business ποΈ Karnataka HC halts salary hold for contract workers
The Karnataka High Court has stayed government circulars preventing salary payments to outsourced and contract employees. This order was passed by Justice H.T. Narendra Prasad after petitions from various unions. The circulars, issued by the Karnataka State Audit and Accounts Department on July 29, directed withholding based on revised minimum wages effective May 22, 2026. Unions argued these circulars were based on unauthorized oral instructions and violated the vested rights under the Minimum Wages Act, 1948. The court's stay remains in place until further orders regarding the salary payments. ποΈ