Many employers have taken a liberal view that even a dress code constitutes requirement of a uniform, and, therefore, an allowance given to comply with the dress code would amount to a uniform allowance. However, it continued to pay the uniform allowance to employees and treated it as exempt. For such employees who received a uniform allowance, it had laid down a dress code from March 2010. This decision has far-reaching consequences for various employers, who give uniform allowance to their employees, and treat such allowance as an exempt allowance, as well as to the employees. Many employers have been giving a liberal interpretation, and treating uniform allowance as exempt, even though only a dress code has been prescribed, and not a uniform.

Source: Mint November 02, 2016 10:40 UTC