In Brief
H.D. Sharma, a workman, was dismissed in 1987 on charges of misconduct. The employer claimed to have paid one month's wages (Rs.1,103.40) as required by Section 6E(2) of the UP Industrial Disputes Act before dismissal, but the workman alleged a shortfall of Rs.110/-. The issue was whether an isolated ex gratia 'interim relief' payment of Rs.110/- made in August 1986 formed part of monthly wages. The Supreme Court held that wages must be paid regularly pursuant to employment terms; a one-time ex gratia payment does not constitute wages. The Court upheld the dismissal as valid, but criticized the High Court's reasoning of adjusting disputed amounts against leave encashment.
The lawyer headnote and full judgment text are available to registered users.