Prof. Hiteshwari Jadeja

 Passed in 1948 to secure the welfare of the unorganized workers in certain industries by fixing the minimum rates of wages.  The act empowers the appropriate Government for fixation of minimum wages in employments enumerated in the schedule of the act.  The fixation of minimum of wages relates to the industries where sweated labor is most prevalent or where there is inevitable chance of exploitation.

1) Prevention of extra hard work and toil and poverty arising from unduly low wages 2) Fixation of just and fair wages for preventing industrial disputes 3) Control of inflationary pressures 4) Raising purchasing power to speed up the pace of economic recovery 5) Wage regulation as a part of a national- income distribution policy and programs of planned economic development

 Adult, Adolescents and child. [Sec 2(a)]  Appropriate Government [Sec 2(b)]  Competent Authority [Sec 2(c)]  Cost of living index Number [Sec 2(d)]  Employer [Sec 2(e)]  Scheduled Employment [Sec 2(g)]  Wages [Sec 2(h)]  Employee [Sec 2(i)]

 WAGES – Wages means all remuneration capable of being expressed in terms of money. It includes house rent allowance but does not include * value of house accommodation, supply of light, water, medical attendance * Value of any other amenity provided, if excluded by Government order * Contribution to pension fund or provident fund or insurance * Traveling allowance * special expenses incurred by the nature of employment * Gratuity payable on discharge.

 The Act empowers the state and the central governments, as the case may be, to fix the minimum rates of wages in respect of workers employed in the industries listed in the schedule of the Act, which contains 2 parts. ◦ Part I ◦ Part II

 Part I: ◦ Woolen carpet making or shawl weaving ◦ Rice mill, flour mill or dal mill ◦ Plantation( rubber, tea, cincona or coffee) ◦ Tobacco( including Bidi making) ◦ Oil mill ◦ Local authority ◦ Road construction or building operations ◦ Stone breaking or stone crushing ◦ Lac manufactory ◦ Mica works ◦ Public motor transport ◦ Tanneries and leather manufactory

 Part II: ◦ Agriculture, which includes “any form of farming including the cultivation and tillage of soil, dairy farming, the production, cultivation, growing and harvesting of any agricultural or horticultural products, the raising of livestock, bees or poultry, and any practice performed by a farmer or on a farm as incidental to or in conjunction with farm operations

 The application of the Act can be extended where it is necessary so consequently Central Government has extended the application to: ◦ Gypsum mines ◦ Bauxite mines ◦ Manganese mines ◦ Maintenance of buildings and employments in the construction and maintenance of runways ◦ Copper mines ◦ China clay mines ◦ Stone mines and other 30 such employments

 The Act empowers the appropriate government in respect of employments in their respective jurisdictions, to fix minimum rates of wages for: ◦ Time work ◦ Piece work ◦ Guaranteed time rate ◦ Overtime work  Different rates for different employments, different classes of work in different localities

 Minimum rate of wages constitutes of: ◦ Basic wage rate and cost of living allowance ◦ Basic wage rate with or without cost of living allowance and cash equivalent of the concession, in respect of supplies of essential commodities at a concessional rates  Minimum rate of wages to be fixed only if the number of employees in employment rises to 1000 or more in the whole state

 The Act provides 2 distinct procedures:  First procedure: ◦ Appointment of committees and sub committees to hold enquiries and advice on wage fixation ◦ On receipt of recommendations of the committee, appropriate government is required to fix minimum rates of wages in respect of the employment concerned, by making notification in the official gazette

 Second Procedure: ◦ Appropriate government may publish its own proposals of minimum rates of wages for information of the persons likely to be affected and specify a date, not less than 2 months from the date of notification, on which the proposals will be taken into consideration ◦ After considering all representations, minimum rates are fixed and they come into force on the expiry of 3 months from the date of notification.

 Equal number of representatives of employers and employees in scheduled employments  Independent persons, appointed by the appropriate government, not exceeding one- third of the total number of members  One of the Independent persons will be appointed as a Chairman

 Central or state governments may appoint advisory boards for co-ordinating the work of committees and sub-committees and advising the government in the matter of fixing and revising minimum rate of wages  Composition: ◦ Equal number of representatives of employers and employees ◦ Independent persons not exceeding one-third of total number of members, nominated by appropriate government

 Central Government appoints Central Advisory Board for co-ordinating the work of Advisory Boards  Composition: ◦ Equal number of representatives of employees and employers ◦ Independent persons, appointed by central government, not exceeding one-third of the total members ◦ One of the independent members appointed as a Chairman

 Appointment of committees and sub- committees and notification of proposals in the official gazzette  To consult the advisory board, where the procedure of notification of the proposals is adopted

 Revised rates of wages are also to come into force on the expiry of 3 months from the date of issue of notification or as specified  Minimum rates of wages to be revised at a maximum interval of 5 years  If rates are not reviewed within five years, the minimum rates in force will continue to be in force

 Payment of fixed minimum wages in CASH  Where the system of wage payment in kind is prevalent, payment of wages can be made partly in kind.  Provision of supply of essential commodities at concessional rates  Where no minimum piece rate is fixed, wages should not be less than the minimum time rate fixed for the work  Where an employee is entitled to do 2 or more classes of work, he is entitled to minimum rate of wage fixed for each class of work separately

 Wages are to be paid, by the employer, at the rates fixed by the government without any deductions except those authorised  Where the employments are covered under the Payment of Wages Act, 1936, the provisions of that Act will apply in those employments

 Central and State governments are empowered to fix normal hours of work for a working day, including intervals in respect of scheduled employments  Remuneration for work on a day of rest is not to be less than at the overtime rate  Overtime rate is the rate fixed under this Act or what has been provided for in other laws in operation in the scheduled employments, whichever is higher

 Above provisions apply only to the prescribed extent and subject to the prescribed conditions, for the following employees: ◦ Employees engaged on urgent work ◦ Employees engaged in the nature of preparatory or complimentary work ◦ Employees whose employment is essentially intermittent ◦ Employees engaged in any work which has to be completed before duty is over ◦ Employees engaged in work which could not be carried on except at times dependent on the irregular actions of the natural forces

 If any amount payable by an employer to an employee as the amount of minimum wages or otherwise due to the employee under the Act or any rule or order made under it, could not or cannot be paid to him on account of his death before payment or on account of his whereabouts not being known, they are to be deposited with the prescribed authority which is requested to deal with the deposited money in the prescribed manner

 Employer is required to maintain records and registers containing particulars of employees, work performed by them, wages paid to them, receipts given by them and other prescribed particulars  Notice containing prescribed particulars have to be exhibited at a place where the employees are employed  In case of outworkers, notice is exhibited at a place which may be used for giving out work to them

 Issue of wage books or wage slips to employees employed in respect of minimum rates of wages have been fixed  Prescribe the manner in which entries are to be made and authenticated in such wage books or wage slips by the employer

 Sec 22: Penalties for certain offence: Payment by the employer to any employees less than the minimum rates fixed or less than the amount due to them under the Act or contravention of any rule or order relating to hours of normal working day is punishable with imprisonment for a term which may extend to 6 months or with fine which may extend to Rs.500 or both  Sec 22A: General Provision for punishment of other offence: Contravention by the employer of any other provision of the Act made under it is punishable with fine extending to Rs.500

 Sec 22B: Cognizance of offences: No court is authorised to take cognizance of a complaint pertaining to contravention of any rule made in respect of daily working hours, intervals, weekly rest and overtime, unless it is sanctioned by the inspector  In case of the above mentioned offences, complaint must be made within 1 month of the grant of required sanction  When penalty has not been specified, complaint must be made within 6 months of the date on which the offence is alleged to have been committed

 Sec 22C: Offences by companies: ◦ Every person in charge or responsible at the time of offence is deemed to be guilty and is liable to be proceeded against and punished accordingly ◦ Any offence committed with the consent of, or due neglect of director, manager, secretary or any other officer of the company then that concerned officer is deemed to be guilty and is liable to be proceeded against and punished accordingly

 Where the claim by an employee is malicious, he may be punished with a fine not exceeding Rs.50, which is payable to the employer