LABOUR LAW - II

CONSTITUTIONAL VALIDITY OF MINIMUM

WAGES ACT, 1948
• Article 14 of the Constitution of India, 1950
• Article 23 and 24
• Article 39 (d) and (e)
• Article 43
• Article 43A
 Article 21 Right to life and Personal Liberty

Francis Coralie v U. T. of Delhi, AIR 1981 SC 746

• The Supreme Court held that the right to life

include the live with human dignity and along
necessities of life as adequate nutrition,
clothing, shelter, facilities for life.
• Article 23 and 24 guarantees the
“Fundamental right against exploitation”
• Article 23
• People’s Union for Democratic Rights V Union of India
(1992) II LLJ 454 (SC)
- The Purpose of this Article is to protect the poor
people from bonded labour and exploitation
- If a workmen is paid less than the minimum wage then
it can be legitimately presumed that he is acting under
the force of compulsion as he has no choice.
- This type of labour fall under the purview of Article 23.
• Article 39 (d) the State shall ensure the “equal pay for
equal work”
• Article 39 (e) the health and strength of workers,
men, women and tender age of children are not
abused
• Article 43 says about “living wage for workers” and
State has an obligation to fulfill these objectives
• Article 43A the participation of workers in
Management of Industry and the State by suitable
legislation or in other way to secure this.
 BIJOY COTTON MILLS V STATE OF AJMER, AIR 1972 SC 1721

- In this case, it was contended that the fixation of

minimum rate of wage interfere with the employer’s
fundamental right of freedom of trade or business
guaranteed under A. 19 (1) (g).
- The SC observed that the conditions imposed on
freedom of contract by fixation of minimum rate of
wage is not unreasonable.
- It is imposed in the interest of general public and
carry out the DPSP as enshrined in A. 43
- The SC upheld the Constitutional Validity of fixing
Minimum Wage.
Fixation of Minimum wage : Statutory Obligation
of State
• Minimum Wage is considered a necessary catalyst to advance the
social status of workmen
• Secunderabad Club V State of Andhra Pradesh, (1997) I
LLJ 454 (SC)
- Wage to be considered as fair
- Sufficient to procure the necessities of life out from wages.
- By payment of lower wage, it cause harassment to the
general public.
- So it ensure by the State relating to payment of minimum
wage
Crown Aluminium Works V Their Workmen,
AIR 1958 SC 30
• The SC held, no industry has a right to exist unless it
is able to pay its workmen at least a bare minimum
wage
• It is quite likely that in underdeveloped countries,
where unemployment prevails on a very large scale
• Unorganized labour on [starvation wage means –
money paid to workmen which is unable to pay for
things as most important is food for himself] and on
this wage the employment cannot be encouraged of
modern welfare State
Kamani Metals and Alloys V Their Workmen,
AIR 1967 SC 1175
• Fixation of wage structure is always a delicate task
• There must be balance between demand of social
justice and divert capital from the industry
• Social justice which requires that workmen should
receive their proper share of the national income and
improving their standard of life
• On the other hand, Increase in wage makes the profits
less on the part of the employer
• There must be harmony between the labour and
capital