MINIMUM WAGES ACT, 1948

The motive for enactment of Minimum Wages Act, 1948 was poor bargaining power of workers’ organisation in the country. The need for having minimum wage fixing machinery was stressed by the International Labour Organisation (ILO) long back in 1928. Alike the Payment of Wages Act, 1936, this Act also is exhaustively amended by many states to widen its application and its scope.

APPLICABILITY

Any person who directly or through Contractor/Agency or other person whether for himself or for any other persons employees one or more employees in any schedule employment in respect of which minimum rates of wages have been fixed under this Act.

ELIGIBILITY OF EMPLOYEES

Any person who is employed for hire or reward to do any work in a schedule employment and include an outdoor worker to whom any articles or materials are given for doing some work either at home or any other premises.

BENEFITS UNDER THE ACT

The Act prescribes the minimum rates of wages payable to employees for different scheduled employments for different classes of work and for adults, adolescents, and apprentices depending upon different localities, for one or more wage periods, viz. by hours, by the day, month or other large period. The Act has been extended to cover employees in the unorganized sector.

OTHER IMPORTANT ISSUES

a.    The Act is a beneficial legislation and should be given widest meaning so long as the language is capable of bearing such a construction.

b.    Register of wages is required to be maintained at the place of work in prescribed forms by every employer. Such records are to be preserved for 3 years from the time of last entry made therein.

c.    An employee is prohibited from giving up any of his right or relinquishing or reducing his right to minimum wages under the Act.

d.    The normal working day for an adult constitutes of 9 hours including the intervals of rest with maximum of 48 hours of working in a week.

PENALTIES FOR NON-COMPLIANCE

Imprisonment up to 6 months and/or fine up to Rs. 500 is imposable for contravention.

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