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Overtime Wages Must Include Allowances Under Factories Act: SC
Case Law Details
- Case Name
- Union of India & Others Vs Heavy Vehicles Factory Employees Union And Another (Supreme Court of India)
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- Supreme Court of India
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Union of India & Others Vs Heavy Vehicles Factory Employees Union And Another (Supreme Court of India)
All Allowances Form Part of ‘Ordinary Wages’ for Overtime – Supreme Court Holds HRA, TA Compensatory Allowances Includible Under Factories Act
The Supreme Court dismissed the Union of India’s appeals and upheld the Madras High Court’s ruling that compensatory allowances such as House Rent Allowance (HRA), Transport Allowance (TA), Clothing & Washing Allowance (CWA) and Small Family Allowance (SFA) must be included in the “ordinary rate of wages” for computation of overti...
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