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In the matter of Hindustan Sanitaryware and Industries Ltd. vs. State of Haryana, the division bench of Supreme Court comprising Justice L. Nageswara Rao and Justice MR Shah while considering an appeal against Punjab and Haryana High Court ordered categorization of unskilled employees as semiskilled and semi-skilled as skilled on the basis of their experience in the notification issued for fixing/revising the minimum rates of wages is beyond jurisdiction of Government.
The order came against a notification issued by Labour Department of Haryana which provided for unskilled employees having five years experience would be deemed categorized as semi-skilled "A"; that after three years of experience in semi-skilled "A", the employees would be deemed categorized as semi-skilled "B"; that after three years of experience in skilled "A", the employees would be deemed categorized as skilled "B".
The bench of SC in its order held that “Such categorization or classification by deeming workmen in one category to belong to another category is beyond the jurisdiction of the Government.” The bench clarified further that trainees who are appointed for reward can be included in notification released under Sec 5 of the Minimum wages act but not trainees who are not paid wages. It also held that no power vested in the Government under the Minimum Wages Act to decide the period of training, thereby any stipulation with regard to the training period made by government is out of its scope.
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