For wage revision, Industry cum region test is subject to employer’s paying capacity: SC

Supreme Court in The VVF Ltd. Employees Union vs. M/S. VVF India Limited &Anr. CA No. 2754/2023, determined that when revising wages and other benefits, the standard practice followed by industrial adjudicators is to employ the industry-cum-region test. This approach essentially entails comparing the existing pay and allowances with those of similarly situated industrial units in the same region. In assessing the comparability of these units under the industry-cum-region test, the financial capacity of the employer emerges as a significant consideration.

Also read: There Is No Limitation Provided For Filing Complaint U/S 33-A Of Industrial Disputes Act: Karnataka High Court

Stay connected with us on social media platforms for instant updates click here to join our LinkedIn,  Twitter & Facebook