Summary
The Court reduced minimum-wage compensation from twice the wage shortfall to an amount equal to the shortfall. Similarly placed workers had received the lower rate under an identical final decision, and no reason supported the different treatment. Although the authority has discretion over compensation, differing rates for comparable workers require reasons. Each worker remained entitled to the full wage difference plus equal compensation.
Issues
- Whether unexplained compensation at twice the shortfall could stand when similarly situated workers received an amount equal to the shortfall.
Provisions considered
- Section 20(3), Minimum Wages Act, 1948Recognised compensation discretion but required reasons for awarding different rates to similarly situated workers. (¶¶ 6, 16, 17, 18, 19, 20)
Held
- The identical earlier decision awarding compensation equal to the wage shortfall had attained finality. No justification supported awarding twice the shortfall to the respondents. (¶¶ 16, 17)
- Discretion permits different compensation percentages in different cases, but reasons must support the award, particularly where similarly placed workers receive different rates. (¶ 18)
- Each worker was entitled to Rs 49,804 in wage arrears and the same amount as compensation, totalling Rs 99,608, payable within three months after proper verification. (¶¶ 19, 20, 21)
Result
Appeals allowed; compensation reduced to one hundred per cent of the wage shortfall, with total payment of Rs 99,608 to each worker within three months after verification.