The Bombay High Court has held that Community Health Volunteers (CHVs) engaged by the Municipal Corporation of Greater Mumbai are entitled to receive minimum wages under the Minimum Wages Act, 1948, for the hours of duty performed by them. The Court further held that mere branding of the remuneration paid to CHVs as honorarium, or describing them as volunteers, cannot deny them the status of employees for the limited purpose of determining their entitlement to minimum wages.

Justice Sandeep V. Marne was hearing a batch of writ petitions filed by the Municipal Corporation of Greater Mumbai challenging the common judgment dated September 7, 2020, passed by the Authority under the Minimum Wages Act, 1948 and the Assistant Commissioner of Labour, Mumbai City. The Authority had allowed applications filed by CHVs and their Unions and directed the Municipal Corporation to pay the difference between the minimum wages plus special allowance and the honorarium already paid to them.

The Municipal Corporation submitted that the Authority has grossly erred in allowing the applications preferred by the CHVs, contending that as CHVs are not employed by the Municipal Corporation in any manner, there is no employer-employee relationship, and hence, there does not arise a question of paying minimum wages to them. It was also submitted that the issue of their status as workmen was pending before the Supreme Court.

The Court observed that the demand for absorption in municipal service had nothing to do with the demand for payment of minimum wages under the Minimum Wages Act. On the scope of the definition of 'employee,' the Court observed:

“… every person who is paid remuneration for services rendered for Municipal Corporation would be covered by the expression 'employee' for the purpose of Minimum Wages Act. Such employee may be permanent, temporary, casual, ad hoc, work charged, contractual, badli etc… when a person is hired and serves the establishment and receives a fixed sum every month as a reward, he becomes employee within the meaning of the Minimum Wages Act.”

The Court held that mere branding of wages paid to CHVs as honorarium would not deny them the status of employees for the purpose of payment of minimum wages.

“… 'remuneration' drawn by CHVs during the course of their engagements, though branded as 'honorarium' , would be covered by definition of the term 'wages' under Section 2(h) of the Minimum Wages Act,” the Court remarked.

The Court further emphasized that CHVs play an important role in providing necessary medical facilities to the community concerned, providing an important linkage/bridge between the doctors and nurses posted at Health Post and the community which they serve.

Referring to the Supreme Court's judgment in State of Punjab v. Jagjit Singh, the Court observed that it is not permissible for the Government and its instrumentalities to exploit casual workers by paying them wages as per whims and caprices of the employer. Even casual/temporary workers have to be paid dignified wages, at least at the minimum of scales drawn by permanent employees.

Though the Court agreed that the MCGM cannot be accused of 'exploiting' CHVs, they need to be paid wages at the minimum rates prescribed in the notification for the five hours they are working.

“Though branded as volunteers, CHVs almost work as workers of the Municipal Corporation… they must be paid wages prescribed under the Notification issued under the Minimum Wages Act. Therefore, for the limited purpose of payment of dignified wages, they will have to be treated as 'employees',” the Court remarked.

Hence, the Court held that denial of minimum wages to CHVs is clearly against the legislative objective of the Minimum Wages Act. It further clarified that financial burden alone cannot be a reason for denying dignified and living wages to CHVs.

The Court accordingly dismissed the writ petitions filed by the Municipal Corporation and upheld the order granting minimum wages to the CHVs.

Case Title: Municipal Corporation of Greater Mumbai v. Sangeeta Devdas Salvi [Writ Petition No. 1156 of 2021 and connected petitions]

Click Here To Read/Download Order