UNION OF INDIA & OTHERS versus HEAVY VEHICLES FACTORY EMPLOYEES’ UNION AND ANOTHER

Case summary from SCR

Issue for Consideration Whether compensatory allowances, such as House Rent Allowance, Transport Allowance, Clothing and Washing Allowance and Small Family Allowance, would fall within the term “ordinary rate of wages” for calculation of overtime wages in terms of s.59(2) Act, 1948. Headnotes† Factories Act, 1948 – s.59(2) – General Clauses Act, 1897 – s.3 – The Office Memorandum dated 27.05.2009 issued by the Ministry of Labour and Employment, Government of India clarifying that allowances of compensatory nature including HRA, TA,