Appropriate Government: (2b)

Means

Central Government: In relation to any scheduled employment carried on by or under the

authority of the Central Government or a railway administration,
or
in relation to a mine, oil-field or major port, or any corporation established by a Central Act,

State Government: In relation to any other scheduled employment.

Employer: (2e)

1. "employer" means any person who employs,

2. whether directly or through another person, or
3. whether on behalf of himself or any other person,
4. one or more employees in any scheduled employment
5. in respect of which minimum rates of wages have been fixed under this Act,

and includes,

 In a factory

where there is carried on any scheduled employment

in respect of which minimum rates of wages have been fixed under this Act,

a manager of the factory;

 In any scheduled employment under the control of any Government in India,

in respect of which minimum rates of wages have been fixed under this Act,

the person or authority appointed by such Government for the supervision and
control of employees or

where no person or authority is so appointed, the head of the department;

 In any scheduled employment under any local authority

 in respect of which minimum rates of wages have been fixed under this Act,

the person appointed by such authority for the supervision and control of
employees or

where no person is so appointed, the chief executive officer of the local authority;

 In any other case

where there is carried on any scheduled employment

in respect of which minimum rates of wages have been fixed under this Act,

any person responsible to the owner for the supervision and control of the
employees or for the payment of wages;

Employee: (2i)
Means any person who is employed
 for hire or reward to do any work,
 skilled or unskilled, manual or clerical,
 in a scheduled employment
 in respect of which minimum rates of wages have been fixed;
And includes
 an out-worker;
 an employee declared to be an employee by the appropriate Government;
But does not include any member of the Armed Forces

Scheduled employment: (2g)

Means an employment specified in SCHEDULE,

or any process or branch of work forming part of such employment;

Schedule:

Part 1: Automobile, Construction, …………. etc

Part 2: Agriculture

A.G. is Empowered to add more Employment in the Schedule

Wages: (2h)

Means all remuneration,

 capable of being expressed in terms of money,

 which would, if the terms of the contract of employment, express or implied, were
fulfilled,
 be payable to a person employed in respect of his employment or of work done in
such employment

And includes house rent allowance,

But does not include:

 VALUE OF ANY SERVICES RENDERED BY EMPLOYER

 CONTRIBUTION BY EMPLOYER TO ANY SOCIAL SECURITY
 ANY TRAVELLING ALLOWANCE AND REIMBURSEMENT
 ANY SUM PAID TO EMPLOYEE FOR THE FULFILLMENT OF HIS DUTY
BECAUSE NATURE OF HIS EMPLOYMENT FORCES HIM TO SPEND MONEY
 ANY GRATUITY PAYABLE BY AN EMPLOYER WHICH IS NOT A PART OF
ANY CONTRACT, LAW, INSTRUMENT
 Constitutional validity of Minimum Wages Act

The constitutional validity of this Act was challenged before the court in various cases.
However, the judiciary played a critical role in determining that the Act was constitutionally
valid and it protects the interests of the workers so that they have access to food, shelter,
clothing, education, medical assistance, etc. The judiciary also stated that failure to pay below
the minimum wage rate amounts to forced labour.

Not violative of Article 19 of the Constitution

The constitutional validity of the Minimum Wages Act, 1948 was first challenged in the
case, Bijay Cotton Mills Ltd. v. The State of Ajmer, 1954. In this case, there was an
industrial question between the industry and the workers regarding the improvement of
wages. The company alleged before the court that the provisions of the Act are illegal since it
puts unreasonable restrictions on the employer as he is deterred from resuming his trade or
business unless he is ready to pay the minimum wages to the workers. The rights of the
employees are also limited, as they are disabled from working in any trade or industry unless
the terms are agreed to between them and their employers. Therefore, the Act is violative
of Article 19(1)(g) of the Indian Constitution which guarantees freedom of trade and
business. However, the Supreme Court of India held that the provisions of the Act are not
unreasonable and permissible under Article 19 of the Indian Constitution, moreover, the
provisions of the Act have been imposed for the benefit of the general public as the Directive
Principles of State Policy embodied under Article 43 of the Constitution.

Thus, it can be said that because of certain provisions of the Act the employers might find it
difficult to carry on or start a business, but it is done in order to protect the general interest of
the public and so the Act can not be deemed unreasonable or stuck down on such grounds.

Similarly, in the case Bhikusa Yamasa Kshatriya v. Sangamner Akola Bidi Kamgar Union,
1958, the Bombay High Court held that the constitution of the committees and the Advisory
Boards under the Minimum Wages Act, 1948 did not contravene the statutory provisions of
the prescribed legislature and further on careful examination of the Act it was noticed that
Section 3(3)(iv) of the Act does not contravene Article 19(1) of the Indian Constitution
neither does it violate equal protection of the law guaranteed by the Constitution.
Not violative of Article 14 of the Constitution

Furthermore, the Act is not violative of Article 14 of the Constitution which states equality
before the law. It was brought into light by India’s Union Labour and Employment Minister
Shri Mallikarjuna Kharage that the variation of minimum wages of workers in different states
is due to the different socio-economic conditions, prices of commodities, paying capacity,
productivity, etc. which impacts the wage rate paid to the workers in a particular state. In the
case, N.M. Wadia Charitable Hospital v. State of Maharashtra, 1986, it was held by the
Bombay High Court that fixing different rates of minimum wages for different localities is
permitted under the Constitution and the labour laws of the country, thus fixing different rates
of minimum wages for different areas is not discriminatory and not violative of the
Constitution.
 FIXATION OF MINIMUM RATE OF WAGES BY TIME RATE OR BY PIECE
RATE

SECTION 3

Fixing of minimum rates of wages.

1. The appropriate Government shall, in the manner hereinafter provided,

a) Fix the minimum rates of wages payable to employees employed in an

employment specified in Part I or Part II of SCHEDULE and in an
employment added to either Part by notification under section 27:

FOR PART II A.G. CAN FIX THE MINIMUM RATE OF WAGES FOR A
PART OF STATE

b) review at such intervals, as it may think fit, such intervals not exceeding five
years, the minimum rates of wages so fixed and revise the minimum rates, if
necessary.

2. The appropriate government may fix:

 TIME RATE: The minimum rate of wages for time work,
 MINIMUM PIECE RATE: The minimum rate of wage for piece work,
 GUARANTEED RATE FOR PIECE RATE: A minimum rate of
remuneration to apply in the case of employees employed on piece work for
the purpose of securing to such employees a minimum rate of wages on a time
work basis,
 OVERTIME RATE: A minimum rate of wage to substitute the for the
minimum rate which would otherwise be applicable, in respect of overtime
work done by employees.

3. In fixing or revising minimum wages under Section 3 of the Act:

 Different minimum rates of wages may be fixed for; different classes of work,
different scheduled employment, different localities, different age groups, etc.
  Minimum wages may be fixed by the wage period such as; by the hour, by the
day, etc.

Section 4:

MINIMUM RATE OF WAGES:

Section 4 of the Minimum Wages Act, 1948 states that the minimum wages fixed by the
appropriate government must consist of:

1. A basic rate of wages and

A special allowance must be adjusted at necessary intervals by the appropriate

government to match the cost of living of the employees.

2. The cost of living allowance and the cash value of the concessions in respect of
supplies of essential commodities must be computed by a competent authority and
at such intervals specified by the appropriate government.

Section 13:

Fixing hours for normal working day

The appropriate Government may

 Fix the number of hours of work which shall constitute a normal working day
 Provide for a day of rest in every period of seven days AND for the payment of
remuneration in respect of such days of rest;
 Provide for payment for work on a day of rest at a rate not less than the overtime rate

Section 14:
Overtime

Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by
the day or by such a longer wage-period as may be prescribed, works on any day in excess of
the number of hours constituting a normal working day, the employer shall pay him for every
hour or for part of an hour so worked in excess at the overtime rate fixed under this Act or
under any law of the appropriate Government for the time being in force, whichever is
higher.

Section 15:
Wages of worker who works for less than normal working day.

If an employee whose minimum rate of wages has been fixed under this Act by the day works
on any day on which he was employed for a period of less than the requisite number of hours
constituting a normal working day,

He shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of

work done by him on that day as if he had worked for a full normal working day: Provided,
however, that he shall not be entitled to receive wages for a full normal working day
 in any case where his failure to work is caused by his unwillingness to work and not
by the omission of the employer to provide him with work, and
 in such other cases and circumstances as may be prescribed.
 PROCEDURE FOR FIXATION AND REVISION OF MINIMUM WAGES

Section 5:
Procedure for fixing and revising minimum wages.
(1) In fixing minimum rates of wages in respect of any scheduled employment for the first
time under this Act or in revising minimum rates of wages so fixed, the appropriate
Government shall either

COMMITTEE METHOD: Appoint as many committees and sub-committees as it considers

necessary to hold enquiries and advise it in respect of such fixation or revision, as the case
may be, or
NOTIFICATION METHOD: By notification in the Official Gazette, publish its proposals for
the information of persons likely to be affected thereby and specify a date, not less than two
months from the date of the notification, on which the proposals will be taken into
consideration.

COMMITTEE METHOD:
The appropriate Government

 May appoint as committees and sub-committees as it considers necessary.

 To hold enquiries and advise it in fixation or revision of MRW.

After considering the advice of the committee or sub-committees, the appropriate

Government shall, by notification in the Official Gazette, fix or revise the minimum rates of
wages. The wage rates shall come into force from such date as may be specified in the
notification. If no date is specified, wage rates shall come into force on the expiry of 3
months from the date of the issue of the notification.

NOTIFICATION METHOD:
The appropriate Government

 Shall publish its proposals by notification, in the Official Gazette

 for the information of persons likely to be affected thereby and
  specify a date not less than 2 months from the date of notification,
 On which the proposals will be taken into consideration.
 The representations received will be considered by the appropriate Government.
It will also consult the Advisory Board constituted under Section 7 and thereafter fix or revise
the minimum rates of wages by notification in the Official Gazette. The new wage rates shall
come into force from such date as may be specified in the notification. However, if no date is
specified, the notification shall come into force on expiry of 3 months from the date of its
issue of Notification.

Section 7:

STATE ADVISORY BOARD

SG shall appoint a State Advisory Board for co-coordinating the work of committees and
advising the appropriate Government in the matter of fixing and revising of MRW

It shall consist of

 persons to be nominated by the SG

 representing employers and employees from scheduled employment who shall be
equal in number &
 independent persons not exceeding 1/3rd of its total number of members,

One independent person shall be appointed as the Chairman by the SG

Section 8:

CENTRAL ADVISORY BOARD

The CG shall appoint a Central Advisory Board:

 For the purpose of advising the CG & SG

 In the matters of fixation and revision of minimum rates of wages and other matters
under the Minimum Wages Act

 And for coordinating work of the advisory boards.

It shall consist of
  persons to be nominated by the CG
 representing employers and employees from scheduled employment who shall be
equal in number &
 independent persons not exceeding 1/3rd of its total number of members,

One independent person shall be appointed as the Chairman by the CG

 AUTHORITIES AND CLAIMS

Authority & Claims (20-21)

To hear & decide the claims arising under this act (i.e. if there is a dispute b/w employer &
Employee regarding the rates of Wages)

AG may appoint any of the following

 Commissioner for Workmen's Compensation

 Officer (Labour Commissioner) of CG
 Officer (not below the Rank of Labour Commissioner) of CG
 Any other Officer (having experience of being a Judge of Civil Court or Stipendiary
Magistrate)

Procedure before the authority

The procedure before the authority in the matters relating to non-payment or payment of less
than the minimum wages to the employees shall take place in the following manner as
prescribed under the Act.

 The prescribed authority shall give adequate opportunities of being heard to the
employer, applicant or any other person relevant to the case.
 In case of non-payment of wages, or delay in the payment of wages the authority shall
direct the refund of such amount to the applicant of the amount unpaid, or delayed
along with the compensation for the damages suffered by the employee.
 No compensation will be awarded to the employee if the authority is satisfied that the
delay in payment of wages of the employee was a bona fide error. The authorised
person was unable to make the payment even though they exercised due diligence.