Minimum wages act presentation BY MURALYKRISHNAN

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MINIMUM WAGES ACT 1948 INDIA

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Minimum wages act presentation BY MURALYKRISHNAN

  1. 1. Minimum Wages Act,1948 Presentation By Muraly Krishnan S1 5-Dec-12
  2. 2. Industry is for man and not man for industry  Employers social & economic obligation- provide employees safe, healthy and comfortable living, employment and working conditions  Concept of minimum wages based on equity and social justice principle-”he who works is entitled to a fair remuneration, which may enable him to live a life consistent with human dignity”  wages=price of labor like interest=price of capital2 5-Dec-12
  3. 3. Why Minimum Wages  Rapid industrial growth  Decreasing industrial peace  For the benefit of employee and his family  Maintaining and promoting economic growth of the country3 5-Dec-12
  4. 4. Challenges in Minimum Wages  Is it a subsistence wage-enable the worker to stay alive and maintain his working capacity  Is it a living wage-provide for the maintenance of health and efficiency, measures of frugal comfort and some insurance against the more important misfortunes  Is it a fair wage-somewhere between the levels of subsistence and living wage, as permitted by the country’s economy minimum wage is essentially a relative term may mean differently in different countries4 5-Dec-12
  5. 5. ILO the front runner in Minimum Wages  Formulating International Labor standards for member countries since 1915’s  1928 recommended for the adoption of minimum wage fixing machinery covering only non agricultural sector, later on 1951 at its 34th session adopted a minimum wage fixing machinery recommendation for agricultural employments5 5-Dec-12
  6. 6. Minimum Wages Act 1948  India enacted central minimum wage legislation, Minimum Wage Act in March 1948  Objects: To promote the welfare of workers by fixing minimum rates of wages in certain industries where labor is not organized and sweated labor is most prevalent  Act seeks to prevent exploitation of workers by ensuring that they are paid the minimum wages, which would provide for their subsistence and preserve their efficiency6 5-Dec-12
  7. 7. Scope and coverage of the Act  Act applies allover India  Initially it applied to agricultural employment and other 12 employments  Now by the help of Government it has been extended to more than 300 employments7 5-Dec-12
  8. 8. Employee and Wages  Employee means any person who is employed for the hire or reward to do any work, skilled and unskilled, manual and clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed  Wages means all remuneration, capable of being expressed in terms of contract of employment expressed or implied were fulfilled, be payable to a person employed, in respect of his employment or of work done in such employment8 5-Dec-12
  9. 9. Fixation and Revision of Minimum Wages  A basic rate of wages and a special allowance at a rate to be adjusted to variation in the cost of living index applicable to such workers at such intervals and in such manner as the Government may direct  A basic rate of wages with or without the cost of living allowance, and the cash value of the concession, in respect of supplies of essential commodities at concession rates where so authorized  An all inclusive rate, allowing for the basic rate, the cost of living allowance, the cash value of the concession if any9 5-Dec-12
  10. 10. Procedure for Fixing and Revising Minimum Wages  Government shall appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision  By notification in the official Gazette, publish its proposal for the information of the persons likely to be affected thereby, and specify a date, not less than two months from the date of notification, on which the proposal will be taken into consideration10 5-Dec-12
  11. 11. Payment of Minimum Rates of Wages (Sec12)  Employer shall pay to every employee  Wages at a rate not less than the minimum rate of wages fixed for that class of employees in the employment  Shall be paid without any deductions except as may be authorized11 5-Dec-12
  12. 12. Fixing hours for a normal working day  Fix the number of hours of work, which constitute a normal working day, inclusive of one or more specified intervals  Provide for a day of rest in every period of seven days and for payment of remuneration in respect of such days of rest  Provide for payment for work on a day of rest at a rate not less than overtime rate12 5-Dec-12
  13. 13. Rates of Overtime  Under section 14 of the act a worker in an employment for more than nine hours on any day or for more than 48 hours in any week, he shall, in respect of such overtime work be entitled to wages at double the ordinary rate of wages  Under section 15 employer have the power to issue only the wages for the hours that the employee has worked for that particular working day13 5-Dec-12
  14. 14. Registers and Records(Sec18)  Every employer has to maintain records and registers giving such particulars of employees employed by him the work performed by them, the wages paid to them, the receipts given by them  Every employer shall keep the notices exhibited in such factory, workshop or place as may be used for giving out work to them  The appropriate government may, by rules made under the Act, provide for the issue of wages books or wage slips to employees14 5-Dec-12
  15. 15. Enforcement of the Act(Sec19)  Inspectors-By notification in the Gazette , the appropriate government may appoint Inspectors, and define the local limits within which they shall exercise their functions  They are empowered to enter in work premises at all reasonable hours , examining registers, record of wages ,examine any persons has reasonable cause to believe is an employee, examine payment details and take copies of register and other records15 5-Dec-12
  16. 16. Authority for hearing and deciding claims  Authority may be any commissioner for workmen’s compensation  Any officer of the central government exercising functions as Labor Commissioner for any region  Any officer of the State Government not below the rank of a Labor Commissioner  Any other officer with an experience as a Judge of a Civil Court or as a stipendiary Magistrate16 5-Dec-12
  17. 17. Who may apply (Sec20)  The applicant can be the employee himself  Any legal practitioner  Any official or a registered trade union authorized in writing to act on his behalf  Any inspector or  Any person acting with the permission of the authority17 5-Dec-12
  18. 18. Obligation of Employers  Pay to every employee the minimum rates of wages in case fixed by the government without any deduction  Observe all directions which may be issued under the act in regard to normal working hours, weekly day of rest with wages and overtime rates  Maintain records and registers as required by the government showing details of employees their payments and receipts  Issue wage books or slips to employees in respect of minimum rates of wages if required by the government18 5-Dec-12
  19. 19. Right of workers  Receive minimum wages, including overtime wages, as fixed and notified by the government  File claims for short payments within six months from the date the minimum wages become payable. Delay in filing the claim may be condoned, if there is sufficient cause19 5-Dec-12
  20. 20. Minimum Wages Act the current relevance  Important landmark in the history of labor legislation in India  So much surplus labor both educated and uneducated  Nearly 90% of Industrial and commercial workers reported to have been ensured minimum subsistence wage by the implementation and enforcement of the Act20 5-Dec-12
  21. 21. Thank You21 5-Dec-12

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