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Union of India & Ors. v. Heavy Vehicles Factory Employees' Union & Anr.

Not available · 2026 INSC 74Decided 20 Jan 2026
Not available
Justice Rajesh Bindal · Justice Manmohan

Background

Defence factory workers challenged government instructions excluding HRA, Transport, Clothing/Washing, and Family Allowances from overtime wage calculations under Section 59(2) of the Factories Act.

Decision Breakdown

The Supreme Court held Section 59(2) defines "ordinary rate of wages" to include allowances the worker is entitled to, excluding only bonus and overtime itself: Ministry circulars have no power to carve out further exclusions, since rule-making rests with State Governments, not central Ministries.

Lesson Learnt

A government department cannot narrow statutory worker entitlements through internal circulars when the law itself doesn't authorize such exclusions.

Official source (sci.gov.in)View Judgment (PDF)

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