Delhi’s High Court overturns minimum wage ruling Delhi’s High Court overturns minimum wage ruling

Delhi’s High Court overturns minimum wage ruling
14 Aug 2018

Delhi’s High Court has set aside a ruling last year that increased the state’s minimum wage by 37%, describing it as unconstitutional.

In March 2017, the minimum wage was raised from Rs 9,745 (US$141.59) to Rs 13,350 (US$193.97) per month for unskilled workers. The rate for semi-skilled workers increased from Rs 10,764 (US$156.40) to Rs 14,698 (US$213.56) while the amount for skilled labourers grew from Rs 11,830 (US$171.89) to Rs 16,182 (US$235.12).

But the new notification pointed out that the decision was made without consulting either employees or employers, according to Newsclick.

Trade unions in Delhi have expressed deep disappointment at the High Court judgement. Anurag Saxena of the CITU, and a member of the Advisory Committee that recommended the minimum wage increases, described the ruling in a statement as “disappointing and condemnable”.

But according to the Hindustan Times, Delhi’s labour minister Gopal Rai said the Aam Aadmi Party government would approach the Supreme Court in a bid to overturn the High Court’s decision. He added that the opinion of the trade unions would also be sought.

In its 218-page verdict, the High Court also set aside a September 2016 notification by which a Minimum Wages Advisory Committee was set up to deal with all scheduled forms of employment. The Court observed that its formulation was “completely flawed”.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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Delhi’s High Court has set aside a ruling last year that increased the state’s minimum wage by 37%, describing it as unconstitutional.

In March 2017, the minimum wage was raised from Rs 9,745 (US$141.59) to Rs 13,350 (US$193.97) per month for unskilled workers. The rate for semi-skilled workers increased from Rs 10,764 (US$156.40) to Rs 14,698 (US$213.56) while the amount for skilled labourers grew from Rs 11,830 (US$171.89) to Rs 16,182 (US$235.12).

But the new notification pointed out that the decision was made without consulting either employees or employers, according to Newsclick.

Trade unions in Delhi have expressed deep disappointment at the High Court judgement. Anurag Saxena of the CITU, and a member of the Advisory Committee that recommended the minimum wage increases, described the ruling in a statement as “disappointing and condemnable”.

But according to the Hindustan Times, Delhi’s labour minister Gopal Rai said the Aam Aadmi Party government would approach the Supreme Court in a bid to overturn the High Court’s decision. He added that the opinion of the trade unions would also be sought.

In its 218-page verdict, the High Court also set aside a September 2016 notification by which a Minimum Wages Advisory Committee was set up to deal with all scheduled forms of employment. The Court observed that its formulation was “completely flawed”.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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India clarifies double taxation issues for overseas workers

A guide to supporting expats in India

Indian workers abroad for 182 days not obliged to pay income tax, court rules

 

 

 

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