The evolution of Indian labour legislation is obviously interlaced with the history of British

colonialism. British political economy was considered natural paramount in modelling some of the
early laws. In the initial phases it was very difficult to get adequate regular Indian workers to run
British organizations and hence labour laws became essential. These were obviously in order to
prote
ct the interests of British bosses. Although this was a case, attitude of Indian legislators, as it turned
towards being independent from the clutches of British empire, has been very constructive and
pro-welfare state. The importance of the minimum wages as an instrument of social protection was
already high lightened in the ILO constitution adopted in the year 1919 as a part of treaty of
Versailles after the end of World War 1. The preamble of this constitution recalls, “the High
Contracting parties, moved by sentiments of justice and humanity as well as by the desire to secure
permanent peace has called for the provision of an adequate living wage alongside other measures
to improve the condition of labour.
The concept of minimum wages first evolved with reference to remuneration of workers in those
industries where the level of wages was substantially low as compared to the wages for similar types
of labour in other industries.

First of all, at the International Labour Conference in 1928, a Draft Convention was adopted on the
subject of minimum wages. In India in 1929 Royal Commission on Labour was adopted which
considered the subject of minimum wages.

The Minimum wages Act was enacted to fulfill the aspiration of the workers as contained in the
resolution based on the Geneva Convention held in 1928, which reads:

“If the labourers are to be secured the enjoyment of minimum wages and they are to be protected
against exploitation by their employers, it is absolutely necessary that restraint should be imposed
upon their freedom of contract and such restrictions cannot be in any sense be said to be
unreasonable. On the other hand, the employers cannot be heard to complain if they are compelled
to pay minimum wages to their labourers even though the labourers on account of their poverty
and helplessness are willing to work on lesser wages”.

The fact that an employer might find it difficult to carry on the business on the basis of minimum
wages is an irrelevant consideration.( Held in U.Uchinoyi / vs/ State of Kerala. 1961, I.LLJ 631.)

The question of establishing statutory wage fixing machinery in India was first discussed in 1929
by the Royal Commission on Labour which was appointed and this commission considered the
subject of minimum wages. The question of establishing statutory wage fixing machinery in India
was again discussed at the third and fourth meetings of the Standing Labour Committee held in
May 1943 and January 1944 respectively, and at successive sessions of the tripartite labour
conference in September 1943, October 1944, and November 1945. The last of these, approved in
principle, the enactment of the minimum wages legislation. On 11 April 1946, a minimum wages
Bill, was introduced, but the passage of bill was considerably delayed by the constitutional changes
in India. It reached the statute book only in March 1948.

The MINIMUM WAGE FIXING CONVENTION, 1970 (NO. 131) quoted that, “Minimum wages
should be established for groups of wage earners where, in consultation with employers’ and
workers’ organizations, the competent national authority finds it appropriate. Minimum wages,
where they exist, should have the force of law and should not be subject to abatement; failure to
pay minimum wages should be subject to penal or other sanctions.”

The purpose of seeking employment is to sell labour to earn wages so as to attain a ‘decent’ or
‘dignified’ standard of living. The wage or income that a worker obtains from his/her work is
therefore, what enables him/her to achieve a fair standard of living. One seeks a fair wage both to
fulfill one’s basic needs and to feel reassured that one receives a fair portion of the wealth in return
for one’s work to generate for the society. Society has a duty to ensure a fair wage for every worker,
to ward off starvation and poverty, to promote the growth of human resource, to ensure social
justice without which likely threats to law and order may undermine economic progress.

If ‘labour’ is to be defined, which is the central issue in focus, for which an amount is fixed; labour
is defined by prominent persons such as:- S.E.Thomas , who says that , “Labour consists of all
human effort of the body or of mind, which is undertaken in the expectation of reward”. Mr.Jevons
states that,” Labour is any exertion of mind or of body or both, undertaken partly or wholly with a
view to some good than the pleasure derived directly from work”.

Thus, labour in broad sense of the term may be defined as any hand or brain work which is
undertaken for a monetary consideration.

REASONS FOR THE NEED OF ENACTMENT OF THE MINIMUM WAGES ACT 1948:-
(i) In a free competitive market, the level of wages payable to workers is determined by the forces
of demand and supply. In a welfare state the protection of the interests of the workers is one of the
aims of legislation which is enacted in the labour field. The same is true with regard to the
Minimum Wages Act enacted by the Indian parliament.

In the case of, ‘People’s Union for Democratic rights/vs/ Union of India’, it was stated that, “The
Minimum Wages Act is, as is all other legislation, a welfare measure to alleviate the suffering of
sections of the society labouring under economic distress. However, knowledge of one’s rights or
the capacity or strength to enforce it often doesnot exist among the relevant classes. It is through
public interest litigation, a strategic aim of legal aid movement, that the problems of the poor are
now coming forefront and the entire theatre of law is changing.”

(ii) The Indian labour class besides being illiterate is by an large not organized to protect its
interests in a competitive market where supply of labour is always excess of demand. Under such
conditions the labour class is left to itself and is unable to protect its legitimate interests.

In a country which is still underdeveloped, the exploitation of labour in certain industries can
become a common feature due to reasons that unemployment and few avenues for gainful
employment which forces the labourers to accept the employment even on starvation wages.

Therefore, the Act was enacted to secure the welfare of workers in a competitive market by
providing for a minimum limit of wages in certain employments.

(iii) The object of this Act is to “prevent exploitation of the workers” and for this purpose, it aims
at fixation of minimum wages which the employer must pay. What the act purports to achieve is to
prevent exploitation of labour and for that purpose, authorises appropriate government to take
steps to prescribe minimum rates of wages in Scheduled industries. What is being prescribed is
minimum rates of wages which a welfare state assumes every employer should pay before
employment of any labourer. It is only with regard to certain specified industries that the
provisions for the payment of statutory minimum wages have been laid down. The legislature
undoubtedly intended to apply the Act to those industries or localities, in which, by reason of
causes such as unorganized labour or absence of machinery for the regulation of wages which are
paid to workers, were in the light of the general level of wages and they were subsistence
inadequate. The provisions of the Act were intended to achieve the object of doing social justice of
workers employed in the scheduled employment by prescribing minimum rates of wages to them.
(iv) As pronounced in judgement of the case of , ‘Hydro(Engineers) P. Ltd /vs/ Workmen. AIR
1969 SC182. “The Act contemplates that minimum wage rates must ensure not the mere physical
need of the worker which would keep the worker just above starvation but ensure for the worker
not only subsistence and that of his family but to preserve the worker’s efficiency as of a workman.
It should, therefore, provide not merely the bare subsistence of life but the preservation of workers’
health and for some measure of education, medical requirements and amenities”.

(v) In the case of “Edward Mills co .Ltd, Beawer /Vs/ State of Ajmer(1954) II L.L.J 686, it is decided
that the object of the Minimum wages Act as, “ The object of this Act is to prevent exploitation of
the workers and for this purpose, it aims at fixation of minimum wages which the employer must
pay”.

(vi) In the case of, “ M/S Bhikua Yamasa Kshatriaya /Vs/ Sangamner Akola taluka beedi Kamgar
Union , AIR 1963, S.C. 806, it was decided that , “The legislature undoubtedly intended to apply
the Act to those industries or localities in which, by reason of causes such as unorganized labour
or absence of machinery for regulation of wages, the wages paid to workers were in light of general
level of wages and subsistence level inadequate”.

Like other branches of labour legislation, the security of industrial peace and efficiency may be
kept in view when giving effect to the provisions of this Act.

In the view of the fulfilment of the purpose of welfare state, it was upheld in the case of ‘ Patel
Ishwarbhai Prahladbhai /vs/ Taluka Development Officer (1983) I Lab 7C 237 S.C. , that , “ Every
person who provides labour or service to another is entitled at least to a minimum wages.”.

(vii) The judgement in the case of “ Crown Aluminium Works /vs/ Their workmen AIR 1958 SC
30” , states the motivation of the legislature for enactment of the minimum wages Act, 1948, in the
following words, “ In developing country like ours which faces the problem of unemployment on a
very large scale, it is not unlikely that labour may offer to work even on starvation wages. The policy
of the Act, therefore, is to prevent employment of sweated labour in general interest and , so in
prescribing the minimum wage rates, the capacity of the employer need not be considered as the
state assumes that every employer must pay minimum wages for the employee’s labour”.

Therefore, the entire scheme of the Act is a pointer towards the direction of ensuring minimum
wages to workers engaged in certain specific industries.