Karnataka High Court Permits Impleadment Of Workers' Associations In Plea Challenging State's Minimum Wage Hike Notification

The Karnataka High Court on Tuesday (June 9) allowed several interlocutory applications filed by various workers' associations seeking impleadment as parties to a plea challenging State government's May 22 notification proposing minimum wage hike for 81 scheduled employments.A single judge bench of Justice Jyothi M was hearing the writ petition filed by the Karnataka Employers' Association (KEA) and Ethereal Machines Private Limited. At the outset, counsel for the State informed the Court that objections are ready and would be filed today. The second respondent (AITUC), in the meantime, indicated that their objections were filed.The Court then took up pending applications and noted that senior advocate S.S Naganand appearing for the petitioners had no objections to the impleadment applications and permitted the amendment of cause titles. The respondents who have been impleaded as parties to the petition includes Karnataka Building & Other Construction Workers Welfare Board and Karnataka State Unorganised Workers Social Security Board, who were represented by Senior Advocate Vikram Hugilol.The bench then directed that details of all connected matters be furnished to the Court Officer, and listed them together for further hearing on July 3. "In the meanwhile, all respondent counsels to file their objections," the Court ordered.On June 2 the Court had issued notice on the petition and allowed the petitioners' oral application to implead the Central Government as a party.Background The petitioners had earlier approached the High Court challenging the State government's notification dated May 22, 2026, which proposed a minimum wage hike of up to 60% for 81 scheduled employments across Karnataka.The primary contention of the petitioners is that the notification was issued under Sections 3(1)(b) and 5(1)(b) of the Minimum Wages Act, 1948, a statute that stands repealed with effect from November 21, 2025, following the implementation of the Code on Wages, 2019.“With effect from November 21, 2025, the Minimum Wages Act, 1948 has been repealed and replaced by the Code on Wages, 2019. Consequently, the First Respondent has exercised powers under a non-existent statute, rendering the impugned notification non-est in the eyes of law” the plea states.On Section 69 of the Code on Wages, the Association as well as the Company [petitioners] submitted that while the savings clause permits actions instituted under old, repealed enactments, such protection is available only 'to the extent they are not contrary to the provisions of this Code'.Code on Wages has removed the concepts of 'Scheduled Employments', hence completely negating the substratum of the notification that lists 81 'scheduled employments, the plea says.In 2022-23, the government had revised minimum wages for 34 scheduled employments. While the challenge against the initial notification about revision of wages in 34 employments were pending before the Single Judge Bench on remand, the state government had issued another fresh draft notification on April 11, 2025, proposing to revise minimum wages for 84 scheduled employments. This led to the filing of multiple writ petitions against the draft, in which the interim orders were passed by the High Court, says the petitioners.In one of such petitions, WP No. 18515/2025, the High Court had taken on record the state government's undertaking that 'no further action would be taken unless the meeting is held and representatives of the concerned industry are heard'.In July 2025, in W.P. No. 21852/2025, the Court directed that 'in case, any decision is taken on 29th of this month in the Advisory Board meeting, the decision shall not be implemented till next date'.Thereafter, on July 29, 2025, in W.P. Nos. 22771/2025 and 22776/2025, the Court directed that 'the order that would be passed by the meeting of the Advisory Board on 29.07.2025 or subsequently, shall not be implemented till the next date of hearing'.The petition alleges that despite these orders which are not in state's favour, the government issued the impugned final notification on May 22, 2026, by wilfully defying the earlier court orders, amounting to contempt of court.The petition further assails the substantive revision of wages, claiming an 'astronomical increase of up to 60%' which is described as 'completely unaffordable and confiscatory', even though the prevailing minimum wages applicable across Karnataka is ranked second nationwide when compared with other jurisdictions.“...The minimum wages are adjusted for inflation annually through Variable Dearness Allowance (VDA). Therefore, any quinquennial revision of minimum wages ought to be reasonable and measured – typically restricted to an increase of 10 to 15 per cent as consistently done in the past”, the petition further adds.Case Title: Karnataka Employers' Association & Anr. v. State of Karnataka & Ors.Case No: WP 16145/2026

Karnataka High Court Permits Impleadment Of Workers' Associations In Plea Challenging State's Minimum Wage Hike Notification

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Karnataka High Court Permits Impleadment Of Workers' Associations In Plea Challenging State's Minimum Wage Hike Notification

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