Name- Sakshi Vishwakarma

Course- B.A LL.B

Batch- 2017-2022, Section- ‘C’
Enrollment No.- 07851103817
Subject- Labour Law -II
Date of Presentation- April 29, 2021
Topic- Brief Note on the Minimum Wages Act,1948
Submitted to- Mrs. Upasana Singh
(Assistant Professor Law)
 INTRODUCTION

• The Minimum Wages Act, 1948 is a central

legislation that envisages for payment of
minimum statutory wages for scheduled
employments.
• It aims to eradicate the exploitation of workers
through paying low wages by the employer.
• The provisions of this Act are enacted with an
objective of doing social justice to workmen
employed in the scheduled employment by
prescribing minimum rates of wages for them.
 Continued…

• The Act contains 31 sections and one schedule.

• The Act also contains the provisions dealing
with maximum working hours, weekly rest day
and overtime.
• The Act supplements the Article 43 of the
Indian Constitution i.e., living wages, etc., for
workers; with prime objective of protecting the
workers from exploitation.
 HISTORY OF THE ACT

• The concept of minimum wages was evolved to

protect the workers against exploitation by the
employers.
• The workers were paid below their subsistence
level, thus making them unable to fulfill their
daily needs.
• However, this issue was taken on International
level and in the year 1919 the International
Labour Organization highlighted the importance
of minimum wages as a part of the Treaty of
Versailles.
 Continued…

• In the year 1929, the Royal Commission

discussed the subject of minimum wages and
suggested to establish a statutory wage- fixing
machinery in India.
• Consequently, in the year 1928, a draft was
adopted for minimum wages in the International
Labour Conference.
• Dr. B.R Ambedkar drafted the Minimum Wages
Bill, on April 11, 1946; the bill was introduced
and enforced on 15th March, 1948 due to delay
in constitutional changes.
 OBJECTIVE OF THE ACT

• The preamble of the Act states- “An Act to

provide for fixing minimum rates of wages in
certain employments.”
• Some of the main objectives of the Act are as
follows-
 To prevent the exploitation of workers.
 To ensure that every worker is paid the
minimum amount of wage prescribed for the
particular job.
 To ensure social justice.
 CONTINUED…

 To ensure that the workers can meet their daily

needs, physical necessity, proper health and
comfort.
 To ensure that the labourers have minimum
standard of living.
 To provide for periodic revision of minimum
wages fixed.
 To provide for the appointment of an Advisory
Committee and boards with an equal number of
representatives from employers and employees.
SCOPE & APPLICABILITY OF THE ACT

• The Act is applicable to whole of India including

Jammu & Kashmir.
• The provisions of the Act are applicable to every
employer who employs more than thousand
employees in a state.
• However, the provisions of the Act do not apply to
employees undertaken by the Central Government
or railways unless the same has been consented by
the Central government.
 SALIENT FEATURES OF THE ACT

• The following are the key features of the

Minimum Wages Act, 1948-
• This Act applied to certain employments and
it empower both Central and State
government to fix amount of wage for their
respective areas.
• Minimum wage means all remuneration in
should be paid in cash.
 CONTINUED…

• Fixing minimum rates of wages according

to the class of :
a)different scheduled employments;
b)different classes of work in the same
scheduled employment;
c)adults, adolescents, children and
apprentices; and
d)different localities (zone wise)
 CONTINUED…

 Minimum wages revised by appropriate

government in every 5 years.
 Non-payment of Minimum wages is an offence
punishable up to six months imprisonment or
with fine up to Rs. 500 or with both.
• The food requirement must be ascertained by the
regular calorie intake by the family.
 The expenditure is generally considered to be
20% of the minimum wage earned.
CONSTITUTIONALITY OF THE ACT
• The constitutional validity of this Act was
challenged in the case Bijay Cotton Mills Ltd
v.The State of Ajmer, (1955 1 SCR 752)  on the
ground that it violates the guarantee of freedom
of trade and business, etc. envisaged by Article
19(1)(g).
• But the Supreme Court held that the Act is based
on the directive principles of state policy
enshrined under Article 43 of the Constitution,
fundamental rights are not absolute, reasonable
restrictions can be imposed in the interest of
general public.
 CONTINUED…
• The same judgement was upheld in these cases
also, thus validating the constitutionality of the
Act-
 Shamrao v. State of Bombay,(AIR 1962 Bom
97.)
 V. Unichonoy v. State of Kerala,(AIR 1962 SC
12.)
 Bhikusa Yamasa Kshatriya v. Sangamner Akola
Bidi Kamgar Union, (AIR 1963 SC 306)
 Sanjit Roy v. State of Rajasthan,[1983 SCR (2)
271.]
 CONCLUSION
• The Minimum Wages Act, 1948 was set up with
the aim of providing at least minimum wages to
the workers for their livelihood.
• The Act prevents the exploitation of workers.
• This Act was formed to provide social justice
and living wages.
• Even in the preamble of this Act said “To
provide for fixing minimum rates of wages in
certain employments.”
THANK
YOU!