212255079 Wage Fixation Under Minimum Wages Act
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grt labour law...
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
PROJECT REPORT ON: FIXATION OF WAGES UNDER MINIMUM WAGES ACT 1948
TABLE OF CONTENTS
ACKNOWLEDGEMENT ……………………………..………………....………….3 RESEARCH METHODOLOGY……………………………………..…………. METHODOLOGY……………………………………..…………..…4 .…4 INTRODUCTION................. INTRODUCTION..... ........................ ........................ ....................... ...........…….…….…….. …….…….…….. ……………… WAGE STRUCTURE AND ITS COMPONENTS................. COMPONENTS..... ........................ ....................... ....................! .........! FIXATION
OF
WAGES........................................................................................ .....1" FIXING
AND
RE#ISING
OF
MINIMUM
WAGES............................................14 CONCLUSION………………………………………………………………...…….18 $I$LIOGRAPHY……………………………………………………...………..…...19
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
RESEARCH METHODOLOGY
The Objective of this project is to examine the concept of Fixation of Wages under the Minimum Wages Act 1948 This !octrina" research is descriptive and ana"#tica" in nature $econdar# and %"ectronic resources have been "arge"# used to gather information and data about the topic &oo's and other reference as guided b# Facu"t# of (abour (a) have been primari"# he"pfu" in giving this project a firm structure Websites* dictionaries and artic"es have a"so been referred Footnotes have been provided )herever needed* either to ac'no)"edge the source or to point to a particu"ar provision of "a) +niform citation has been fo""o)ed
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
INTRODUCTION The minimum )ages Act defines )ages under $ection , -h.* )hich reads as under/ 0Wages means a"" remuneration* capab"e of being expressed in terms of mone#* )hich )ou"d be* in terms of contract of emp"o#ment* express or imp"ied )ere fu"fi""ed* be pa#ab"e to a person emp"o#ed in respect of his emp"o#ment or of )or' done in such emp"o#ment and inc"udes house rent a""o)ance but does not inc"ude 22 -i.
the va"ue of a. an# house accommodation* supp"# of "ight* )ater* medica" attendance 3 or b. an# other amenit# or an# service exc"uded b# genera" or specific order of the
-ii.
appropriate government3 an# contribution paid b# the emp"o#er to an# pension funds or provident fund or an#
-iii. -iv.
other scheme of socia" insurance3 an# trave""ing a""o)ance or the va"ue of an# trave""ing concession3 an# sum paid to the person emp"o#ed to defra# specia" expenses entai"ed on him b#
-v.
the nature of his emp"o#ment3 or an# gratuit# pa#ab"e on discharge
The ana"#sis of this section indicates that the fo""o)ing re5uirements are necessar# for )ages22 1. )ages inc"ude a"" remuneration paid to an emp"o#ee inc"uding house rent a""o)ance3 ,. )ages must be capab"e of being expressed in terms of mone#3 6. )ages become due )hen there is a contract bet)een emp"o#er and emp"o#ee 7o)ever* the contract ma# be expressed or imp"ied3 4. the terms and conditions of the contract must be fu"fi""ed* or he must have done )or' assigned to him under such emp"o#ment
The term )ages has a composite meaning* )hich inc"udes a"" remuneration and other pa#ments pa#ab"e to an emp"o#ee* )hich are not express"# exc"uded b# the provisions of the Act
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
WAGE STRUCTURE & ITS COMPONENTS &road"# spea'ing the )age structure can be divided into three categories : The basic minimum )age )hich provides bare subsistence and is at povert# "ine "eve"* a "itt"e above is the fair )age and fina""# the "iving )age )hich comes at a comfort "eve" ;t is not possib"e to demarcate these "eve"s of )age structure )ith an# precision 8 $< 1116
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
the basic rate of )ages The a""o)ance is fixed b# the Eovernment to accord as near"# as practicab"e )ith the variation in the cost of "iving index number app"icab"e to such )or'ers $o far as the provisions of the act re"ating to the minimum )ages and specia" a""o)ances are concerned the# are fixed )ithout an# reference to the pa#ing capacit# of the emp"o#er* but )hen a dearness a""o)ance is fixed as a part of the fair )age* it )i"" have to depend upon the pa#ing capacit# of the emp"o#er ;t has been he"d though the dearness a""o)ance is given to compensate for the rise of the cost of "iving* cent per cent neutra"isation is not given as it ma# tend to inf"ation ;n 6yothi %ome !ndustries v. tate of Karnataka*16 the 5uestion for consideration )as )hether the appropriate government can fix guaranteed remuneration under this Act* for the da# on )hich the emp"o#er in unab"e to give the )or' ;t )as he"d that the appropriate government under $ection 6 can fix minimum )ages for hours actua""# )or'ed b# the emp"o#ee and if he is not in the position to fu"fi" his part of the contracts on account of the facts that the emp"o#er does not offer him necessar# ra) materia"s re5uired for his job* he )ou"d be entit"ed to remuneration under $ection 6-,.-c. This vie) is supported b# the other provisions "i'e section 16 and ,D of the Act a"so Thus the Eovernment can fix guaranteed remuneration
13 -1986. 1 ((B ,D1 -Jarnata'a.
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
FI.ING AND REISING OF MINIMUM WAGES/ I++e0e1!nt ,ons")e+!t"ons "n "2!t"on o m"n"m#m $!%es/
The fo""o)ing considerations are not re"evant in fixation of )ages2 a. The fact that an emp"o#er ma# find it difficu"t to carr# on his business on the basis of b. c. d. e.
minimum )ages14 The financia" capacit# of the emp"o#ee ie* his capacit# to pa#1@ The fact of the emp"o#er2compan# having incurred "osses during the previous #ears %mp"o#ers difficu"ties in importing ra) materia"s and The region cum industr# princip"es
7o)ever* in fixing fair )ages the financia" capacit# of the emp"o#er and the )ages sca"e prevai"ing in the comparab"e industries in the region are some of the re"evant considerations1? Minimum )ages must be paid irrespective of the extent of the profits* the financia" condition of the estab"ishment or the avai"abi"it# of )or'men* on "o)er )ages 1> The minimum )ages are independent of the 'ind of industr# and app"ies to a"" a"i'e* big or sma"" ;t sets the "o)est "imit be"o) )hich )ages cannot be a""o)ed to sin' in a"" humanit# PROCEDURE
$ection @ "a#s do)n that in fixing minimum rates of )ages in respect of an# schedu"ed emp"o#ment for the first time under this Act or in revising minimum rates of )ages so fixed* the appropriate Eovernment sha"" either
14 $upra 11
15 angam )ress v. Workmen A;= 19?9 $< ,D6@
16 $upra 14
17 $upra 1
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
a. Appoint as man# committees and sub2 committees as it considers necessar# to ho"d en5uiries and advise it in respect of such fixation or revision* as the case ma# be3 or b. &# notification in the Officia" Eaette* pub"ish its proposa"s for the information of the persons "i'e"# to be affected thereb# and specif# a date not "ess than t)o months from the date of the notification on )hich the proposa"s )i"" be ta'en in consideration After considering the advice of the committees appointed* and a"" representations received b# it before the date specified in the gaette notification* the appropriate government ma# b# notification in the Officia" Eaette* fix or revise the minimum )ages in respect of the each schedu"ed emp"o#ment* )hich sha"" come into force after the expir# of three months un"ess other)ise provided in the notification When the appropriate Eovernment proposes to revise the minimum rates of )ages* b# the mode specified in section @-1. -b.* the appropriate government sha"" consu"t the advisor# board a"so ;f the advisor# board approves the notification* regarding revision of )ages )ithout discussing the objections made* the action of the board )ou"d be arbitrar# because it amounts to non2app"ication of mind in granting approva"18 The exercise of po)er to fix or revise the minimum )ages under sub2section -,. of section @ is "imited to emp"o#ment specified in the schedu"e +nder $ection ,> of the Act* the appropriate government ma# add an# emp"o#ment to the schedu"e The nature and extent of the po)er of the appropriate Eovernment under $ection ,> and $ection @ -,. is separate and distinct and )hat can be done b# the appropriate government in exercise of its po)er under $ection ,> cannot be done b# it in exercise of its po)ers under $ection @ -,. of the Act 19 The po)er conferred upon the appropriate Eovernment under $ection @-1. is neither arbitrar# nor unguided Therefore* sub2section -1. does not offend Artic"e of the D $< ,D4,
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
for* )hat a"one is germane* is* the )age re5uired b# the emp"o#ees to survive ,1 The fixation of )ages depend upon the prevai"ing economic conditions* the cost of "iving in a p"ace* the nature of the )or' to be performed and the conditions in )hich the )or' is performed Where a notification is issued b# the Eovernment authorising the emp"o#er to deduct the sum mentioned in the notification to)ards the cost of free mea"s supp"ied to the )or'ers b# him* it )as he"d that the notification gives on"# an option to the emp"o#er and does not impose an ob"igation upon him ,, ;n Muruga %ome !ndustries v. 4overnment of Tamil 5adu 0 Anr ,6 minimum )ages of beedi2 )or'ers )ere revised b# the $tate Eovernment revised b# the $tate Eovernment b# a notification issued after consu"tation )ith the Advisor# &oard ;t )as the notification fixing minimum )ages shou"d not be interfered )ith in )rit proceedings except on most substantia" grounds Advisor# &oard is )e"" ba"anced since representation is given to emp"o#ers and emp"o#ees Wor' in &eedi industr# is unorganised sector and condition of )or' and )ages of beedi )or'ers are be"o) subsistence "eve" and minimum )ages fixed is fair and just and not arbitrar# ;n 5orth Bihar 1hamber of 1ommerce and !ndustries, Mu88affarpur and others v. tate of Bihar and others*,4 a notification )as issued revising the minimum rates of )ages on the advice of the Advisor# &oard ;t )as contended that the composition of the Advisor# &oard )as defective The revised rates of minimum )ages )ere impugned in these petitions !ismissing the petitions the 7igh -&om.
22 $upra ,D
23 -199?. ; ((B @98 -Madras.
24 -,DD,. ; ((B 488 -Iat.
25 -,DD,. ;;; ((B ?,6 -AI
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FI XAT I ON OFWAGESUNDER MI NI MUM WAGESACT1 9 4 8
revision of minimum )ages in 7ote" industr# under $ection @-,. of the Minimum Wages Act* 1948 On October 1>* ,DDD the Eovernment of Andhra Iradesh in consu"tation )ith the $tate Advisor# &oard issued another EO revising the minimum )ages in exercise of po)ers conferred b# $ections 6-1. and @-,. of the Act in 7ote"s and =estaurants etc &eing aggrieved b# the said notification the petitioner association fi"ed the present )rit petition !ismissing the appea" the 7igh
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