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2025 Supreme(Ker) 1294

IN THE HIGH COURT OF KERALA AT ERNAKULAM 
MURALI PURUSHOTHAMAN, J.
Kerala State Beverages (M&M) Corporation Ltd. - Appellant
Versus
The Deputy Labour Commissioner, Kannur - Respondent
W.P. (C) No. 41127 of 2024
Decided On : 19-05-2025


Advocates:
Advocate Appeared:
For the Appellant : Naveen T.
For the Respondents: Kaleeswaram Raj, Thulasi K. Raj, Aparna Narayan Menon, Chinnu Maria Antony, Mable C. Kurian

The Minimum Wages Act applies to all workers in scheduled employment, ensuring fair wages regardless of employment status.

Headnote:

(A) Minimum Wages Act, 1948 - Sections 2(g), 19, and 20 - 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 the employment in FL shops is scheduled employment under the Act. (Paras 1, 4, 8)

(B) Employment Relationship - The court found that the Corporation failed to establish that the cleaning staff worked only for one hour per day, thus affirming the authority's findings. (Paras 3, 6, 9)

(C) Labour Welfare Legislation - The object of the Minimum Wages Act is to ensure fair wages for workmen in scheduled employment, emphasizing the welfare of laborers. (Paras 8, 9)

Facts of the case:
The Corporation contested the authority's order claiming no employer-employee relationship with the cleaning staff, asserting that cleaning work was limited to one hour per day. The cleaning staff claimed entitlement to minimum wages for longer hours worked.

Findings of Court:
The authority's finding that the cleaning staff worked more than one hour per day was upheld, and the Corporation was directed to pay the wage difference and compensation.

Issues: The main issues included the determination of the actual hours worked by the cleaning staff and the applicability of minimum wage laws to temporary workers.

Ratio Decidendi: The court ruled that the authority's findings were based on evidence and that the Minimum Wages Act applies to all workers in scheduled employment, regardless of their employment status.

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 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 3rd respondent was not paid minimum wages for the period from November 2014 to April 2015 and that she is entitled to an amount of Rs. 38,307/- as arrears of minimum wages. As per the claim petition, the 3rd respondent had worked for more than 8 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 an 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 3rd respondent had worked only upto one hour a day in the FL-1 shop. Accordingly, the 1st respondent directed the Corporation to pay an amount of Rs.38,083/- being the difference in the wages actually paid and the wages payable under the Act along with Rs.9,521/- 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/- per hour in Municipalities and Corporations and Rs. 36/- per hour in Panchayats. Further, Ext. P3 circular dated 27.09.2014 was issued by the Corporation, stipulating that the duration of cleaning wor

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