Chapter 5(B) Minimum Wages Act, 1948 – CS Professional Labour Laws and Practice Notes is designed strictly as per the latest syllabus and exam pattern.
Minimum Wages Act, 1948 – CS Professional Labour Laws and Practice Study Material
Question 1.
Write short notes on the following:
‘Methods of fixing and revising minimum rates of wages’ under the Minimum Wages Act, 1948. (June 2009, 5 marks)
Answer:
According to Minimum Wages Act, 1948, method for fixing the minimum wages can be as follows
Committee method:
Under the committee method the appropriate government appoint committees & sub – committees. After considering the advise of the committee the appropriate Government shall fix or revise the minimum wages by official notification in the official Gazette. It is important to note that the government is not bound to accept the recommendations given by the committee.
Notification Method:
Under the notification method, the appropriate Government shall, by notification, in the official gazette publish the proposals for minimum rates of wages & give a date not less than 2 months from the date of notification, on which the persons so affected by the rates of wages may give their representation. After considering the representation from the various groups, government will prescribe the minimum rates of wages.
Thus there are two methods for fixing or revising the minimum wages i.e. committee method & notification method.
Question 2.
Write short notes on the following:
‘Manner of fixation and revision of minimum wages’ under the Minimum Wages Act, 1948. (Dec 2009, 5 marks)
Question 3.
Write short notes on the following:
Procedure for fixing and revising minimum wages under the Minimum Wages Act, 1948. (Dec 2010, 5 marks)
Answer:
- Minimum wages under the Minimum Wages Act, 1948 may be fixed in accordance with section 3(2) as:-
- Time work
- Piece work
- Guaranteed time rate
- Overtime rate
- Minimum wages under the Act may be fixed in accordance with section 3(3) as:
- Different scheduled employments
- Different classes of work
- On the basis of adults, adolescents, etc
According to Minimum Wages Act, 1948, method for fixing the minimum wages can be as follows:
Committee method:
Under the committee method the appropriate government appoint committees & sub – committees. After considering the advise of the committee the appropriate Government shall fix or revise the minimum wages by official notification in the official Gazette. It is important to note that the government is not bound to accept the recommendations given by the committee.
Notification Method:
Under the notification method, the appropriate Government shall, by notification, in the official gazette publish the proposals for minimum rates of wages & give a date not less than 2 months from the date of notification, on which the persons so affected by the rates of wages may give their representation. After considering the representation from the various groups, government will prescribe the minimum rates of wages.
Thus there are two methods for fixing or revising the minimum wages i.e. committee method & notification method.
Question 4.
Write short notes on the following:
Object and scope of the Minimum Wages Act, 1948. (June 2011, 5 marks)
Answer:
- Minimum Wages Act, 1948 was passed in 1948 with the objective to prevent the exploitation of labour & prescribe the minimum wages for the employees in certain employments specified in the schedule of the Act
- The minimum wages Act, 1948 extends to whole of India.
Question 5.
Distinguish between the following:
‘Committee method’ and ‘notification method’ for the fixation of minimum wages under the Minimum Wages Act, 1948. (Dec 2011, 5 marks)
Question 6.
Distinguish between the following:
‘Minimum wages’ and ‘fixation of the minimum rates of wages’ under the Minimum Wages Act, 1948. (June 2012, 5 marks)
Answer:
Minimum Wages:
- It is a bed rock minimum which must be paid in any case to the worker.
- Minimum wages is the lowest limit below which no worker should be paid.
- Industry which cannot pay the minimum wages to its workers should shut down. Fixation of Minimum Wages.
Question 7.
Attempt the following stating relevant legal provisions and decided case law, if any: (June 2010)
(i) An out-worker prepared goods at his residence and later on supplied these goods to the employer. Will he be treated as an employee under the Minimum Wages Act, 1948? (4 marks)
(ii) A company was running into losses and was unable to pay the minimum rates of wages to its workers. The workers pleaded that the employer must pay them the minimum rates of wages. The employer (company) intends to go to the court challenging the constitutional validity of the Minimum Wages Act, 1948. Will the company succeed? (4 marks)
Answer:
(i) Yes, the out worker who prepares good at his residence and later on supplies such goods to the employer shall also be held as an employee as per the Minimum Wages Act, 1948.
The same find its supporting from the judgement of Loknath Nathu Lai v. State of Madhya Pradesh.
(ii) No. the company will not succeed. Even if the company is running into losses and finds itself unable to pay the minimum wages, the provisions of Minimum Wages Act, 1948 needs to be adhered, to. Mere paucity of funds or poor economic condition serves as no ground to challenge the constitutional validity of the Act.
Question 8.
Whether minimum rates fixed by the Government is to be paid in cash or in kind?
Answer:
- According to Section 11 of the Minimum Wages Act, 1948, minimum rates fixed by the Government is to be paid in cash.
- But where it is a custom to pay the wages to employees/ workers in kind, then the minimum wages fixed under the Act may be paid in kind. The appropriate Government will authorise such payment.
Question 9.
Is prescribing minimum wages by Government constitutionally valid?
Answer:
The constitutional validity of Section 3 was challenged in Bijoy Cotton Mills v. State of Ajmer.
The Supreme Court held that the restrictions imposed upon the freedom of contract by the fixation of minimum rate of wages, though they interfere to some extent with freedom of trade or business guarantee under Article 19(1 )(g) of the Constitution, are not unreasonable and being imposed and in the interest of general public and with a view to carrying out one of the Directive Principles of the State Policy (Article 43)
Question 10.
If the appropriate Government does not revise the minimum wages fixed by it for 8 years violate the provisions of the Act?
Answer:
- According to Section 3(1 )(b) of the Minimum Wages Act, 1948 Appropriate Government may review the minimum wages at such intervals as it may thinks fit, such intervals not exceeding 5 years.
- Thus if the appropriate Government has not fixed the minimum wages for the last 8 years the appropriate Government has violated the provisions of the Act.
- The various provisions of the contract labour (Registration and Abolition) Act, 1970 with regards to registration of establishments employing contract labour and those relating to licensing of contractors are as follows:
- Section 6 of the Act gives power to the Appropriate Government for:
- Appointment of registering officer
- Prescribe powers of the officers Exercisable by them
- Section 7 requires for registration of such establishment which wishes to engage 20 or more contract, labourers.
- Application has to be made by the principal employer of the concerned establishment to the registering officer in
- prescribed manner
- definite time frame
- registration fee
- Section 8 describes the circumstance under which registration can be revoked:
- Where registration was obtained by suppression or misrepresentation of material fact.
- Where registration has become ineffective or useless
- Section 9 provides for the effect of non registration, being non eligibility for appointment of contract labour Provisions relating to licensing of contracts are as follows:
- Section 11 of the Act gives Appropriate government the power to:
- Appoint licensing officers
- prescribe their jurisdictional limits
- Section 12 requires for Licensing of contractor who want to get work executed by contract labour.
- An application has to be made to the licensing officer for grant of licence in prescribed manner along with requisite fee.
- Section 13 Provides for the grant of licence subject to a definite validity period after the expiry of which it needs to be renewed.
- Section 14 deals with the two circumstances in which the licence stands revoked :
- where licence was obtained by suppression or misrepresentation of material facts.
- Licence holder has contravened with the provisions of the Act
- Section 15 deals with the provisions relating to appeals where by aggrieved person may Appeal to the appellate to officer within 30 days.
Minimum Wages Act, 1948 Notes
Applicability & Objective of the Minimum Wages Act, 1948
- Minimum Wages Act was passed in 1948.
- The Act extends to whole of India.
- Objective of the Act was to prevent the exploitation of labour & prescribe the minimum wages for the employees in certain employment.
Who is an Employee
Employee means any person who is employed for:
- hire or reward to do any work
- skilled or unskilled
- manual or clerical
in a scheduled employment in respect of which minimum rates of wages have been fixed
Includes:
- An out-worker to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed.
- Employee declared to be an employee by the appropriate Government; Excludes:
- Member of the Armed Forces.
What is meant by the term Wages
Wages means all remuneration, capable of being expressed in terms of money, which would be payable to a person employed in respect of his employment in case the terms of the contract of employment were fulfilled. Includes-
- House rent allowance Excludes-
- Any house-accommodation, supply of light, water, medical attendance
- Any other amenity or any service excluded by appropriate Government
- Any contribution paid by the employer to any PF
- Any travelling allowance
- Any sum paid to the person employed to defray special expenses
- Any gratuity payable on discharge
Who fixes the minimum rates of wages
- The Appropriate Government has to fix the minimum rates of wages payable to employees employed in an employment.
- The appropriate Government shall review the minimum rates so fixed at such intervals as it may think fit, such intervals not exceeding 5 years and revise the minimum rate of wages, if necessary.
The manner of fixation of minimum rates of wages
Minimum wages under the minimum Wages Act, 1948 may be fixed as:
- Time work
- Piece work
- Guaranteed time rate
- Overtime rate
Apart from the aforesaid manner, it can also be fixed as follows:
- Different scheduled employments
- Different classes of work
- On the basis of adults, adolescents, etc.
Procedure for Fixing and revising Minimum Wages
There are two methods, the appropriate Government may follow in fixing minimum rate of wages:
Committee Method
- Under the committee method the appropriate government appoint committees & sub-committees.
- After considering the advise of the committee, the appropriate Government shall fix or revise the minimum wages by official notification in the official Gazette.
- Government is not bound to accept the recommendations given by the committee.
Notification Method
- The Appropriate Government to fix the minimum rates of wages payable to Under the notification method, the appropriate Government by notification in the Official Gazette publish the proposals for minimum rates of wages.
- From a date not less than 2 months from the date of notification. The persons so affected by the rates of wages may give their representation.
- After considering the representation from the various groups, government will prescribe the minimum rates of wages.