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CONTENTS
THE
MINIMUM WAGES ACT 1948 [15 th march, 1948 Whereas it is expedient to provide for fixing minimum rates of wages in certain employments;
It is hereby enacted as follows: 1. Short title and extent. -(1) This Act may be called the Minimum Wages Act, 1948 (2) It extends to the whole of India 1[* * *]
2. Interpretation. - In this Act, unless there is anything repugnant in the subject or context, - (a) "adult", "adolescent" and "child" have the meanings respectively assigned to them in section 2 of the Factories Act, 1948 (63 of 1948);
(i) in relation to any scheduled employment carried on by or under the authority of the Central Government, or a railway administration. Or in relation to; a mine, oilfield or major port. Or any corporation established by a Central Act, the Central Government, and
(c) 'competent authority" means the authority appointed by the appropriate Government by notification on its Official Gazette to ascertain from time to time the cost of; living index number applicable to the employees employed in the scheduled employments specified in such notification;
(d) "cost of living index number" in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed, means the index number. Ascertained and declared by the competent authority by notification in the Official Gazette to the cost of living index number applicable to employee in such employment;
(e) "employer" means any person who employs, whether directly or through another person. Or whether on behalf of himself or any other person one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, and includes, except in sub-section (3) of section 26, -
(i) in a factory where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under this Act any, any
1. Expression "except the State of Jammu and Kashmir" omitted by Act 51 of 1970, S. 2 and Sch. Person named under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), as manager of the Factory ;
(ii) in any scheduled employment under the control of any Government in India in respect of which minimum rates of wages have been foxed under this Act, the person or authority appointed by such Government for the supervision and control of employees or where no person authority is so appointed, the head of the Department ;
(iii) in any scheduled employment under any local authority in respect of which minimum rates of wages have been fixed under this Act, the person appointed by such authority for supervision and control of employees or where no person is so appointed, the executive officer of the local authority ;
(iv) in any other case where there is carried on any scheduled employment in respect in respect of which minimum rates of wages have been foxed under this Act, any person responsible to the owner for the supervision and control of the employees or for the payment of wages ;
(f) "prescribed" means prescribed by rules made under this Act;
(h) "wages" means all remuneration, capable of being expressed in terms of money, which would, if the terms of the 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-
NOTES- A contractor when becomes the employer within the meaning of the Act: Sarju Prasad Ramcharan v. State of Madhya Pradesh, 1977 MPLJ 474.
3. fixing of minimum rates of wages. -(1) The APPROPRIATE government shall, in the manner hereinafter provided, -
(a) fix the minimum 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:
Provided that appropriate Government may, in respect of employees employed in an employment specified in Part II of the Schedule, instead of fixing minimum rates of wages under this clause or the whole State, fix such rates for a part of the States or part thereof ;
(b) review at such intervals as it may think fit, such intervals not exceeding five years, the minimum rates of wages so fixed and revise the minimum rates if necessary:
(1-A) Notwithstanding anything contained in sub-section (1), the appropriate Government may refrain from fixing minimum rates of wages in respect of scheduled employment in which there are in the whole State less then one thousand employees engaged in such employment, but at any time, the appropriate Government comes to finding after such inquiry 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 employees in such employment as soon as may be after such finding.
(2) The appropriate Government fix-
(a) minimum rates of wages for time-work (hereinafter referred to as "a minimum time-rate");
(b) a minimum rate of wages for piece-work (hereinafter referred to as "a minimum piece-rate");
(c) a minimum rate or remuneration to apply in the case of employees employed on piece-work for the purpose of securing to such employees a minimum rate of wages on a time-work basis (herein after referred to as "guaranteed time-rate");
(2-A)
Where in respect of an industrial dispute relating to the rates of wages
payable to any of the employee employed in a scheduled employment, any
proceeding is pending before a Tribunal or National Tribunal under the
Industrial Disputes Act, 1947), or before any like authority under any
other law for the time being in force, or an award made by any Tribunal,
National Tribunal or such authority is in operation, and a notification fixing or revising the minimum rates of wages in respect of the scheduled employment is issued during the tendency of such proceeding or the operation of the award, then, notwithstanding anything contained in this Act, the minimum rates of wages so fixed or so revised shall not apply to those employees during the period in which the proceeding is pending and award therein is in operation or, as the case may be, where the notification is issued during the period of operation of an award during that period, and where such proceeding or award relates to the rates of wages payable to all the employees in the scheduled employment, no minimum rates of wages shall be fixed or revised in respect of that employment during the said period.
(3) In fixing or revising minimum rates of wages under this section,- (a) different
minimum rates of wages may be fixed for-
and 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:
Provided that where any wage-periods have been fixed under section 4 of the Payment of wages Act, 1936 (IV of 1936), minimum wages shall be fixed in accordance therewith.
NOTES. - Workmen employed by owners of ferries are entitled to get minimum wages as ferries are "establishment" within the meaning of the Act: AIR 1984 SC 537.
4. Minimum rates of wages- (1) Any minimum rates of wages fixed or revised by the appropriate Government in respect of scheduled employment under section 3 may consist of-
(i) a basic rate of wages and a special allowance at a rate to be adjusted at such interval and in such manner as the appropriate Government may direct to accord as nearly as practicable with variation in the cost of living index number applicable to such workers (hereinafter referred to as the cost of living allowance) ;or
(2) The cost of living allowances and the cash value of the concessions in respect of supplies of essential commodities at concession rates shall be computed by the competent authority at such intervals and in accordance with such direction as may be specified or given by the appropriate Government.
NOTES. - Meaning of adjustment and variation used in section 4 (1) (i): Stanmore Estate v. Commissioner, (1979) 54 FJR: 23 (1979) 2 MLJ 97.s
5.
Procedure for fixing and revising minimum wages. - (1) 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 in considers necessary to hold
inquiries 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 proposal for the information of persons
likely to be affected thereby and specify a date, not less than two months
from the date of the notification, on which the proposal will be taken
into consideration. (2) After
considering the advise of the committee or committees appointed under
clause (a) of sub-section (1) or as the case may be, all representation
revised by it before the date specified in the notification under clause
(b) of that sub-section, the appropriate Government shall, by notification
in the Official Gazette, fix or as the case may be revise the minimum
rates of wages in respect of each scheduled employment, and unless such
notification otherwise provides it shall come into force on the expiry
of three months from the date of its issue: Provided that where the appropriate Government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-section (1), the appropriate Government shall consult the Advisory Board also.
Notes. - It cannot
be said that notwithstanding the specification of a date within which
the representations have to be filled, the notification fixing minimum
wages would be had if; the proposals are not taken up for consideration
on the specified date: Malayalam Plantations Ltd. v. State of Kerala,
(1976) 1 LLJ 114 (FB). Rates of minimum wages can be made to operate retrospectively:
G.K.Ghose v. State of West Bengal, 1977 Lab. IC 618.
7.
Advisory Board. -For the purpose of co-ordinating the work of committees
and sub-committees appointed under section 5 and advising the appropriate
Government generally in the matter of fixing and revising minimum rates
of wages the appropriate Government shall appoint an Advisory Board. NOTES. - Advisory Board cannot appoint a rival sub-committee to the one appointed by Government: State of Rajasthan v. Hari Ram Nathwani, (1975) 2 SCC 517.
8.
Central Advisory Board. - (1) For the purpose of advising the Central
and State Government in the matter of fixation and revision of minimum
rates of wages and other matters under this Act and co-ordinating the
work of the Advisory Boards the Central Government shall appoint a Central
Advisory Board. (2) The Central
Advisory Board shall consist of persons to be nominated by the Central
Government representing employers and employees in the scheduled employments,
who shall be equal in number, and independent persons not exceeding one-third
of its total number of members, one of such independent person shall be
appointed the Chairman of the Board by the Central Government.
9. Composition of Committees, etc.- Each of the committee, sub-committee and the Advisory Board shall consist of persons to be nominated by the appropriate Government representing the employers and employees in the scheduled employments. Who shall be equal in number and independent person not exceeding one-third of its total number of members: one of such independent persons shall be appointed the Chairman by the appropriate Government.
(1)
The appropriate Government may, at any time, by notification in; the Official
Gazette, correct clerical or arithmetical mistakes in any order fixing
or revising minimum rates of wages under this Act, or errors arising therein
from and accidental slip or omission. (2) Every such notification shall, as soon as may be after it is issued, be placed before the Advisory Board for information.
12. Payment of minimum rates of wages. -
(2) Nothing contained in this section shall the provisions of the payment of Wages Act, 1936 (IV of 1936).
13. Fixing hours for a normal day, etc.-
(a) employees engaged
on urgent work or in any emergency, which could not have been foreseen
or prevented; (b)
employees engaged in work in the nature of preparatory or complementary
work, which must necessarily be carried on outside the limits laid down
for the general working in the employment concerned; (c)
employees whose employment is essentially intermittent; (d)
employees engaged in any work, which for reason has to be employed before
the duty is over; (e)
employees engaged in a work, which could not be carried on except at times
dependent on the irregular action of natural forces. (3) For the purposes of clause (c) of sub-section (2), employment of an employee is essentially intermittent when it is declared to be by the appropriate Government on the ground that the daily hours of duty as such for the employee, the hours of duty, normally, include periods of inaction during which the employee may be on duty is not called upon to display either physical or sustained attention.
14.
Overtime. -(1) Where an employee, whose minimum rate of wages is fixed
under the Act by the hour, by the day or by such a longer wages period
as may be prescribed, works any day in excess of the number of hours constituting
a normal working day, the employer shall pay him for every hour or for
part of an hour so worked in excess at the overtime rate fixed under this
Act or under any law of the appropriate Government for the time being
in force, whichever is higher. (2) Nothing in this Act shall prejudice the operation of the provision of section 59 of the Factories Act, 1948 (63 of 1948), in any case where those provisions are applicable.
NOTES- The minimum rates of wages for overtime work need not as a matter of law be confined to double the minimum wages fixed but may justly be fixed at double the wages ordinary received by the workman as a fact: T. A. Mamjarde v. Authority under Minimum Wages Act, (1972) 2 SCC 108.
15. Wages of Worker Who Works for less than normal working day. - If an employee whose minimum rates of wages have been foxed under this Act by the day, works on; any day which he was employed for a period less than the requisite of hours constituting a normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day:
(ii) in such other case and circumstances as may be prescribed.
16. Wages for two or more classes of work. - Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each class.
17. Minimum time-rate wages for piecework. - Where an employee is employed on piecework for which minimum time-rate and not a minimum piecework for which minimum time-rate and not a minimum piece-rate has been fixed under this Act, the employer shall pay to such employee wages at not less than minimum time-rate.
18. Maintenance of registers and records. - (1) Every employer shall maintain such register and records giving such particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given by them and such other particulars and in such form as may be prescribed.
(2) Every employer shall keep exhibited, in such manner as may be prescribed in the factory workshop or place where the employees in the scheduled employment may be employed, or; in the case of out-workers in such factory, workshop or place as may be used for giving out-work to them, notices in the prescribed form containing prescribed particulars.
(3) The appropriate Government may, by rules made under this Act, provide for the issue of; wage-books or wage-slips, to employees employed in any scheduled employment in respect of whish minimum rates of wages have been fixed and prescribed the manner in which entries shall be made and authenticated in such wage-books or wage-slips by the employer or his agent.
19. Inspectors. - (1) The appropriate Government may, by notification in the official Gazette. Appoint such person as it thinks as it thinks fit to be Inspectors for the purpose of this Act, and define the local limits within which they shall exercise their functions.
(2) Subject to any rules made in this behalf an Inspector may within the local limits for which he is appointed.
(a) enter, at all reasonable hours, with such assistance (if any) being persons in the service of the Government or any local or other public authority, as he thinks fit, any premises or place where employees are employed or work is given out-workers in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, for the purpose of examining any register, record of wages or notices required to be kept or exhibited by or under this Act or rules made there under and require the production there of for inspection ;
(b) examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is an employee employed therein or an employee to whom work is given out therein;
(c) require any person giving out-work and any out-workers to give any information which is in his power to give, with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payment to be made for the work;
(d) seize or take copies of such register, record of wages, or notices or portions there of he may consider relevant in respect of an offence under the Act which he has reason to believe has been committed by an employer; and
(e) exercise such other powers as may be prescribed.
(3) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Code (act 45 of 1860).
(4) Any person required to produce any document or thing or to give any information by an Inspector under sub-section (2) should be deemed to be
legally bound to do so within the meaning of sections 175 and 176 of the Indian Penal Code (Act XLV of 1860).
20. Claim. - (1) The appropriate Government may, by notification in the Official Gazette. Appoint any Commissioner for Workmen's Compensation or any officer of the Central Government exercising function as a Labour Commissioner for any region, or any officer of the State Government not below the rank of Labour Commissioner or any other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the Authority to hear and decide for any specified area or claims arising out of the payment of less than the minimum rates of wages in respect of the payment of remuneration for days of rest ;or for work done on such days under clause (b) or clause (c) of sub-section (1) of section 13 or of wages at the overtime rate under section 14 to employees employed or paid in that area.
(2) Where an employee has claim of the nature referred to in subsection (1) the employee himself, or any legal practitioner or any official of a registered trade union authorized in writing to act on his behalf, or any Inspector, or any person acting with the permission of the authority appointed under sub-section (1), may apply to such Authority for a direction under sub-section (3):
Provide that every such application shall be presented within six months from the date on which the minimum wages or other amount become payable:
Provided further that any application may be admitted after the said period of six months when the applicant satisfies the Authority that he had sufficient cause for not making the application within such period.
(3) When an application under sub-section (2) is entertained, the Authority, shall hear the applicant and the employer, or them an opportunity of being heard, and after such further inquiry, if any, as it may consider necessary may, without prejudice to any other penalty to which the employer may be liable under this Act, direct-
(i) in the case of a claim arising out of payment of less than the minimum rates of wages the payment to the employee of the amount by which the minimum wages payable to him exceed the amount actually paid, together with the payment of such compensation as the Authority ;may think fit, not exceeding ten times the amount of such excess :
(ii) in any other case, the payment of the amount due to the employee together with the payment of such compensation as the Authority may think fit not exceeding ten rupees; and the authority may direct payment of such compensation in cases where the employer pays the excess or the amount due to the employee before the disposal of the application.
(4) If the authority hearing any application under this section is satisfied that it was either malicious or vexatious, it may direct that a penalty not exceeding fifty rupees be paid to the employer by the person presenting the application.
(5) Any amount directed to be paid under this section may be recovered-
(a) if the Authority is not a Magistrate, by the Authority as if it were a fine imposed by the Authority as a Magistrate, or
(b) if the Authority is not a Magistrate, by any Magistrate to whom the Authority makes application in this behalf, as if were a fine imposed by such Magistrate.
M.W.A.-2 (6) Every direction of the Authority under this section shall final.
(7) Every Authority appointed under sub-section (1) shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908), for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents and every such Authority shall be deemed to be a civil Court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898 (Act V of 1898)1
NOTES-A claimant under section 20 has no right to file application under section 33C of the Industrial Disputes Act: Executive Engineer v. Syed Zainuddin, (1979) 1 APLJ 145 Scope of section 30: Anand Oil Industries v. Labour Court, AIR 1979 AP 182 (FB). Scope and applicability of section 20 (3): A.N.Kulkarni v. Pune Cantonment Board, 1980 Lab. IC 97: (1980) 56 FJR 221.
21. Single application in respect of a number of employees. - (1) Subject to such rules as may be prescribed, a single application may be presented; under section 20 on behalf or in respect of any number of employees employed in the scheduled employment in respect of which minimum rates of wages have been fixed and in such cases the maximum compensation which may be awarded under sub-section (3) of section 20 shall not exceed ten times the aggregate amount of such excess or ten rupees per head, as the case may be.
(2) The Authority may deal with any number of separate pending application presented under section 20 in respect of employees in the scheduled employment in respect of which minimum rates of wages have been fixed, as a single application presented under sub-section (1) of this section and the provisions of that sub-section shall apply accordingly.
22. Penalties for certain offences. - An employer who-
(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,
NOTES. -Where the owner of the hotel does and maintain attendance registers, wage payment register, etc. he is guilty of contravening the rules and is guilty: State v. Sunderlal, 1982 All Cr.Rulings 405.
22-A. 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.
NOTES. -A deferent sentence should be imposed in case of non-compliance of the provisions of the Act: State of Gujarat v.Punjab Tpres, 1980 Lab. IC 312.
22-B. Cognizance of offences. -(1) No Court shall take cognizance of a complaint against any person for an offence-
(a) under clause (a) of section 22, unless an application in respect of the facts constituting such offence has been presented under section 20 and has been granted wholly or in part, and the appropriate Government or an officer authorized by it in this behalf has sanctioned the making of the complaint;
22-C. Offences by companies. -(1) If the person committing an offence under this Act is charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company shall also be deemed to be guilty of that offence and shall be liable to be proceeded against accordingly.
Explanation. -For the purposes of this section-
22-D. Payment of undisbursed amounts due to employees. - All amounts payable by an employer to an employee as the amount of minimum wages of the employee under this Act or otherwise die 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 know, be deposited with the prescribed authority who shall with the money so deposited in such manner as may be prescribed.
22-E. Protection against attachment of assets of employer with Government. - Any amount deposited with the appropriate Government by an employer to secure the due performance of a contract with that Government and any other amount due to such employer from that Government in respect of such contract shall not be liable to attachment under any decree or order of any Court in respect of any debt or liability incurred by the employer other than any;; debt or liability incurred by; employer towards any employee employed in connection with the contract aforesaid.
22-F.
Application of Payment of Wages, 1936 to scheduled employments. -
(1) Notwithstanding anything contained in the Payment of Wages Act, 1936 (4 of 1936), the appropriate Government may, by publication in the official Gazette, direct that subject to the provisions of sub-section (2), shall or any of the provisions of the said Act, shall with the modifications, if any as may be specified in the notification, apply to wages payable to employees in such scheduled employments as may be specified in the notification.
(2) Where all or any of the provisions of the said Act are applied to wages payable to employee in any scheduled employment under sub-section (1), the Inspector appointed under this Act shall be deemed to be Inspector for the purpose of enforcement of the provisions so applied within the local limits of the jurisdiction.
23. Exemption of employer from liability in certain cases. - Where an employer is charged with an offence against this Act he shall be entitled, upon complaint duly made by him, to have any other person whom he appointed for hearing the charge; and if after the commission of the offence has been proved, the employer proves to the satisfaction of the Court-
24. Bar of suits. - No Court shall entertain any suit for the recovery of wages in so as the sum so claimed-
25. 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.
26. Exemption and exception, - (1) The appropriate Government may. Subject to such conditions if any as it may think fit to impose, direct that the provisions of this Act shall not apply in relation to the wages pay ale to disabled employees.
Explanation, - In this sub-section a member of the employer's family shall be deemed to include his or her spouse or child or parent or brother or sister.
27. Power of state Government to add to Schedule. - The appropriate Government, after giving by notification in the official Gazette not less than three months' notice of its intention so to do, may by like notification, add to either part of the Schedule any employment in respect of which it is of opinion that minimum rates of wages should be fixed under this Act and thereupon the Schedule shall in its application to the State be deemed to be amended accordingly.
28. Power of Central Government to give directions. -The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.
29. Power of the Central Government to make rules. -The Central Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules prescribing the term of office of the members, the procedure to be followed in the conduct of business, the method of voting, the manner of filling up casual vacancies in membership and the quorum necessary for the transaction of business of the Central Advisory Board.
30. Power of appropriate Government to make rules, -(1) The appropriate Government may, subject to the condition of previous publication by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(j) provide for the issue of wage-books and wage-slips and prescribe the manner of making and authenticating entries in wage-books and wage-slips;
30-A. Rules made by Central Government to be laid before Parliament. -Every rule made by the Central Government under this shall be laid as soon as may be after it is made; before House of Parliament while it is in session for a total period of thirty days which may be composed in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be ; so, however, that any such modification or annulment shall be without prejudice to the validity of any thing previously done under that rule.
31. Validation of fixation of certain minimum rates of wages. - Where during the period-
minimum rates of wages have been fixed by an appropriate Government as being payable to employees employed in any employment specified in the Schedule in the belief or purported belief that such rates were being fixed under clause (a) of sub-section (1) of section 3, as, in force immediately before the commencement of the Minimum Wages (Amendment) Act, 1954 (29 of 1954) or the Minimum Wages (Amendment) Act, 1957 (30 of 1957), or the Minimum Wages (Amendment) Act, 1961 (31 of 1961), as the case may be such rates shall be deemed to have been fixed in accordance with law and shall not be called question in any court on the ground merely that the relevant date specified for the purpose in that clause had expired at the time the rates were fixed :
Provided that nothing containing in this section shall extend or be construed to extend, or be construed to extend, to affect any person with any punishment or penalty whatsoever by reason of the payment by way of wages to any of his employees during any specified in this section of an amount which is less than the minimum rates referred to this section or reason or non-compliance during the period aforesaid with any order or rule issued under section 13.
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