'Minimum Wages Not A Static Concept' : Karnataka HC Upholds 487.20% Rise in Doctors' Minimum Wages [Read Order]

"The concept of minimum wages is not a static concept", observed the Karnataka High Court while upholding the wage revisions notified by the government. The Court was considering, inter alia, the Writ Appeal filed by the Private Hospital and Nursing Homes Association, aggrieved by the Karnataka Government's notification of January 6, 2017 by which the minimum wages for doctors and other personnel in private hospitals and nursing homes have been increased by "487.20%" to bring them at par with the wage of their counterparts covered under the Employees' State Insurance. "The world has changed very fast during the last decade. The concept of necessities of life has undergone a drastic change. The concept of what is required for subsistence has also changed. The rate of minimum wages must be such that it ensures health and decency which concepts have also undergone a change", the bench led by Chief Justice Abhay S Oka observed. The bench, also consisting of Justice Mohammad Navaz, said that it cannot sit in appeal over the notifications under the Minimum Wages Act"If we peruse the submissions made by the employers, it can be said that most of the submissions are made on the footing that this Court is going to act as the Appellate Authority. We will have to examine the challenge by employers, by keeping in mind the changing world and the well settled constraints on the exercise of writ jurisdiction in the matters involving fixation of minimum wages" Looking to the scheme of the said Act of 1948, the Court observed that the revision of wages was a legislative function, and there was no requirement of giving reasons or giving hearing. "If we look at Section 5, the exercise of the power by the Appropriate Government of fixing the rates of minimum wages is neither quasi-judicial nor administrative. The Legislature has delegated its power to the Appropriate Government to fix the rates of minimum wages. Hence, fixation of minimum wages is a legislative function...Hence, it follows that the requirement of giving reasons and giving hearing are ruled out" The bench made a reference to the deliberations in the Karnataka state Minimum Wage Advisory Board (which comprised of representatives of the Appellant-Association) to infer that the members were of the view that for determining the minimum wages of doctors, the wages fixed under the Employees' Insurance Scheme Establishments be taken into consideration. "It is true that the minimum wages for doctors have been substantially increased. But, it cannot be said that as of 30th December 2017, the rate of minimum wages of doctors fixed as above is arbitrary or unreasonable or capricious", ruled the High Court. "By the impugned notifications challenged by the employers, the rates of minimum wages were approximately enhanced by Rs.8000/- to Rs.15,000/- per month after the lapse of 4 to 5 years. Only in case of Doctors, the enhancement was more as it was fixed at Rs.40,908.40/- per month with effect from 30th December 2017 which cannot be per se excessive", it proceeded to hold. "There was a debate in the meeting on the issue of fixing the rates of minimum wages in respect of the industries such as Private Hospitals and Nursing Homes, Road construction and management and maintenance of buildings. It is noted in the minutes that the representatives of the employees who were present in the meeting, with one voice, welcomed the action of fixing minimum wages of Rs.40,000/- to the Doctors, on par with the wages paid by the Employees' State Insurance Scheme (ESI). It is specifically recorded that more number of members present in the meeting have expressed their opinion that minimum wages for Doctors and other personnel of private hospital and nursing home should be on par with the wages paid to the Doctors and other staff in ESI and the representatives of the owners who were present expressed their opposition. Though in the minutes it is recorded that as there was no consensus, the Board recommended to the Government to take suitable decision and issue final notification, the majority view is reflected from the minutes", the bench narrated. The decision records that "Some criticism has been made that the minimum wage of doctors has been raised to the rate of Rs.40,908.40/- per month, which is applicable from 30th December 2017". It was pointed out that for the Doctors, the earlier minimum wage fixed of Rs.6966.70 which has been increased by 487.20% and whereas in case of other categories, the increase is only 75%. "...to select and classify persons, objects, transactions, localities or things for special treatment (...) will not be struck down as infringing Article 14 of the Constitution...The fixation of minimum wages depend on the prevailing economic conditions, the cost of living in a place, the nature of the work to be performed and the conditions in which the work is performed...", the bench quoted several Apex Court and High Court authorities to dispel...

'Minimum Wages Not A Static Concept' : Karnataka HC Upholds 487.20% Rise in Doctors' Minimum Wages [Read Order]

Mehal Jain

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