print article _ the constitutional validity of the minimum wages act,1948
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03/05/2015 PrintArticle:TheConstitutionalValidityofTheMinimumWagesAct,1948
http://www.legalservicesindia.com/article/print.php?art_id=1770 1/4
Shastree'sProfileanddetails
Name:AniruddhShastreeResourceconsultant,
recruiter,assistinginclientacquisition.MastersfromI.L.S.LawCollege&MBA(HR).
TheConstitutionalValidityofTheMinimumWagesAct,1948
Source:Author:ShastreePublishedon:March01,2015
TheConstitutionalValidityofTheMinimumWagesAct,1948IndiaintroducedtheMinimumWagesActin1948,givingboththeCentralgovernmentandStategovernmentjurisdictioninfixingwages.Theactislegallynonbinding,butstatutory.Paymentofwagesbelowtheminimumwagerateamountstoforcedlabour.WageBoardsaresetuptoreviewtheindustryscapacitytopayandfixminimumwagessuchthattheyatleastcoverafamilyoffoursrequirementsofcalories,shelter,clothing,education,medicalassistance,andentertainment.Underthelaw,wageratesinscheduledemploymentsdifferacrossstates,sectors,skills,regionsandoccupationsowingtodifferenceincostsofliving,regionalindustries'capacitytopay,consumptionpatterns,etc.Hence,thereisnosingleuniformminimumwagerateacrossthecountryandthestructurehasbecomeoverlycomplex.
(A)Theactisnotunreasonable:Itcanscarcelybedisputedthatsecuringoflivingwagestolabourerswhichensurenotonlybarephysicalsubsistencebutalsothemaintenanceofhealthanddecencyisconducivetothegeneralinterestofthepublic.ThisisoneofthedirectiveprinciplesofthestatepolicyembodiedinArticle43oftheconstitution.
IndividualemployersmightfinditdifficulttocarryonthebusinessonthebasisofminimumwagesfixedundertheActbutthismustbenotbetheentirepremiseandreasontostrikedownthelawitselfasunreasonable.
Therestrictions,thoughtheyinterferetosomeextentwiththefreedomoftradeorbusinessguaranteedunderArticle19(1)(g)oftheconstitution,arereasonableand,beingimposedonthegeneralinterestofthegeneralpublic,areprotectedbythetermsoftheclause(6)ofthearticle19.ThisquoteisapartofjudgmentinthecaseGulmuhommadTarasaheb,abidifactorybyitsproprietorsShamraovsStateofBombay,AIR1962Bom97:AIR1955,Sc33:1963,Ker115:1964Tri32.
AnanotherimportantjudgmentthatfavoursandsupportstheconstitutionalValitityoftheMinimumWagesAct,1948is,V.UnichonoyvsStateofKerala,1962,SC12.ThiscaseraisedthesamequestionswhichwereraisedinthecaseofGulmuhommadTarasahebvsStateofBombay,AIR1962Bom97.,whichwere,that,canastatebepreventedfrommakinganylaw,intheinterestofgeneralpublic,whereitcreatesrestrictionsandinterferestosomeextentwiththefreedomoftradeorbusinessguaranteedunderArticle19(1)(g),oftheConstitutionofIndia,anditwasheldthat,Fixationofminimumwagesisforpreservationof
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03/05/2015 PrintArticle:TheConstitutionalValidityofTheMinimumWagesAct,1948
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publicorder,andifnominimumwageisfixedthenitshallleadtoarbitrarinessbytheemployersandthatshallleadtoclashesofinterestbetweenemployerandlabourwhichshallcausefrictioninsociety.
Thearticle14oftheIndianConstitutionwhichrelatestoequalitybeforethelaw,itmustbenotedthatminimumwagesarenotfixedequallyacrossthewholenationbuttheyvaryfromoccupationtooccupationandindustrytoindustryandfromplacetoplace.
ThecaseofUchinoyvsStateofKerala,1962SC12,furtherquotesthefollowing,Asregardstotheprocedureforfixingoftheminimumwages,theappropriategovernmenthasundoubtedlybeengivenverylargepowers,butithastotakeintoconsideration,beforefixingwages,theadviceofthecommitteeifoneisappointedontherepresentationsonproposalsmadebypersonswhoarelikelytobeaffectedthereby.Thevariousprovisionsconstituteanadequatesafeguardagainstanyhastyorcapriciousdecisionbytheappropriategovernment.Insuitablecases,theappropriategovernmenthasalsobeengiventhepowerofgrantingexemptionsfromtheoperationsoftheprovisionsoftheAct.Thereisnoprovisionundoubtedly,forafurtherreviewofthedecisionoftheappropriategovernment,butthatitselfwouldnotmaketheprovisionsoftheactunreasonable.
(B)TheActdoesn'tviolateArticle14oftheIndianConstitution.
OnacarefulexaminationofthevariousoftheActandthemachinerysetupbythisAct,Section3(3)(iv)neithercontraveneArticle19(1)oftheconstitutionnordoesitinfringetheequalprotectionclauseoftheconstitution.theCourtshavealsoheldthattheconstitutionofthecommitteesandtheAdvisoryBoarddidnotcontravenethestatutoryprovisionsinthatbehalfprescribedbythelegislature,thiswasheldinthecaseofBhikusaYamasaKshatriyavsSangammarAkolaBidiKamgarUnion,AIR1963SC306.Further,asdecidedinthecaseC.B.Boarding&Lodging,Re(1970)IILLJ403:AIR1970:SC2042:38FIRI.,itaddedtotheabovementionedcasethat,...northereasonthattwodifferentproceduresareprovidedforcollectinginformation..
(C)Notificationfixingdifferentratesofminimumwagesfordifferentlocalitiesisnotdiscriminatory.
wherethefixationofratesofwagesandtheirrevisionweremanifestlyprecededbyadetailedsurveyandenquiryandtherateswerebroughtintoforceafterafullconsiderationoftherepresentationswhichweremadebyasectionoftheemployersconcerned,itwouldbedifficultinthecircumstancestoholdthatnotificationwhichfixeddifferentratesofminimumwagesfordifferentlocalitieswasnotbasedonintelligentdifferentiahavingarationalnexuswiththeobjectoftheAct,andtherebyviolatedarticle14.whentheGovernmentissuednotificationimprovingupontheexistingminimumwagesasrevisedminimumwagesdisregardingthecontraryreportofthecommitteeappointedunderSection51(a)suchnotificationwasbadunderthelawandwastobemadeinoperative..
AspointedoutbyoneoftheIndiasUnionLabourandEmploymentMinisterShri
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03/05/2015 PrintArticle:TheConstitutionalValidityofTheMinimumWagesAct,1948
http://www.legalservicesindia.com/article/print.php?art_id=1770 3/4
MallikarjunaKharage,Thevariationofminimumwagesbetweenthestatesisduetodifferencesinsocioeconomicandagroclimaticconditions,pricesofessentialcommodities,payingcapacity,productivityandlocalconditionsinfluencingthewagerate.TheregionaldisparityinminimumwagesisalsoattributedtothefactthatboththeCentralandtheStateGovernmentsaretheappropriateGovernmentstofix,reviseandenforceminimumwagesinScheduledemploymentsintheirrespectivejurisdictionsundertheAct.
ReferringthecaseofN.M.WadiaCharitableHospitalvsStateofMaharashtra,1993,itwasdecidedbytheCourtthatFixingdifferentminimumwagesfordifferentlocalitiesispermittedundertheconstitutionandunderlabourlaws,hencethequestionthatanyprovisiooftheMinimumWagesActisinanywayagainsttheprovisioofconstitutioniswrong.
TheconstitutionofIndiaacceptstheresponsibilityoftheStatetocreateaneconomicorder,inwhicheverycitizenfindsemploymentandreceivesafairwage.Thismadeitnecessarytoquantifyorlaydownclearcriteriatoidentifyfairwage.Therefore,aCentralAdvisoryCouncil,initsfirstsessioninNovember1948,appointedatripartiteCommitteeonFairWages.Thecommitteeconsistedofrepresentativesofemployers,employees,andtheGovernment.Theirtaskwastoenquireintoandreportonthesubjectoffairwagestothelabour.
(D)SanctityofTheMinimumWageAct
SupremeCourtinthreeseparaterulings,hasheldthatnonpaymentofminimumwagesistantamounttoforcedlabourprohibitedunderArticle23oftheConstitution.TheSupremeCourtholdsthatforcedlabourmayariseinseveralways,includingcompulsionarisingfromhungerandpoverty,wantanddestitution.InSanjitRoyVs.StateofRajasthan(1983),theSupremeCourtheldthattheExemptionActinsofarasitexcludedtheapplicabilityoftheMinimumWagesAct1948totheworkmenemployedinfaminereliefworkisclearlyviolativeofArticle23.ThusevenpublicworksostensiblyinitiatedbythegovernmentforthesolepurposeofprovidingemploymentaresubjecttotheMinimumWageAct.
DrawingontheSupremeCourtrulings,AndhraHighCourtsetasidetheGovernmentofIndia(GoI)notificationmandatingthatprevailingstateminimumwagebepaid.ThishasbeenunderscoredinthelegalopinionprovidedbyAdditionalSolicitorGeneral,Ms.IndiraJaising,totheCentralEmploymentGuaranteeCouncil(CEGC)WorkingGrouponWageswhereshemadeitclearthatusingSection6(1)toallowapaymentoflessthanminimumwageinMGNREGAworkswillamounttoforcedlabour.15eminentjuristsandlawyersofIndiatoohaveaskedGovernmentofIndiatoimmediatelyrevokeitsunconstitutionalnotificationandensurethatminimumwagesarepaidtoallworkersinIndia.
TheActandthejudgmentsareinfavourofequalityprovidedunderArticle14oftheConstitutionandajudgementinthecasenamely,EngineeringWorkersUnion/vs/UnionofIndia(1994)I.LLJSup.942Bom.,pronouncesthejudgmentthat,TheprovisionunderSection3(2)(A),thatminimumrateofwagesinscheduledemploymentfixedorrevised,shallnotapplytotheemployeesduringtheperiodofadjudication,violatedequalityclauseofArticle14andhencethatsectionisvoid.
IntheviewoftheDirectivePrinciplesofStatePolicyascontainedintheArticle43oftheIndianConstitution,itisbeyonddoubtthatsecuringoflivingwagestolabourerswhichensuresnotonlybarephysicalsubsistencebutalsothemaintenanceofhealthanddecency,itis
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03/05/2015 PrintArticle:TheConstitutionalValidityofTheMinimumWagesAct,1948
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conducivetothegeneralinterestofthepublic.
TheMinimumwagesActwaspassedtofulfilltheaspirationascontainedinthefollowingresolution:Ifthelabourersaretobesecuredtheenjoymentofminimumwagesandtheyaretobeprotectedagainstexploitationbytheiremployers,itisabsolutelynecessarythatrestraintsshouldbeimposeduponthefreedomofcontractandsuchrestrictionscannotbesaidtobeunreasonable.Ontheotherhand,thecannotbeheardtocomplainiftheyarecompelledtopayanyminimumwagestotheirlabourerseventhoughthelabourers,onaccountoftheirpovertyandhelplessness,arewillingtoworkevenatlesserwages.
InthecaseofPETITIONER:BIJAYCOTTONMILLSLTD./Vs./
RESPONDENT:THESTATEOFAJMER.DATEOFJUDGMENT:14/October/1954,TheConstitutionalvalidityofthisActwasattackedonthegroundthatitviolatestheguaranteeoffreedomoftradeorbusinessetc.,envisagedbyArticle19(1)(g)oftheIndianConstitution,(ConstitutionofIndia,Article.19(1)(g),19(6)MinimumWagesAct(XIof1948),sections.3,4and5Appropriate
GovernmentFixingminimumrateofwagesWhetheroffendsfundamentalrightsguaranteedunderArt.19(1)(g).)
,itwasheldthat,therestrictionsimposeduponthefreedomofcontractbythefixationofminimumratesofwagesthoughtheyinterferetosomeextentwiththefreedomoftradeorbusinessguaranteedunderArt.19(1)(g)oftheConstitutionarenotunreasonableandbeingimposedintheinterestofgeneralpublicandwithaviewtocarryoutoneoftheDirectivePrinciplesofStatePolicyasembodiedinArt.43oftheConstitutionareprotectedbythetermsofel.(6)ofArt.19.ItcanthusbesaidthattheprovisionsoftheActareboundtoaffectharshlyandevenoppressivelyaparticularclassofemployers,whoforpurelyeconomicreasonsareunabletopaytheminimumrateofwagesfixedbytheauthorities,buthaveabsolutelydishonestintentionofexploitingtheirworkers.
Thefactthatemployermightfinditdifficulttocarryonbusinessonsettledprinciplecannotbeasufficientreasonforstrikingdownthelawitselfasunreasonable.Thepovertyoflabourersisalsoafactortobetakenintoconsiderationwhiledeterminingthequestionwhetheraparticularprovisionisintheinterestofthegeneralpublic.