[…]

It is thus evident of the relevant provisions of the Act that the power of the Government to declare the minimum rates of wages has been qualified to be exercised on the recommendation of the Board… In this case, the Government decided to revisit the minimum rates of wages and the Board recommended that the minimum rates of wages be increased to Rs.19,000/- per month. The Government not agreeing with the recommendation of the Board and without sending the matter back to the Board as mandated by the Act, proceeded on its own to issue the Notification after increasing the minimum rates of wages to Rs. 25,000/- per month.

… In essence, the Government could only declare the minimum rates of wages on the recommendation of the Board. However, the Government chose to bypass the statutory mechanism by assuming the power vested, under the Act, in the Board and proceeded to declare the minimum rates of wages. The Act has made it obligatory for the Government to act on the recommendation of the Board on all occasions of fixation as well as revision of minimum wages…

...we are of the view that the Government travelled beyond its authority to encroach upon the mandate of the Board and issued the Notification without lawful authority. At the same time, it needs to be said that we are not unmoved by the considerations which urged the Government to issue the Notification. Rather, we do appreciate the concern shown by the Government for the welfare of the workers. However, the revision of minimum wage is to be done according to the policy and mechanism laid down in the Act. The Government cannot go against the provisions of the Act and arrogate to itself the function entrusted to the Board.

[…]

For what has been discussed above, we convert these petitions into appeals and allow the same, the impugned judgment of the High Court is set aside, the constitutional petitions of the petitioners are accepted and the Notification is declared to have been issued by the Government without lawful authority and having no legal effect.

The objections, if any, of the Government to the recommendations made by the Board for the minimum wage to be Rs. 19,000/- per month may be taken up by the Government with the Board in accordance with Section 6(1)(b) of the Act. Given these circumstances, the Government and the Board shall endeavour to resolve the matter of appropriate minimum wage enforced in the Province with effect from 01.07.2021 within a period of two months from the receipt of this judgement. In the alternative, the Government may, if so inclined, issue a notification in accordance with the said recommendations in exercise of its power under Section 6(1)(a) of the Act.

Till the final resolution of the matter, as there is no material objection by the petitioners to pay a minimum wage of Rs.19,000/- per month, as recommended by the Board, we direct that subject to the final notification issued by the Government, the recommendations of the Board fixing a minimum wage of. Rs. 19,000/ - per month shall be payable by the employers to their eligible workers.

[The full judgement is attached]