November 16, 2025:In a significant judgment reinforcing accountability of top corporate leadership, the Kerala High Court in the case of Bhavesh Anil Kumar v. The Assistant Labour Officer & Another (WP(C) 26208/2025 ) has held that a Managing Director (MD) of a company can be treated as an “employer” for the purpose of proceedings initiated under Section 20(2) of the Minimum Wages Act, 1948.
The judgment came in a petition challenging the maintainability of claims filed against a company’s Managing Director for alleged non-payment of minimum wages to certain employees. The MD argued that only the company, being a separate legal entity, could be proceeded against and that he could not be personally treated as an employer without specific statutory authorisation or direct involvement in wage administration.
Rejecting this contention, the Court observed that the definition of “employer” under the Minimum Wages Act is broad and purposive, intended to ensure that those responsible for supervision, control, or management of employees cannot evade liability for statutory wage violations.
The Bench noted that senior managerial officials, including Managing Directors, exercise overarching control over business operations and employee-related decisions. Therefore, they can be considered “employers” within the meaning of the Act, especially when the company’s compliance with labour welfare legislation is under scrutiny.
The Court further emphasized that proceedings under Section 20(2), which deal with claims arising out of non-payment or underpayment of minimum wages, are remedial in nature. Their objective would be defeated if individuals at the helm of affairs could shield themselves behind the corporate veil.
Terming the MD’s challenge as unsustainable, the High Court held that he could indeed be arrayed as a party in minimum wage claims and that adjudicatory authorities are empowered to proceed against such key managerial personnel when statutory wage obligations are breached.
Legal experts view the ruling as a strong message to corporate leadership on the importance of strict adherence to minimum wage norms and the personal liability that may arise from non-compliance.
The decision is expected to influence how companies structure their compliance mechanisms and could prompt greater diligence among top executives in overseeing labour law obligations.
