Employers Not Outsiders But Stakeholders, Must Be Heard While Fixing/Revising Minimum Wage Of Employees: Karnataka High Court
Live LawThe Karnataka High Court has said that while fixing or revising the Minimum Wages to be paid to employees, employers which is a stakeholder and which will be affected in the exercise, should have their say and the stand before the notification is passed by the Government. A division bench of Chief Justice N V Anjaria and Justice K V Aravind while allowing the appeal filed by employers associations including the Karnataka Employers Association and others, challenging a single judge order dated September 26, 2023 said: “The class of the employers is a stakeholder and a party who would be affected as their obligations would arise as an end result of the exercise of fixing and revising the minimum wages. When it is a question of revising the minimum wages, a variety of factors would govern the ultimate act of issuance of Notification and incorporating the conditions and stipulations therein, in which, it is legitimate to conclude that the employers should have their say and the stand.” The notification was issued by the government on July 28 under Section 3 read with Section 5 of the Minimum Wages Act, 1948, the minimum rates of wages for the employments in the Foundry-with or without machine shop, came to be revised. The principles of natural justice cannot be viewed to be foreign to such statutory exercise.” The bench held “Not giving hearing to the appellants who are the employers and the stakeholders who would suffer the impact of the Notification, will render the exercise and the ultimate result to be unjust and in that sense arbitrary.” It added “The class of the employers could not be excluded from the zone, by any stretch of logic to treat them outsiders.