In the matter of the constitutional challenge against the Veritopian Minimum Wage Act

(VMWA), we respectfully submit that the Act does not violate constitutional principles of
economic freedom and property rights. Rather, it represents a necessary and proportionate
measure to address pressing concerns of income inequality and ensure the welfare of low-wage
workers in Veritopia.

Firstly, we contend that the VMWA is firmly rooted in the constitutional mandate to promote the
general welfare and achieve social justice. By raising the minimum wage to a level that reflects
the cost of living and inflationary pressures, the Act aims to uplift the working class and improve
their standard of living. This aligns with constitutional imperatives to advance the well-being of
all citizens and foster inclusive economic growth.

Moreover, the VMWA strikes an appropriate balance between the rights of employers and the
rights of workers. While it imposes certain obligations on businesses to pay a fair and living
wage, it does not unduly restrict their economic freedom or property rights. Rather, it establishes
a framework for responsible business conduct that respects the dignity and rights of employees
while still allowing for entrepreneurial initiative and innovation.

Furthermore, we argue that the VMWA is a legitimate exercise of state power to regulate
economic activities in the public interest. The government has a compelling interest in
addressing income inequality and poverty, which pose significant social and economic
challenges. By enacting legislation that ensures fair wages and basic protections for workers, the
state fulfills its duty to promote social welfare and maintain social cohesion.

It is important to note that the VMWA includes provisions for regular adjustments based on
inflation and cost of living indices, demonstrating a commitment to adaptability and
responsiveness to changing economic conditions. This ensures that the Act remains relevant and
effective in achieving its objectives over time, without imposing undue burdens on businesses or
stifling economic growth.

We respectfully urge this Honorable Court to uphold the constitutional validity of the Veritopian
Minimum Wage Act. By doing so, the Court would affirm the government's authority to enact
laws that promote economic justice, safeguard the rights of workers, and advance the collective
well-being of society as a whole.
1. Promotion of Economic Justice: The VMWA aligns with the constitutional principle of
promoting economic justice by ensuring that workers are fairly compensated for their
labor. By raising the minimum wage, the government aims to reduce income inequality
and improve the standard of living for low-wage workers, which is consistent with the
broader goals of social welfare and economic equity enshrined in the constitution.

2. Balancing Rights and Responsibilities: While business owners have property rights and
economic freedom, they also have a responsibility to ensure that their employees are paid
a living wage that allows them to meet their basic needs. The VMWA strikes a balance
between these competing interests by setting a minimum standard for wages, thereby
safeguarding the rights of workers while still allowing businesses to operate and thrive
within a regulated framework.

3. Social Contract and Public Interest: The government has a legitimate interest in
regulating economic activities to promote the public welfare and ensure social stability.
By establishing a minimum wage that reflects prevailing economic conditions and cost of
living indices, the VMWA serves the broader public interest by reducing poverty,
stimulating consumer spending, and fostering economic growth. In doing so, it upholds
the social contract between the state and its citizens, as articulated in the constitution.

4. Prevention of Exploitation and Market Failures: In unregulated markets, there is a risk

of labor exploitation and market failures, where workers are paid wages that do not
reflect the true value of their labor. By setting a minimum wage floor, the VMWA helps
prevent such exploitation and ensures that workers are not unduly disadvantaged by
asymmetries in bargaining power. This regulatory intervention is necessary to correct
market failures and uphold principles of fairness and justice in economic transactions.

5. Constitutional Mandate for Social Welfare: The constitution of Veritopia enshrines

principles of social welfare and the protection of vulnerable groups, including workers.
The VMWA is a legitimate exercise of state power in furtherance of these constitutional
mandates, as it seeks to improve the economic well-being of a significant segment of the
population. By ensuring that workers receive a fair and living wage, the Act advances the
 constitutional objectives of promoting the general welfare and ensuring social justice for
all citizens.

6. Economic Stimulus and Consumer Spending: By raising the minimum wage, the
VMWA injects additional income into the hands of low-wage workers who are more
likely to spend a higher proportion of their earnings on consumption goods and services.
This increased consumer spending creates a multiplier effect, stimulating demand across
various sectors of the economy and generating positive economic growth. In essence, the
VMWA acts as a mechanism for redistributing wealth and promoting aggregate demand,
which aligns with constitutional imperatives to foster a robust and inclusive economy.

7. Enhanced Productivity and Human Capital: Paying workers a living wage

incentivizes them to be more productive and committed to their jobs, leading to higher
levels of employee morale, engagement, and retention. By investing in their workforce,
businesses can cultivate a more skilled and motivated labor pool, which ultimately
enhances their competitiveness and long-term profitability. In this way, the VMWA
serves as a catalyst for human capital development and economic efficiency, thereby
advancing constitutional goals of promoting the general welfare and prosperity of the
nation.

8. Social Cohesion and Stability: Persistent income inequality and poverty can undermine
social cohesion and political stability, posing significant risks to the fabric of society. The
VMWA helps mitigate these risks by addressing the root causes of economic hardship
and social exclusion among low-wage workers. By ensuring that all members of society
have access to decent and dignified employment opportunities, the Act fosters a more
inclusive and cohesive social order, which is essential for upholding constitutional
principles of unity, justice, and equality.

9. Long-Term Benefits for Businesses: While some businesses may initially perceive the
VMWA as a financial burden, research indicates that investing in employee well-being
can yield substantial long-term benefits for employers. Higher wages lead to lower
turnover rates, reduced recruitment and training costs, and improved employee loyalty
and productivity. Moreover, businesses that pay living wages often enjoy enhanced
 reputations and brand loyalty, which can translate into increased customer patronage and
market share. Thus, the VMWA not only supports workers' rights but also promotes the
sustainable growth and resilience of businesses in the competitive marketplace.

10. International Human Rights Obligations: Veritopia is a signatory to various

international human rights treaties and conventions that recognize the right to decent
work and fair remuneration as fundamental human rights. The VMWA is consistent with
Veritopia's international obligations to uphold these rights and ensure that all individuals
enjoy the benefits of social and economic progress. By enacting legislation that protects
the rights and dignity of workers, Veritopia demonstrates its commitment to the
principles of human rights, which are enshrined in its constitution and form the
cornerstone of its legal and moral framework.

Hence, defenders of the Veritopian Minimum Wage Act argue that it not only complies with
constitutional mandates but also embodies the values of social justice, economic prosperity, and
human dignity that underpin Veritopia's legal and ethical framework. By advancing the interests
of workers, businesses, and society as a whole, the VMWA serves as a powerful instrument for
achieving sustainable development and shared prosperity in Veritopia.

It is a necessary and justified intervention by the government to address income inequality,

promote social justice, and protect the rights and dignity of workers, without unduly infringing
upon the legitimate interests of businesses and property owners.
What is the Minimum Wages Act 1948?

The Minimum Wages Act of 1948 is a legal statute that empowers both the Central and State
Governments in India to establish and enforce minimum wage standards for various types of
employment. This Act outlines the procedures and guidelines for determining minimum wages,
ensuring fair compensation for workers in different industries. It is a labour law in India.

The Act differentiates between employments falling under the Central Government’s jurisdiction
and those under the State Government, specifying which authority is responsible for setting
minimum wage rates in different job categories.

Need for Minimum Wages Act

In India, the minimum wages set for workers are often inadequate to cover even basic needs like
meals and housing. Establishing a minimum wage serves two vital purposes:

1. Social Goal: Ensuring a minimum standard of living for workers is crucial to combating
poverty.

2. Economic Goal: The minimum wage should motivate employees to perform well, boosting
the economy and enhancing people’s lives.

For effective change, Indian workers, trade unions and labour groups should actively support
minimum wage legislation. Additionally, state labour departments should set fair minimum rates
to secure unorganised sector workers’ livelihoods. Ignorance and illiteracy are factors that enable
worker exploitation, which can be countered through education on legal rights and benefits,
facilitated by trade unions and NGOs.

The Minimum Wages Act of 1948 was enacted by the Indian Legislature to address worker pay
concerns, aiming to cover basic needs and decent living standards. The Act empowers both the
federal and state governments to set minimum wages and includes provisions for wage
adjustments based on essential commodity price changes.

To ensure employees’ rights, the Act establishes advisory committees to resolve wage disputes
and appoints a Labor Commissioner to hear cases related to inadequate minimum wage payment.
The Act also imposes penalties on employers who violate its rules.
This Act is significant as it promotes social justice, provides legal minimum wage rates,
safeguards employee rights and prevents employer exploitation in scheduled employment.

What is the Constitutional Validity of Minimum Wages Act 1948?

The constitutionality of Minimum Wages Act 1948 was challenged in court cases. The judiciary
played a key role in establishing its constitutionality, affirming that the Act safeguards workers’
interests, ensuring access to essentials like food, shelter, clothing, education and medical aid

Minimum Wages Act is Not violative of Article 19 of the Constitution

The first challenge to the constitutional validity of the Minimum Wages Act, 1948 arose in the
case of Bijay Cotton Mills Ltd. v. The State of Ajmer, 1954. In this matter, a dispute emerged
between a company and its workers concerning wage improvements. The company contended
that the Act’s provisions were unlawful, asserting that they unreasonably restricted employers.
The company claimed that these provisions hindered the resumption of trade or business unless
minimum wages were paid to workers.

The company also argued that the rights of employees were curtailed, as they couldn’t work in a
trade or industry unless mutually agreed terms existed between them and their employers. Thus,
the company alleged that this Act violated Article 19(1)(g) of the Indian Constitution, which
safeguards trade and business freedom.

However, the Supreme Court of India ruled that the Act’s provisions were not unreasonable and
were allowed under Article 19 of the Indian Constitution. The Court highlighted that these
provisions were enacted for the public’s benefit, in line with the Directive Principles of State
Policy outlined in Article 43 of the Constitution. Although these provisions might pose
challenges for employers in conducting or initiating businesses, they were established to
safeguard the broader public interest. As such, the Act could not be considered unreasonable or
invalidated on these grounds.

Similarly, in the case of Bhikusa Yamasa Kshatriya v. Sangamner Akola Bidi Kamgar
Union, 1958, the Bombay High Court determined that the establishment of committees and
Advisory Boards under the Minimum Wages Act, 1948 did not violate the legal stipulations of
the enacted legislation. Upon thorough scrutiny of the Act, it was observed that Section 3(3)(iv)
of the Act did not conflict with Article 19(1) of the Indian Constitution, nor did it infringe upon
the Constitution’s guarantee of equal protection under the law. Hence, the Minimum Wages Act
is constitutionally valid with respect to Article 19.

Minimum Wages Act is Not violative of Article 14 of the Constitution

Minimum Wages Act is not violative of Article 14 of the Constitution which states equality
before the law.

India’s Union Labour and Employment Minister, Shri Mallikarjuna Kharage, highlighted that the
variation in minimum wages among different states stems from diverse socio-economic
conditions, commodity prices, paying capacity, productivity and more. These factors influence
the wage rates paid to workers in specific states.

In the case of N.M. Wadia Charitable Hospital v. State of Maharashtra, 1986, the Bombay
High Court ruled that setting distinct minimum wage rates for various localities is in accordance
with the Constitution and the nation’s labour laws. As such, establishing different minimum
wage rates for different regions is not discriminatory and does not violate the principles of the
Constitution.

Hence, the Minimum Wages Act is constitutionally valid with respect to Article 14.

Minimum Wages Act is Not Violative of Article 43

The importance of providing labourers with wages that cover not only basic survival but also
uphold health and dignity is a matter that’s difficult to challenge. This aligns with a directive
principle of State policy found in Article 43 of our Constitution.

Employers shouldn’t raise concerns if they are required to pay minimum wages to their
labourers, even if these labourers, due to their financial constraints and vulnerability, might agree
to work for lower wages. This perspective was upheld in the case of Bijay Cotton Mills Ltd v/s
The State Of Ajmer.

Present Status of Constitutional Validity of Minimum Wages Act 1948?

The Minimum Wages Act 1948 is constitutionally valid.

Despite challenges, the Act has been found constitutionally sound and in line with the principles
of the Indian Constitution. The Act’s provisions have been recognised as serving the public
interest by ensuring fair wages for workers, promoting their well-being and safeguarding their
basic rights.

The Act’s alignment with the Directive Principles of State Policy, particularly Article 43, which
emphasises the importance of securing living wages for labourers, further supports its
constitutionality. Moreover, the Act has been held not to violate fundamental rights such as
Article 19 (freedom of trade and business) and Article 14 (equality before the law) of the Indian
Constitution.

Courts have considered factors such as diverse socio-economic conditions and local variations in
setting minimum wages, finding them to be reasonable and non-discriminatory. Overall, the
Act’s constitutionality has been upheld based on its contribution to the general welfare and the
betterment of workers’ conditions.

The Constitutional Validity of Minimum Wages Act is upheld through judicial affirmation,
aligning with the Indian Constitution’s principles. The Act addresses social and economic goals
by ensuring a minimal standard of living for workers and promoting productivity. It empowers
federal and state governments to set minimum wages, protects workers’ rights through dispute
resolution mechanisms and penalises non-compliance. The Act’s enactment supports social
justice, prevents exploitation and contributes to equitable labour practices.