Gujarat High Court Quashes Overtime Wage Award To Surat Fire Brigade Employees; Evidence Found Insufficient

Background

Sudhrai Majdoor Union (Lal Vatva), representing employees of the Surat Municipal Corporation's Fire Brigade Department, demanded overtime wages for working beyond the prescribed 8-hour shift. The Union alleged that employees were working 12-hour shifts from 14 April 2001 onwards without being compensated. The employees claimed they were entitled to overtime pay for the additional hours under the Minimum Wages Act, 1948. The dispute was first raised in 2003, culminating in the Industrial Tribunal, Surat's award on 09 November 2017, which directed the Corporation to pay overtime wages for the period between 14 April 2001 and 30 March 2017. The Surat Municipal Corporation challenged this award, leading to the current appeal.

Arguments of the Appellant (Surat Municipal Corporation)

Senior Advocate Mr. Kamal Trivedi, representing the Surat Municipal Corporation, argued that the 12-hour shift was implemented with the consent of the employees and the Union through various settlements. He emphasized that “the shift of 12-12 hours was arrived at due to the consensus between the respondent-Union and the appellant-Corporation.” The employees had received special allowances, rent-free housing, free electricity, and other benefits in exchange for working longer hours.

The Corporation also contended that the Tribunal erred in directing payment of overtime without evidence to support the claim that employees worked beyond their 12-hour shifts. Mr. Trivedi argued that “none of the employees were working for more than 12 hours a day” and that the benefits provided offset any overtime claims. Further, it was argued that the provisions of the Minimum Wages Act, 1948 did not apply to the Corporation's employees. The employees were paid more than the minimum wage, and therefore, Section 14 of the Act, which pertains to overtime wages, was inapplicable.

Arguments of the Respondent (Sudhrai Majdoor Union)

Advocate Mr. P.C. Chaudhary, representing the Sudhrai Majdoor Union, contended that the employees were required to work 12-hour shifts from 2001 onwards, and that the Corporation failed to compensate them for the extra hours. He argued that the Industrial Tribunal's award was just and based on established evidence. Citing the Minimum Wages Act, 1948, he asserted that the employees were entitled to overtime pay under Section 14 of the Act for the additional four hours they worked.

Court's Reasoning

The Division Bench held that the Tribunal had wrongly assumed that the employees worked overtime beyond their 12-hour shifts. There was no documentary evidence to prove that they had consistently worked over 12 hours and were entitled to overtime wages. Additionally, the employees were given special allowances and benefits as part of the shift arrangement, which compensated for the extended working hours. Further, one of the witnesses also admitted during cross-examination that they did not work continuously for 12 hours in the 12-hour shift. The court also referred to the deposition of another Fire Brigade employee, who admitted that only “in case of emergencies” do they work for more than 8 hours. He further confirmed that employees benefitted from rent-free housing, free electricity, and other allowances.

On the applicability of the Minimum Wages Act, 1948, the court cited the Supreme Court's ruling in Municipal Council, Hatta vs. Bhagat Singh (1998), which held that employees receiving wages above the minimum wage are not entitled to overtime pay under Section 14 of the Act. The court stated, “Section 14 applies to employees getting a minimum rate of wage under the Minimum Wages Act. In the present case, the respondents cannot be described as employees who are getting a minimum rate of wages fixed under the Minimum Wages Act, 1948.” The court criticized the Tribunal and held that “the Tribunal and the learned Single Judge fell in error in holding that such employees are also paid extra allowances for their services, which are paid to other employees of other Departments, though they are working for some hours.”

Thus, High Court allowed the appeal and quashed the Industrial Tribunal's award, holding that the fire brigade employees were not entitled to overtime wages from 2001 to 2017. The court ruled that there was no concrete evidence to show that the employees worked beyond their agreed-upon 12-hour shifts, and that the benefits provided by the Corporation, such as rent-free housing and special allowances, compensated for the extended work hours.

SURAT MUNICIPAL CORPORATION Versus THE SECRETARY, SUDHRAI MAJDOOR UNION (LAL VATVA) 

Counsel for the Appellant: Mr. Kamal Trivedi, Senior Advocate, with Mr. Kaushal D. Pandya

Counsel for the Respondent: Mr. P.C. Chaudhary

LL Citation: 2024 LiveLaw (Guj) 153

Decided on: 10-10-2024

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