Minimum Wages Act India

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CONTANT

● INRODUCTION , OBJECTIVES , DEFINATION ETC. – PARUL SHARMA 5053

● SCHEDULES PART 1 & 2 . – RAHUL CHAND 5059

● FIXING WAGES , HOURS ETC. – NITIKA PAL 5052

● PENALITY , OFFENCE ETC . – PREETI SHARMA 5056

● CHAPTER 1 TO 6. – RAHUL RAGHUVANSHI 5060


INRODUCTION ,
OBJECTIVES ,
DEFINATION ETC.
- PARUL SHARMA 5053
OBJECTIVES OF THE ACT
● To provide Minimum Wages to the workers 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 timely manner.
● To apply this law on most of the sections in organized sector ( scheduled
employment)
HISTORICAL ASPECT
● The initiative by Shri K.G.R. Choudhary in 1920 : set up boards for
determination of wages.
● The International Labour 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 11.4.1946 and came into force with effect from
15.3.1948.
● The Committee on Fair Wages was set up in 1948 to provide
guidelines of wage structure.
DEFINITION CLAUSE
SEC:2[B] APPROPRIATE GOVERNMENT?

● In relation to scheduled employment carried on by central


government or railway or est. under Central Act, the central
government .

● In Government all other cases the State Government .


SEC:2[H] WAGES ?
● Minimum wages: all remuneration
capable of being paid in money
terms for work done if terms of
contract were fulfilled.

● Consists 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 .
WHO ALL ARE ELIGIBLE?
● Permanent Employees
● Contract Employees
● Casual Employees
● People on probation get
fixed pay instead of
Minimum Wages.
● Trainees get stipend and
not Minimum Wages.
FEATURES OF THE ACT
● [SEC 3]:The Act lays down the principles for fixation of
1. A minimum time rate of wages
2. A minimum piece rate
3. A guaranteed time rate
4. An overtime rate for different occupations, localities or classes of work and for
adults, adolescents , children and apprentices.

● [SEC 4] The Minimum wages may consist of


1. A basic rate of wages and a cost of living of allowances
2. A basic rate of wages with or without the cost of living allowances and the cash value
of the concessions in respect of essential commodities supplied at concessional rates.
SCHEDULES PART 1 & 2
- RAHUL CHAND 5059
SCHEDULE EMPLOYMENT
• According to minimum wage act the appropriate govt (Centre or
state) made a list of all the employment’s.

• This list of registered employment is called as scheduled


employment.

Rahul chand 5059


•Schedule employment is divided into 2 parts .

• Part 1: In part 1 total 21 employment are listed.


Employment in any woollen carpet making or shawl wearing establishment.
Employment in any rice mill, flour mill or dal mill.
Employment in any tobacco ( including bidi making) manufacturer.
Employment in any oil mill.
Employment in any public motor transport.

Rahul chand 5059


Employment in loading and unloading in:
1. Goods shed, parcel offices of railways.
2. Other good sheds, godowns, warehouse etc.

3. Docks and ports .

Rahul chand 5059


Part 2: Employment in agriculture.
• In any form of farming including the cultivation and
tillage of soil,
dairy farming, the production cultivation or any practice
performed by a farmer.
• Farm operations including any forestry or timbering
operation and the preparation for market and delivery
to storage or to carriage for transportation to market of
farm produce

Rahul chand 5059


Schedule employment define EMPLOYER and EMPLOYEE so that employer should be
held responsible for the minimum wages of the employee.

•Employer: The person who employs another person directly or indirectly.


•In case of factory: A employer is a manager of factory which will be accountable for the
minimum wages.
•Government: Employer will be the one appointed by the govt or the head of the department.
•Local authority: Employer will be appointed by the authority or if not appointed than the
Chief executive officer (CEO) will be the employer.
•Other cases: person who has been given power to supervise and control the payment of
wages to employees or power will be given by the owner.

Rahul chand 5059


FIXING WAGES , HOURS
ETC.
- NITIKA PAL
5052
Fixing of  The minimum rate of wages
will be reviewed/revised, for
minimum rates of every five years, by the
appropriate govt. 
wages (sec 3)  Different minimum rates of
wages may be fixed for
different scheduled
employments/ different classes
of work/ different localities
Minimum rate
of wages (sec.4) Basic+Special allowance 

Basic + Cash value 

Basic + Cost of living Allowance +


Cash value of concessional supply
of materials.
 Publish its propsals in the official
gazette asking comments from the
Procedure for affected parties.
 Constitute committees/sub
fixation and committees for the purpose.

revision of  The committees/sub-committees


and advisory boards constituted by
Govt. Consist of equal number of
minimum rate members of:

of wages (sec.5) 1. Employer 


2. Employees and 
3. Independent person
 Minimum wages shall be paid in
cash.
Wages in kind  The appropriate govt. May

(sec. 11) aithorize, 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.
Payment of  The Minimum Wages has to
minimum rate be paid without any
deductions other than
of wages (sec. statutory deductions.
 Payment of wages less than
12) minimum wages on the
ground of less peformance
or output is illegal.
Fixing hours of  For an Adult Worker working
in foctories:
work (sec. 13)  Number of working hours
should not exceed 48 Hours in
a week with a weekly holiday.
 The dailyhours should not
exceed more more than 9
hours with 1 hours Rest
Interval.
Overtime wages  Overtime wage rate will
(sec. 14) be twice of the normal
wage rate.
Wages for a
person who has  Employer could not provide
worked less than the activities of the job then,
then emplyee is entitles to
normal working receive full slalry.
hours (sec. 15)
PENALITY , OFFENCE
ETC .
- PREETI SHARMA 5056
22. Penalties for certain offences
Any employer
(a) pays to any employee less than the minimum rates of wages
fixed for that employee’s class of work, or less than the amount due
to him under the provisions of this Act, or
(b) contravenes any rule or order made under section 13, shall be
punishable with imprisonment for a term which may extend to
six months, or with fine which may extend to five hundred
rupees, or with both.
22A General provision for punishment of other offences
• any employer who contravenes any provision of this Act or of any rule or
order made there under shall, if no other penalty is provided for such
contravention by this Act, be punishable with fine which may extend to five
hundred rupees.
22B Cognizance of offences
• (1) No Court shall take cognizance of a complaint against any person for an
offence-
(2) No Court shall take cognizance of an offence-
22C Offences by companies
• Section 22C states that the penalties will also be considered if it can be
proved that the offence has been committed by the negligence of the director
or secretary or manager of the company.
22D. Payment of undisbursed amount due to employees
• Amount of minimum wages of the employee under this Act or
otherwise due to the employee under this Act or any rule or order
made there under shall, if such amounts could not or cannot be paid
to the employee on account of his death before payment or on
account of his whereabouts not being known, be deposited with the
prescribed authority 
23 Exemption of Employer from liability in certain cases
a)The person took due diligence before taking the action.
b)The action was done without his or her consent or knowledge.
If the employer is discharged from the liability then the person whose
fault was that will be held liable.
24 Bar of suits
• No Court shall entertain any suit for the recovery of wages in so far as the sum so
claimed
(a) forms the subject of an application under section 20 which has been presented by or
on behalf of the plaintiff, or
(b) has formed the subject of a direction under that section in favor of the plaintiff, or
(c) has been adjudged in any proceeding under that section not to be due to the
plaintiff,or
(d) could have been recovered by an application under that section

26 Exemptions and exceptions


The appropriate government may impose such conditions on the employers as they
deem fit. Such official notification may be granted in the official gazette. The employer
does not have to comply with these norms given in  the Act if the employee is a family
member.
27 Power of state government to add schedule.
• The state govt has to notify in the official gazette not less than
three months of intention to do so
31 Validation of fixation of minimum rates of wages
• The fixed minimum rates of wages shall be valid until the
appropriate government revises this minimum rate of wages. This
is provided under Section 31 of the Act. This Act also provides for
the maintenance of itself. The rules and regulations are sufficient
for its own sustenance.
THE MINIMUM WAGES
(CENTRAL) RULES, 1950

- Rahul Raghuvanshi
5060
 Short title and extent:-These rules may be
CHAPTER I- called the Minimum Wages (Central) Rules,
1950
PRELIMINARY  Interpretation
 Term of office of the members of the
Committee and the Advisory
CHAPTER II- Committee
MEMBERS AND STAFF, AND  Term of office of members of the
MEETINGS OF THE BOARD
Board
COMMITTEE AND
ADVISORY COMMITTEE  Travelling allowance
 Staff
 Eligibility for renomination of the
members of the Committee,
Advisory Committee and the Board.
 Chairman
 Summoning of witnesses
CHAPTER III- and production of
SUMMONING OF documents
WITNESSES BY THE
COMMITTEE, ADVISORY  Expenses of witnesses
COMMITTEE AND THE
BOARD AND
PRODUCTION OF
DOCUMENTS
 Mode of computation of the cash value
of wages.
CHAPTER IV -  Time and conditions of payment of
COMPUTATION AND wages and the deductions permissible
PAYMENT OF WAGES, from wages.
HOURS OF WORK AND  Publicity to the minimum wage fixed
HOLIDAYS. under the Act.
 Weekly day of rest.
 Number of hours of work which shall
constitute a normal working day.
 Night Shifts.
 Extra wages for overtime.
CHAPTER V-  Applications.
CLAIMS UNDER THE  Authorisation.
ACT
 Appearance of
parties.
CHAPTER VI-  Costs.
SCALE OF COSTS IN  Court fees.
PROCEEDINGS UNDER THE
ACT
 MINIMUM WAGES ACT 1948
REFRENCES  MINIMUM WAGES ACT 1950
( ADDITION )
 https://clc.gov.in/clc/sites/default/files/Minim
umWagesact.pdf
 https://en.wikipedia.org/wiki/Minimum_Wag
es_Act_1948
DON’T GO FOR
MINIMUM
WAGES DURING
PALCEMENT ,
DREAM HIGH .

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