Quality Bank Ltd. is a new private sector bank. It displayed some vacancies of Clerks, Supervisors and Managers in its website. In response to the advertisement the aspirants applied for the various posts according to th

CS Professional · Labour Laws and Practice · PYQS · December 2024
Quality Bank Ltd. is a new private sector bank. It displayed some vacancies of Clerks, Supervisors and Managers in its website. In response to the advertisement the aspirants applied for the various posts according to the required qualifications and experiences. Dinesh who applied for the post of clerk in the Bank got the job offer. Dinesh was given the appointment to join at its Barmer Branch. Since Dinesh was unemployed before joining this Bank, so he immediately joined without seeing the salary structure. After joining he realized that there is a big disparity between the salary structure of clerk and the officer. Dinesh was not getting the salary as per his expectation, so he made a complaint to the Government of Rajasthan against the Bank for exploitation of the clerical staff and not providing of adequate salary and requested for the revision of the salary under the Minimum Wages Act, 1948. Pragati also received an appointment letter on 10th July, 2024 from Quality Bank Ltd. She was offered appointment for the post of Assistant Manager and was to report joining at the Bank Branch situated at Johari Bazar, Jaipur on or before the 15th July, 2024. Pragati approached the Branch Manager and showed her appointment letter. After the necessary formalities she joined the Bank on 14th July, 2024. On 2nd October, 2024 Pragati applied for the maternity leave. The Branch Manager amazed to receive the leave application on the ground of maternity since at the time of joining on 14th July, 2024 Pragati's medical/fitness report was not showing any sign of pregnancy. Pragati then informed to the Branch Manager that she became mother of twin babies on 2nd October, 2024 through surrogacy and both the babies have been handed over to her on this date by the surrogated mother. However, the Branch Manager was not convinced with the plea of Pragati and he refused to grant the maternity leave. But Pragati proceeded on the maternity leave. The Branch Manager treated the leave availed by Pragati as absence on duty and accordingly deducted the wages and extended her probation period. Pragati's husband is a pilot in True Aviation Company (TAC). The TAC runs flights in India's air space and connects link between the capital cities and other major cities of India. Aviation companies in order to cut the cost are adopting various measures including the salary cut and reduction in wages. The TAC also adopted these measures and for the FY 2022-23 the company decided not to pay any bonus to the ground staff and air staff including the pilots. Based on the given facts, answer the following questions: Whether TAC comes within the purview of the Payment of Wages Act, 1936 ?

Answer & Explanation:

Industrial or Other Establishment Section 2(ii) of the Payment of Wages Act, 1936 states that "industrial or other establishment" means any- tramway service, or motor transport service engaged in carrying passengers or goods or both by road for hire and reward; air transport service other than such service belonging to, or exclusively employed in the military, naval or air forces of the Union or the Civil Aviation Department of the Government of India; dock, wharf or jetty; inland vessel, mechanically propelled; mine, quarry or oilfield; plantation; workshop or other establishment in which articles are produced, adapted, or manufactured, with a view to their use, transport, or sale; establishment in which any work relating to the construction, development or maintenance of buildings, roads, bridges, or canals, or relating to operation connected with navigation, irrigation, development or maintenance of buildings, roads, bridges or mission and distribution of electricity or any other form of power is being carried on; any other establishment or class of establishment which appropriate Government may, having regard to the nature thereof, the need for protection of persons employed therein and other relevant circumstances, specify, by notification in the Official Gazette. Thus, in terms of Section 2(ii)(aa) of the Payment of Wages Act, 1936 the True Aviation Company (TAC) comes within the definition of Industrial or Other Establishment thus, TAC comes within the purview of the payment of Wages Act 1936.

Topics: Wages and Benefits

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