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Adv Shubham Jindal
Adv Shubham Jindal. | 6 months ago | 256 Views

Financial Position Of The Employer To Be Considered When Deciding Wage Structure Of The Employees- SC

Written by:

Adv Shubham Jindal Adv Shubham Jindal

Updated: 08-03-2024

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While passing a recent judgement in the case of The VVF Ltd. Employees Union v. M/s. VVF India Limited & Anr., the Supreme Court of India stressed that an employer’s financial capacity shall be considered as one of the deciding factors when calculating the wage structure of the employees.

While deciding an appeal against the judgement of the Bombay High Court, the Bench of Justices Aniruddha Bose and Sanjay Kumar, observed that the best course in the present case would have been to remit the matter to the Industrial Tribunal by the High Court.

Background of the Case-

  • The main issue of the case is regarding the demands raised by the Appellant, i.e. the Employee’s Union in the year 2008, regarding the revision of the pay scale as well as certain allowances.  
  • The Tribunal granted certain relief to the employees, which was challenged in the  Bombay High Court by both parties, i.e. the Union and the employer 
  • The High Court allowed 4 demands by the Union, while the decision of the Tribunal was allowed for 7 demands.
  • The appellant, i.e. the Union filed a review petition against the judgement by the High Court, which was dismissed. Finally, 3 appeals were filed in the Supreme Court of India.

Submissions by Parties

  • The Employer contended that the High Court when judging the legality of the award could not have enquired about the facts and the evidence, also that the units which were compared with the employer were not placed in a similar situation, i.e. their financial position and their industrial output.
  • Also, the employer stressed that the negative financial stratus of the employer was ignored by the High Court on the ground that losses were ‘miniscule’, granting some allowances in the absence of any evidence.
  • The Union on the other hand presented that provided under Article 226, instead of remanding a matter, the High Court has jurisdiction to decide upon the facts.

Observations by Supreme Court

  • The Supreme Court Bench, referred to the judgement given in the case of Gujarat Steel Tubes Ltd. and Others v. Gujarat Steel Tubes Mazdoor Sabha and Others, to conclude that in appropriate cases, the High Courts could examine the facts as well when deciding upon the award of a Tribunal.
  • It was also observed by the Apex Court that when deciding upon the revision of the wages, the industrial educator must follow the standard criteria, applying the industry-cum-region test, according to which the pay and allowances for a case must be compared with an equally placed unit in the same region.
  • The Supreme Court also noticed that as decided in the case of A.K. Bindal v. Union of India & Ors. and Mukand Ltd. v. Mukand Staff & Officers Association, when deciding upon the comparability of units, one must consider the financial capacity of the employer. 
  • Also, as the employer presented that he was facing losses and the High Court asked for fresh charts, it would have been appropriate to remand the matter to the Tribunal.
  • As for about the jurisdiction of the High Court to decide upon the facts of the matter again, the Apex Court said that appreciation of the evidence by the High Court was not proper and even the plea filed by the employee-Union's for provisions related to the overtime wages when counting the allowance, had to be re-examined.

Decision by the Apex Court

The Supreme Court of India, setting aside the award by the Tribunal as well as the judgement of the High Court, decided that the matter must be decided by the Tribunal in fresh proceedings within a period of 6 months.

Sharks of Law offers you experienced lawyers who have been dealing with both civil as well as criminal matters at lower courts as well as the High Court and Supreme Court, and could offer you necessary legal counsel as required in case you are dealing with issues related to labour law or matters related to employer-employee matters.

Email:-helpdesk@sharksoflaw.com

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Ujjain: Woman Raped In Daylight, While Passerby Recorded The Video, Rape Accused And Another Arrested +91-88770-01993

Adv Arjun Sharma • 07/09/2024

How To Apply For A Marriage Certificate ? +91-8877001993

How To Apply For A Marriage Certificate ? +91-8877001993

Adv Tanvi Malik • 09/09/2024

How Is Murder Punishable? 8877001993

How Is Murder Punishable? 8877001993

Adv Arjun Sharma • 14/09/2024

Cheque Bounce Lawyers In Delhi 91-8877001993

Cheque Bounce Lawyers In Delhi 91-8877001993

Adv Rahul Pandey • 18/09/2024

Dowry Death And Its Punishment 91-8877001993

Dowry Death And Its Punishment 91-8877001993

Adv Samman Singh • 19/09/2024

How To Escape From Cheque Bounce Cases ?91-8877001993

How To Escape From Cheque Bounce Cases ?91-8877001993

Adv Anshul Jain • 20/09/2024

Arrest Of RG Kar Principal And Kolkata Cop By CBI +91-8877001993

Arrest Of RG Kar Principal And Kolkata Cop By CBI +91-8877001993

Adv Shubham Pahuja • 24/09/2024

Arvind Kejriwal Resignation From The Post Of CM In Delhi

Arvind Kejriwal Resignation From The Post Of CM In Delhi

Adv Ankit Kansal • 24/09/2024

Improper Bathing Habits Of Husband Leads To Divorce +91-8877001993

Improper Bathing Habits Of Husband Leads To Divorce +91-8877001993

Adv Rahul Pandey • 25/09/2024

Bail Of Delhi CM Arvind Kejriwal In Delhi Excise Policy Case

Bail Of Delhi CM Arvind Kejriwal In Delhi Excise Policy Case

Adv Kanishk Garg • 25/09/2024

Beef Found In Tirupati Ladoo Prasad +91-8877001993

Beef Found In Tirupati Ladoo Prasad +91-8877001993

Adv Anshul Jain • 27/09/2024

Section 125 Of CRPC Is Not There To Create An Army Of Idlers, Well-Qualified Wife Shall Not Solely Depend Upon Maintenance:- Mp High Court 91-8877001993

Section 125 Of CRPC Is Not There To Create An Army Of Idlers, Well-Qualified Wife Shall Not Solely Depend Upon Maintenance:- Mp High Court 91-8877001993

Adv Tanvi Malik • 28/09/2024

Resignation Not Final Until Employer Communicates The Acceptance To Employee:-SC 91-8877001993

Resignation Not Final Until Employer Communicates The Acceptance To Employee:-SC 91-8877001993

Adv Shifa • 28/09/2024

High Court Condemns "Freebie Culture," Summons MCD Commissioner In Response To Delhi IAS Coaching Center Fatalities 91-8877001993

High Court Condemns "Freebie Culture," Summons MCD Commissioner In Response To Delhi IAS Coaching Center Fatalities 91-8877001993

Adv Tanvi Malik • 30/09/2024

Role Of The Best Family Lawyers In Delhi +91-8877001993

Role Of The Best Family Lawyers In Delhi +91-8877001993

Adv Shubham Pahuja • 01/10/2024

Can’t Call Religion Of India As Pakistan: Supreme Court Blasts Karnataka Judge

Can’t Call Religion Of India As Pakistan: Supreme Court Blasts Karnataka Judge

Adv Ankit Kansal • 01/10/2024

Death Sentence For Rape And Murder Of 7 Year Old Girl In Kolkata 91-8877001993

Death Sentence For Rape And Murder Of 7 Year Old Girl In Kolkata 91-8877001993

Adv Shifa • 05/10/2024

Delhi High Court Grants Pregnancy Termination In Live In Relationship 91-8877001993

Delhi High Court Grants Pregnancy Termination In Live In Relationship 91-8877001993

Adv Ankit Kansal • 05/10/2024

Living Separately For Jobs Does Not Amount To Desertion 91-8877001993

Living Separately For Jobs Does Not Amount To Desertion 91-8877001993

Adv Kanishk Garg • 09/10/2024

What To Do In Cheque Bounce Case: Lawyers Legal Advice 91-8877001993

What To Do In Cheque Bounce Case: Lawyers Legal Advice 91-8877001993

Adv Samman Singh • 10/10/2024

Govt Pleas For Criminalizing Marital Rapes?

Govt Pleas For Criminalizing Marital Rapes?

Adv Tanvi Malik • 14/10/2024

Maintenance To Woman In Live In Relationship 91-8877001993

Maintenance To Woman In Live In Relationship 91-8877001993

Adv Ankit Kansal • 15/10/2024

Baba Siddiqui Murder Case And Lawrence:-Bishnoi Gang Connection

Baba Siddiqui Murder Case And Lawrence:-Bishnoi Gang Connection

Adv Anshul Jain • 18/10/2024

All Arrest And Detentions Are Not Custodial Torture 91-8877001993

All Arrest And Detentions Are Not Custodial Torture 91-8877001993

Adv Samman Singh • 07/11/2024

New Appointment Cannot Be Revoked If Resignation Is Accepted By The Previous Company 91-8877001993

New Appointment Cannot Be Revoked If Resignation Is Accepted By The Previous Company 91-8877001993

Adv Arjun Sharma • 09/11/2024

Matrimony Company To Pay Compensation To The Groom 91-8877001993

Matrimony Company To Pay Compensation To The Groom 91-8877001993

Adv Shubham Jindal • 11/11/2024

Justice Dy Chandrachud’s Legacy Through His 5 Key Judgments

Justice Dy Chandrachud’s Legacy Through His 5 Key Judgments

Adv Ankit Kansal • 12/11/2024

Student Sues Jindal Global Law School After University Fails Him For Using 88% AI Generated Content In Exams 91-8877001993

Student Sues Jindal Global Law School After University Fails Him For Using 88% AI Generated Content In Exams 91-8877001993

Adv Arjun Sharma • 14/11/2024

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