Labour Laws Q/A

Conveyance Allowance

When and under what conditions transport/conveyance allowance is payable by the employer to the employees?

Unless it is a condition of service, this allowance or facility is solely at the discretion of the employer. However, in considering the demands of the workmen for transport facility alongwith various other demands, such as wage scales, dearness allowance etc. the tribunal has jurisdiction in a proper case to call upon an employer transport expenses incurred by the latter for going to his place of work. The tribunal is justified in having regard to the practice obtaining in that region on the principle of region-cum-industry when considering the claim of the workmen for payment of transport allowance. Though the tribunal cannot impose any new obligation on an employer merely on the ground that the financial capacity of the employer is sound, nevertheless while imposing the new obligation the tribunal has also to consider the capacity of the employer to bear the burden. It has been held that the award of the sum of 15 paise per day to workmen staying at a distance of 5 miles or more could not be stated to be unreasonable or arbitrary.1

Source: H L Kumar, Labour Problems & Remedies (Universal)


Reference:
1. Atic Industries Ltd. v. Workmen, 1972 Lab IC 642 (SC): AIR 1972 SC 1234: 24 FLR 196: 1972 (II) LLJ 20: (1972) 2 SCA 327: (1972) 1 Lab LN 112: (1973) 2 SCJ 6.

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