Min Wages Act 1948-labour law

MINIMUM WAGES ACT 1948 BACKGR BAC KGROUN OUND D:

The minimum wages fixing convention was held in Geneva in 1928 .The resolution of convention was embodied in International Labour Coe .The code emphasized the need of statutor! "ini"u" #a$es to protect the workers against the exploitation by the employers.whitely employers.whitely commission studied minimum wages in thelight of various convention of ILO. Though many committees committees considered the question of minimum wages finally the Inian Labour Con%erence  after a full debate gave shape to the Mini"u" #a$es &ill which was introduced in the Central Le$islative asse"bl! in A'ril 194( reflected the principle incorporated in the IL) Convention The ct came into force in Marc* 1948 .. Scope Sco pe Of O f Act Ac t

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ct empowers both central and state govt !.to fix min rates of wages for diff employment listed in schedule to the ct ". The prescribed is the min wage which employer bound to pay #.To add any employment to schedule after due notification. $..to %eview of rates fixed at intervals not exceeding & yrs. I"' +Note ,  ct provided that wages determination not entirely by the market forces .Therefore employer cant plead his inability  lso the equal application of inclusion both to schedule and non'schedule establishment establishment *Unichoyi vs. State of Kerala

 ((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((  ((((((((((((((((((((((((((((((((( (((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((( ((((((((((((((((((((((((((((((((((((((((((((((  (((((((  Constitutional Valiity of Act

-Bi!ay Cotton "ills Vs .State Of A!#er )hallenged * It violates fun.ri+ U.A+19/10/$0freedom of Trade Trade and goes beyond the reasonable restriction envisaged envisaged U.A+19/(0.SC held it to be valid and the act envisaged to to fulfill the constitutional mandate in ,I%.-rin of state policy / $# .It is absolutely essential to impose restriction upon the freedom of contractof the employer 0fixg min wage is reasonable regulation which constitution permits. permits.  The fact that employer mi+ find difficult to run a business is irrelevant consideration and not sufficient reason to strike down law itself. *$yro.pvt.lt *$yro.pvt.lt Vs.%or&#en Vs.%or&#en

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 . *San!it Roy Vs.State Of Ra!asthan

ny law which provides for wages less than that under the min wages ct is violative of rticle !$ and "# .1o sec !0" of the %a2asthan 3aminine %elief works 4mployee ct !56$ 1truck down by SC Chanra'hanu Boarin( )lo(in( Ban(lore Ban(lore Vs. State of "ysore.

If govt ha power tolower the rates as desired by employers it is also competent to fix a higher rate

Sai l entFeat ur esofAct 1+i3ation of min time rate of , wages 7 min piece rate 7 guarantee time rate 0overtime rate *for diff occupation7 localities /class of work and adults7 adolescents7children7 apprentices 2+Min rate o% #a$es  consist of  ,  , 8asic rate of wage 9cost of living allowance:8asic allowance:8asic rate of wage with /w/o cost of living allowance 9cash value of concession with respect of essential commodities supplied at concessional rate : an all inclusive rate . +5a!"ent o% "in #a$e , In cash under ct ct and govt can decide in kind in particular particular cases . cost of living allowance allowance 9cash value of concession concession with respect of essential commodities supplied at concessional rate by competent authority by certain levels. 4+i3, ;o  ;o of workg hrs7provide weekly weekly holidays 0payment 0payment of overtime wages wages under the act act 6+Maintain ine 7oilf 7oilfield ield7ma2 7ma2or or port or or any corporat corporation ion establis established hed by the the central central govt 0state $ovt  in relation to other scheduled employment . -Na$es* S*et 7s+MGMT o% I canteen )anteen run by pvt person with permission 7control and supervision of %ly authority cant be said its run under the authority of central ?ovt and central ?ovt has power to fix min wages. -Sri al!ana a"a 7s+Govt o% Inia !st wage fixed by state govt for workers inmica inmica mines .central govt superceded superceded the state govt fixation fixation by notification /1 /1 "@bAi is competent author. 2) COMP MPETENTAUTHOR ORI TY -Sec2/c0 uthority appointed by appropriate govt by notification in official gazette to ascertain from time to time the cost of living wages applicable to such employee employed in the scheduled employment . 3) COST OF LI VI NG I NDEX NUMB MBER –Sec2/0 It means Index ascertained ascertained and declared by the competent authority by notification in the official gazette 7to be the cost of living Index number applicable to employees employees in scheduled employment .in respect of which 7min rate of wages wages have been fixed. *Ahe#aa'a *Ahe#aa'a "ill O/ners Assn Vs ,e0tile 1a'our Assn

>ere 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 EMPLOYME MENT -Sec2/$0 1cheduled employment employment means employment specified in the schedule to the act 7or any process or branch of work forming part of such employment . PART I EM MP PLOYMENT I N PART RT I I !. Bool Boolen en carp carpet et maki making ng /sha /shawl wl weavi weaving ng estd. estd. !. 3armi 3arming ng inc.cu inc.culti ltivat vation ion and and tillag tillagee of soil soil . ". %icem %icemill ill77 flour flour mill mill 7 dal dal mill mill 7Oilm 7Oilmill ill ". ,airy iry farmi arming ng #. Tobacco mfg #. -roducti -roduction on 7cultiv 7cultivation ation7gro 7growing wing or harvesti harvesting ng of agricu agricultura lturall

$. &. 6. C. +. 5. !D. !!. !!. !".

-lant -lantati ation on *cinc *cinchon hona7 a7 rubber rubber 7 tea tea or coffe coffeee bauxite stone stone breaki breaking ng or stone stone crush crushing ing publ public ic moto motorr tra trans nspo port rt construct construction ion and maintaine maintainennce nnce of road road or build building ing operation operation . unde underr loca locall auth author orit ity y tannerie tanneriess and leather leather manufa manufactory ctory Lac Lac manuf manufact actory ory >ica works7 works7 gypsum mines7barites mines7barites mines7manganese mines7manganese mines7 mines7 china clay mines7fire clay mines7 kyanite mines 7 coppermines 7quartenite mines 7quartz mines7 silica mines !#. )lay mines mines and magnesite magnesite mines mines under the mines mines act !5&"

$. &.

/horticultural /horticultural commodities %aisin %aising g of live live stock stock 7 bees bees /poul /poultry try practice practice by farmer farmer incidenta incidentall /con2un /con2unction ction with farm operation .ie forestry /timbering /preparation for market and delivery

6+ EM5L):E AN; EM5L):EE 2/10

EMPLOYER An! 'erson #*o e"'lo!s one or "ore e"'lo!ees

SEC14: OVERT RTI ME Borking Borking in excess of normal working hrs'to be paid min wages B.%. B.%.T 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 affect O.T undersec undersec &5 3actories ct !5$+ where where rate payable is twice A SEC15: WAGES OFWORKE KER WH WHO WORK LESS THAN NORM RMALWORKI KI NG DAY

n employee whose min rate of wage has been fixed under the act by the day 7 works on ady less than the requisite number of working hrs.he shall receive wages unless The failure to work is by his unwillingness7 and not by omission of employer to provide him work Insuch other cases 0circumstances 0circumstances as may be prescribed SEC16: WAGES FOR TWO WO OR MORE CLASSES OF WO WORK

Bhere an employee perform two or more work in respect of each work min wage rateapplicable and employee bound to pay . SEC17:MI NI MUM TI ME RATE WAGES FOR OR PI ECE WO WORK RK SEC18: MAI NTAI NENC NCE OFRE REC AND REG EGISTER

 AUTHORI TI ESUNDER THE ACT ct empowers state ?ovt 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 . Powe wersOfI nspect ors !. 4xamine 4xamine and enquire enquire *a. any person person who is employee employee therein therein . ". 4nter7 Inspect7 search search any premises/place premises/place 'Eany reasonable reasonable time time *with *with or w/o such assistance of person of govt service /other. /other. To examine rec7 register of wages 7notice to be displaced in premises. #. 1upervis 1upervisee payment payment of wages *in rly7fa rly7facty cty7I 7Indus.e ndus.estd't std'to o employed employed person $. %equire by written written order order *production *production of any register register /record /record or take on spot or statement statement of any person inc.out inc.out workers. workers. . &. 1eize/take copies of register/document register/document /operation'in respect of offence offence believed believed to committed committed by by employer employer /this /this act . 4xercise such other power that may be prescribed. they are deemed to be public servant within meaning of I-). ,oc production'!C&0!C6 of I-) Sarpanch Gra# anchayat Vs.Ra#(iri

%evenue 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 "D@"A A!anta ,al&ies Vs Dy.1a'our Co##nr 3 .N.Du'ey Vs.State Of U.

ppointment of inspector without defing locallimits is invalid. I I Authori tytodeci decl ai m SEC 20( 1) Who MayBeAppoi ntedAs AsAut hori t y

!. ny officer officer of central central ?ovtexe ?ovtexercis rcising ing fn as as labour labour commissi commissioner oner for for any regio region n ". ny officer officer of state state ?ovt not below below rankof rankof labour labour commissio commissioner  ner  #. )ommi )ommiss ssion ioner er for for workme workmen n compen compensat sation ion $. Officer Officer with with experienc experiencee of 2udge 2udge of civil civil court court /stipendar /stipendary y magistra magistrate te -Niranan lal &*ar$ava Bco 7s+;e'!+Co""r+ 7s+;e'!+Co""r+5)7IS) 1> Limitation It should be made with in 6mon Limitation Limitation from which date minimum wages or other amount become payable. payable. -1ona#a(ra# anchayat Vs.Ra#(iri Gosevi The authority is given discretion to condone the delay in presenting appln provided sufficient cause for the delay is providedto the satisfaction 5)CE;UE ) ;ECI;ING CLAIMS Clai" a''lication entertained '''opportunity of being heard''''inquiry heard''''inquiry ''',irect the employer employer !. )laim arising arising out of payment payment of less than min min rate of wages' wages' Then to to employee min wage payable exceed exceed amt actually actually paid 9payment 9payment of compensation..Thus compensation..Thus payment directed shud not exceed !Dx@amount of excessA. ". In other other cases cases payment payment of amount amount due due 9payment 9payment of compen compensatio sation.sh n.should ould not exceed exceed !D rupees rupees .

compensation *where *where amt due is paid paid by employer before before the disposal of application. application. #.  payment of compensation w.r.t employees employees belonging to same unpaid group if claim is of 2oint appln7 then max.compensation max.compensation shall Sin$le a''ln SEC 21/10 21/10 < can be made w.r.t not exceed !D times aggregate aggregate amount and ltd to %s.!D/'per employee employee SEC 21/20>uthority may deal with any number of separate pending appln. *$inustan Steel lt Vs .A.&.Roy

3ailure to raise ob2ection regarding max penalty imposed apart from payment of min wages b y employer and that during the argument stage will not be entertained . FI NALI TY OFORDER SEC2 C20( 6) -3inality to every order being issued . 5)WE ) AUT)IT: SEC 2D/F0

The uthority uthority shall be deemed deemed to be a civil court for all purposes purposes under sec!5& of cpc and shall have powers of civil civil court and chap #& of cr.p.c cr.p.c !+5+ !. Taking king evid eviden ence ce ". 4nforc 4nforcing ing attend attendanc ancee of witne witnesse ssess #. )ompe )ompelli lling ng the the produ producti ction on of docu docume ment nt RECOVERYOF AMO MOUNT If authority is >gistrate 7trated as if fine were imposed by him as magistrate If authority is not >gistrate 7by any magistrate to whom appln made by authority 7treated as if the fine were imposed by the magistrate.

SEC 22 ,5ENALT: ) )ENCES UN;E TE ACT -NA1,5 -NA1 ,5 2OR C-R,A+N O22-NC-S  < 6 mon ' imprisonment /&n'%s .&DD/ both .Bhen  

-ay less than min rate of wages fixed for that employeeFs employeeFs class of work contravenes any rule or order made under sec !# .

SEC 22>A C/10>Not 'unis*e i% 'rove Offence committed w/o his knowledge 4xercised due diligence to prevent commission of offence. SEC 22>C/10>'unis*e i% 'rove Offence committed committed with with consent It is attributable to any neglect on part of any ,irector 7mgr7secy /officer of co.7 SEC 22>;,A5"-N, O2 UND+SBURS-D A"OUN, DU-S ,O -"1O5--S !.>in wages due under this act to the employee ".otherwise due under this act to the employee 1hall be deposited with authority on /) /) of his death or whereabout not being known . SEC 22>E ,RO,-C,+ON AGA+NS, A,,AC$"-N, To secure secure the performance of contract with govt by employer or debt or liability incurred by employer towards employee employee in connection with the aforesaid contract shall not be liable to be attachment under any decree /order of any court . SEC 22>, A1+CA,+ON O2 A5"-N, O2 %AG-S AC, ,O SC$-DU1-D -"1O5"-N, S-C 789-:-",+ON O2 -"1O5-R 2RO" 1+AB+1+,5 +N C-R,A+N CAS-S

4mployer shall file complaint *following whichnotice whichnotice shall be served to actual offender 0hearing the charge proceeds.8ut the original trial starts on original complaint .The employer employer shall not be held liable if proved to the satisfaction of the court that • •

Offence committed w/o his knowledge 7consent /connivance. 4xercised due diligence to prevent commission of offence.

S-C 7;9BAR O2 SU+,S

The amt claimed form sub2 matter of appln before the authority /1"5; presented by plaintiff plaintiff or onhis behalf. The amt claimed form form sub2 of direction /1 "5 in fav of plaintiff  plaintiff  The amt claimed has been ad2udged in a proceeding /1 "5 not to be owed to the plaintiff. plaintiff. The amt claimed could have been recovered by appln /1 "5 ny other court does not have 2urisdiction to entertain the suit in respect of claim under sec "D of the ct W++T W++T +E"'lo!ee'need not file suit but avail machinery under act to get quick relif  W++T W++T +E"'lo!er *can file suit only when the employee is not governed b y the notification under >inimum wages ct Vi#al rinter Vs.O#ana

nder sec "$ it bars only institution of suit in civil court .and not tribunals or other authorities. S-C 7in n rat ratee of of wag wages es ". ny privil privileges eges or concessi concessions ons accruing accruing to to him under under the the ct ct S-C 7=9-:-",+ONS AND -:C-,+ONS

8y notification in gazette by appropriate appropriate govt exempts 0excepts certain certain provisons of this act This does not apply to employeeFs family /members

ULE MAING 5)WE

8y central govt * SEC29 ,B.%.T. Term of office of the members 7 procedure to be followed in conduct of business 7method of voting 7filing up casual vacancies in membership 0quorum necessary for transaction of business 0central advisory board . 8y appropriate appropriate govt *  SECD  SECD ,To frame rules for the purpose of carrying out this ct after the previous publication by notification in official gazette .@# mon noticeA SEC D>A