Minimum wages act, 1948

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Minimum wages act, 1948

  1. 1. MINIMUM WAGES ACT, 1948 PRESENTED BY: SHALU SARAF CS TRAINEE
  2. 2. MINIMUM WAGES ACT, 1948 OBJECTIVE  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 revising it in a timely manner  To apply this law on most of the sections in organized sector (scheduled employment)
  3. 3. MINIMUM WAGES ACT, 1948 HISTORY     The initiative by Shri K.G.R.Choudhary in 1920: set up boards for determination of wages The International Labor Conference adopted convention 26 and 30 in 1928 relating to wage fixing machinery in trades or parts of trades A Minimum Wages Bill was introduced in the Central Legislative Assembly on 11.4.46 and came into force with effect from 15.3.48 The Committee on Fair Wage was set up in 1948 to provide guidelines for wage structure
  4. 4. MINIMUM WAGES ACT, 1948 Short title & extent (sec. 1)  This Act the Minimum Wages Act, 1948 extends to the whole of India  This Act may be called the Minimum Wages Act, 1948
  5. 5. MINIMUM WAGES ACT, 1948 FEATURES (SECTION 3):-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, adolescents, children and apprentices (SECTION 4):-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
  6. 6. MINIMUM WAGES ACT, 1948 ELIGIBILITY Permanent employees  Contract employees  Casual workers  People on probation get fixed pay instead o minimum wages.  Trainees get stipend and not minimum wages 
  7. 7. MINIMUM WAGES ACT, 1948 APPROPRIATE GOVERNMENT : SEC. 2(b)  In relation to scheduled employment carried on by Central Government or railways or est. under Central Act - the Central Government  In all other cases – the State Government
  8. 8. MINIMUM WAGES ACT, 1948 WAGES: SEC.2(h) Minimum wages: all remuneration capable of being paid in money terms for work done if terms of contract were fulfilled  consist of Basic + Dearness Allowance + House Rent Allowance  Every 5 years, basic rates of every industry are decided by Minimum Wages Committee  Dearness Allowance changes every six months and is decided by Government 
  9. 9. MINIMUM WAGES ACT, 1948 MINIMUM RATE OF WAGES    The national floor level of minimum wage has been increased to RS. 189-289 per day (Rajasthan w.e.f Sept. 30, 2013) In order to reduce disparities between wages in neighboring states and bring comparability the Central government has set up 5 regional committees for harmonization of minimum wages. Disclaimer : Minimum Wages have been provided by the Labor Departments of respective states. All efforts have been made to update the minimum wage data on a regular basis. However, there might be unforeseen errors.
  10. 10. MINIMUM WAGES ACT, 1948 MINIMUM RATE OF WAGES Region State covered Eastern region West Bengal, Orissa, Bihar, Jharkhand, Chhattisgarh & Andaman and Nicobar islands. North eastern region Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura & Sikkim Southern region Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry & Lakshadweep Northern region Punjab, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Haryana UttarKhand, Delhi & Chandigarh Western region Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra & Nagar Haveli and Daman and Diu
  11. 11. MINIMUM WAGES ACT, 1948 FIXING OF MINIMUM RATE OF WAGES: [SEC. 3] The Appropriate Government: Shall fix minimum rates of wages for an employment specified in Part I or Part II of Schedule & added by notification in official gazette  May fix rates for a part of the state or for any specific class or classes instead of fixing minimum rate of wages for whole state  Shall review and revise at intervals not exceeding 5 years the minimum rates of wages
  12. 12. MINIMUM WAGES ACT, 1948 DIFFERENT MINIMUM WAGES MAY BE FIXED BY THE GOVERNMENT FOR: 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 
  13. 13. MINIMUM WAGES ACT, 1948 WAGE PERIODS By the hour  By the day  By the month  By such other larger wage periods may be prescribed; and where such rates are fixed by the day or by the month, the manner of calculating wages for a month or for a day, as the case may be, may be indicated. 
  14. 14. MINIMUM WAGES ACT, 1948 DIFFERENT MINIMUM WAGES MAY BE FIXED BY THE GOVERNMENT MAY CONSIST OF : [SEC. 4] 1. Basic + Special Allowance (Which varies with the cost of living index)  2. Basic + Cash value of concessional supply of materials like food, clothes, etc  3. An all inclusive rate which includes Basic + Cost of living Allowance + Cash value of concessional supply of materials 
  15. 15. MINIMUM WAGES ACT, 1948 FIXING MINIMUM RATES OF WAGES :[SEC. 5] 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 
  16. 16. MINIMUM WAGES ACT, 1948 FIXING MINIMUM RATES OF WAGES :[SEC. 5] Recommendation of Advisory Board for different class[unskilled, skilled, Clerk, Supervisor] Publish recommendations in National Publications [for public comments/representations from Trade Unions etc.] Hearing of the Representatives etc Notification of Minimum wages
  17. 17. MINIMUM WAGES ACT, 1948 Advisory board: (sec. 7) - Appointed by appropriate government - To co-ordinate the work of committees and sub committees appointed under Section 5 Central advisory board: (sec. 8) - To advise the Central and State Governments in fixation and revision of minimum rates of wage - To co-ordinate the work of the Advisory Boards
  18. 18. MINIMUM WAGES ACT, 1948 COMPOSITION OF COMMITTEES , ETC.: [SEC. 9]  a) b) c) Each of the committee, sub-committee and the Advisory Board shall consist of : persons to be nominated by the appropriate Government representing the employers and employees in the scheduled employments who shall be equal in number and; independent persons not exceeding one-third of its total number of members: one of such independent persons shall be appointed the Chairman by the appropriate Government.
  19. 19. MINIMUM WAGES ACT, 1948 CORRECTION OF ERRORS: [SEC. 10] By appropriate Government at any time  By notification in the Official Gazette  Correct clerical or arithmetical mistakes or errors arising from and accidental slip or omission.  Every such notification shall be placed before the Advisory Board for information. 
  20. 20. MINIMUM WAGES ACT, 1948 WAGES IN KIND: [SEC. 11] Minimum wages shall be paid in cash.  The appropriate govt. may authorize, where there has been a custom of payment in this manner, payment of minimum wages either wholly or partly in kind  The appropriate govt. may authorize supply of essential commodities at concessional rates 
  21. 21. MINIMUM WAGES ACT, 1948 PAYMENT OF MINIMUM RATE OF WAGES: [SEC. 12] The Minimum Wages has to be paid without any deductions other than Statutory Deductions.  Payment of wages less than minimum wages on the ground of less performance or output is illegal 
  22. 22. MINIMUM WAGES ACT, 1948 NORMAL WORKING HOURS: [SEC. 13]  For an Adult Worker working in Factories: - Number of Working Hours should not exceed 48 Hours in a week with a weekly Holiday - The Daily Hours should not exceed more than 9 Hours with 1 Hour Rest Interval - Provision of Compensatory Holiday/ Overtime Wages if working on holiday
  23. 23. MINIMUM WAGES ACT, 1948 OVERTIME WAGES: [SEC. 14]     If the person has worked for more than 48 hours in a week then, the excess hours worked will be treated as Overtime Overtime wage rate will be twice of the normal wage rate Wages for a person who has worked less than normal working hours [Sec. 15] 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
  24. 24. MINIMUM WAGES ACT, 1948 RECORDS TO BE MAINTAINED: [SEC. 18] The Registers should contain the following particulars(i) particulars of employed persons (ii) the work performed by them (iii) the wages paid to them (iv) the receipts given by them 
  25. 25. MINIMUM WAGES ACT, 1948 CLAIMS: [SEC. 20] A Labor Commissioner or any other appointed authority is authorized to hear claims regarding non-payment of minimum wages  Any aggrieved person may apply to the authority for settling his claims within 6 months 
  26. 26. MINIMUM WAGES ACT, 1948 PENALTIES: [SEC. 22] Offence Payment of wages less than minimum wages to employees Punishment Imprisonment which may extend up to 6 months or fine which may extend up to 500/- or both
  27. 27. MINIMUM WAGES ACT, 1948 CONTRACTING OUT: [SEC. 25]  Any contract or agreement, whether made before or after the commencement of this Act, whereby an employee either relinquishes or reduces his right to a minimum rate of wages or any privilege or concession accruing to him under this Act shall be null and void so far as it purports to reduce the minimum rate of wages fixed under this Act.
  28. 28. MINIMUM WAGES ACT, 1948 POWER OF STATE GOVERNMENT TO ADD SCHEDULE : [SEC. 27]  The State Government has to notify in the Official Gazette not less than three months of its intention to do so.  Power of Central Government to give directions[Sec. 28]: The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.
  29. 29. MINIMUM WAGES ACT, 1948 POWER OF THE CENTRAL GOVERNMENT TO MAKE RULES: [SEC. 29] Procedure to be followed in conduct of business  Method of voting  Manner of filling of casual vacancies in membership  Quorum necessary for the transaction of business of the Central Advisory Board. 
  30. 30. MINIMUM WAGES ACT, 1948 RECENT CASES:   Executive Engineer, Rural Works Division, Mayurbhanj vs. Addl. District Magistrate, Mayurbhanj, 2005 LLR 121 (Ori HC), it was held that, under the Minimum Wages Act, it is the liability of principal employer to pay difference of wages to the employees of the contractor. President Cinema Workers Union Affiliated to Bharatiya Mazdoor Sangh vs. The Secretary Social Welfare and Labor Department, 2005 LLR 648 (Karn He), it was held that inaction on the part of the Government in not revising minimum wages for 13 years will not be justified hence revision be made
  31. 31. MINIMUM WAGES ACT, 1948 CASES (CONTD.)    Delhi Council for Child Welfare v. Sheela Devi, 2006 LLR 1181 (Del He), it was held that A Society is liable to pay minimum wages to its employees. Birla Institute of Technology vs. State of Bihar, 2007 LLR (SN) 330, it was held that Birla Institute of Technology will be liable to pay the wages as per The Minimum Wages Act, 1948. Agricultural Produce Market Committee vs. Weighmens Association, Tiptur, 2007 LLR (SN) 333 (Kam He). It was held that in the absence of relationship of master and servant, the weigh men will not be entitled to minimum wages.
  32. 32. MINIMUM WAGES ACT, 1948 CASES (CONTD.)   Sonu vs. Municipal Corporation of Delhi, 2005 LLR 778 (Del He), it was held that Minimum wages to the safai karamcharis cannot be denied on the ground that they work on part-time basis. Lingegowd Detective & Security Chamber Pvt. Ltd. vs. Mysore KirloskJIr Ltd., (2006) ( (SC), it was held that private security guards through contractor will not be entitled to minimum wages in the absence of scheduled employment.
  33. 33. MINIMUM WAGES ACT, 1948 TO SUM UP:  Effective implementation of the Minimum Wages Act,1948, which primarily falls in the State sphere, is assiduously pursued by Ministry of Labor and Employment through: • discussion, • writing letters, • personal interaction and visits to states.  The State Governments are regularly asked to fix and revise minimum wages in scheduled employments to be at least at par with national floor level minimum wages.
  34. 34. MINIMUM WAGES ACT, 1948 LIST OF IMPORTANT FORM Form no. Rule Description A sec.4(1) Proviso(a) Core Return Return for the year ending 31st December (to be furnished on or before the 15th February of the succeeding year by small establishment and very small establishments) I 21(4) Register of fine ------Employer------- 21(4) Register of deduction for absence from duty on damage or loss caused to the employer by the neglect or default of the employed persons -----Employer------ II
  35. 35. MINIMUM WAGES ACT, 1948 LIST OF IMPORTANT FORM Form no. Rule Description III 21(4a) Annual Return V 26(5) Muster Roll X 26(1) Register of Wages XI 26(2) Wage Slip
  36. 36. MINIMUM WAGES ACT, 1948 LIST OF IMPORTANT FORM Form no. IV VI VI-A VII Rule Description 25(2) Over time Register for workers Month ending 27 Form of application by an Employee under sec.20(2) - Form of Group Application under sec.21(1) 27 Form of application by an Inspector of person acting with the permit on the Authority under sec.20(2)
  37. 37. MINIMUM WAGES ACT, 1948 LIST OF IMPORTANT FORM Form no. VIII IX Rule Description 28 Form of Authority in favor of a legal practitioner or any official of a registered trade union referred to in sec.20(2) 29 Form of Summons of the opponent to appear before the Authority When an application under sub-section (2) of Sec.20 or under Sec.21 is entertained
  38. 38. ANY QUERIES…

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