Professional Documents
Culture Documents
BACKGROUND:
The minimum wages fixing convention was held in Geneva in 1928 .The resolution of convention was embodied in International Labour
Code .The code emphasized the need of statutory minimum wages to 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 Indian Labour Conference after a full debate gave shape to the
Minimum wages Bill which was introduced in the Central Legislative assembly in April 1946 reflected the principle incorporated in the ILO
Convention The Act came into force in March 1948 ..
Scope Of Act :
Act empowers both central and state govt 1.to fix min rates of wages for diff employment listed in schedule to the Act
2. The prescribed is the min wage which employer bound to pay
3.To add any employment to schedule after due notification.
4..to Review of rates fixed at intervals not exceeding 5 yrs.
Imp .Note :
Act provided that wages determination not entirely by the market forces .Therefore employer cant plead his inability
Also the equal application of inclusion both to schedule and non-schedule establishment
*Unichoyi vs. State of Kerala
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Constitutional Validity of Act
The poverty of labourer is also a factor to be considered while determining the question whether a particular provision is in the interest of general
public .
*Sanjit Roy Vs.State Of Rajasthan
Any law which provides for wages less than that under the min wages Act is violative of Article 14 and 23 .So sec 1&2 of the Rajasthan Faminine
Relief works Employee Act 1964 Struck down by SC
Chandrabhanu Boarding &lodging ,Banglore Vs. State of Mysore.
If govt ha power tolower the rates as desired by employers it is also competent to fix a higher rate
Mere change of nomenclature of cost of living index by consumer price index no for working class is only one form and does not affect provision .
4) SCHEDULED EMPLOYMENT - Sec2(g)
Scheduled employment means employment specified in the schedule to the act ,or any process or branch of work forming part of such employment
.
PART I-EMPLOYMENT IN
1.
2.
3.
PART II
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
4.
5.
/horticultural commodities
Raising of live stock , bees /poultry
practice by farmer incidental /conjunction with farm
operation .ie forestry /timbering /preparation for market and
delivery
EMPLOYEE 2(1)
Pvt engineerg contractor workg under govt contract and lorry driver
hired to him is employer of the driver @ agreeable rate.
Under what category a worker fall decided based on job given to him
and not by the label given to him.
6.WAGES -SEC2(h)
WAGES
FAIR WAGE
LIVING WAGE
MINIMUM WAGE
.WAGES : All remuneration ( by way of salary , allowances or otherwise ).-capable of being expressed in money payable to person employed in
LIVING WAGE,
FAIR WAGE,
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 must
provide not only basic needs such as food, shelter and clothing but also condition of frugal comfort estimated by the current human std.
frugal comfort INC- education for children ,protection against ill health ,requirements of essential social needs , insurance against misfortunes like
death ,disability and fire,amusement and expenditure for self development .
Based upon expansion of national economy the contents of term living wages also expand and vary.
Article-43 Provides that state shall ensure to secure all workers living wages+condition ensuring decent std of life &full enjoyment of leisure and
social and cultural opportunities.
FAIR WAGE,
Fair 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 &future prospects of the industry.
Factors into consideration while fixing fair wages
a. The productivity of labour
b. Prevailing rates of payment in similar occupations in same area and neighbouring localities
c. The level of national income and its distribution
d. Place of the industry in the economy of the country
*S.A.F.L.Works Vs.Indutrial court
After determining the paying capacity of the industry the tribunal has to consider the scale of wages and dearness allowance in fixing fair wageSC.
MINIMUM WAGE & STATUTORY MINIMUM WAGE
MINIMUM WAGE (not defined in act )
Provide for the bare subsistence of the worker and his family
This is paid to worker irrespective of capacity of the industry to pay
If the industry cant pay this it cant exist .
It is prescribed by the statute and it may be higher than bare min wages
providing for measure of education ,medical requirement and other
amenities.
Min wages act 1948.
Statutory min wages U/S 4(1)consist of
a. Basic rate of wage +spl allowance(s.a-adjusted @such interval
and manner as govt direct in acc with cost of living index no
applicable to worker.)
b. Basic rate of wage with /w/o cost of living allowance +cash
value of concession with respect of essential commodities
supplied at concessional rate (c.c-compute by competent
authority @ specific intervals)
c. an all inclusive rate .( Basic rate+ cost of living allowance+
cash value of concession)
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Dual objective-while fixing min wage rates
subsistence and maintainence of worker and family
Preserving his efficiency as worker
*T.D.Industries Vs.workmen
SC held that once min wages is fixed for scheduled employment it has t
be paid irrespective of the paying capacity of the industry .
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SEC 3- Empower Approp Govt To Fix Min Wages
Fix :This sec empowers the appropriate govt to fix min rate of wages payable to the employees employed in employment mentioned in
part I and part I I of schedule.
Review: Govt review min rate of wage to fix and revise the min rate at such intervals not exceeding 5 yrs.
Sec3(1-A) Refrain: Approp govt refrain from fixing wages if the number of employees in whole state happened to be less than 1000 in such
employment .
*Ram kumar Mishra Vs. State of Bihar
Sometimes discretionary made for govt to fix min wages in case happenend to be less than 1000.
*Banglore Dress Mfg Vs.Govt Of Karnataka
In fixing the rates the Govt can consider nature , experience , merit and quality of work involving skill of different kind of skilled employees.
Sec 3(2)- Minimum Rate Of Wages-time work
Govt may fix minimum rate of wages for time work i.e.min time rate , minimum rate of wages for piece work i.e.minimum piece rate
.When 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 3(2-A)-Pending Proceeding Not Comprehended In Sec 3 And Min Rate Of Wages Shall Not Apply .
1. where indus.dispute rate of wages payable-pending proceeding
2. where an ward made by authority is inoperation
3. where notification fixing /revising the min rate of wages of scheduled employment issued during pendency of proceeding
*U.p.Cinema Exhibits Vs.State of U.P ; Ajantha textiles Vs.Deputy labour commr .
Sec 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.
b.
c.
d.
SEC 4- Empower Approp Govt To Fix/revise Min Wages in consistency with the factors mentioned therein
i.
ii.
iii.
iv.
;
Chandrabhanu Boarding &lodging ,Banglore Vs. State of Mysore .
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 , financial condition of estd/availablility of the workmen on lower wages.
*Hydro.pvt.ltd Vs.Workmen
The authority is not quasi judicial while fixing min rate of policy and not require court interference in that matter
*Jyothi Home Industries Vs.Karnataka
Appropriate authority in fixing wage final may vary the wage structure from its draft notification.
*Sukumaram vs.State of Tamilnadu
While fixing of min wage for employees of hotels &restaurants govt divided state into 3 zones .in zone A it was challenged as there was clubbing
of municipality&certain corpn with madras corpn .It was held as valid as it is based on rationaland intelligible basis and not arbitrary .
*Stanmore Estate Yarcaud Vs.Labour commissioner , Madras
G.o Notification issued revising min wages for tea and coffee estates in which rate of variation given for every unit of 5 point .As prescribed the
petitioner were paying wages .As the consumer price index came down he started paying as per notification.As per the govt order any change
should not bring about reduction in D.A.This G.O was challenged .It was held that the word to be adjusted /in acc.with contemplate change in both
way and not just increase.
Sec 5-PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES.
2METHODS
1.committee method :Appoint 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 .
2.By notification in the official gazette publish the proposals for the information of persons likely to be affected thereby and specify a date , not
less than two mon from the date of the notification on which date the proposal will be taken into consideration.
If the govt adopts 1st method it shall receive the advice of the committee and all representation , &by notification fix /revise the min rate of wages
which comes into force after 3 mon expiry of notification /as per provided in the notification
If 2nd method the appropriate govt also consult the advisory board .
*Edward Mills Vs.State of Ajmer
Committee 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 Ram vs.State of A.P
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
POWER OF GOVT
a. Not Arbitrary /Unguided
*Mahendra Chandra Vs.State
The power of the govt to specify the min rate of wages does not include power to vary other terms of contract.
*Malayalam Plantation Vs.State of Kerala
Full bench kerala H.C .Held that specifying date is for person who likely to file objection know till what date they have to make it .till that govt
precluded from making decision on draft proposals .However thereis nothing in the statute which requires that govt should consider it on that date
and not thereafter
b. Not quasi judicial
It is a legislative function delegated to the govt by the parliament .The person are not entitled to oral hearing following the filing of objections
/proposals
*Tourist Hotel Vs State of A.P
No contemplation to make oral hearing, or dispose off petition with in specified date.
*U.p.Cinema Exhibits Vs.State of U.P
empowers the appropriate Govt to appoint as many committees and sub-committees as it think fit t hold enquiries and
advice the appropriate govt.in matter of fixing and revising wages in respect of the industries listed in the schedule.
The govt can extend the term of committee after expiry period.
committee Appointed appointed is only advisory body and govt is not bound to accept its recommendations.
Committee without the representation of employers the proposal given by it and notification fixing minimum wages based on it will have
no forceand effect .
The govt can still fix/revise even if no advice/inadequate advice given.
ADVISORY BOARD:SEC7 It empowers the appropriate govt to
Independent persons u/s 9 mean person neither employee nor employer in the employment for which min wage ought to be fixed
State of Rajasthan Vs.Hari Ram Nathnani
Mere fact that person is govt official will not divert him of character of an independent person .
Irregularity In The Consideration Of Advisory Committee Will Vitiate The Order Of Govt Upon Such Recommendations.
*Bijay Cotton Mills Vs .State Of Ajmer
all fn inc(committee,advisory board,central advisory board).Though appropriate govt given all the power it shud take intoconsideration the advice
of the committee and representation if any .It is obligatory on all occasion of revision of min wages
*In Sir Remand Co Vs. TamilNadu ; Town beedi factory Vs Orissa
The composition of committee is that it shud have equal number of employers and employees being represented .In the instance case the complaint
of advisor that the representatives of employers had ceased to fn and since vacant the proceedings of the committee vitiated .It was held that in such
case the govt order if pass will be vitiated.
SEC 11:PAYMENT OF WAGES IN KIND
1.
2.
3.
4.
SEC12 :PAYMENT OF MINIMUM RATE OF WAGES
Employer shud pay wage not less than minimum rate of wageto every employee engaged in scheduled employment in that without deduction .except as may be
authorized with such limit and subj to conditions.
SEC13 :FIXING HRS OF NORMAL WORKING DAY
SEC13(1)appropriate
i.
ii.
iii.
govt
fix hrs of work for normal working day inclusive of one or more specified intervals
Provide 1 day rest to every 7 days work +payment of remuneration for those days for all /any class of employees
Payment on rest days shall not be less than the overtime rate
SEC13(2)- Appln
Working in excess of normal working hrs-to be paid min wages W.R.T overtime under the act-for every hr/ part of hr / under any law by
appropriate govt for time being in force-which ever is higher .
(This does nt affect O.T undersec 59 Factories Act 1948 where rate payable is twice )
SEC15:WAGES OF WORKER WHO WORK LESS THAN NORMAL WORKING DAY
An employee whose min rate of wage has been fixed under the act by the day , works on ady less than the requisite number of working hrs.he shall
receive wages unless
The failure to work is by his unwillingness, and not by omission of employer to provide him work
Insuch other cases &circumstances as may be prescribed
SEC16:WAGES FOR TWO OR MORE CLASSES OF WORK
Where 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
Act empowers state Govt 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
1.
2.
Revenue 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 20(2)
Ajanta Talkies Vs Dy.Labour Commnr ; P.N.Dubey Vs.State Of U.P
1.
2.
3.
4.
Failure to raise objection 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)- Finality to every order being issued .
POWER OF AUTHORITY SEC 20(7)
The Authority shall be deemed to be a civil court for all purposes under sec195 of cpc and shall have powers of civil court and chap 35 of cr.p.c
1898
1. Taking evidence
2. Enforcing attendance of witnesses
3. Compelling the production of document
RECOVERY OF AMOUNT
When it relates to the question of non payment of wages for the work done on Sundays which is referred toindustrial tribunal ,the tribunal cant
allow any addl.payment as penalty under this section .
*State of Gujarat Vs Punjab Tyres
Non compliance of this provison of act should be dealt strictly and deterrent sentence should be imposed
.SEC 22-B :COGNIZANCE OF OFFENCES
22-B(1)- Take cognizance Under sec 22(a)-when appln with the facts constituting such an offence presented Under sec 20 and has been granted in
whole /in part and appropriate govt /officer in behalf has sanctioned the making of complaint .
- Take cognizance Under sec 22(b), Under sec 22-A-when complaint made by or sanctioned of an inspector
22-B(2)- Take cognizance Under sec 22(a) &22(b) when complaint thereof is made with in one mon of grant of sanction under this section.
Take cognizance Under sec 22-A- when complaint thereof is made with in 6 mon of the date on which the offence is alleged to have
been committed .
.SEC 22-C: OFFENCE BY COMPANIES
When offence committed under this Act every person who at the time offence committed was in charge of and responsible to the company for the
conduct of business to the company +company shall be deemed to be guilty of offence =shall be liable to be proceeded against &punished.
SEC 22-C(1)-Not punished if proved
Offence committed w/o his knowledge
Exercised due diligence to prevent commission of offence.
SEC 22-C(1)-punished if proved
Offence committed with consent
It is attributable to any neglect on part of any Director ,mgr,secy /officer of co.,
SEC 22-D:PAYMENT OF UNDISBURSED AMOUNT DUES TO EMPLOYEES
1.Min wages due under this act to the employee
2.otherwise due under this act to the employee
Shall be deposited with authority on A/C of his death or whereabout not being known .
SEC 22-E :PROTECTION AGAINST ATTACHMENT
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-F: APPLICATION OF PAYMENT OF WAGES ACT TO SCHEDULED EMPLOYMENT
SEC 23-EXEMPTION OF EMPLOYER FROM LIABILITY IN CERTAIN CASES
Employer shall file complaint following whichnotice shall be served to actual offender &hearing the charge proceeds.But 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 ,consent /connivance.
Exercised due diligence to prevent commission of offence.
SEC 24-BAR OF SUITS
The amt claimed form subj matter of appln before the authority U/S29N presented by plaintiff or onhis behalf.
The amt claimed form subj of direction U/S 29 in fav of plaintiff
The amt claimed has been adjudged in a proceeding U/S 29 not to be owed to the plaintiff.
The amt claimed could have been recovered by appln U/S 29
Any other court does not have jurisdiction to entertain the suit in respect of claim under sec 20 of the Act
W.R.T .Employee-need not file suit but avail machinery under act to get quick relif
W.R.T .Employer can file suit only when the employee is not governed by the notification under Minimum wages Act
Vimal Printer Vs.Omana
Under sec 24 it bars only institution of suit in civil court .and not tribunals or other authorities.
SEC 25- CONTRACTING OUT PROHIBITED
Any agreement made before or after the commencement of this act , whereby the an employed person relinquished any rights conferred by this act
shall be null and void.Right to
1. 1.Min rate of wages
2. Any privileges or concessions accruing to him under the Act
SEC 26-EXEMPTIONS AND EXCEPTIONS
By notification in gazette by appropriate govt exempts &excepts certain provisons of this act
This does not apply to employees family /members