Minimum Wages Act, 1948 Compiled by: CA Vidhi Dedhia

L-2 Minimum Wages Act, 1948

Employee means any person who is employed for

Hired/ reward to do any work skilled/ unskilled manual or clerical

In a schedule employment in respect of which minimum rates of wages has been fixed

Includes × Excludes An out worker to whom any member of the armed Article/ materials are given out forces by another person to

{another person out worker} Such article is - - Made up - Cleaned - Washed - Altered - Ornament - Finished - Repaired - Adapted or otherwise - Processed Term: “wages” means all remuneration capable of being expressed in terms of money.

Payable to a person employed in respect of his employment in case the terms of contrac t of employment were fulfilled.

Includes × ExcludesHRA – House rent allowed once - house accommodation

- Supply of LWM

Light water medical attendant

- Contn paid by employer to P. F.

- Travelling allowance - Gratuity - Other amenities excluded

By appropriate govt.

Employee

Minimum Wages Act, 1948 Compiled by: CA Vidhi Dedhia

Minimum Rates of Wages - Appropriate govt. has to fix the minimum rates of wages payable.- Appropriate govt. shall review the minimum rates to fixed at such intervals not exceeding 5

years

Manner of fixation of minimum rates of wages

Under minimum wages act, 1948 may be other wagesFixed as under: - 1) different scheduled“POTG” employment Piece work 2) different classes

Overtime work of work

Time work 3) on the basis of adults,

Guarantee time rate adolescents.

PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES

2 methods

- Appt govt. appoint committee - appt govt. by notification office- Govt. is not bound to accept the recommendation gazette

Given by the committee. -shall Publish the proposal{Committee –not compulsory if suitable - for minimum rate wages-Fix or revise – official gazette} - within 2 months from date of

- Advise of committee if suitable shall be used Notification proposal to fix or revise minimum notification - within 2 mths- proposal

-Concerned persons affected with the proposal may give “Representation”

- After considering the“REPRESENTATION”

from the various groupsGovt. will prescribed minm

rates of wages.

Committee method Notification method

PO

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Minimum Wages Act, 1948 Compiled by: CA Vidhi Dedhia

Case: -i) An out-worker prepared goods at his residence and later on supplied these goods to the

employer. Will he be treated as an employee under the minimum wages act, 1948?Ans: Yes

The out worker who prepares good at his residence and later on supplies such goods to the employer shall also be held as an employee as per the Minimum Wages Act, 1948.

The same find its supporting from the judgment of Loknath Nathu Lal v. State of Madhya Pradesh.

ii) A company was running into losses and was unable to pay the minimum rates of wages to its workers. The workers pleaded that the employer must pay them the minimum rates wages. The employer (company) intends to go to the court challenging the constitutional validity of the Minimum Wages Act, 1948. Will the company succeed?

Ans: No The company will not succeed. Even if the company is running into losses and finds itself unable to pay the minimum

wages, the provision of minimum wages act, 1948 needs to be adhered, to. mere paucity of funds or poor economic serves as no ground to challenge the constitutional validity on the act.