Daily wage staff under government entitled to 100% dearness allowance: Karnataka HC

The High Court has said that employees coming under the Karnataka Daily Wage Employees Welfare Act, 2012, are entitled to Dearness Allowance (DA) at 100 per cent. The order said that day wage employees, working in various departments and establishments of the government, are also entitled to Earned Leave (EL).

“The soul of the Act being grant of a better wage, social security on cessation of long public service to a daily wage employee, cannot be reduced to a ‘rope of sand,” Justice M Nagaprasanna noted in the order.

The petitions were filed by associations of daily wage employees. The primary challenge in the petitions were rules 4 (3) and 4 (4) of the Karnataka Daily Wage Employees Welfare Rules, 2013 and government orders dated July 12, 2017 and January 10, 2020.

The dearness allowance guaranteed under the Act was curtailed to 75 per cent in 2014, and subsequently increased to 90 per cent by another order on January 1, 2020.

Prior to this, a circular was issued in July 2017, denying earned leave to the employees coming under the Act. The circular also said leave encashment already allowed in the past should be recovered.

The court said that both the orders are enuded of their value as they run counter to the Act and said the ‘recovery’ clause is ‘absolutely unsustainable.’

“It is trite that a benefit that is conferred under the Act cannot be curtailed or taken away by issuance of Government orders. Therefore, in my considered view, the benefit of admissible Dearness Allowance that is conferred on the employees under the Act, would be 100 per cent and cannot be curtailed under Government orders,” the court said.

Meanwhile, the court said it is illegal of the government to take away the benefit of ex-gratia on the premise that employees under the Act have been brought under a more beneficial legislation, Payment of Gratuity Act, 1972.

The court allowed the petitioners to place a representation and directed the authorities to pass appropriate orders within six months, keeping in mind the observations made by the court.