JSA represented Industries Association of Uttarakhand (“IAU”) in a Writ Petition filed challenging the vires of twenty-four (24) Notifications dated 15.03.2024 (“Impugned Notifications”) issued by the Government of Uttarakhand revising the rates of minimum wages for fifty-seven (57) scheduled employments in the State of Uttarakhand.
IAU is an association having membership of over 700 industrial units across six (6) districts in Uttarakhand. It was IAU’s case that:
- Impugned Notifications were issued post haste, contrary to the statutory regime (Section 5, 7 and 9 of the Minimum Wages Act, 1948) governing how revisions can be legally implemented and without complying with statutorily imposed minimum notice with agenda to Advisory Committee and Board (Rule 12 of the UP Minimum Wages Rules, 1952).
- Process followed was a premeditated decision enforced through a sham meeting making a mockery of legislative intent behind the notice and agenda and consultation of stakeholders prescribed by law.
- In the meeting convened to welcome members without agenda, allegedly full evaluation of data, including inflationary impact on minimum wages and comparative assessment with other states, was completed and hustled though an overnight Advisory Committee meeting on 11.03.2024 and Advisory Board meeting on 12.03.2024.
- Constitution of Advisory Committee and Advisory Board was flawed as there was no equal representation of the employers and employees.
- Impugned Notifications are fundamentally flawed and destructive of the legislative intent that revision of minimum wages must be done after due consultation and consideration of representatives of the employers and employees. No enquiry or investigation or due consideration of relevant material was reflected from records of Advisory Committee and the Advisory Board and the GoU.
The Hon’ble High Court of Uttarakhand by Order dated 11.06.2024 while issuing Notice in the Writ Petition was pleased to allow IAU to make payment of 50% of the enhanced Minimum Wages during the pendency of the Writ Petiiton. The order protects the Association and its members from any coercive actions by the Government of Uttarakhand, subject to them making payment of the 50% of the enhanced Minimum Wages.
This would have wide implications on the entire array of Shops and establishments, Industries in manufacturing, trading, Hospitality and all other sectors under which the employees are covered by the Minimum Wages Act.
Our Disputes Team Comprised Joint Managing Partner – Amit Kapur, Partner – Anupam Varma, Principal Associate – Aditya Gupta and Associate – Sahil Arora.
Aditya primarily focuses on Regulatory, Policy advisory and Dispute Resolution in Electricity, Renewable Energy and PPP Projects. He also has extensive experience in handling matters under the Insolvency and Bankruptcy Code, 2016.