Minimum Wages Act, 1948

 

The Minimum Wages Act, 1948,

किमान वेतन कायदा, १९४८,

The First Step in the direction of fixing minimum wages was taken in April 1946, when a bill to provide for fixing minimum wages in certain employments wherein sweated labour was most prevalent or where was a big chance of exploitation of labour was introduced in the Central legislative Assembly. The Bill as finally passed by the Dominion Legislature received the assent of the Governor-General on 15^th March 1948 and it come to be known as the Minimum Mages Act, 1948. It was passed to give effect to the resolution passed by the Minimum Wages Fixing Machinery Convention held at Geneva in 1928. The relevant resolution of the convention is embodied in Articles 223 to 233 of the International Labour Code. The Object of these resolutions as stated in Article 224 was to fix minimum wages in industries in which no arrangements exist for the effective regulation of wages by the agreements or otherwise and wages are exceptionally low. [Chapra and Apte, The Minimum Wages Act 1948, (1973) p.1]

            Gazette of India – 1946 at Page No. 224 explains the objective of Act, 1948 as follow- The Justification for statutory fixation of minimum wages is obvious. Such provisions which exist in more advance countries are even more necessary in India, where workers organizations are yet poorly developed and the workers' bargaining power is consequently poor.” 

 Objects – The Minimum Wages Act, 1948 is enacted as a part and parcel of social justice. Article -43 of the constitution [Directive principle of state policy] aims to provide “living wages” to all the workers through the county. As ours is an under developed country all of a sudden we could not get the high-standard of living wage which the western countries are enjoying now. Living wages and wages can be obtained by the employees themselves after getting awareness and collective bargaining due to their trade unionism. However there are some sectors and areas in which the unorganized labour is working keeping their pitiable situation, the parliament enlaced. “Minimum Wages Act, 1948.”

The object of this act is to secure the welfare of the workmen in a competitive market by fixing the minimum limit of wages. Like other branches of labour legislation, the security of industrial peace and efficiency may be kept in view when giving effect to the provisions of this Act.

It is erroneous to think that a judge can decide only according to the general law of the country. He may, if so required by a statute, apply any standard for these decisions, such as fairness and reason rather than the common law [Bhakta Vatsalu Noyuda Vs. The chrome leather, 1951 Mad. 856].

Under This Act following Sections are provided :-  

Section 1 -  Short title and extent

Section 2 -  Interpretation (Definitions)

Section 3 -  Fixing of minimum rates of wages

Section 4 -  Minimum Rate of Wages

Section 5 -  Procedure for fixing and revising minimum wages

Section 6 -  Advisory Committees and sub-committees

Section 7 -  Advisory board

Section 8 -  Central Advisory Board

Section 9 -  Composition of committees

Section 10 - Correction of errors

Section 11 - Wages of kind

Section 12 - Payment of minimum rates of wages

Section 13 - Fixing hours for a normal working day

Section 14 - Overtime wages

Section 15 - Wages of worker who works for less than normal working day

Section 16 - Wages for two or more classes of work

Section 17 - Minimum time rate wages for piece-work

Section 18 - Maintenance of registers and records

Section 19 - Inspectors and their powers

Section 20 - Application for Claim

Section 21 - Single application in respect of a number of employees

Section 22 - Penalties for certain offence

Section 23 - Exemption of employer from liability in certain cases

Section 24 - Bar of suits

Section 25 - Contracting out

Section 26 - Exemptions and Exceptions

Section 27 - Power of State Government to add to schedule

Section 28 - Power of Central Government to give directions

Section 29 - Power of the Central Government to make rules

Section 30 - Power of appropriate Government to make rule

Section 31 - Validation of fixation of certain minimum rates of wages

 short Explanation of sections of Minimum Wages Act. 

            This Act defines Wages Under Section (2) which reads as under –“Wages means all remuneration capable of being expressed in terms of money which would, if the terms of contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes house rent allowance but done not include -  any of value house accommodation, medical attendance, Travelling allowance, Any contribution paid by employer to EPF or EISC, Any Gratuity payable other amenity allowance etc. .

The procedure for fixing minimum wages is laid down Under Section (3) Fixed the minimum rates of wages payable to employees employed in an employment specified in a Part I or Part II of the schedule and in an employment added to either part by notification u/s 27.

Under Section (4) any minimum rates of wages fixed or revised by the appropriate government in respect of schedule employments Under Section (3) may consist of

i)                   a basic of wages and special allowance at a rate to be adjusted at such intervals an in such manner as the appropriate Government may direct to accord as nearly as practicable with the variation in the cost of living Index Number applicable to such workers (Cost of living allowance) ,or

ii)                 The basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession in respect of essential commodities at concession rate, where so authorised, OR

iii)               An all inclusive rate allowing for the basic rates the cost of living allowance and the cash value of concessions if any. 

The cost of Living allowance and the cash value of concession in respect of supplies rate shall be computed by the competent authority at such intervals and in accordance with such a directions as may be specified or given by the appropriate Government.

Before going for the procedure of fixing of minimum wages rate following practical points are to be considered -

i)                   A basic rate of wages and special allowance at the rate to be adjusted with changing cost of living I. e. cost of living allowance or,

ii)                 A rate of wages with or without cost of living allowance and cash value of concession in respect of supplies of essential commodities, where so authorised or,

iii)               An all inclusive rate allowing for the basic, rate, cost of living allowance and cash value of concession if any

The following considerations are not relevant in fixing the rate of wages –

a)      The fact that an employer may find it difficult to carry on his business on the basis of minimum wages.

b)     The financial capacity of employer.

c)      The fact that the employer has incurred losses during the previous year.

d)     Employer’s difficulties in importing raw materials and,

e)      The region-cum-industry principles.

These are the elements in fixation of minimum rates of wages or revision of minimum rate of wages by the appropriate government in respect of scheduled employment Under Section (5) which consist following three components –

1)       The basic rate of wages and special allowances which are adjusted by appropriate government, at such intervals with the variation in the cost-of-living index number.

2)      The basic rate of wages with or without the cost of living allowance and cash value of concessions rates.

3)      All Inclusive rate following for the basic rate, the cost-of-living allowances and the cash value of the concession. Procedure for fixing and revising minimum wages.

 

Under Section (6) of the act Advisory Committees and sub-committees - Repealed by the Minimum Wages (Amendment) Act, 1957 (30 of 1957), section 5 (w.e.f 19-9-1957).]  Under Section (7) Advisory Board. - (1) For the purpose of coordinating the work of and advising the appropriate Government, generally in the matter of fixing and revising minimum rates of wages, the appropriate Government shall appoint an Advisory Board. and as per U/s 8 Central Advisory Board.- (1) For the purpose of advising the Central and 2[State Governments] in the matters of the fixation and revision of minimum rates of wages and other matters under this Act and for co-ordinating the work of the Advisory Boards, the Central Government shall appoint a Central Advisory Board. (2) The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman of the Board by the Central Government.

As per U/s 11 Wages in kind are explain as follow (1) Minimum wages payable under the Act shall be paid in cash. (2) Where it has been the custom to pay wages wholly or partly in kind, the appropriate Government being of the opinion that it is necessary in the circumstances of the case may, by notification in the Official Gazette, authorise the payment of minimum wages either wholly or partly in kind. (3) If the appropriate Government is of the opinion that provisions should be made for the supply of essential commodities at concessional rates, the appropriate Government may, by notification in the Official Gazette, authorise the provision of such supplies at concessional rates. (4) The cash value of wages in kind and of concessions in respect of supplies of essential commodities at concessional rates authorised under sub-sections (2) and (3) shall be estimated in the prescribed manner.

 

Act given Remedy available to the workers who has been paid less than Minimum Wages. Under Section (12) of the Act provides that employer is bound to pay least Minimum Wages rates of wages to his employee of scheduled employment. Thus the Act prohibits the wages at the rate less then minimum rate fixed is respect of that employment.

Under Section (19) provides that the appropriate government may be notification in official Gazette, appoint such persons as it thinks fit to be inspectors for the purpose of this Act and define the local limits within which they shall exercise their functions.

For implementation of the act, the post of inspector is essential. The wages inspector is appointed as per the provisions of the act and it is his primary duty to see that minimum wages are paid to workers, including the out-workers and he has sufficient powers.

Under Section (20) provides that the aggrieved person who has been paid less than the minimum rate of wages can make an application to the authority within a period of six month from the date on which the amount become due for payment. The application may be accepted even after 6 months if sufficient ground exists for such day. and Under Section (21) Single application in respect of a number of employees acceptable  

Under Sections (22) if any employer has pay to any employee less than the minimum wages under the provisions of this Act or in contravention or violation of any rule or order shall be punishable with the imprisonment for a term which may extends to six months or fine up to Rs. 500/- or both

the fixing of minimum rate of wages as said under section (3) is only in respect of employees employed in any employment specified in Part I and Part II of schedule and this list is amended by Govt. as per Power under section 27

We shall see detritions of schedule employment Under Section 2 (9)

Schedule Employment – These terms is defined under Section 2 (9) of the minimum wages act. The Schedule Employment means an employment specified in the schedule. the schedule (see Section 2 (9) and 27.)

Part - I

1)       Employment in any woollen carpet making or shawl weaving establishment.

2)      Employment in any rice mill, flour mill or dal mill

3)      Employment in Tobacco (Including BIDI Making) manufactory.

4)     Employment in any plantation i.e. any estate which is maintained for the purpose of growing (sincona, Rubber, Tea or Coffee)

5)      Employment in any oil mill.

6)     Employment under local authority.

7)      Employment on the construction or maintenance of roads or in building operations.  

8)     Employment in stone breaking or stone srushing.

9)     Employment in lac manufactory

10)   Employment in public motor transport

11)    Employment in Mica works

12)   Employment in Tanneries and leather manufactory

13)   Employment in Loading and unloading in railway, goods, sheds dock and port inserted in 1983.

Complete list not given, list is modified by Government from time to time (Section 27)

Part - II

1.        Employment in agriculture including any forms of farming cultivations and tillage of soil, dairy farming, the production cultivation, growing and harvesting of any agriculture or horticulture commodity, the raising of live stock, bees or poultry and any practice performed by a farmer  on a farm as incidental to or in conjunction with farm preparations including any forestry or timbering oprations and the preparations for market and delivery to storage or to market or to carriage for transportation to market of farm produce.

2.       Employment in cleaning and sorting onions and other incidental works.

The terms “Scheduled Employment” covers any process or branch of work which forms part of employment specified in the schedule.

Under sections (27), The appropriate Govt. after giving by notification in the official Gazette not less than three months notice of its intention to do, may be like notification, add to either part of the schedule any employment in respect of which it is of opinion that minimum rates of wages.

 for the same under section (28) to (30) appropriate Govt. power to make rules and given direction of both I. e. State Govt. and Central Govt.

 as per under section (31) Validation of fixation of certain minimum rates of wages minimum rates of wages have been fixed by an appropriate Government as being payable to employees employed in any employment specified in the Schedule in the belief or purported belief that such rates were being fixed under clause (a) of sub- section (1) of section 3 as in force immediately before the commencement of the Minimum Wages (Amendment) Act, 1954 (26 of 1954), or the Minimum Wages (Amendment) Act, 1957 (30 of 1957), or the Minimum Wages (Amendment) Act, 1961 (31 of 1961), as the case may be, such rates shall be deemed to have been fixed in accordance with law and shall not be called in question in any Court on the ground merely that the relevant date specified for the purpose in that clause had expired at the time the rates were fixed:

This article offers a brief and easy-to-understand overview of the Minimum Wages Act, 1948. It is especially helpful for students preparing for Labour Law subjects, MPSC, and UPSC examinations, as well as business owners and employers who engage workers in various scheduled employments. The content provides essential highlights of the Act in a simplified manner. For those seeking deeper insights or notes in Marathi, you are welcome