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The Minimum Wages Act ,1948
ATHIRA.G.VIJAY REG NO:0805111
PURPOSE & OBJECTIVE
• The objective of this Act is to ensure a minimum subsistence wage for
workers.
• To provide for fixing minimum rates of wages in certain employments.
• The purpose of the Act is to statutorily determine the floor wage in
industry and trade where labor organisation are either nor existent
or ineffective.
• The Act is applicable to the whole of India.
Features of the Minimum Wages Act
• MW Act lays down the principle of fixation of1. Minimum time rate of wages2. Minimum piece rate 3. Guaranteed time rate4. Overtime rate
• The minimum rate of wages consists of :
1. basic rate of wages and a cost of living allowance or
2. basic wage rate with or without the cost of living allowance and the
cash value of the concessions in respect of the essential commodities
supplied at concessional rates.
• Computed by the competent authority at certain intervals . Undertakings controlled
by the union territory and central govt, the Director of Labor Bureau is the
Competent Authority.
• Wages shall be paid in cash although it empowers the appropriate govt to authorize
the payment of minimum wages either wholly or partly in kind in particular cases.
Definitions
1. Adult, adolescent & child: sec 2 (a)
2. Appropriate government sec.2(b)
3. Competent authority: sec2 (c)
4. Cost of living index number : sec 2(d)
5. Employer : sec 2 (e)
6. Scheduled employment : sec 2 (g)
7. Wages : sec 2(h)
8. Employee : sec 2( i)
Fixation of minimum rate of wages (sec 3)
The appropriate government to fix minimum rates of wages. The employees
employed in para 1 or B schedule either at 2 or either part of notification u/s 27.
To make review at such intervals not exceeding five years the minimum rates or so
fixed and revised the minimum rates.
Government can also fix minimum wages for
time work
Piece work at piece rate
Piece work for the purpose of securing to such employees on a time work basis
Overtime work done by employees for piece work or time rate workers.
Minimum Rate of wages(sec.4)
The minimum wages consist: Basic rate of wages and special allowance or cost of
living allowance or
Basic rate of wages with or without cost of living allowance or
All inclusive rates, cost of living allowance and the cash value of the concessions if any.
Procedure for fixation & revision of minimum rates of wages (sec.5)
• The appropriate govt shall1. Appoint as many committees and sub
committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision ,or
2. By notification in the official gazette publish its proposals for the information of persons likely to be affected thereby and specify a date not less than the two months from the date of the notification on which the proposals will be taken into consideration .
COMPOSITION OF COMMITTEES
Section 9
• Each of the committees sub-committees and the Advisory Board shall
consist of persons to be nominated by the appropriate 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 persons shall be appointed the Chairman by the
appropriate government.
• Section 11 - Wages in kind
• Section 12 - Payment of minimum rate of wages
• Section 13 - Fixing hours for normal working day
PAYMENT OF MINIMUM RATES OF WAGES(sec 12)
• The employer shall pay wages to every employee
engaged in scheduled employment at a rate not less
than the minimum rate of wages
• The wages of an employed person shall be paid to him
without deductions of any kind except as may be
authorized .
• If the contract rate of wages is higher than the minimum
rates of wages, the statutory obligation does not come
into play.
Wages for overtime(sec14)
• When a worker works in any scheduled employment
for more than 9 hours on any day or 48 hours in any
week he shall be entitled to wages at one and half
time the ordinary rates of wages in the case of
employment in agriculture and at double the
ordinary rate of wages in any other scheduled
employment..
WAGES OF WORKER WHO WORKS FOR LESS THAN NORMAL WORKING DAY
Section 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
in respect of work done by him on that day as if he had worked for a full
normal working day
WAGES FOR TWO OR MORE CLASSES OF WORK
Section 16
• 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 such class.
MINIMUM TIME RATE WAGES FOR PIECE WORK (sec 17)
• Where an employee is employed on piece work 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
the minimum time rate.
Maintenance of registers and Records ( sec.18)
• Every employer shall maintain registers and records giving
particulars of employees employed by him, the work
performed by them , the wages paid to them ,the receipts
given by them .
• He shall also keep the exhibited notices in the prescribed form
containing prescribed particulars in the prescribed manner in
the factory .
• Signatures or thumb of the impression of the employee on
wage book and wage slips shall be obtained by the employer
Inspectors and their powers (sec.19)
• The appropriate govt may, by notification in the official
Gazette, appoint inspector for the purposes of the Act, and
define the local limits within which they shall exercise their
functions.
• The powers and functions of the inspector so appointed are
almost the similar to those of the Inspectors appointed under
the Payment of Wages Act,1936 .
Powers of inspectors
(a)enter at all reasonable hours , any premises or place
where employees are employed in respect of which
minimum rates of wages have been fixed under this Act,
for the purpose of examining any register, record of
wages;
(b) examine any person whom he finds in any such
premises or place and he has reasonable cause to
believe, is an employee
(c) require any person giving out-work and any out-workers, to give any
information, which is in his powers to give, with respect to other
persons to, for whom the work is given out or received, and with
respect to the payments to be made for the work;
(d)seize or take copies of such register, record of wages or notices as he
may consider relevant in respect of an offence under this Act which
has been committed by an employer; and
(e) exercise such other powers as may be prescribed
• Every inspector shall be deemed to be a public servant within the
meaning of the Indian Penal Code ,1860.
Claims (sec.20)
• The appropriate govt. may, by notification in the official Gazette , appoint an authority to hear and decide for any specified area all claims
-arising out of 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
-in respect of wages at the overtime rate
Who may be an Authority??? any commissioner for
Workmen’s compensation, or
Any officer of the central govt. exercising functions as a labor commissioner for any region, or
Any officer of the state govt not below the rank of a labor commissioner , or
Any other officer with experience as a judge of a civil court
Who may apply???
The employee himself…
Any practitioner
Any official of a registered
trade union authorized in
writing to act on his behalf
Any inspector
Any person acting with the
permission of the Authority
Offences and penalties (sec 22)• Any employer who pays to any employee less than the minimum rate of
wages fixed for that employee’s class of work or less than the amount
due to him under the provisions of the Act
– Shall be punishable with imprisonment for a term which
may extend to 6 months or with fine which may extend to
Rs.500 or with both.
• An employer who fails to maintain a register – a record required to be
maintained under the Act
– Punishable with a fine which may extend to Rs. 500
Thank u…..