Supreme Court laws on back wages

The Supreme Court has established standards and rules for calculating back wages, considering a number of factors including the type of wrongdoing, the length of the suspension, and the employee's financial loss.

What Does a Supreme Court Determine while Ruling on Back Wages?
  • Violating the labour laws
  • Wrongful termination
  • Right of employees to receive back wages
  • Determining the amount to be paid
  • Duration of unemployment
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Overview

Labour Law: India

To make sure that the nation has a strong labour legislation system in place to control the complete operating conduct of the labour force in order to regulate and govern the entire labour market. The industrial and employment sectors are supported by a well-designed labour legislation framework, which also helps to provide a set level of regulation to guarantee the labour industry's smooth operation.

Factors Responsible for Labour Matters

Exploitative Early Industrial Society

Labour regulations first appeared as a result of the abuses of early industrialization following the industrial revolution. Early industrialization was characterized by lengthy workdays, hiring young children in very unsanitary conditions, paying low wages, and other excesses in the capitalist nations of the world. There were few legal protections available to the labourers. Without the public's fury and the need for reform, such abuses could not have persisted indefinitely.

Growth of Trade Union

The movement of the trade union, which was born out of the industrial revolution, also helped hasten the spread of labour regulations. As a result of their advocacy for the defense of working-class interests, laws addressing wages, working conditions, women's rights, social security, and other concerns were passed. But because of their growth, rules governing industrial disputes, their avoidance, and settlement, as well as trade union privileges and rights, also had to be passed.

Rise in Communist and Other Revolutionary Concepts

Through his critique of capitalism, Karl Marx demonstrated that the capitalist economic framework is essentially labour-exploitative. Therefore, he advocated for the destruction of the capitalist system. They rapidly understood that using labour regulations as a check on the dissemination of revolutionary ideas was a good idea. The development of socialist and communist parties in many countries, as well as the first and second internationals, all contributed to the movement toward progressive labour regulations.

 

Labour Law: The Constitution of India

The Constitution of India guarantees every individual life and freedom. In the case of Olga Tellis, the Supreme Court ruled that Article 21 would protect the right to living because it is a significant part of the right to life. Additionally, the Constitution consists of various provisions that guarantee the protection of workers' interests and protect them from all discrimination in situations involving public employment. The fundamentals of the Constitution areas follows-

  • Article 14- It addresses the right to equality
  • Article 16- It addresses equality of opportunity in issues of public employment
  • Article 19- It addresses the ability to form associations and unions
  • Article 21- It addresses the right to a livelihood under the right to life
  • Article 23- It addresses for bidding forced labour and human trafficking
  • Article 24- It addresses for bidding child labour for those under the age of 14
  • Article 39 (d)- It addresses equal remuneration for equal work which applies to both men and women

 

Focusing on the Rule of “BACK WAGES”

Back wages are the unpaid wages that an employee has a right to receive from the company they worked for a time during which they were illegally terminated or subject to unjust labour conditions. The word "back wages" is employed in India to refer to these unpaid salaries or wages. The provision of back wages is an essential part of Indian labour law since it strives to preserve employees' rights and guarantee employers' equitable treatment.

  • It serves as a deterrent to unfair dismissal and other kinds of workplace misconduct, which hinders businesses from violating labour regulations.
  • It offers much-needed financial security to employees during periods of unemployment brought on by unfair labour practices or unfair termination.
  • It makes up for the loss of earnings that employees suffered as a consequence of the misconduct of their employers.
  • When an employee's labour rights are violated, they have the right to bring a lawsuit and get back wages as compensation.

Decision of Supreme Court in Back Wages

  • Through the years, the Supreme Court has dealt with the problem of unpaid wages in plenty of cases. The pay or earnings that an employee has a right to receive for the period that they were fraudulently fired or detained from their employment are referred to as back wages.
  • The Supreme Court has repeatedly emphasized in a number of significant decisions that back wages must be paid to employees who were allegedly or wrongfully terminated or detained from their employment. The Court has determined that back pay is a valid remedy for covering up for any financial issues that employees might have experienced as a result of wrongful dismissal or removal.
  • In the recent ruling in July 2023, The Delhi Transport Corporation (DTC) was ordered by the Supreme Court to pay a conductor Rs. 3 lakhs in lieu of back wages after the conductor was dismissed and later reinstated by the Labour Court order on the grounds that the applicant (conductor) discharged the burden by proving that he was unemployed for a period of thirteen months after termination.
  • The Supreme Court then ruled that, when claiming back wages, the employee must first prove that he wasn't working for pay all through the time of his dismissal.

How can Lead India assist with Labour-related Matters?

Lead India promotes social justice as well as human empowerment which can have a significant impact on how labour issues are managed in the country. The benefits are as follows-

  • Lead India can organize training sessions, seminars, and awareness campaigns to educate workers on their rights and responsibilities. In order to do this, you must inform them of labour-related laws, including those that deal with minimum wage, workplace safety, and other laws.
  • Employees who are involved in labour disputes may be eligible for counselling and legal assistance from the firm, which might assist them in understanding their legal options and, if required, support them as they proceed with making accusations or filing lawsuits.
  • Lead India may advocate for labour-friendly laws and policies at both the local and national levels. This requires speaking out in favour of workers' rights to pay, better working conditions, and more job security.
  • The firm can provide skill-development programs for workers to improve their employability, giving them more possibilities for employment and a stronger negotiating position.
  • In order to more effectively effect actual change, Lead India's efforts can be improved by collaborating with trade unions, governmental bodies, and other non-profits that are concerned with labour-related issues.

One can talk to lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

 

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