Karnataka HC Disposes of 30+ Minimum Wage Challenges as State Issues New Draft Notification; Parties Free to Contest Final Rates - 2025-05-16

Court Cases & Legal News.

Karnataka High Court Disposes of Batch of Petitions Challenging Minimum Wage Notifications Following New Draft Proposal by State

Bengaluru, Karnataka – The Karnataka High Court, on April 16, 2025, disposed of a batch of over 30 writ petitions filed by trade unions challenging various minimum wage notifications issued by the State Government in 2022 and 2023. The decision, delivered by Hon'ble Mr Justice B M Shyam Prasad , came after the State Government issued a fresh Draft Notification on April 11, 2025, proposing to revise minimum wage rates for 99 scheduled employments.

The Court clarified that while the petitions were being disposed of at the petitioners' request, both the trade unions and employers would be at liberty to challenge the final notification once it is issued after due process.

Background of the Dispute

The primary petitioners, All India Trade Union Congress (AITUC) and the Engineering and General Workers Union, had challenged approximately 34 notifications issued by the Karnataka Department of Labour under the Minimum Wages Act, 1948. These notifications pertained to a wide array of industries, including steel almirahs, cleaning services, automobile engineering, pottery, foundries, security agencies, fish processing, hospitality, printing, liquor manufacturing, food processing, electronics, construction, healthcare, and many others.

The core grievance of the petitioners was that the minimum wage rates fixed by these notifications were "unjust, arbitrary, and illegal." They contended that the State had failed to adhere to the guidelines prescribed by the Hon'ble Supreme Court in the landmark case of Workmen of Reptakos Brett v. Management (1992) for determining minimum wages. The petitions sought to quash these notifications and direct the State to re-determine the wages in accordance with the Reptakos Brett principles.

The respondents in these cases included the State of Karnataka, the Karnataka Employers Association (R), the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), and various individual employers and industry associations relevant to each specific notification.

Procedural History and New Developments

These writ petitions had initially been allowed by the High Court through an order dated September 26, 2023. However, a Division Bench of the Court, in Writ Appeal No.23/2024 and connected matters, set aside this order on December 13, 2024, and restored the proceedings for a fresh hearing. Subsequently, all appellants in the writ appeals were impleaded in the current proceedings.

The crucial turn of events leading to the disposal was the issuance of a new Draft Notification by the State Government on April 11, 2025. This draft proposed revised minimum wage rates for 99 scheduled employments, including those that were the subject of the writ petitions. Following this, the petitioners filed a memo seeking dismissal of their petitions, deeming them to have become infructuous.

Arguments on Disposal

Sri K B Narayanaswamy, counsel for the petitioners, submitted that the State's new Draft Notification aimed to revise minimum wages in light of the Reptakos Brett decision, thereby rendering their current challenge infructuous.

However, counsels for the respondents, led by Sri Vasuki K L , while agreeable to the disposal, expressed apprehension. They argued that labeling the petitions as "infructuous" should not be construed as the Court's seal of approval on the terms of the new Draft Notification. They emphasized the need to preserve their right to challenge the final notification if it was deemed unsatisfactory.

Court's Rationale and Order

Justice B M Shyam Prasad addressed the respondents' concerns, stating: > "The apprehension, as is canvassed, is difficult to accept. The petitioners, who have asserted certain cause, want the petitions to be dismissed in the light of the Draft Notification which is issued. The final Notification will have to be issued by the State Government after due process and if there is any cause with such final Notification being issued either in the petitioners or the respondents, they will have to be at liberty to work out their remedies."

The Court observed that the petitioners' desire to dismiss the petitions in light of the new draft was the primary consideration for disposal. It clarified that this did not preclude future challenges. "This, however, cannot be a reason to continue the petitions on the board of this Court or make any particular observation," the order noted before disposing of the petitions.

Implications of the Ruling

With this order, the immediate legal challenges to the 2022 and 2023 minimum wage notifications, through these specific petitions, have concluded. The focus now shifts to the State Government's process of finalizing the new minimum wage rates based on the Draft Notification dated April 11, 2025.

Both trade unions and employer bodies will have the opportunity to submit their objections and suggestions to the draft. Importantly, the High Court has explicitly left the door open for either party to initiate fresh legal proceedings if they are aggrieved by the final notification on minimum wages. This ensures that the principles of fair wages and procedural correctness remain open to judicial scrutiny at a later stage.