Topic: Fixation of Wages under Minimum Wages Act,

1948.

Submitted To: - Dr. Raju Majhi Sir.

Submitted By: - Ankit Yadav.

Class: - B.A. LL.B. (Hons.) - 8th Semester.

Roll No.: - 14137LA029.

Enrolment No.: - 371952.

Subject: - BLBH 422: Labour and Industrial Law II.

University: - Law School, BHU, Varanasi.

Session: - 2017-2018.
 Fixation of Wages under Minimum Wages Act, 1948.

CERTIFICATE
This is to certify that this project assignment “FIXATION OF WAGES UNDER MINIMUM

WAGES ACT, 1948” submitted by ANKIT YADAV in the partial fulfillment of B.A. LL.B.

(Hons.) Course and is the record of bonafide work pursued by him as full-time student of

B.A. LL.B. (Hons.) 8th Semester, Faculty of Law (Law School), Banaras Hindu University

under my guidance and supervision. This assignment or any part thereof has not been

submitted elsewhere for any degree.

Varanasi. DR. RAJU MAJHI SIR.

25th April, 2018. (Supervising Guide)

Assistant Professor
Faculty of Law (Law School),
Banaras Hindu University (BHU).

ACKNOWLEDGEMENT
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 Fixation of Wages under Minimum Wages Act, 1948.

It is my proud privilege to release the feelings of gratitude to several persons who

helped me directly or indirectly to complete this assignment work. I express my

heart full indebtness and owe a deep sense of gratitude to my teacher Dr. Raju Majhi

Sir., for his sincere guidance and inspiration in completing this project.

I am extremely thankful to the Prof. D.K. Sharma Sir., Head & Dean, Faculty of

Law, Banaras Hindu University; Dr. C. P. Upadhyaya Sir., Course Coordinator B.A.

LL.B. (Hons.) Course and all the other faculty members for their kind cooperation

and encouragement.

I also want to thank to my family and friends who have more or less

contributed to the preparation of this assignment work. I will be always indebted to

them.

The study has helped me to explore more knowledgeable avenues related to

my topic and I am sure that it will help me in future.

Thank You.

Ankit Yadav

B.A. LL.B. (Hons.)

8th Semester.

TABLE OF CONTENTS

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 Fixation of Wages under Minimum Wages Act, 1948.

LIST OF
ABBREVIATION......................................................................................................5

TABLE OF CASES...................................................................................................................6

INTRODUCTION....................................................................................................................7

DESCRIPTION.........................................................................................................................8

 WAGE STRUCTURE & ITS COMPONENTS................................................................8

 MINIMUM WAGES..........................................................................................................8

 FAIR WAGES...................................................................................................................11

 LIVING WAGE................................................................................................................11

 FIXATION OF MINIMUM WAGES.............................................................................12

CONCLUSION.....................................................................................................................21

BIBLIOGRAPHY..................................................................................................................22

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 Fixation of Wages under Minimum Wages Act, 1948.

LIST OF ABBREVIATIONS
ABBREVIATION FULL-FORM (MEANING)

& And

A.P. Andhra Pradesh

AIR All India Reporter

Art. Article

Arts. Articles

Co. Company

Del. Delhi

ed. Edition

i.e. That is

ibid. Ibidem (In the same place)

id. Idem (The same)

Ker Kerala

Mys. Mysore

Ors. Others

Pat. Patna

pp. Pages

Pvt. Private

r/w Read with

SC Supreme Court

SCC Supreme Court Cases

Sec. Section

U.P. Uttar Pradesh

v Versus

TABLE OF CASES
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 Fixation of Wages under Minimum Wages Act, 1948.

S. NO. CASE NAME CITATION PAGE NO.

Madhya Pradesh Mineral Industrial Association v. The

1. AIR 1950 SC 1068 18
Regional Labour Commissioner

2. Unichay v. State of Kerala AIR 1962 SC 12 9

3. S.F.A.L. Works v. State Industrial Court, Nagpur AIR 1978 SC 1113 15

Muruga Home Industries v. Government of Tamil Nadu (1996) I LLJ 598

4. (Madras) 18
& Anr.

(1983) 1 LLJ 201

5. Jyothi Home Industries v. State of Karnataka 15
(Karnataka)
Andhra Pradesh Hotels Association v. Government of (2002) III LLJ 623
6. 19
Andhra Pradesh & Anr. (AP)
Chandra Bhavan Boarding and Lodging, Bangalore v.
7. AIR 1970 SC 2042 18
State of Mysore
Arbunda Bhuvan Tea Shop & Ors. v. State of
8. 1992 I LLJ 807 (Bom) 18
Maharashtra & Ors.

9. M.G.A. Pai & Sons v. State AIR 1971 Mys. 46 13

(1990) II LLJ 402

10. Sahadeo Sahu v. State of M.P. and Anr. 13
(MP)

11. Kamani Metals and Alloys v. Their Workmen AIR 1976 SC 1175 8

North Bihar Chamber of Commerce and Industries, (2002) I LLJ 488

12. 19
Muzzaffarpur and others v. State of Bihar and Ors. (Pat.)

13. People’s Union for Democratic Rights v. Union of India (1992) 2 LJ 545 (SC) 10

14. Workmen v. Reptakos Brett & Co Ltd. 1992 SCC 271 10

Transport Corp. of India Ltd. v. State of Maharashtra & (1993) II LLJ (Bom)
15. 11
Ors.

16. Hydro (Engineers) Private Limited v. The Workmen 1969 SCR (1) 156 9, 14

17. H.B. Verma v. Union of India (1993) 1 LLJ 39 Del 17

18. Sangam Press v. Workmen AIR 1975 SC 2035 11, 16

INTRODUCTION
The Minimum Wages Act, 1948 defines “Wages” under Section 2(h), which reads as
under -

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 Fixation of Wages under Minimum Wages Act, 1948.

“Wages means all remuneration, capable of being expressed in terms of money, which would
be, in terms of contract of employment, express or implied were fulfilled, be payable to a
person employed in respect of his employment or of work done in such employment and
includes house rent allowance but does not include : -

(i) the value of

a) any house accommodation, supply of light, water, medical attendance ; or

b) any other amenity or any service excluded by general or specific order of the
appropriate government;

(ii) any contribution paid by the employer to any pension funds or provident fund or any
other scheme of social insurance;

(iii) any travelling allowance or the value of any travelling concession;

(iv) any sum paid to the person employed to defray special expenses entailed on him by the
nature of his employment; or

(v) any gratuity payable on discharge.”

The analysis of this section indicates that the following requirements are necessary
for wages -

1. wages include all remuneration paid to an employee including house rent

allowance;

2. wages must be capable of being expressed in terms of money;

3. wages become due when there is a contract between employer and employee.
However, the contract may be expressed or implied;

4. the terms and conditions of the contract must be fulfilled, or he must have done
work assigned to him under such employment.

The term ‘wages’ has a composite meaning, which includes all remuneration and
other payments payable to an employee, which are not expressly excluded by the
provisions of the Act.

DESCRIPTION
 WAGE STRUCTURE & ITS COMPONENTS:

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 Fixation of Wages under Minimum Wages Act, 1948.

Broadly speaking the wage structure can be divided into three categories - The basic

‘minimum wage’ which provides bare subsistence and is at poverty line level, a little

above is the ‘fair wage’ and finally the ‘living wage’ which comes at a comfort level.

It is not possible to demarcate these levels of wage structure with any precision.

Certain principles on which wages are fixed have been stated by the Supreme Court

in Kamani Metals and Alloys v. Their Workmen.1

“Broadly speaking the first principle is that there is a minimum wage which in any event

must be paid, irrespective of the extent of profits, the financial condition of the establishment

or the availability of workmen on lower wages. The minimum wages is independent of the

kind of industry and applies to all alike big or small. It sets the lowest limit below which the

wages cannot be allowed to sink in all humanity. The second principle is that wages must be

fair, that is to say, sufficiently high to provide a standard family with food, shelter, clothing,

medical care and education of children appropriate for the workmen but not at a rate

exceeding his wage earning capacity in the class of establishment to which he belongs. A fair

wage is thus related to the earning capacity and the workload. It must, however be realised

that “fair wage” is not a “living wage” by which it means a wage which is sufficient to

provide not only the essential above mentioned but, a fair measure of frugal comfort with an

ability to provide for old age and evil days. Fair wage lies between minimum wage, which

must be paid in any event, and the living wage, which is the goal.”

 MINIMUM WAGES:

The expression “Minimum Wages” is not defined in the Act presumably because it

would not be possible to lay down a uniform minimum wages for all industries

throughout the country on account of different and varying conditions prevailing

from industry to industry and from one part of the country to another. It was held in

Hydro (Engineers) Private Limited v. The Workmen,2 that -

1
AIR 1976 SC 1175.
2
1969 SCR (1) 156.

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 Fixation of Wages under Minimum Wages Act, 1948.

“The concept of minimum wages takes in the factor of the prevailing cost of essential

commodities whenever such minimum wage is to be fixed. Furthermore, in the right of

spiralling of prices in the recent years, if the wage scales are to be realistic it may become

necessary to fix them so as to neutralize at least partly the price rise in essential

commodities.”

 COMPONENTS OF A MINIMUM WAGE:

The concept of minimum wage does not mean a wage that enables the worker to

cover his bare physical need and keep himself just above starvation. The capacity of

the employer to pay is irrelevant in fixing minimum wage. Therefore, no addition

shall be made to the components of the minimum wage, which would take the

minimum wage near the lower level of the fair wage. In Unichay v. State of Kerala,3 it

was held that “the Act contemplates that minimum wage rates should be fixed in the

scheduled industries with the dual object of providing subsistence and maintenance of the

worker and his family and preserving his efficiency as a worker.”

The concept of the need “based minimum wage was evolved by the 15th Indian

Labour Conference, held in July, 1957 with regard to the minimum human needs of

the industrial worker, irrespective of any other considerations.” In order to calculate

the minimum wage, the Tripartite Committee of the Indian Labour Conference held

in New Delhi in 1957, accepted the following norms, and recommended that they

should guide all wage-fixing authorities, including minimum wage committees,

Wage Boards, adjudicators, etc.: -

1. In calculating the minimum wage, the standard working class family should be

taken to consist of three consumption units for one earner; the earnings of

women, children and adolescents should be disregarded.

3
AIR 1962 SC 12.

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 Fixation of Wages under Minimum Wages Act, 1948.

2. Minimum food requirements should be calculated on the basis of net intake of

2700 calories, as recommended by Dr. Aykroyd for an average Indian adult of

moderate activity.

3. Clothing requirements should be estimated as per consumption of 18 yards per

annum which would give for the average worker’s family of four, a total of 72

yards.

4. In respect of housing, the norm should be the minimum rent charged by

Government in any area for houses provided under the Subsidised Industrial

Housing Scheme for low income groups.

5. Fuel, lighting and other ‘miscellaneous’ items of expenditure should constitute

20% of the total minimum wage.

6. Children’s education, medical requirements, minimum recreation including

festivals/ceremonies and provision for old age marriages, etc. should further

constitute 25% of the total minimum wage.4

It was further held in the above case that the wage structures which approximately

answers the above six components is nothing more than a minimum wage at

subsistence level. The employees are entitled to minimum wage at all times and

under all circumstances. An employer who can’t pay minimum wages has no right

to engage labour and no justification to run the industry.

In People’s Union for Democratic Rights v. Union of India,5 it was held by the Supreme

Court that where children below the age of 14 years are employed in violation of the

Employment of Children’s Act, 1938 and minimum wages are denied to such

children or to other persons who by reason of poverty or socially or economically

disadvantageous position are unable to approach the Court, legal redress may be

sought on their behalf by any member of the public.

4
Added by the Supreme Court in view of socio-economic aspect of the wage structure operating in our society
today, while deciding Workmen v. Reptakos Brett & Co Ltd., 1992 SCC 271.
5
(1992) 2 LJ 545 (SC).

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 Fixation of Wages under Minimum Wages Act, 1948.

 FAIR WAGES:

There is a difference between minimum wages and fair wages. In case of fair wage,

besides the principle of industry-cum-region, the company’s capacity to bear the

financial burden must receive due consideration. But mere hopeful observations

made in the director’s annual report can’t be basis for awarding increased wages

because such observations are sometimes made to inspire hope and confidence in

shareholders and they can’t be a substitute for actual audited figures. 6

It was held in Transport Corp. of India Ltd. v. State of Maharashtra & Ors.,7 that it is not

for the Labour Court or Tribunal to fix the minimum rates of wage. While fixing fair

rates of wages the courts or tribunals take into consideration the minimum rates of

wages and where the Government has not fixed the minimum rates of wages then

the courts or tribunals ascertain for themselves what would be the minimum rate of

wages. In fact minimum rate of wages are fixed by the Government. Courts or

tribunals merely ascertain what are the minimum rates of wages for the purpose of

deciding ‘fair wages’.

 LIVING WAGE:

The Fair Wage Committee in its report published by Government of India, Ministry

of Labour in 1949 defined the ‘living wage’ as under:

“The living wage should enable the male earner to provide for himself and his family not

merely the bare essentials of food, clothing and shelter but a measure of frugal comfort

including education for children, protection against ill health, requirements of essential social

needs, and a measure of insurance against the more important misfortunes including old

age.”

 FIXATION OF MINIMUM WAGES:

6
Sangam Press v. Workmen, AIR 1975 SC 2035.
7
(1993) II LLJ (Bom).

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 Fixation of Wages under Minimum Wages Act, 1948.

Section 3 of the Minimum Wages Act, 1948 lays down that the appropriate

Government shall be empowered to fix the minimum rates of wages in the manner

prescribed under this Act. It shall fix such rates of wages payable to employees

employed in an employment specified in Part I or Part II of the Schedule and in an

employment added to either part by notification under Section 27.

But the appropriate Government may in respect of employees employed in an

employment specified in part of the Schedule, instead of fixing minimum rates of

wages under this clause for the whole State, fix such rates for a part of the State or

for any specified class or classes of such employment in the whole of the state or part

thereof.

The appropriate Government shall review the minimum rates of wages to fix and

revise the minimum rates, if necessary at such intervals as it may think fit. The

intervals as aforesaid shall not exceed five years. But where for any reason the

appropriate government has not reviewed the minimum rates of wages fixed by it

within an interval of five years, the appropriate government shall not be with the

power to review or revise after five years. Until the minimum rates are revised, the

minimum rates in force immediately before the expiry of the said period of five

years shall continue in force.

Sub-section (1-A) provides that the appropriate government may refrain from fixing

minimum level of wages in respect of any scheduled employment in which there are

in the whole state less than one thousand employees engaged in such employment.

But if at any time, the appropriate Government comes to a finding after such enquiry

as it may make or cause to be made in this behalf that the number of employees in

any scheduled employment in respect of which it has refrained from fixing

minimum rates of wages, has risen to one thousand or more. It shall fix minimum

rates of wages payable to employee in such employment as soon as may be such

finding.

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 Fixation of Wages under Minimum Wages Act, 1948.

In Sahadeo Sahu v. State of M.P. and Anr.8 it was held that Section 3(1-A) does not

prevent the appropriate government from fixing the minimum rates of wages even if

the number of employees in that scheduled employment is less than one thousand.

The word ‘refrain’ used in Section 3(1-A) would include jurisdiction to withdraw the

minimum rates of wages fixed if the strength of the scheduled employment falls

below 1000. The power to rescind the wages once fixed without any expressed

provision is that regard in Section 3(1-A) can well be inferred with reference to

Section 21 of the General Clauses Act.

Sub-section (2) provides that the government may fix-

(a). a minimum rate of wages for time work (i.e., “a minimum time rate”);

(b). a minimum rate of wages for piece work (i.e., “a minimum piece rate”);

When a piece rate is fixed, every worker will not earn the same amount for the day.

If the difference is due to reasons which are purely personal to the worker, no

grievance can be made, but if the difference is brought about by furnishing one with

an appreciable example providing one with a machinery and the other with a hand

mallet, there may be a possibility of injustice and an attempt must be made for

arriving at a result which may really be reasonable and just in the circumstances. 9

(a). a minimum of remuneration to apply in the case of employees employed in a

piece work for the purpose of securing to such employees a minimum rate of

wages on a time work basis which is known as “a guaranteed time rate”, Clause

(c) of section 3(2) is intended to meet a situation where operation of minimum

rate fixed by the Government may result in worker earning less than minimum

wage.10

8
(1990) II LLJ 402 (MP).
9
M.G.A. Pai & Sons v. State, AIR 1971 Mys. 46.
10
Hydro (Engineers) Pvt. Ltd. v. Workmen, AIR 1969 SC 182.

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 Fixation of Wages under Minimum Wages Act, 1948.

(b). a minimum rate ( whether a time rate or a piece rate ) to apply to apply in

substitution for the minimum rate which would otherwise be applicable, in

respect of overtime work done by the employees, which is known as “overtime”.

The minimum rates of wages shall not apply in the following cases during the

period in which the proceeding is pending and the award made therein is the

operation or where the notification is issued during the period of operation of an

award during that period:

i. where in respect of an industrial dispute relating to the rates of wages payable to

any of the employees employed in a scheduled employment any proceeding is

pending before a Tribunal or a National Tribunal under the Industrial Disputes

Act 1947, or before any like authority; or

ii. where an award made by any such authority as aforesaid in its operation; and

iii. a notification fixing or revising the minimum rates of wages in respect of the

scheduled employment is issued during the pendency of such proceeding or the

operation of the award.

Where such proceedings or award relates to the rates of wages payable to all the

employees in the employment no minimum rates shall be fixed or revised in respect

of that employment during the said period.

In fixing or revising minimum rates of wages under Section 3:

(a). different minimum rates of wages may be fixed for: -

i. different scheduled employments;

ii. different classes of work in the same scheduled employment;

iii. adults, adolescents, children and apprentices;

iv. different localities;

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 Fixation of Wages under Minimum Wages Act, 1948.

(b). minimum rates of wages can be fixed by one or more of the following wage

periods, namely: -

i. by the hour,

ii. by the day,

iii. by the month, or

iv. by such other longer wage-period as may be prescribed.

Where such rates are fixed by the day or the month, the manner of calculating wages

for a month or for a day, as the case may be, may be indicated. Where any wage-

period have been fixed under Section 4 of the Payment of Wages Act, 1936,

minimum wages shall be fixed in accordance therewith.

In S.F.A.L. Works v. State Industrial Court, Nagpur,11 it was held that in fixing the

minimum rates of wages, the Act also makes provisions for the special allowances to

be paid along with the basic rate of wages. The allowance is fixed by the

Government to accord as nearly as practicable with the variation in the cost of living

index number applicable to such workers. So far as the provisions of the act relating

to the minimum wages and special allowances are concerned they are fixed without

any reference to the paying capacity of the employer, but when a dearness allowance

is fixed as a part of the fair wage, it will have to depend upon the paying capacity of

the employer. It has been held though the dearness allowance is given to

compensate for the rise of the cost of living, cent per cent neutralisation is not given

as it may tend to inflation.

In Jyothi Home Industries v. State of Karnataka,12 the question for consideration was

whether the appropriate government can fix guaranteed remuneration under this

Act, for the day on which the employer in unable to give the work. It was held that

the appropriate government under Section 3 can fix minimum wages for hours

actually worked by the employee and if he is not in the position to fulfil his part of

11
AIR 1978 SC 1113.
12
(1983) 1 LLJ 201 (Karnataka).

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 Fixation of Wages under Minimum Wages Act, 1948.

the contracts on account of the facts that the employer does not offer him necessary

raw materials required for his job, he would be entitled to remuneration under

Section 3(2)(c). This view is supported by the other provisions like section 13 and 20

of the Act also. Thus the Government can fix guaranteed remuneration.

 FIXING AND REVISING OF MINIMUM WAGES:

Irrelevant Considerations in Fixation of Minimum Wages:

The following considerations are not relevant in fixation of wages: -

(a). The fact that an employer may find it difficult to carry on his business on the

basis of minimum wages.13

(b). The financial capacity of the employee i.e., his capacity to pay.14

(c). The fact of the employer-company having incurred losses during the previous

years.

(d).Employer’s difficulties in importing raw materials and

(e). The region cum industry principles.

However, in fixing fair wages the financial capacity of the employer and the wages

scale prevailing in the comparable industries in the region are some of the relevant

considerations.15 Minimum wages must be paid irrespective of the extent of the

profits, the financial condition of the establishment or the availability of workmen,

on lower wages.16 The minimum wages are independent of the kind of industry and

applies to all alike, big or small. It sets the lowest limit below which wages cannot be

allowed to sink in all humanity.

Procedure:

13
Supra 11
14
Sangam Press v. Workmen, AIR 1975 SC 2035.
15
Supra 14
16
Supra 1

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 Fixation of Wages under Minimum Wages Act, 1948.

Section 5 lays down that in fixing minimum rates of wages in respect of any

scheduled employment for the first time under this Act or in revising minimum rates

of wages so fixed, the appropriate Government shall either:

(a). Appoint as many committees and sub- committees as it considers necessary to

hold enquiries and advise it in respect of such fixation or revision, as the case

may be; or

(b). By notification in the Official Gazette, publish its proposals for the information of

the persons likely to be affected thereby and specify a date not less than two

months from the date of the notification on which the proposals will be taken in

consideration.

After considering the advice of the committees appointed, and all representations

received by it before the date specified in the gazette notification, the appropriate

government may by notification in the Official Gazette, fix or revise the minimum

wages in respect of the each scheduled employment, which shall come into force

after the expiry of three months unless otherwise provided in the notification.

When the appropriate Government proposes to revise the minimum rates of wages,

by the mode specified in section 5(1) (b), the appropriate government shall consult

the advisory board also.

If the advisory board approves the notification, regarding revision of wages without

discussing the objections made, the action of the board would be arbitrary because it

amounts to non-application of mind in granting approval.17

The exercise of power to fix or revise the minimum wages under sub-section (2) of

section 5 is limited to employment specified in the schedule. Under Section 27 of the

Act, the appropriate government may add any employment to the schedule. The

nature and extent of the power of the appropriate Government under Section 27 and

Section 5 (2) is separate and distinct and what can be done by the appropriate
17
H.B. Verma v. Union of India, (1993) 1 LLJ 39 Del.

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 Fixation of Wages under Minimum Wages Act, 1948.

government in exercise of its power under Section 27 cannot be done by it in exercise

of its powers under Section 5 (2) of the Act.18

The power conferred upon the appropriate Government under Section 5(1) is neither

arbitrary nor unguided. Therefore, sub-section (1) does not offend Article of the

Constitution.19 In the matter of fixing minimum wages, the economic capacity of the

trade or industry is irrelevant, for, what alone is germane, is, the wage required by

the employees to survive.20 The fixation of wages depend upon the prevailing

economic conditions, the cost of living in a place, the nature of the work to be

performed and the conditions in which the work is performed. Where a notification

is issued by the Government authorising the employer to deduct the sum mentioned

in the notification towards the cost of free meals supplied to the workers by him, it

was held that the notification gives only an option to the employer and does not

impose an obligation upon him.21

In Muruga Home Industries v. Government of Tamil Nadu & Anr.,22 minimum wages of

beedi-workers were revised by the State Government revised by the State

Government by a notification issued after consultation with the Advisory Board. It

was the notification fixing minimum wages should not be interfered with in writ

proceedings except on most substantial grounds. Advisory Board is well balanced

since representation is given to employers and employees. Work in ‘Beedi’ industry

is unorganised sector and condition of work and wages of beedi workers are below

subsistence level and minimum wages fixed is fair and just and not arbitrary.

In North Bihar Chamber of Commerce and Industries, Muzzaffarpur and others v. State of

Bihar and Ors.,23 a notification was issued revising the minimum rates of wages on

the advice of the Advisory Board. It was contended that the composition of the

18
Madhya Pradesh Mineral Industrial Association v. The Regional Labour Commissioner, AIR 1950 SC 1068.
19
Chandra Bhavan Boarding and Lodging, Bangalore v. State of Mysore, AIR 1970 SC 2042.
20
Arbunda Bhuvan Tea Shop & Ors. v. State of Maharashtra & Ors., 1992 I LLJ 807 (Bom).
21
Supra 20
22
(1996) I LLJ 598 (Madras).
23
(2002) I LLJ 488 (Pat.).

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 Fixation of Wages under Minimum Wages Act, 1948.

Advisory Board was defective. The revised rates of minimum wages were impugned

in these petitions. Dismissing the petitions the High Court observed that the

petitioner had neither pleaded nor advanced arguments that any prejudice was

caused by an alleged defect in the composition of the Advisory Board would not per

se vitiate the decision.

In Andhra Pradesh Hotels Association v. Government of Andhra Pradesh & Anr. 24, the

Government of Andhra Pradesh issued a Gazette notification on March 1999

proposing revision of minimum wages in Hotel industry under Section 5(2) of the

Minimum Wages Act, 1948. On October 17, 2000 the Government of Andhra Pradesh

in consultation with the State Advisory Board issued another G.O. revising the

minimum wages in exercise of powers conferred by Sections 3(1) and 5(2) of the Act

in Hotels and Restaurants etc. Being aggrieved by the said notification the petitioner

association filed the present writ petition. Dismissing the appeal the High Court

made following observations: -

1. Fixation of minimum wages was an administrative act and the quantum fixed on

humanitarian ground was not subject to judicial review, unless the fixation was

ultra vires, the Minimum Wages Act, 1948.

2. Minimum wages must provide not merely for bare subsistence but for the

preservation of worker’s efficiency also, and so the capacity of the employer to

pay such wages was treated as irrelevant.

3. The High Court while reviewing a notification fixing minimum wages could not

assume the role of an appellate authority and re-appreciate each and every factor.

4. It could not be said that under no circumstances the rate of neutralisation of

variable D.A. should not exceed 100%.

24
(2002) III LLJ 623 (AP).

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 Fixation of Wages under Minimum Wages Act, 1948.

5. The Minimum Wages Act, 1948 was a beneficial piece of social legislation and in

fixing the wages under it, the consideration was that workmen should receive

their proper share of the National income which they help to produce.

6. The appellant had not made out any permissible ground to quash the impugned

Government order.

The further part of the Act talks about the authorities under the Act, their

composition and process of working. The later Sections also enlist the penalties for

different offences under the Act and also the power of the Government to make and

validate rules under the Act.

CONCLUSION
This Act provides the workers with a weapon to defend themselves in case undue

advantage of their services is sought to be taken by the employers. It empowers the

workmen to demand for special allowances in addition to the minimum wages. The

fixation of minimum wages for every sort of work ensures that a basic standard of

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 Fixation of Wages under Minimum Wages Act, 1948.

living is enjoyed by the workers and that they are properly rewarded for their

labour.

However, minimum wage provides not merely for the bare subsistence of life but for

the preservation of the efficiency of the worker. Therefore, provisions for some

measure of education, medical requirements and amenities are also enunciated in

the Act. The idea of fixing such wages in the light of cost of living at a particular

juncture of time and neutralising the rising prices of essential commodities by

linking up scales of minimum wages with the cost of living index can’t, therefore, be

said to be alien to the concept of minimum wage.

The concerned Act also provides for a fair procedure for determination of minimum

wages as well as remedies that could be sought in case the workers are deprived of

their much deserved minimum wages. This legislation specifically aims at securing

livelihood for the unskilled workers who lack the ability to raise a demand for their

services or labour.

This project has brought to light the need for fixing of such minimum wages, the

procedure for determination of minimum wages for different industries, the reasons

which the appropriate government takes into account before determination of

minimum wages as well as the remedies available to the workmen.

BIBLIOGRAPHY
LIST OF BOOKS AND REPORTS REFERRED:

 “The Constitution of India, 1950” Bare Act with Short Notes, Universal Law

Publishing, 2016.

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 Fixation of Wages under Minimum Wages Act, 1948.

 “Labour Law & Labour Relations (Cases & Materials)”, The Indian Law Institute

Publications, 2002.

 S.C. Srivastava, “Industrial Relations & Labour Laws”, Vikas Publishing House

(2006).

 S.N. Mishra, “Labour & Industrial Law”, Central Law Publications, Allahabad

(2009).

 O.P. Malhotra, “The Law of Industrial Disputes”, Vol. 2, Universal Publishing

Company Pvt. Ltd., (5th Edition, 1998).

 Dr. Biswant Ghoshi, “Industrial Relations of Developing Economy”, Himalaya

Publishing House, (1st Edition, 2002).

 Devashis Rath and Snigdharani Misra, “Future of Industrial Relations and Industrial

Relations in Future: The Indian Scenario”, 1996.

 “Report on the Working of the Minimum Wages Act, 1948 for the year 2013”, Ministry

of Labour and Employment, Government of India, (2015).

 J. Uni, “Wages and Incomes in Formal and Informal Sectors in India”, The Indian

Journal of Labour Economics, (2005).

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