide as to whether such drivers are personal drivers of the Managers or the drivers of the Establishment / Company.

If the driver was engaged by the Manager, his salary was fixed by the Manager and he was working under the direction and control of the Manager. Moreover, if the Manager is having right to engage and terminate him. Then in that scenario while applying decision of one of the Allahabad High Court, such drivers will not be the employees of the Establishment / Company although the salary paid to the driver by the Managers was reimbursed by the Establishment / Company.

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.

IMPORTANT:

Information in this blog is being provided as-is without any warranty/guarantee of any kind.

This blog is intended to provide information only. If you are seeking advice on any matters relating to information on this blog, you should – where appropriate – contact us directly at girishvivalkar979@gmail.com with your specific query or seek advice from qualified professional people.

We encourage you to take steps to obtain the most up-to-date information and to confirm the accuracy and reliability of any information on this blog in general by directly communicating with us.