HYDRO (ENGINEERS) PVT. LTD. vs THE WORKMEN

The Supreme Court upheld the Industrial Tribunal's award regarding wage scales, affirming that the minimum wages must ensure not only the sustenance of workers but also their efficiency, as per the Minimum Wages Act, 1948. The Court ruled that the Tribunal's decision to link wages to the cost of living index and to apply the award retrospectively was valid, emphasizing that the employer's financial capacity is irrelevant in determining minimum wages. Additionally, the Court supported the Tribunal's reduction of the qualifying period for gratuity from 10 years to 8 years, thereby affirming the changes made in the gratuity scheme.