Questions to consider when examining wage structures among separate units of the same establishment.

When establishment have different businesses in separate units/premises, a question routinely asked during our advisory function is that whether there need to be different wage structure for each of the business. For that you might want to consider and examine factors mentioned below more closely

  • Whether the different businesses, owned and managed by the establishment serve the same trade?
  • Whether there is a common Balance Sheet and Profit & Loss account maintained by the establishment for all these businesses?
  • Whether there exists functional integrity of the businesses with the establishment?
  • Whether the different businesses have similar conditions of service, the overall financial position of the establishment etc

In The Management of Wenger & Co V/sTheir Workmen ( Vice Versa) 1964 AIR 864