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Introduction
The Minimum Wages Act, 1948 was enacted by the Indian Legislature to deal with matters relating to providing the minimum wage to the workers so that they can afford their basic needs and maintain a decent standard of livelihood.
The Act further ensures a secure and adequate living wage for all labourers and it also guarantees that an employee earns enough to provide for his family. The Act authorises both Central and state governments in fixing the rate of minimum wage. The Minimum Wages Act, 1948 has also laid down a provision for revision of minimum wages in order to cope with the changing prices of basic commodities.
The Act seeks to provide better protection of the rights of the employees by establishing advisory boards to resolve any dispute between the employer and employee regarding the payment of minimum wage to the employees. The Act further appoints a Commissioner for Workmen’s Compensation or any other officer of the Central Government exercising functions as a Labour Commissioner for any region, with an experience as a judge in order to hear and decide cases concerning non-payment or payment of less than the minimum wages to the employees. The Act also states provisions for penalising any employer who fails to provide the minimum wage to the employer and contravenes any rule or order made under the Act.
Thereby, it can be said that the enactment of this Act was extremely crucial since it aims to expand the concept of social justice to the workers of scheduled employment and also provide them with the rates of minimum wages fixed by the statute. It also protects the rights and interests of the workers and prevents the workers from being wrongfully exploited by their employers.
Objectives of Minimum Wages Act
The significance of the Minimum Wages Act, 1948 is mentioned below:
- To fix the minimum rates of wages that are to be provided to the employees and revise such rates of wages every five years.
- To secure an adequate living wage for all the labourers in the interest of the public.
- To fix the daily working hours of the employees.
- To prevent exploitation of the workers by the employers.
- To ensure that the labourers can maintain a decent standard of living.
- To provide basic physical needs, good health and a level of comfort to the employees.
- To penalise the employers when they fail to provide minimum wages to the workers.
- To establish advisory boards to regulate and administer the provisions of the Act.
- To lay down the powers and duties of the inspectors for the purposes of this Act.
- To prevent any employer from wrongfully infringing the right of any employees.
- To establish appropriate authorities where the employees can seek redressal when the employer has failed to pay the daily wage.
- To authorise the Central and state governments to make rules and regulations for the purposes of this Act.
Application of Minimum Wages Act
The Minimum Wages Act, 1948 is applicable to the whole of India as laid down in Section 1 of the Act. It applies to any employment if it employs 1000 employees in the respective state. However, it does not apply to any employees in any undertaking owned by the Central Government or of the federal railway, except with the consent of the Central Government.
Essential provisions under Minimum Wages Act
The significant provisions of the Minimum Wages Act, 1948 are mentioned below.
Minimum rates of wages
Under Section 3 of the Act, the minimum wages payable to the employees are to be fixed by the appropriate government. However, this Section also mentions that the rate of wages shall be revised every five years. The appropriate government may fix:
- The minimum rate of wages for time work,
- the minimum rate of wage for piece work,
- a minimum rate of 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,
- a minimum rate of wage to substitute the for the minimum rate which would otherwise be applicable, in respect of overtime work done by employees.
In fixing or revising minimum wages under Section 3 of the Act:
- Different minimum rates of wages may be fixed for; different classes of work, different scheduled employment, different localities, different age groups, etc.
- Minimum wages may be fixed by the wage period such as; by the hour, by the day, etc.
Section 4 of the Minimum Wages Act, 1948 states that the minimum wages fixed by the appropriate government must consist of:
- A basic rate of wages and a special allowance must be adjusted at necessary intervals by the appropriate government to match the cost of living of the employees.
- The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities must be computed by a competent authority and at such intervals specified by the appropriate government.
Section 5 states that in order to fix or revise the minimum wage of the employees the appropriate government may establish as many committees and subcommittees necessary to hold enquiries in matters regarding fixing and revision of minimum wage. Further, the appropriate government by notification to the Official Gazette publish its proposal for the information of the individuals who are likely to be affected by such information and thereby specify the date which must not be less than two months from the date of notification of the proposals that will be taken into consideration.