Legal Question in Employment Law in India

We are paying special allowance to workers as per notification published by Govt.of Maharashtra and as per that notification we are paying Spec.Allowance which change every after 6 months, in our settlement also we have put a clause that Special Allowance will be paid as per Govt.Notification,but in July 2007 it has become Decreased.

The position of Special allowance was as follow.

Period Special Allow.declere by Govt.Rs. Special Allow.paid Rs.

Jan.07 to June 07 939 939

July 07 to Dec.07 549.40 939

Jan.08 to June 08 647.80 939

July 08 to Dec.08 701.10 939

Jan.09 to June 09 873.30 939

When this special allowance decreases as per Govt.notification, in July 07 to Dec.07,union has approached mgt.and request not to reduce it & to adjust the balance amount in basic wages .we have maintained paying Rs.939/- ,for the above period still its reaches to Rs.939/-, union approached and requested intervene to labour office to get the Increased Special allowance as mentioned below (in Diffr.Demanded).we have maintained paying Rs.939/-, as per ACL instructionsit means we have not reduced it,but union started demanding the Increase took place in Spl.Allowance as under.

Period Special Allow.declere Diffr. Demanded But we have paid

by Govt.Rs. Rs. higher side-Special

Allow. Rs.

Jan.07 to June 07 939 00 939

July 07 to Dec.07 549.40 00 939

Jan.08 to June 08 647.80 98.40 939

July 08 to Dec.08 701.10 53.30 939

Jan.09 to June 09 873.30 172.20 939

July 09 to Dec.09 955.00 82.00 955

Jan.10 to July 10 1242.30 00.00 1242.30

Please suggest also expecting some case laws.

Dinesh


Asked on 7/16/10, 3:27 am

1 Answer from Attorneys
Adv.Sunita Lad Mayank Industrial Services

Was any written agreement entered while deciding to maintain the higher special allowance before ACL ? Unless you have a written agreement that the increase amount will be adjusted against the increase in Special allowance, You shall be bound to pay as per settlement and shall have to pay the higher amount.

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Answered on 7/18/10, 7:13 am


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