Case Law Analysis
|Delhi High Court
Section 20(3)(ii) Minimum Wages Act | Compensation Capped at Rs 10, Not 50% of Arrears; 7% Interest Substituted : Delhi HC
The Delhi High Court ruled that compensation under Section 20(3)(ii) of the Minimum Wages Act cannot exceed the statutory limit of Rs 10, setting aside the Authority's award of 50% compensation on overtime arrears. The court substituted the excess compensation with simple interest at 7% per annum from the date of claim accrual. This clarifies the ceiling on penal compensation for minimum wage violations, impacting employers and workers in sectors like private security.