Managing Director Can Be Personally Held Responsible for Underpayment of Wages: Kerala High Court

The Kerala High Court ruled that a Managing Director qualifies as an “employer” under Section 2(e) of the Minimum Wages Act, 1948, and could be held liable under Section 20(2) for underpayment of wages.

The Deputy Labour Commissioner had initiated proceedings against a company and its former Managing Director for paying below-minimum wages to 19 employees in 2018.

The director argued he had resigned and transferred his shares before the recovery order. The Court rejected this defence, noting he exercised control and supervision over employees at the relevant time, and dismissed the writ petition holding him personally responsible for compliance.

[Bhavesh Anil Kumar v The Assistant Labour Officer and Another]