The Principal Labour Court, Chennai, has directed Nippon Express India (P) Ltd., which provides logistics service to car maker Renault-Nissan, along with its contractor Arkayees Consultant to jointly pay overtime wages totalling ₹1.1 crore to 43 drivers.
In their petitions, the drivers said about 75 employees were working for Nippon since March 11, 2011. All of them worked for 12 hours a day, but the management gave salary only for eight hours and did not pay overtime wages as per the law, they alleged.
As per a settlement reached on November 30, 2011, the management had been paying overtime wages and the drivers sought the same for the period prior to the agreement. The respondents argued that the case was not maintainable.
The Labour Court ruled that Nippon Express comes under the definition of “Motor Transport Undertaking”, as it transported the machineries of Renault-Nissan from one place to another for monetary consideration. It dismissed the company’s plea that it comes within the ambit of “Shops and Establishment Act,” as no Registration Certificate had been furnished in support of its argument.
The Court ruled that the petitioners were engaged by Nippon through Arkayees and therefore there was an employer-employee relationship between them. The petitioners were entitled to receive the overtime wages under Section 26 of the Motor Transport Workers Act, it said.
The Labour Court said Arkayees was also liable to pay overtime wages along with Nippon Express as per the Contract Labour (Regulation and Abolition) Act. It told the respondents to pay the amount within three months from May, 17, failing which the drivers would be entitled to 9% interest per annum on the amount thereafter.
