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Present by :
University of Calcutta
Sahid Khudiram Siksha Prangan
(Commonly known as Alipore Campus)
Subject: Industrial Relations
Subject Code: 206
Module II: Fundamental of Labour Laws
Akash Das
Arka Chatterjee
The Minimum
Wages Act, 1948
INDIA
I. INTRODUCTION
II. HISTORY OF MINIMUM WAGES
III. OBJECTIVE OF MINIMUM WAGES ACT.
IV. FIXATION AND REVISION OF MINIMUM WAGES
V. PAYMENT OF MINIMUM WAGES
VI. FIXING HOURS OF WORK & OVERTIME WAGES
VII. CLAIMS
VIII. PENALTIES
IX. CONTRACTING OUT
X. REFERENCES
introduction
The Minimum Wages Act 1948 is an Act of Parliament
concerning Indian labour law that sets the minimum wages
that must be paid to skilled, unskilled, semi-skilled, and highly
skilled laborers.
History of minimum wages
 The initiative by Shri K.G.R.Choudhary in 1920 set up boards for
determination of wages.
 The International Labour Conference adopted convention
no.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 11.04.1946 and came into force with effect from
15.03.1948
**Not applicable to Coal Mines, which gets covered by National
Coal Wage Agreement.
 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
Objective of Minimum Wages Act.
This Act, the Minimum Wages Act, 1948 extends to the whole of India.
This Act may be called the Minimum Wages Act, 1948.
'Adult', ‘Adolescent' And ‘child’
 Adult- is who has completed his 18 years of age.
 Adolescent - completed his 15 years but not 18 years of age.
 Child, who has not completed his 15 years of age
The Act also states that children below the age of 14 cannot be employed except in certain
family-oriented jobs. Employing children under the age of 14 for any work other than
specified family-oriented work is a cognizable offence and can result in imprisonment of
up to two years. Adolescents between the ages of 14 and 18 shall not be engaged in any
hazardous occupation.
Appropriate government India has a federal form of Government at the
central and state levels. The Minimum Wages Act provides separate areas of jurisdiction
for both central and state governments.
The minimum rates of wages will be reviewed/ revised, every five years, by the
appropriate govt.
Appropriate govt. can add any employment, to the schedule, wherein one
thousand or more employees are found working
Different minimum rates of wages may be fixed for different scheduled
employments/ different classes of work /different localities.
FIXATION AND REVISION OF MINIMUM WAGES
Fixation of minimum wages
.
• Recommendations of Advisory board for different classes
[ unskilled, skilled, clerk]
• Publish recommendations in National publications
[ for public comments]
• Hearing of the Representatives
• Notification of Minimum Wages
PAYMENT OF MINIMUM WAGES
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 the supply of essential commodities at
concessional rates.
The Minimum Wage has to be paid without any deductions
Payment of wages less than minimum wages on the ground of less performance
or output is illegal.
Fixing hours of work
For an Adult Worker working in Factories:
 The 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.
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.
 Overtime wage rate will be twice the normal wage rate.
Wages for a person who has worked less than
normal working hours
If Employer cannot provide the activities of the job, then the employee is
entitled to receive full salary.
If Employee has not worked due to his unwillingness then, the employee is not
entitled to receive full salary.
Claims
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 to settle his
claims within 6 months
Penalties
Offense Punishment
Payment of less than Minimum
wages to employment
Imprisonment which may extend up
to 6 months or a fine which may
extend up to RS 500/- or both
Contracting out
 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.
References
 https://www.slideshare.net/uzmarukhsar88/minimum-wages-act-1948-26915761#2
 chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://labour.gov.in/sites/default/files/doc1.pdf
 Chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://clc.gov.in/clc/sites/default/files/MinimumWagesact.pdf
The Minimum Wages Act of 1948, Ensuring Fair Compensation for Workers.pdf

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The Minimum Wages Act of 1948, Ensuring Fair Compensation for Workers.pdf

  • 1. Present by : University of Calcutta Sahid Khudiram Siksha Prangan (Commonly known as Alipore Campus) Subject: Industrial Relations Subject Code: 206 Module II: Fundamental of Labour Laws Akash Das Arka Chatterjee
  • 3. I. INTRODUCTION II. HISTORY OF MINIMUM WAGES III. OBJECTIVE OF MINIMUM WAGES ACT. IV. FIXATION AND REVISION OF MINIMUM WAGES V. PAYMENT OF MINIMUM WAGES VI. FIXING HOURS OF WORK & OVERTIME WAGES VII. CLAIMS VIII. PENALTIES IX. CONTRACTING OUT X. REFERENCES
  • 4. introduction The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled, unskilled, semi-skilled, and highly skilled laborers.
  • 5. History of minimum wages  The initiative by Shri K.G.R.Choudhary in 1920 set up boards for determination of wages.  The International Labour Conference adopted convention no.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 11.04.1946 and came into force with effect from 15.03.1948 **Not applicable to Coal Mines, which gets covered by National Coal Wage Agreement.
  • 6.  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 Objective of Minimum Wages Act. This Act, the Minimum Wages Act, 1948 extends to the whole of India. This Act may be called the Minimum Wages Act, 1948.
  • 7. 'Adult', ‘Adolescent' And ‘child’  Adult- is who has completed his 18 years of age.  Adolescent - completed his 15 years but not 18 years of age.  Child, who has not completed his 15 years of age The Act also states that children below the age of 14 cannot be employed except in certain family-oriented jobs. Employing children under the age of 14 for any work other than specified family-oriented work is a cognizable offence and can result in imprisonment of up to two years. Adolescents between the ages of 14 and 18 shall not be engaged in any hazardous occupation. Appropriate government India has a federal form of Government at the central and state levels. The Minimum Wages Act provides separate areas of jurisdiction for both central and state governments.
  • 8. The minimum rates of wages will be reviewed/ revised, every five years, by the appropriate govt. Appropriate govt. can add any employment, to the schedule, wherein one thousand or more employees are found working Different minimum rates of wages may be fixed for different scheduled employments/ different classes of work /different localities. FIXATION AND REVISION OF MINIMUM WAGES
  • 9. Fixation of minimum wages . • Recommendations of Advisory board for different classes [ unskilled, skilled, clerk] • Publish recommendations in National publications [ for public comments] • Hearing of the Representatives • Notification of Minimum Wages
  • 10. PAYMENT OF MINIMUM WAGES 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 the supply of essential commodities at concessional rates. The Minimum Wage has to be paid without any deductions Payment of wages less than minimum wages on the ground of less performance or output is illegal.
  • 11. Fixing hours of work For an Adult Worker working in Factories:  The 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.
  • 12. 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.  Overtime wage rate will be twice the normal wage rate.
  • 13. Wages for a person who has worked less than normal working hours If Employer cannot provide the activities of the job, then the employee is entitled to receive full salary. If Employee has not worked due to his unwillingness then, the employee is not entitled to receive full salary.
  • 14. Claims 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 to settle his claims within 6 months
  • 15. Penalties Offense Punishment Payment of less than Minimum wages to employment Imprisonment which may extend up to 6 months or a fine which may extend up to RS 500/- or both
  • 16. Contracting out  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.