Tuesday, August 5, 2008

Social welfare organisations liable to pay minimum wages

Business Line (July 9, 2008)
reports that the Madras High Court has held that payment of minimum wages would stand irrespective of whether a work undertaken by an organisation was on voluntary basis.

Citing a decision of the apex court [in Sanjit Roy vs State of Rajasthan (1983 (1) SCC 525)], Mr Justice K. Chandru ruled that neither the Government nor any other authority could evade payment of minimum wages on the specious plea that they were running a social welfare organisation.

Non-payment of minimum wages to workmen on piece rate basis, would amount to forced labour
is the key decision.