Andhra Pradesh High Court reiterates that customary allowances does not form part of minimum wages unless material is placed to substantiate

The present case emanates from an award passed by the Industrial Tribunal denying customary benefits to the workmen represented by their union. The union challenged the award of the Industrial Tribunal, contending that customary benefits are separate from minimum wages in regard to House Rent Allowance (“HRA”) and Conveyance Allowance (“CA”) as per the notification no. G.O.Ms.No.53 dated 17.10.2000. The contention was dismissed by the Andhra Pradesh High Court stating that minimum wages prescribed under the provisions of the Minimum Wages Act, 1948, are payable as a composite package and not bifurcated unless, of course, stated otherwise. The Court further observed that, while HRA is included in “wages,” CA is excluded, and unless material is placed demonstrating that the allowances claimed are customary which is based on industry-cum-region comparison, such claims cannot be sustained. It was noted that the dispute was that of “interest” as opposed to “rights”. Therefore, the award did not suffer from any jurisdictional error, perversity, or violation of natural justice.