Minimum Wages Act

Introduction
To secure the welfare of the unorganized workers in certain industries by fixing the minimum rates of wages. The fixation of minimum of wages relates to the industries where sweated labour is most prevalent or where there is inevitable chance of exploitation

Features of the Act

1. The act lays down the principles for fixation of :
A minimum time rate of wages A minimum piece rate A guaranteed time rate An overtime rate for different occupations, localities or classes of work and for adults, and apprentices.

2. The minimum wages may consist of:

A basic rate of wages and a cost of living of allowances A basic rate of wages with or without the cost of living allowance and the cash value of the concessions in respect of essential commodities supplied at concessional rates.

FIXING OF MINIMUM RATE OF WAGES

The Minimum Wages has to be paid irrespective of the extent of Profit or Financial Condition of the Establishment The Minimum Wages has to be paid irrespective of availability of workmen willing to work on lower wages In case the Employers have not adhered to Minimum Wages then, the Employee can move to Labor Courts before proceeding to High Courts The Minimum Wages will be fixed based on the Nature of Work and Quantum of Work.

PAYMENT OF WAGES
Minimum Wages payable under this Act, shall be paid in Cash The Appropriate Government will decide the value for the concessional, essential commodities provided to the employees by issuing a notification in the official gazette. The Minimum Wages has to be paid without any deductions other than Statutory Deductions.

NORMAL WORKING HOURS

For an Adult Worker, Working in Factories the number of Working Hours should not exceed 48 Hours in a week. One Day should be given as a holiday as Weekly Holiday. The Daily Hours should not exceed more than 9 Hours with 1 Hour Rest Interval Where a person has worked on a Holiday either a Compensatory Holiday may be provided or An Overtime Wages will be paid

OVERTIME WAGES
If the person has worked for more than 48 hours in a week then, the excess hours worked will be treated as Overtime.

WAGES FOR A PERSON WHO HAS WORKED LESS THAN NORMAL WORKING HOURS
Employer could not provide the activities of the job then, the employee is entitled to receive full salary

Employee has not worked due to his unwillingness then, the employee is not entitled to receive full salary

WAGES FOR TWO OR MORE CLASSES OF WORK

Where an Employee does two types of works which has different Minimum Wages then, the Employer shall pay to such Employee based on working hours allocated to each type of job.

RECORDS TO BE MAINTAINED
Registers shall give particulars of employees by him. Work performed by them Overtime work Gross wages ,deductions made etc The Registers shall be preserved for a period of 3 years after the date of last entry made therein

PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES

committees and sub-committees necessary to hold enquiries By notification in the Official Gazette publish its proposals for the information of persons affected After considering the advice of the said committee on the representations, the appropriate Government will by notification in the Gazette fix or revise the minimum rates of wages

INSPECTION
The Appropriate Government through notification in the official gazette appoint inspectors and also define the local limits for such inspectors The inspectors have right to enter the premises of employers at all reasonable hours and have right to verify all the records as required to be maintained by law The Inspectors have right to cease or take copies of registers maintained by the Employer

PENALTIES
An employer who pays to any employee less than the prescribed minimum rate of wages will be punished for six months or fines will be imposed