_revised_the_minimum_wages_act_1948

8/7/2019 _revised_THE_MINIMUM_WAGES_ACT_1948

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THE

MINIMUMWAGES ACT,

1948


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SCOPE AND COVERAGE

This Act may be called the Minimum Wages Act

1948.

It extends to the whole of India.


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OBJECTIVES OF THE ACT

To prevent the exploitation of ignorant, less

organized and less privileged members of the society

It aims at fixation of minimum wages which the

employers must pay


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DEFINITIONS

APPROPRIATE GOVT.

means -

in relation to any scheduled employment carried on

by or under the authority of the Central Government

than the Central Government and

in relation to any other scheduled employment the

State Government;


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COMPETENT AUTHORITY

means

the authority appointed by the appropriate

government by notification in its Official

Gazette to ascertain from time to time thecost of living index number applicable to the

employees employed in the scheduled

employments specified in such notification;


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COST OF LIVING INDEX

NUMBER

Cost of living index number" means the indexnumber ascertained and declared by the competentauthority by notification in the Official Gazette to be thecost of living index number applicable to employee inany scheduled employment in respect of whichminimum rates of wages have been fixed;

the term cost of living index has been replaced by

most of the state govt. by the term consumer priceindex number


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EMPLOYER

means

i. any person who employs whether directly or through

another person one or more employees in any scheduled

employment in respect of which minimum rates of wages

have been fixed. When workers are employed through a

contractor, the contractor is an employer within the

meaning of the act

Any person named as manager of the factory wherein the

scheduled employment is carried out;

Any person or authority appointed by government for thesupervision and control of employees or where no person

or authority is so appointed the head of the department;


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Any person appointed by local authority for the

supervision and control of employees or where no

person is so appointed the chief executive officer of thelocal authority;

Any person responsible to the owner for the supervision

and control of the employees or for the payment ofwages;


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SCHEDULED EMPLOYMENT

means

an employment specified in the Schedule or any

process or branch of work forming part of such

employment;


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WAGESmeans

all remuneration capable of being expressed in terms of money whichwould if the terms of the contract of employment express or impliedwere fulfilled be payable to a person employed in respect of hisemployment or of work done in such employment and

includes house rent allowance

but does not include -

a.

the value ofany house accommodation supply of light water medical attendance

or

any other amenity or any service excluded by general or specialorder of the appropriate government;

a. any contribution paid by the employer to any person fund orprovident fund orunder any scheme ofsocial insurance;

b. any traveling allowance or the value ofany traveling concession;

c. any sum paid to the person employed to defray special expensesentailed on him by the nature of his employment; or

d. any gratuity payable on discharge;


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EMPLOYEE

means

any person who is employed for hire or reward to do anywork skilled or unskilled manual or clerical in a scheduledemployment in respect of which minimum rates of wageshave been fixed;

and includes

an out-worker to whom any articles or materials are givenout by another person to be made up cleaned washedaltered ornamented finished repaired or otherwiseprocessed for sale for the purposes of the trade or businessof that otherperson

and also includes an employee declared to be an employeeby the appropriate government;

but does not include:

any member of the Armed Forces of the Union.


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MINIMUM WAGES

Minimum wage as the name implies, represents, the

level below which wage cannot be allowed to drop.

It is the lowest limit below which no worker should be

paid.

The minimum wage should provide not merely for the

bare subsistence of life, but for the preservation of the

efficiency of the worker


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FIXATION AND REVISION OF MINIMUM

WAGES (SEC-3)

The appropriate government shall, in the mannerhereinafter provided,-

fix the minimum rates of wages payable to employeesemployed in an employment specified in Part I or Part

II of the Schedule.

review at such intervals as it may think fit, suchintervals not exceeding five years, the minimum ratesof wages so fixed and revise the minimum rates, ifnecessary

The appropriate govt. may not fix the minimum rate ofwages for any scheduled employment in which lessthan one thousand employees are engaged in thewhole state


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The appropriate government may fix-

a minimum rate of wages for time work (hereinafter

referred to as "a minimum time rate");

a minimum rate of wages for piece work (hereinafter

referred to as "a minimum piece rate");

a minimum rate of remuneration to apply in the case of

employees employed on piece work for the purpose ofsecuring to such employees a minimum rate of wages

on a time work basis (hereinafter referred to as "a

guaranteed time rate");

a minimum rate in respect of overtime work done byemployees (hereinafter referred to as "overtime rate").


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In fixing or revising minimum rates of wages under this section,-

Different minimum rates of wages may be fixed for-

different scheduled employments; different classes of work in the same scheduled employment

adults, adolescents, children and apprentices

Minimum rates of wages may be fixed by any one or more of

the following wage periods, namely:

by the hour,

by the day,

by the month, or

by such other larger wage-period as may be prescribed;


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an all-inclusive rate allowing for the basic rate, the cost

of living allowance and the cash value of the

concessions, ifany.

The cost of living allowance and the cash value of the

concessions in respect of supplies of essential

commodities at concessional rate shall be computed bythe competent authority at such intervals and in

accordance with such directions as may be specified or

given by the appropriate government.


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The government takes into consideration either the

advice of the committee or sub-committee appointed

under the first method or considers all representationsreceived by it under the second method

The app. Govt shall thereafter fix or revise the minimum

rate of wages by notification in the official gazette

It shall come into force on the expiry of three months

from the date of its issue unless otherwise provided


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ADVISORY BOARD (SEC-7)

It is obligatory upon appropriate govt. to appoint anadvisory board for the following purposes:

To co-ordinate the work of committees and sub-

committees appointed undersec-5

To advise the appropriate govt. generally in the matter of

fixing and revising the minimum rate of wages


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CENTRAL ADVISORY BOARD

(SEC-8)

Purpose:

To advise the central orstate government in the matter

of fixation and revision ofminimum rates of wages

To co-ordinate the work of the advisory board

appointed undersec-7


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COMPOSITION OF COMMITTEES

(SEC-9)

Each of the committees, sub-committees and the Advisory

Board shall consist of

persons to be nominated by the appropriate governmentrepresenting employers and employees in the scheduled

employments,

who shall be equal in number, and independent persons not

exceeding one-third of its total number ofmembers;

one of such independent persons shall be appointed the

Chairman by the appropriate government.


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CORRECTION OF ERRORS

(SEC-10)

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, orerrors arising

therein from any accidental slip or omission

Every such notification shall, as soon as may be after it

is issued, be placed before the Advisory Board for

information,


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WAGES IN KIND

(SEC-11)

Minimum wages payable under this Act shall be paid in cash.

Ifappropriate government is of the opinion that provision should be

made for the supply ofessential commodities at concessional rates,

the appropriate government may, by notification in the Official

Gazette, authorize the provision of such supplies at concessional

rates.


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PAYMENT OF MINIMUM RATE OF

WAGES

(SEC-12)

Where in respect of any scheduled employment a

notification under section 5 is in force, the employer

shall pay to every employee engaged in ascheduled employment under him wages at a rate

not less than the minimum rate of wages fixed by

such notification for that class of employees in that

employment without any deductions except as may

be authorized within such time and subject to such

conditions as may be prescribed.


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The employer may fix any reasonable norm specifyingthe quantity of work which must be turned out by the

workman during the day. But if the workman does not

turn out work in conformity with such norm, the

employer may take disciplinary action against the

workman and dismiss him, but cannot pay him anythingless than the minimum wage. Payment of wages less than

the minimum wage on the ground of less performance or

output is illegal.


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FIXING HOURS FOR THE NORMAL WORKING

DAY

(SEC-13)

In regard to any scheduled employment minimum rates

of wages in respect of which have been fixed under this

Act, the appropriate government may-

fix the number of hours of work which shall constitute anormal working day.

provide for a day of rest in every period of seven days

which shall be allowed to all employees or to any

specified class ofemployees and

Provide` for the payment of remuneration in respect of

such days of rest;

provide for payment for work on a day of rest at a rate

not less than the overtime rate.


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The above provisions shall apply only to such extent

and subject to such conditions as may be prescribed:-

employees engaged on urgent work, or in anyemergency work

employees engaged in work in the nature ofpreparatory

or complementary work which must necessarily be

carried on outside the limits laid down for the generalworking in the employment concerned;

employees whose employment is essentially

intermittent;

employees engaged in any work which for technical

reasons has to be completed before the duty is over;

employees engaged in a work which could not be

carried on except at times dependent on the irregular

action ofnatural forces.


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OVERTIME (SEC-14)

Where an employee, whose minimum rate of wages is

fixed under this Act by the hour, by the day orby such a

longer wage-period as may be prescribed, works on

any day in excess of the number of hours constituting a

normal working day, the employer shall pay him for

every hour or forpart ofan hourso 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.


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WAGES OFWORKERS WHOWORKS FOR LESS THAN

NORMAL WORKING DAY

(SEC-15)

If an employee whose minimum rate of wages has been fixed under

this Act by the day works on any day on which he was employed for

a period less than the requisite number of hours constituting a

normal working day, he shall, save as otherwise hereinafter

provided, be entitled to receive wages fora full normal day. He shallhowever not be entitled to receive the wages for the full normal day

in the following cases:

in any case where his failure to work is caused by his unwillingness

to work and not by the omission of the employer to provide him withwork, and

in such other cases and circumstances as may be prescribed.


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WAGES FOR TWO OR MORE CLASSES OF

WORK (SEC-16)

Where an employee does two or more

classes of work to each of which a different

minimum rate of wages is applicable, theemployer shall pay to such employee in

respect of the time respectively occupied in

each such class of work, calculated at the

minimum rate in force in respect of eachsuch class.


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MAINTENANCE OF REGISTERS AND RECORDS

(SEC-18)

Every employer shall maintain such registers andrecords giving such particulars of employees employedby 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 beprescribed.


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INSPECTORS

The appropriate government may, by notification in theOfficial Gazette, appoint such persons as it thinks fit to

be Inspectors for the purposes of this Act and define the

local limits within which they shall exercise their

functions.Inspector may, within the local limits for which he is

appointed-

to enter the premises at reasonable hours with orwithout assistants for the purpose of examining such

registers and records ornotices to be kept under the act


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To examine persons found in such premises whom he

believes to be employees

To require any person responsible for giving out-work

and out-workers to give any information

To seize, t o take copies of such register, record ofwages or notices considered relevant in respect of an

offence believed to have been committed by an

employer

To exercise such otherpowers as may be prescribed


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CLAIMS

The appropriate government may, by notification in theOfficial Gazette, appoint authority to hear and decide

forany specified area all claims arising out of :

payment of less than the minimum rates of wages or in respect of the payment of remuneration for days of

rest, or

Forpayment of overtime wages


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APPOINTMENT OF

AUTHORITY

The following may be appointed as an authority tohearand decide the claims:

any Commissioner for Workmen's Compensation or

any officer of the State Government not below the

rank of Labour Commissioner or

any other officer with experience as a judge of acivil court


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APPLICATIONS FOR CLAIMS

Where an employee has any claim of the naturereferred to above the following may present an

application to the authority for hearing and deciding

the claims:

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,


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PROCEDURE FOR DECIDING

CLAIMS

When any application is entertained, the authority shall hear the

applicant and the employer, or give them an opportunity of being

heard, and after such further inquiry, if any, as it may consider

necessary, may, without prejudice to any otherpenalty to which the

employermay be liable under this Act, direct-

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 theamount actually paid, together with the payment of such

compensation as the authority may think fit, not exceeding ten

times the amount ofsuch excess;


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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, notexceeding ten rupees;


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PENALITIES

Any employer who

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 contravenes any rule or order made under this

act

shall be punishable with imprisonment for a

term which may extend to six months, orwith fine which may extend to five hundred

rupees, or with both:

_revised_the_minimum_wages_act_1948

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