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Denial of Wages.

(Querist) 14 May 2008 This query is : Resolved 
An Hon'ble High court probably High Court of Judicature at Allahabad had given a verdict that when an organisation or department does not give wages or salary to its employee under the plea of finanvial crunch, then the Employer or Managing Director of organisation too cannot take or draw salary.

Please provide me copy of the judgement.


H. S. Thukral (Expert) 15 May 2008
Dear Mr. Singh
Few days back a similar query was put on the site by you and the same was replied by me I may try to resolve it again
An organisation which is in operation has to pay salary to its employees irrespective of its financial position. The employees can safely recover their wages through legal means and the employer can not take the plea of financial crunch. It has been observed by courts that an organisation which can not pay salary to its employees have no right to continue in existence but I have not come across a judgment as suggested by you in the query. If that proposition is accepted then an employer might deny wages to employees claiming that the MD or other officer of the organisation was also keeping his salary in abeyance.
However if you remeber the date when the aforesaid judgment was pronounced I shall be glad to make a search for you.

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