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Sounder Rajan V (Advocate)     01 January 2011

Enhancement of wage ceiling by the ID Amendment Act

Dear All

Sub: Enhancement of wage ceiling by the ID Amendment Act

 

The recent ID Act amendments to the ID Act on the enhancement of wage ceiling by the ID Amendment Act is to be noted by HR professionals.

Prior to the amendment Wage ceiling of workman in the definition clause Sec 2 (s) was Rs. 1600/- .Now it is enhanced to Rs. 10,000/- per month,.

Consequently any person working in any industry doing any manual, unskilled, skilled, technical, operational, clerical or supervisory work drawing wages up to Rs. 10000/- will be considered as a workman. Workman definition now reads like this:

(s) "workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person –

(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or

(ii) who is employed in the police service or as an officer or other employee of a prison; o

r (iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding ten thousand rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

The exclusion is where the workmen employed in a supervisory capacity, draws wages exceeding ten thousand rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

In the Industry this change is conspicuous as Supervisors and Managers drawing wages exceeding ten thousand rupees per mensem alone may be exempted .All others will come within the definition of workmen for the purposes of any proceeding under the Industrial Disputes Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute.

 

With Regards

V.Sounder Rajan

VS Rajan Associates,

Advocates & Notaries & Legal Consultants

No.27, Ist Floor, Singapore Plaza, No.164, Linghi Chetty Street,

Chennai - 600 001.

E-mail : rajanassociates@eth,net,

Off : 044-42620864, 044-65874684,

Mobile : 9840142164-9025792684-9025792634



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 4 Replies

Prakash Yedhula (Lawyer)     02 January 2011

Thanks for the valuable piece of update

Sounder Rajan V (Advocate)     14 January 2011

Thanks Shrigopal  for giving a feedback on the benefit of the amendment.

Kirti Kar Tripathi (lawyer)     15 January 2011

In my opening in the light of judicial verious judicial pronounces  of Apex Court and High Court, if is settled position of law, that salary of an employee is no criteria to determined the status of employee as workman, only nature of job performed by him is the decisive factor to determine his status as workmen. Thus enhancement of salary limit has no meaning. In my opinion the limit should been abolished.

1 Like

jagadish paranjape (Advocate)     12 January 2012

There appears to be confusion about recent amendment to I.D.Act.Even earlier the manual,skilled, unskilled,clerical etc catagories irrespective of wages were covered in the definition of workman.The only difference made by amendment is that now even supervisors drawing wages up to Rs. 10000/-PM are coverer in definition of workman, where as earlier that limit was only  RS.1600/- PM.The change was warranted because it could be cause of research to find supervisor drawing wages equal to or less than RS. 1600/- a month.


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