IN THE HIGH COURT OF KERALA AT ERNAKULAM
MURALI PURUSHOTHAMAN, J.
Kerala State Beverages (Manufacturing & Marketing) Corporation Ltd. - Appellant
Versus
The Deputy Labour Commissioner, Kannur - Respondent
W.P. (C) No. 37627 of 2024
Decided On : 19-05-2025
(A) Minimum Wages Act, 1948 - Sections 2(g), 3(1)(b), 5 - Writ petition challenging order directing payment of minimum wages and compensation to cleaning staff - Authority held that minimum wages apply even to temporary workers and that employment in FL shops constitutes scheduled employment - Corporation failed to prove actual hours worked by employee - Court affirmed authority's findings and dismissed the writ petition. (Paras 1, 4, 8, 9)
(B) Employment Relationship - The court emphasized that the employer-employee relationship exists even in temporary engagements, and the burden of proof lies on the employer to establish claims regarding working hours. (Paras 3, 8)
(C) Jurisdiction - The court reiterated that factual findings by the authority cannot be interfered with under Article 226 of the Constitution unless perverse. (Paras 6, 9)
Facts of the case:
The Corporation challenged an order requiring it to pay Rs.37,033/- in wage differences and Rs.9,258/- in compensation to a cleaning staff member who claimed he worked more than one hour daily. The Corporation argued no employer-employee relationship existed.
Findings of Court:
The authority found that the employee was entitled to the claimed wages based on evidence presented, and the court upheld this finding.
Issues: The main issues included whether the employee worked beyond one hour and the applicability of minimum wage laws to temporary workers.
Ratio Decidendi: The court ruled that the authority's findings on the employee's working hours were factual and binding, emphasizing the importance of minimum wage laws in labor welfare.
Result: Writ petition dismissed.
JUDGMENT :
1. The Kerala State Beverages (Manufacturing and Marketing) Corporation Limited (hereinafter referred to as the 'Corporation') has filed this writ petition challenging Ext.P4 order passed by the 1st respondent, the Deputy Labour Commissioner, the authority under the Minimum Wages Act, 1948 (‘the Act’ for short) directing the petitioner to pay the difference in the wages actually paid and wages payable under the Act along with compensation to the additional 3rd respondent, a cleaning staff employed in FL-1 shop of the Corporation.
2. The Assistant Labour Officer, the 2nd respondent Inspector notified under section 19 of the Act preferred a claim under section 20 before the 1st respondent claiming that the additional 3rd respondent was not paid minimum wages for the period from November 2014 to April 2015 and that he is entitled to an amount of Rs.37,257/- as arrears of minimum wages. As per the claim petition, the additional 3rd respondent had worked for more than 5 hours in a day during the said period and is entitled for minimum wages. In support of the claim, the 2nd respondent produced the inspection report and claim statement.
3. The Corporation filed a written statement stating that there is no sanctioned post of Part time sweeper in FL-1 shops under the Corporation and the requirement of sweeper comes only on occasional basis and such requirements would be met by shop-in-charge by engaging persons who are available in the locality. It is contended that there is no employer-employee relationship between the Corporation and the 3rd respondent, and that different individuals are engaged at various times to carry out cleaning work in the FL-1 shops. Therefore, no registers, records, or posting orders are maintained in the FL-1 shops with respect to the cleaning staff engaged by the shop-in-charge, as per the requirements. It is also stated that, as per the orders issued by the Corporation, a maximum of one hour of cleaning work is permitted in FL-1 shops for which workers are paid Rs. 40/- in Municipal Corporations and Rs. 36/- in Municipalities and Panchayats, respectively.
4. The 1st respondent, by Ext.P4 order, held that minimum wages shall be paid to the employees even if they are working on contract or temporary basis. It was further held that the Employment in FL shops falls under scheduled employment as defined in Section 2(g) and Item No. 21 of the Schedule to the Act. It was also held that the Corporation failed to produce any evidence to show that the additional 3rd respondent had worked only up to one hour a day in the FL-1 shop. Accordingly, the 1st respondent directed the Corporation to pay an amount of Rs.37,033/- being the difference in the wages actually paid and the wages payable under the Act along with Rs.9,258/- as compensation. Since the Corporation failed to pay the amount ordered as per Ext. P4, the 1st respondent issued Ext. P5 notice informing the petitioner that revenue recovery proceedings would be initiated if the amount specified in Ext. P4 was not paid within seven days. Challenging Exts.P4 and P5, this writ petition is filed.
5. According to the petitioner, there are 278 FL-1 outlets belonging to the Corporation operating in the State. It is contended that, as per Ext. P1 Government Order, which fixes the minimum wages for employees engaged in sweeping and cleaning in the State, Rs. 40/- is prescribed as the minimum wage for one hour of sweeping and cleaning work within the limits of Corporations and Municipalities. Likewise, Rs. 36/- is fixed as minimum wages for one hour of sweeping and cleaning work in respect of areas other than Corporations and Municipalities. The Board of Directors of the Corporation, by Ext. P2 decided that a maximum of one hour of service may be utilized for cleaning each shop, with wages fixed at Rs. 40/- in Municipalities and Corporations, and Rs. 36/- in Panchayats. Further, Ext. P3 circular dated 27.09.2014 was issued by the Corporation, stipulating that the d
Minimum wage laws apply to temporary workers, and employers must prove actual hours worked; factual findings by labor authorities are binding in judicial review.
The Minimum Wages Act applies to all employees in scheduled employment, and employers must prove compliance with wage laws.
The Minimum Wages Act applies to all workers in scheduled employment, ensuring fair wages regardless of employment status.
Disputed questions of fact cannot be adjudicated by this Court under Article 226 of the Constitution of India.
Disputed questions of fact related to wage payments cannot be resolved under Article 226 of the Constitution.
Minimum wages must comply with statutory notifications, and equal pay principles apply to all employees regardless of contract terms.
Payment fulfillment under the Minimum Wages Act negates grounds for further litigation.
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