Min Wages Act 1948-labour law

7/26/2019 Min Wages Act 1948-labour law

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MINIMUM WAGES ACT 1948BACKGROUND:

The minimum wages fixing convention was held in Geneva in 1928.The resolution of convention was embodied in International LabourCoe.The code emphasized the need of statutor! "ini"u" #a$esto protect the workers against the exploitation by the employers.whitely

commission studied minimum wages in thelight of various convention of ILO.

Though many committees considered the question of minimum wages finally the Inian Labour Con%erenceafter a full debate gave shape to theMini"u" #a$es &illwhich was introduced in the Central Le$islative asse"bl! in A'ril194(reflected the principle incorporated in the IL)ConventionThe ct came into force in Marc* 1948..Scope Of Act :

ct empowers both central and state govt !.to fix min rates of wages for diff employment listed in schedule to the ct

". The prescribed is the min wage which employer bound to pay

#.To add any employment to schedule after due notification. $..to %eview of rates fixed at intervals not exceeding & yrs.I"' +Note ,

ct provided that wages determination not entirely by the market forces .Therefore employer cant plead his inability

lso the equal application of inclusion both to schedule and non'schedule establishment

*Unichoyi vs. State of Kerala

((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

Constitutional Valiity of Act

-Bi!ay Cotton "ills Vs .State Of A!#er

)hallenged * It violates fun.ri+ U.A+19/10/$0freedom of Trade and goes beyond the reasonable restriction envisaged U.A+19/(0.SCheld it to be

valid and the act envisaged to to fulfill the constitutional mandate in ,I%.-rin of state policy / $# .It is absolutely essential to impose restriction

upon the freedom of contractof the employer 0fixg min wage is reasonable regulation which constitution permits. The fact that employer mi+ find difficult to run a business is irrelevant consideration and not sufficient reason to strike down law itself.

*$yro.pvt.lt Vs.%oren

The poverty of labourer is also a factor to be considered while determining the question whether a particular provision is in the interest of generalpublic .*San!it Roy Vs.State Of Ra!asthan

ny law which provides for wages less than that under the min wages ct is violative of rticle !$ and "# .1o sec !0" of the %a2asthan 3aminine%elief works 4mployee ct !56$ 1truck down by SCChanra'hanu Boarin( )lo(in( Ban(lore Vs. State of "ysore.

If govt ha power tolower the rates as desired by employers it is also competent to fix a higher rate

Sailent Features of Act

1+i3ationof min time rate of , wages 7 min piece rate 7 guarantee time rate 0overtime rate *for diff occupation7 localities /class of work and

adults7 adolescents7children7 apprentices2+Min rate o% #a$esconsist of, 8asic rate of wage 9cost of living allowance:8asic rate of wage with /w/o cost of living allowance 9cash value ofconcession with respect of essential commodities supplied at concessional rate : an all inclusive rate .+5a!"ent o% "in #a$e ,In cash under ct and govt can decide in kind in particular cases . cost of living allowance 9cash value of concession

with respect of essential commodities supplied at concessional rate by competent authority by certain levels.4+i3,;o of workg hrs7provide weekly holidays 0payment of overtime wages under the act6+Maintain


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$. -lantation *cinchona7 rubber 7 tea or coffee

&. bauxite

6. stone breaking or stone crushingC. public motor transport

+. construction and maintainennce of road or building operation .

5. under local authority

!D. tanneries and leather manufactory!!. Lac manufactory

!". >ica works7 gypsum mines7barites mines7manganese mines7

china clay mines7fire clay mines7 kyanite mines 7

coppermines 7quartenite mines 7quartz mines7 silica mines

!#. )lay mines and magnesite mines under the mines act !5&"

/horticultural commodities

$. %aising of live stock 7 bees /poultry

&. practice by farmer incidental /con2unction with farmoperation .ie forestry /timbering /preparation for market and

delivery

6+ EM5L):E AN; EM5L):EE 2/10

EMPLOYER EMPLOYEE 2(1)

An! 'erson #*o e"'lo!s one or "ore

e"'lo!ees bonus not / terms of employment'/order of state govt.excluded'value of any house accomdation 7light

supply 7medical attdnce7other aminety'contribution by employer /-30 I;T.ccrued to amt.

'travelling allowance /concession

'sum payable *to defray spl expenses by nature of employment .

'?ratuity payable on termination of employment .

The 1) inE3'ress Ne#s'a'ers vs+Union )% Inia classified wages into # categories

I. LIVING WAGE,

II. FAIR WAGE,

III. MINIMUM WAGE

LIVING WAGE,

Living wage is the one which is appropriate for the normal needs of the average employee who is living in civilized community .It mustprovide not only basic needs such as %oo< s*elter an clot*in$ but also condition of %ru$al co"%ortestimated by the current human std.%ru$al co"%ort INC> education for children 7protection against ill health 7requirements of essential social needs 7 insurance against misfortunes like

death 7disability and fire7amusement and expenditure for self development .

8ased upon expansion of national economy the contents of term living wages also e3'an an var!+

Article>4 ?-rovides that state shall ensure to secure all workers living wages9condition ensuring decent std of life 0full en2oyment of leisure and

social and cultural opportunities.

FAIR WAGE,

3air wage stand inbetween min wage and living wage.It is a step towards the progressive realization of a living wage by settling above the min

wage thus approximating towards living wage.The lower limit to fair wage is obviously the min wage and upper limit is the capacity of the industry

to pay .ie.it depends upon the current economic position 0future prospects of the industry.actors into consieration #*ile %i3in$ %air #a$es

a. The productivity of labour

b. -revailing rates of payment in similar occupations in same area and neighbouring localities

c. The level of national income and its distributiond. -lace of the industry in the economy of the country

*S.A.2.1.%or&s Vs.+nutrial court


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fter determining the paying capacity of the industry the tribunal has to consider the scale of wages and dearness allowance in fixing fair wage'SC+

MINIMUM WAGE & STATUTORY MINIMUM WAGE

MINIMUM WAGE (not defined in act ) STATUTORY MINIMUM WAGE-;ot defined in act because its not

possible to lay uniform wages for all Industries thrFout country'SEC 4

-rovide for the bare subsistence of the worker and his family

This is paid to worker irrespective of capacity of the industry to payIf the industry canFt pay this it canFt exist .

It is prescribed by the statute and it may be higher than bare min wages

providing for measure of education 7medical requirement and otheramenities.

>in wages act !5$+.*Unichoyi vs. State of Kerala>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>,

,ual ob2ective'while fixing min wage rates

subsistence and maintainence of worker and family

-reserving his efficiency as worker*,.D.+nustries Vs./oren

;o relevancy to *employer capacity or nature of industry /employee

hardship or their inability to meet burden

8ut act purports to prevent labour exploitation 7thus authorizing govt toprescribe min rate of wages in scheduled induatries.*-0press Ne/s aper vs.union Of +nia

1) held that once min wages is fixed for scheduled employment it has tbe paid irrespective of the paying capacity of the industry .

1tatutory min wages U.S 4/10consist of

a. 8asic rate of wage 9spl [email protected]'ad2usted Esuch intervaland manner as govt direct in acc with cost of living index no

applicable to worker.A

b. 8asic rate of wage with /w/o cost of living allowance 9cashvalue of concession with respect of essential commodities

supplied at concessional rate @c.c'compute by competent

authority E specific intervalsA

c. an all inclusive rate .@ 8asic rate9 cost of living allowance9cash value of concessionA

___________________________________________________________________________________________________________________________________

SEC 3- Empower Approp Govt To Fix Min Wages

i3 A0 e%rain,pprop govt refrain from fixing wages if the number of employees in whole state happened to be less than !DDD in such

employment .*Ra# &u#ar "ishra Vs. State of Bihar

1ometimes discretionary made for govt to fix min wages in case happenend to be less than !DDD.*Ban(lore Dress "f( Vs.Govt Of Karnata&a

In fixing the rates the ?ovt can consider nature 7 experience 7 merit and quality of work involving skill of different kind of skilled employees.

Sec 3(2)- Minimum Rate Of Wages-time work

?ovt may fix minimum rate of wages for time work i.e.min time rate 7 minimum rate of wages for piece work i.e.minimum piece rate.Bhen piece rate is fixed every worker will not earn the same amt for the day and difference may exist from person to person in respect of work

done by each .Sec /2>A0>5enin$ 5roceein$ Not Co"'re*ene In Sec An Min ate )% Wa$es S*all Not A''l! +

!. where indus.dispute *rate of wages payable'pending proceeding". where an ward made by authority is inoperation

#. where notification fixing /revising the min rate of wages of scheduled employment issued during pendency of proceeding-U.p.Cine#a -0hi'its Vs.State of U. 3 A!antha te0tiles Vs.Deputy la'our co##r+

1ec deal when the award is in operation .but if award ceased to have operation since contrasting effect the fix of min wage apply.

Sec 3(3) different min rate fixed for

a. ,ifferent scheduled employmentsb. ,ifferent class of work in the same schedule employment

c. dult 7 adolescents7children and apprentice

d. ,ifferent localities

Minimum rate of wages fixed

a. 8y the hourb. 8y the day

c. 8y the month

d. 8y such other longer wage period as may be prescribed

SEC 4- Empower Approp Govt To Fix/revise Min Wages in consistency with the factors mentioned therein

i. The difficulty of employer to carry on his business on basis of min wages

ii. The financial capacity of the employer to pay the minimum wages

iii. The fact that employer has incurred loss during the previous yrs

iv. The employerFs difficulties to import raw materials*$yro.pvt.lt Vs.%oren 3 Chanra'hanu Boarin( )lo(in( Ban(lore Vs. State of "ysore+

Though financial capacity of employer and wage scale prevailing in comparable industries in the region are of some relevant conisderartion

minimum wages must be paid irrespective of ext of profit 7 financial condition of estd/availablility of the workmen on lower wages.

*Sri Kalyana Ra#a co.Vs.Govt of +niaThe authority is not quasi 2udicial while fixing min rate of policy and not require court interference in that matter*4yothi $o#e +nustries Vs.Karnata&a

ppropriate authority in fixing wage final may vary the wage structure from its draft notification.*Su&u#ara# vs.State of ,a#ilnau

Bhile fixing of min wage for employees of hotels 0restaurants govt divided state into # zones .in zone it was challenged as there was clubbing

of municipality0certain corpn with madras corpn .It was held as valid as it is based on rationaland intelligible basis and not arbitrary .*Stan#ore -state 5arcau Vs.1a'our co##issioner "aras

?.o ;otification issued revising min wages for tea and coffee estates in which rate of variation given for every unit of & point .s prescribed the

petitioner were paying wages .s the consumer price index came down he started paying as per notification.s per the govt order any change

should not bring about reduction in ,..This ?.O was challenged .It was held that the word to be ad2usted /in acc.with contemplate change in bothway and not 2ust increase.

Sec 5-PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES.

2METHODS

!.co""ittee "et*o ,ppoint as many committees and sub'committees as it considers necessary to hold enquiries and advice the govt in respect

of such fixation /revision as the case may be .

".&! noti%icationin the official gazette publish the proposals for the information of persons likely to be affected thereby and specify a date 7 notless than two mon from the date of the notification on which date the proposal will be taken into consideration.


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If the govt adopts !stmethod it shall receive the advice of the committee and all representation 7 0by notification fix /revise the min rate of wages

which comes into force after # mon expiry of notification /as per provided in the notification

If "ndmethod the appropriate govt also consult the advisory board .*-/ar "ills Vs.State of A!#er

)ommittee appointed under this sec is only advisory body and gvot is not bound to accept its recommendations in every case The govt can still

fix/revise even if no advice/inadequate advice given.

*Basti Ra# vs.State of A.

In case of employment under part I fix of min rate should be done for entire state not a part being omitted .but the fixation need not be uniform

5)WE ) G)7T

a+ Not Arbitrar! .Un$uie

*"ahenra Chanra Vs.State

The power of the govt to specify the min rate of wages does not include power to vary other terms of contract.*"alayala# lantation Vs.State of Kerala

3ull bench *kerala =.) .=eld that specifying date is for person who likely to file ob2ection know till what date they have to make it .till that govt

precluded from making decision on draft proposals .=owever thereis nothing in the statute which requires that govt should consider it on that date

and not thereafter

b+ Not @uasi uicial

It is a legislative function delegated to the govt by the parliament .The person are not entitled to oral hearing following the filing of ob2ections

/proposals*,ourist $otel Vs State of A.

;o contemplation * to make oral hearing7 or dispose off petition with in specified date.*U.p.Cine#a -0hi'its Vs.State of U.

?ovt not bound to give reasons in the notification as it is not quasi2udicial.

SEC5 -ADVISORY BOARD AND COMMITTEES

COMMITTEES


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SEC1/20> A''ln o% sec 1/10to e"'lo!ees to suc* e3t an conition as 'rescrib belo#

E"'lo!ee in ur$ent #or=

E"'lo!ee in #or= outsie t*e li"it o% $eneral #or= #*ic* is in nature o% 're'arator! .co"'le"entar! #or=

E"'lo!ees e"'lo!"ent inter"ittent

E"'lo!ee in #or= #*ic* %or tec*nical reason to be co"'lete be%ore t*e ut! is over

E"'lo!ee in #or= #*ic* cu not be carrie on e3ce't at ti"es 'enent on t*e irre$ular action o% natural %orces+

SEC14 :OVERTIME

Borking in excess of normal working hrs'to be paid min wages B.%.T overtime under the act'for every hr/ part of hr / under any law byappropriate govt for time being in force'which ever is higher+

@This does nt affect O.T undersec &5 3actories ct !5$+ where rate payable is twice A

SEC15:WAGES OF WORKER WHO WORK LESS THAN NORMAL WORKING DAY

n employee whose min rate of wage has been fixed under the act by the day 7 works on ady less than the requisite number of working hrs.he shall

receive wages unlessThe failure to work is by his unwillingness7 and not by omission of employer to provide him work

Insuch other cases 0circumstances as may be prescribed

SEC16:WAGES FOR TWO OR MORE CLASSES OF WORK

Bhere an employee perform two or more work in respect of each work min wage rateapplicable and employee bound to pay .SEC17: MINIMUM TIME RATE WAGES FOR PIECE WORK

SEC18:MAINTAINENCE OF REC AND REGISTER

AUTHORITIES UNDER THE ACTct empowers state ?ovt to appoint Inspectors to enforce provisons of this act

The govt may define the local limits within which the class of factories and Indus.estd in respect of which inspector shall exercise fn.

I.Powers Of Inspectors

!. 4xamine and enquire *a. any person who is employee therein .

". 4nter7 Inspect7 search any premises/place 'Eany reasonable time *with or w/o such assistance of person of govt service /other.

To examine rec7 register of wages 7notice to be displaced in premises.

#. 1upervise payment of wages *in rly7facty7Indus.estd'to employed person$. %equire by written order *production of any register /record or take on spot or statement of any person inc.out workers. .

&. 1eize/take copies of register/document /operation'in respect of offence believed to committed by employer /this act .

4xercise such other power that may be prescribed. they are deemed to be public servant within meaning of I-).

,oc production'!C&0!C6 of I-)Sarpanch Gra# anchayat Vs.Ra#(iri

%evenue official under admin ctrl of commsr and collector appointed as inspector have only supervisory and control power and no power to grant

relief under sec "D@"AA!anta ,al&ies Vs Dy.1a'our Co##nr 3 .N.Du'ey Vs.State Of U.

ppointment of inspector without defing locallimits is invalid.

IIAuthority to decide claim

SEC 20(1)-Who May Be Appointed As Authority

!. ny officer of central ?ovtexercising fn as labour commissioner for any region

". ny officer of state ?ovt not below rankof labour commissioner#. )ommissioner for workmen compensation

$. Officer with experience of 2udge of civil court /stipendary magistrate-Niranan lal &*ar$ava Bco 7s+;e'!+Co""r+5)7IS) 1>Limitation

It should be made with in 6mon Limitation from which date minimum wages or other amount become payable.

-1ona#a(ra# anchayat Vs.Ra#(iri Gosevi

The authority is given discretion to condone the delay in presenting appln provided sufficient cause for the delay is providedto the satisfaction

5)CE;UE ) ;ECI;ING CLAIMS

Clai" a''licationentertained '''opportunity of being heard''''inquiry ''',irect the employer

!. )laim arising out of payment of less than min rate of wages' Then to employee min wage payable exceed amt actually paid 9payment of

compensation..Thus payment directed shud not exceed !Dx@amount of excessA.". In other cases payment of amount due 9payment of compensation.should not exceed !D rupees .

#. payment of compensation *where amt due is paid by employer before the disposal of application.

Sin$le a''ln SEC 21/10 < can be made w.r.t employees belonging to same unpaid group if claim is of 2oint appln7 then max.compensation shall

not exceed !D times aggregate amount and ltd to %s.!D/'per employee

SEC 21/20>uthority may deal with any number of separate pending appln.

*$inustan Steel lt Vs .A.&.Roy


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3ailure to raise ob2ection regarding max penalty imposed apart from payment of min wages by employer and that during the argument stage will

not be entertained .

FINALITY OF ORDER SEC20(6)-3inality to every order being issued .

5)WE ) AUT)IT: SEC 2D/F0

The uthority shall be deemed to be a civil court for all purposes under sec!5& of cpc and shall have powers of civil court and chap #& of cr.p.c

!+5+

!. Taking evidence". 4nforcing attendance of witnesses

#. )ompelling the production of document

RECOVERY OF AMOUNT

If authority is >gistrate 7trated as if fine were imposed by him as magistrate

If authority is not >gistrate 7by any magistrate to whom appln made by authority 7treated as if the fine were imposed by the magistrate.

SEC 22 ,5ENALT: ) )ENCES UN;E TE ACT

-NA1,5 2OR C-R,A+N O22-NC-S< 6 mon ' imprisonment /&n'%s .&DD/ both .Bhen -ay less than min rate of wages fixed for that employeeFs class of work

contravenes any rule or order made under sec !# .

SEC 22>AC/10>Not 'unis*e i% 'rove

Offence committed w/o his knowledge4xercised due diligence to prevent commission of offence.SEC 22>C/10>'unis*e i% 'rove

Offence committed with consent

It is attributable to any neglect on part of any ,irector 7mgr7secy /officer of co.7

SEC 22>;,A5"-N, O2 UND+SBURS-D A"OUN, DU-S ,O -"1O5--S

!.>in wages due under this act to the employee".otherwise due under this act to the employee

1hall be deposited with authority on /) of his death or whereabout not being known .

SEC 22>E ,RO,-C,+ON AGA+NS, A,,AC$"-N,

To secure the performance of contract with govt by employer or debt or liability incurred by employer towards employee in connection with the

aforesaid contract shall not be liable to be attachment under any decree /order of any court .

SEC 22>, A1+CA,+ON O2 A5"-N, O2 %AG-S AC, ,O SC$-DU1-D -"1O5"-N,

S-C 789-:-",+ON O2 -"1O5-R 2RO" 1+AB+1+,5 +N C-R,A+N CAS-S

4mployer shall file complaint *following whichnotice shall be served to actual offender 0hearing the charge proceeds.8ut the original trial starts

on original complaint .The employer shall not be held liable if proved to the satisfaction of the court that

Offence committed w/o his knowledge 7consent /connivance.

4xercised due diligence to prevent commission of offence.

S-C 7;9BAR O2 SU+,S

The amt claimed form sub2 matter of appln before the authority /1"5; presented by plaintiff or onhis behalf.The amt claimed form sub2 of direction /1 "5 in fav of plaintiff

The amt claimed has been ad2udged in a proceeding /1 "5 not to be owed to the plaintiff.

The amt claimed could have been recovered by appln /1 "5

ny other court does not have 2urisdiction to entertain the suit in respect of claim under sec "D of the ctW++T +E"'lo!ee'need not file suit but avail machinery under act to get quick relifW++T +E"'lo!er*can file suit only when the employee is not governed by the notification under >inimum wages ctVi#al rinter Vs.O#ana

nder sec "$ it bars only institution of suit in civil court .and not tribunals or other authorities.S-C 7in rate of wages

". ny privileges or concessions accruing to him under the ct

S-C 7=9-:-",+ONS AND -:C-,+ONS

8y notification in gazette by appropriate govt exempts 0excepts certain provisons of this act

This does not apply to employeeFs family /members


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ULE MAING 5)WE

8y central govt * SEC29 ,B.%.T. Term of office of the members 7 procedure to be followed in conduct of business 7method of voting 7filing

up casual vacancies in membership 0quorum necessary for transaction of business 0central advisory board .8y appropriate govt *SECD ,To frame rules for the purpose of carrying out this ct after the previous publication by notification in official

gazette .@# mon noticeA SEC D>A

Min Wages Act 1948-labour law

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