BENGALURU: The High Court stayed circulars issued by some state government departments, keeping in abeyance a state government notification dated May 22, 2026, revising the minimum wages for outsourced, daily-wage and contract employees.
Justice HT Narendra Prasad passed the interim order, staying the circulars dated July 29, 2026 and August 10, 2026, allegedly issued on the ‘verbal instructions’ of the finance department, till the next date of hearing, and issued a notice to the state government.
The order followed the hearing of a batch of petitions filed by the All-India Trade Union Congress, Karnataka Rajya Sarkari Khayamayetharara Noukarara Okkuta and Others and All-India Central Council of Trade Unions and others, challenging the circulars issued by the principal director of Karnataka State Audit and Accounts Department, director of municipal administration and other departments.
The government issued a notification dated May 22, 2026 under Section 5(1)(a) and 5(1)(b) of the Minimum Wages Act, 1948, revising the minimum wages in respect of 83 scheduled employments in the state. But the circulars kept it in abeyance for outsourced, daily-wage and contract employees.
The petitioners submitted that the notification has been implemented and one month’s salary has already been paid to employees. But after that, the principal director of Karnataka State Audit and Accounts Department, the director of Municipal Administration and other departments issued the circulars. After that, salaries have not been paid as per the notification issued on minimum wages.
The petitioners pleaded that the circulars have been issued without any authority of law, as neither the authorities who issued the circulars possess any power to suspend, hold in abeyance, or otherwise interfere with the operation of a notification issued under Section 5 of the Minimum Wages Act, which is subordinate legislation having statutory force that cannot be overridden by mere executive or administrative instructions.
The petitioners submitted that once a minimum wage notification is issued, the right of workmen to be paid at the notified rate is a vested right that comes into immediate operation and cannot thereafter be taken away, deferred, suspended or diluted.
The circulars are arbitrary, unreasonable and violative of Article 14 of the Constitution, and by compelling workers to render labour for wages below the statutorily notified minimum, amounts to forced labour prohibited under Article 23. The right to minimum wages is also inextricably linked to the right to live with dignity under Article 21 of the Constitution, they argued.