Non payment of wages.
BRAJENDRA SINGH
(Querist) 21 April 2008
This query is : Resolved
whether a managing director of a public sector corpration which wholly owned by a state in terms of share capital, can deny salary to employees on the ground of financial constraints of the corporation.
further, is there any law which bans employer too from drawing salary himself when he is denying salaries to employees over the issue of financial constraints, please provide in case any judgement has been passed in this reference.
looking forward for your guidance
BRAJENDRA SINGH
H. S. Thukral
(Expert) 21 April 2008
Wages, when become due can not be denied to the employees. Financial capacity of an organisation is no ground to deny wages to workmen/employees.Even the revission of wages upwards can not be denied under the excuse of financial capacity. In this ref you may go through the SC decision in AK Bindal v UOI 2003(2)LLJ 1078 wherein several other judgements on the subject are also discussed. In the case of DTC Mazdoor Union it was observed as
'The right to life includes right to livelihood. The right to livelihood therefore cannot hang on to the fancies of individuals in authority. The employment is not a bounty from them nor can its survival be at their mercy. Income is the foundation of many fundamental rights and when work is the sole source of income, the right to work becomes as much fundamental. Fundamental rights can ill-afford to be consigned to the limbo of undefined premises and uncertain applications. That will be a mockery of them."*
