Right to wage till retrenched

An employer cannot dispute his liability to pay wages because of the sickness of the unit or pendency of a BIFR rehabilitation scheme. The proceeding for the recovery of wages under the UP Timely Payment of Wages Act cannot be stopped on those pleas. The Allahabad High Court stated so in its judgment, Modi Rubber vs State. The company was not functioning after a strike in 2001. Later, there were two settlements with one group of workers.

The labour commissioner issued a recovery order in favour of workers. The company challenged it in the high court, arguing that it was before BIFR. Dismissing the petition, the court stated that “the employer cannot dispute its liability because of the sickness of the unit. The relationship between master and servant continues until employee is retrenched or terminated. The workers who are not signatories to the settlements can enforce recovery.”