BENGALURU: The Karnataka High Court on Friday stayed the order passed by the state government to defer payment of the Variable Dearness Allowance (VDA) under the Minimum Wages Act by employers to employees from April 1, 2020 to March 31, 2021.
A division bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Ashok S Kinagi passed the interim order staying the notification dated July 20, 2020 to defer the VDA which forms part of the minimum wages.
The bench passed this interim order after hearing a batch of public interest litigations questioning the legality of the notification issued by the state government.
The government issued the notification after a meeting with representatives of employers who expressed helplessness in paying VDA due to the lockdown amid the COVID-19 pandemic, despite strong opposition from trade unions.