Minimum wages act, 1948 ( s e l v a).ppt2

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  • 1. 1948 Minimum Wage cartoon 2 - search ID efin267
  • 2.
    • Passed in 1948 to secure the welfare of the unorganized workers in certain industries by fixing the minimum rates of wages.
  • 3.
    • WAGES
    • – Expressed or Implied Monetary Payment in terms of Contract of
    • Employment and includes House Rent Allowance.
    • WAGES DO NOT INCLUDE
    • – House Accommodation, Supply of necessities like Light, Water and Provision
    • of Medical Attendance and Other Amenity or Service specifically excluded
    • by the Appropriate Government.
    • – Contribution made to Pension Fund or Provident Fund or under any
    • scheme of Social Insurance
    • – Travelling Allowance or the value of any Travelling Concession
    • – Special Allowances provided based on the nature of Employment
    • – Gratuity Payable
  • 4.
    • Applicable to Whole India
    • Central Government Act of 1948 and Rules made there under will be applicable and the directions given in the Act should be followed.
  • 5.
    • To provide minimum wages to the workers working in organized sector.
    • To stop exploitation of the workers.
    • To empower the government to take steps for fixing minimum wages and to revise this wages every 2 years
  • 6.
    • This Act is applicable to all employments described in the Act i.e. minimum wages have to be paid to all the employees of the employments described in the Act
  • 7.
    • Appropriate government shall fix minimum rates of wages for all employments specified in the schedule of the act.
    • Review of minimum wages – The appropriate government shall review the minimum wages at such intervals as it may deem fit. However, such a review shall be done before Five Years from date of fixing minimum wages.
  • 8.
    • The Minimum wages may be fixed for different wage periods like
    • By the Hour,
    • By the Day,
    • Bythe month, or
    • By other larger wage period.
  • 9.
    • Different employments (specified in the schedule)
    • Different classes (e.g. skilled, unskilled, semis skilled, etc.) of work in the same employments
    • Adults, adolescents, children and apprentices
    • Different localities.
  • 10.
    • Basic + Special Allowance ( Which varies with the cost of living index )
    • Basic + Cash value of concessional supply of materials like food, clothes, etc
    • An all inclusive rate which includes Basic + Cost of living Allowance + Cash value of concessional supply of materials.
  • 11.
    • Publish its proposals in the official gazette asking comments from the affected parties, Constitute committees/sub committees for the purpose.
    • The committees/sub-committees and advisory boards constituted by the Government consist of equal number of members of :
    • Employers,
    • Employees, and
    • Independent persons
  • 12.
    • The wages have to be paid in Cash only. However, permission can be taken from the government where payment of wages in kind when the same in as per custom or concessional supply of materials is made to the employees.
  • 13.
    • Deductions from Minimum Wages like PF, ESI, Advances, etc are permitted.
    • Wages to workmen who works less than normal working day in such cases Full Wages for normal day’s work have to be paid to workmen. However, a workmen is not entitled to wages for a full normal working day when he is unwilling to work even though work is made available by the employes.
  • 14.
    • 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 Day can be any day but it should be adhered for every week. The same should be displayed in the notice board of the Factory.
    • 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.
  • 15.
    • Where a person has worked more than the Normal Working Hours for any day, the excess hours worked will be treated as Overtime
    • Where the Fixed Normal Working Hours for any day is in excess of 8 Hours we have to go by the method of weekly worked hours. If the person has worked for more than 48 hours in a week then, the excess hours worked will be treated as Overtime.
  • 16.
    • Where an Employee worked on any day less than the Normal Working Hours due to the fact that, Employer could not provide the activities of the job then, the Employee is entitled to receive full salary.
    • Where an Employee worked on any day less than the Normal Working Hours due to the fact that, Employee has not worked due to his unwillingness then, the employee is not entitled to receive full salary.
  • 17.
    • Employer shall pay to such an employee wages at not less than the minimum time rate .
  • 18.
    • Registers shall give particulars of employess by him.
    • Work performed by them .
    • Overtime work
    • Gross wages ,deductions made etc
  • 19.
    • An Employee who has claim over the Employer through his legal practitioner or a official of a registered Trade Union or Employee himself may apply to the Authority for claims for getting a direction.
    • The Appropriate Authority will hear the applicant and the Employer and after giving both the persons a reasonable opportunity to hear and after making such further inquiry will pass an order.
    • In case the Appropriate Authority finds that the Employer is guilty then, the Appropriate Authority will direct the Employer for Payment of Compensation which may not exceed 10 times of the actual Compensation.
    • In case the Appropriate Authority finds that the Employee is guilty then, no Compensation is payable.
  • 20. Offence Punishment Contravention of Minimum Wages Act by employer Fine which may extend up to Rs 500/- Payment of less than Minimum Wages to employee Imprisonment which may extend up to 6 Months or Fine which may extend up to Rs 500/- or Both
  • 21.
    • The Central Government may give directions to the State Government for the execution of this Act.
    • The Central Government is empowered to make rules from time to time through notification in the official gazette.
    • The Central Government is empowered to make rules prescribing the terms of office of the members, the procedure to be followed in conduct of business, the method of voting, the manner of filling of casual vacancies in membership and the quorum necessary for the transaction of business of the Central Advisory Board.
    • The Appropriate Government is having the powers of the Central Government to make rules for the purposes as mentioned above.
  • 22.