In Brief
The Union of India appealed against a High Court order awarding skilled workers 200% compensation for unpaid minimum wages under the Minimum Wages Act, 1948. The workers, employed from 2001–2004, claimed wage shortfalls totaling Rs. 49,804 each. The Specified Authority and High Court awarded 100% compensation (matching claim amount) plus 200% additional compensation. The Supreme Court found that the High Court had awarded only 100% compensation to identical workers in another concurrent case without justifying the difference. The Court held that when similarly placed workers receive different compensation rates, written reasons are mandatory. Accordingly, it reduced compensation to 100%, awarding each worker Rs. 99,608 total.
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