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CATEGORIZING EMPLOYEES ON THE BASIS OF EXPERIENCE IS NOT ACCEPTED BY LAW: Supreme Court

Team SoOLEGAL 2 May 2019 10:28am

CATEGORIZING EMPLOYEES ON THE BASIS OF EXPERIENCE IS NOT ACCEPTED BY LAW: Supreme Court

In the matter of Sanitaryware and Industries Ltd. the Apex Court had to deal with the an appeal. Such appeal was filed against an order of Punjab and Haryana High Court. The appellant was not satisfied with the High Court's order of upholding the notification which was issued under Minimum Wages Act. The following categorization is provided under the notification under Section 5 of the Act:

Those employees who are unskilled and have an experience of 5 years fall under the category of semi-skilled "A"; after 3 years of coming into this category they would be named under semi-skilled "B"; after 3 years of experience in skilled A the employees would be deemed in category skilled "B".

The two points on which Court gave its decision are segregation of wages and inclusion of trainees. The Supreme Court bench comprising of Justice L. Nageswara Rao and Justice MR Shah prohibited any segregation of wages into components and held that such segregation is not permissible by law. On the second issue, the bench held that the notification cannot include all the trainees. Though the minimum wages to be paid to these trainees was upheld by the bench, but it said that the Government has no power for deciding the tenure of training and any of the related clause.

Tagged: Minimum Wages Act   Supreme Court   Notification   Justice L. Nageswara Rao   Justice MR Shah   Employees  
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