Minimum wages act,1948

Minimum Wages Act,1948

1. Minimum Wages Act,1948 By: Himani Soni

2. Introduction Minimum wage is the one which provides not merely for bare sustenance of life, but also the preservations of the efficiency of the worker. The minimum wage fixing machinery convention was held at Geneva during 1928 and the resolution of that was embodied in articles 223 to 228 of the international labour code to represent fixation of minimum wages in the case of trades or parts of trades where such bonds are absent or wages are exceptionally low.

3. Introduction The aim of these act is to prevent exploitation of labour in industries. This act does not define the concept of minimum wages but empowers the central government as well as state governments to fix minimum wages from time to time.

4. Definitions Adolescent[Section 2(a)]:‘ Adolescent’ means a person who has completed his 14 th year of age but has not completed his 18 th year. Adult[Section 2(aa)]:‘ Adult’ means a person who has completed his 18 th year of age. Appropriate Government[ Section 2(b) ]: ( i) Any scheduled employment carried on by or under the authority of the Central Government or a railway administration, or in relation to a mine, oilfield or major port, or any corporation established by a Central Act, (ii) in relation to any other scheduled employment, the State Government

5. Definitions Child[Section 2(bb)]: "child" means a person who has not completed his fourteenth year of age. Competent authority[section 2(c)]: "competent authority" means the authority appointed by the appropriate Government by notification in its Official Gazette to ascertain from time to time the cost of living index number applicable to the employees employed in the scheduled employments specified in such notification.

6. Definitions Employe r means any person who employs one or more employees in any schedule of employment. Wages means all remuneration capable of being expressed in terms of money. Employee means any person employed for hire or reward and includes an out worker.

7. Objectives of the Act. To provide minimum wages for scheduled employments. To provide for maximum daily working hours, weekly rest and overtime. To promote the welfare of workers by fixing minimum rates of wages in certain industries where labour is not organised and sweated labour is most prevalent. To prevent exploitation of workers by ensuring that they are paid the minimum wages, which would provide for their subsistence and preserve their efficiency.

8. Fixing of minimum rates of wages (Sec-3 ) The appropriate Government. FIXATION AND REVISION OF MINIMUM WAGES Shall fix minimum rates of wages for an employment specified in Part I or Part II of Schedule & added by notification in official gazette. May fix rates for a part of the state or for any specific class or classes instead of fixing minimum rate of wages for whole state. Shall review and revise at intervals not exceeding 5 years the minimum rates of wages.

9. Minimum time rates [Section-3(2)] A minimum time rate A minimum piece rate A Guaranteed rate A Over time rate

10. Different minimum rates [sec.-3(3)] It may be fixed by any one or more the following wages period, By the Hour By the Day By the Month By such other larger wage period As may be prescribed and where such rates are fixed by the day or by the month the manner of calculating wages for a month or for a day, as the case may be indicated

11. Minimum rates of wages (sec.-4) Basic + Special allowance (Which varies with the cost of living index). Basic + Cash value of concessional supply of materials like food, clothes, etc. An all inclusive rate which includes Basic + Cost of living allowances + Cash values of Concessional supply of material.

12. Fixing minimum rates of wages [Sec.-5] Publish its proposals in the official gazette asking comments from the affected parties. Constitute committees/ sub committees for the purpose. The committees/sub-committees and advisory boards constituted by the Government consist of equal number of member of: Employers Employees and Independent persons.

13. Fixation of minimum wages

14. Advisory Board[Sec.-7] Appointed by appropriate government. To co-ordinate the work of committees and sub committees appointed under section 5.

15. Central Advisory Board [Section 8] To advise the central and state Governments in fixation and revision of minimum rates of wages. To co-ordinate the work of the advisory boards.

16. Composition of Committees, etc.[Section 9] Each of the committee, sub-committee and the advisory board shall consist of: a. Persons to be nominated by the appropriate government. b. Representing the employers and employees in the scheduled employments who shall be equal in number and c. Independent persons not exceeding one-third of its total number of members: one of such independent persons shall be appointed the chairman by the appropriate government.

17. Correction of Errors [ Sec.-10] By appropriate government at any time. By notification in the official gazette. Correct clerical or arithmetical mistakes or errors arising from and accidental slip or omission . Every such notification shall be placed before the advisory board for information.

18. Wages in Kind [Secction-11] Minimum wages shall be paid in cash. The appropriate government may authorize, where there has been a custom of payment of minimum wages either wholly or partly in kind. The appropriate government may authorize supply of essential commodities at concessional rates .

19. Payment Of Minimum Rate Of Wages[section 12] The minimum wages has to be paid without any deductions other than statutory deductions. Payment of wages less the minimum wages on the ground of less performance or outputs is illegal.

20. Normal working hours[sec. 13] For and adult worker working in factories: Number of working hours should not exceed 48 hours in a week with a weekly holiday. The daily hours should not exceed more than 9 hours with 1 hour rest interval. Provision of compensatory holiday/overtime wages if working on holiday.

21. Overtime wages [Section 14] If the person has worked for more than 48 hours in a week then, the excess hours worked will be treated as overtime. Overtime wage rate will be twice of the normal wage rate.

22. Wages for a person who has worked less than normal working hours [Section 15] Employer could not provide the activities of the job then, the employee is entitled to receive full salary. Employee has not worked due to his unwillingness then, the employee is not entitled to receive full salary.

23. Wages for two or more classes of work [Sec.-16] Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable. The employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.

24. Minimum time rate wages for piece work [Section-17] Where an employee employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this act. The employer shall pay to such employee wages at not less than the minimum time rate.

25. Records to be maintained [Section 18] The registers should contain the following particulars- Particulars of employed persons The work performed by them The wages paid to them He receipts given by them

26. Claims [Section 20] A labour commissioner or any other appointed authority is authorized to hear claims regarding non-payment of minimum wages. Any aggrieved person may apply to the authority for setting his claims within 6 months.

27. Penalties [Section 22] Offence: Payment of less than minimum w ages to employee. Punishment: Imprisonment which may extend up to 6 months or fine which may extend up to ₹ 500/- or Both.