Minimum Wages Act should be the basis for compensation: HC

Compensation in cases of an employee dying in harness should be computed as per the Minimum Wages Act if the salary was less than that of the stipulated amount under the legislation, the Madras High Court has ruled.

Allowing a petition by the wife of an electricity board employee who died in 2007 at an age of 48, Justice J Nisha Banu enhanced the compensation awarded by the Commissioner of Workmen's from Rs 2.01 lakh to Rs 3.22 lakh.

It should be paid with 12 per cent interest per annum from 2007, the judge of the Madurai Bench of the court said in a recent order.

The Judge said if the wages of a worker was less than the parameters set by the Minimum Wages Act, the pay stipulated by the act should be taken into account for deciding the compensation payable.

Petitioner R Seethai's husband died in 2007 during the course of his work as a mazdoor in the Madurai Distribution circle of the then Tamil Nadu Electricity Board (TNEB).

The deceased worker, was receiving Rs 2,500 as monthly wages at the time of his death, based on which his spouse was awarded a compensation of Rs 2.02 lakh.

Justice Nisha Banu said the payout should have been computed as per the Minimum Wages Act which stipulates a wage of Rs 4,000 for that category of workers.

Noting that the purpose of the act was to prevent exploitation of workers, the judge said the same principle was applicable while fixing the compensation as well. If this was not followed, the purpose of the act would be defeated.