Minimum wage: Karnataka HC bench remits matter back to single judge

Bengaluru: A division bench of the high court has remitted the matter regarding the minimum wage notification back to the single bench for fresh consideration by giving an opportunity of hearing to the Karnataka Employers’ Association. 

In September 2023, the single bench quashed the state government’s July 2022 notification without hearing the Association. 

The notification was issued in terms of Section 5(1)(b) of the Minimum Wages Act.

The employers’ union contended that while it had submitted suggestions and objections to the Advisory Board at its different meetings, it was not made a party by the employees’ union.

The single-judge bench had set aside the notification on the petition filed by the employees’ union in the absence of the employers’ association. 

It was submitted that the employers’ association are necessary stakeholder but had no opportunity to put forward their case in the writ petition, which resulted in setting aside the notification. 

It is the practice to allow the participation of all stakeholders such as employees, employers’ associations and the government who have an interest in the subject, while undertaking the process of fixation, the association stated. 

On the other hand, original petitioners before the single-judge bench submitted that the guidelines laid down by the Supreme Court in the Reptakos Brett case are required to be followed and that the single judge was justified in remitting the matter back for redoing the notification. It was further submitted that natural justice has no room in the process and therefore a single judge could well consider the challenge to the notification even in the absence of the side of employers. 

A division bench, comprising Chief Justice N V Anjaria and Justice K V Aravind, noted that the exercise under section 5(1)(b) required the state government to publish proposals for the information of persons likely to be affected. 

“The employers have definite interest in the exercise and giving a hearing to them would not only be just and proper, but would also make the statutory exercise just, fair and reasonable. In this view, it has to be observed that the appellants were the necessary parties in the writ petition before the single judge,” the bench said while requesting the single judge to complete the exercise preferably within ten weeks.