Chapter: 6 The Minimum Wages Act, 1948

The Minimum Wages Act, 1948

Introduction
This is an Act to provide for fixing minimum rate of wages in certain employments. This Act extends to the whole of India except for the State of Jammu and Kashmir. Under the Act, the Appropriate Government, means any scheduled employment carried on by and under the authority of the Central Government or a Railway Administration or in relation to a Mine, Oil field or Major Port or any Corporation established by a Central Act or the Central Government or in relation to any other scheduled employment in cases of the State Government

The Competent Authority means the authority appointed by the Appropriate Government by Notification in the Official Gazette, to ascertain from time to time, the cost of living index number applicable to the employees employed in the scheduled employment specified in the Notification.

Cost of living index number in relation to employees in any scheduled employment in respect of which minimum rates of wages have been filed means the index number ascertained and declared by the Competent Authority by notifications in Official Gazette to be the costs of living index number applicable to the employees in such employment.

Wages means "all remuneration capable of being expressed in terms of money which would, if the terms of the contract of employment express or implied were fulfilled, be able to present in respect of his employment or of work done in such employment".

Employee means "any person who is employed for hire or reward to do any work skilled or unskilled, manual or clerical in a scheduled employment in respect of which minimum rates of wages have been fixed and includes workers to whom any articles or materials are given out by another person to be made up cleaned, washed, altered, ornamented, finished, prepared, adopted or otherwise processed for sale for the purposes of the trade or business of that person".

The definition of term wages postulates the binding nature of the other terms of the contract and brings within the purview of the Act only term and related wages and no other. It is difficult to hold that by implication the very basic concept of the wages can be ignored and other terms of contract can be dealt with by a notification issued under this Act.

The relationship of employer and employee arises out of a contract of employment or by contract of service. The relationship implies the right of the master to direct not only what work has to be done but also the manner of doing it. The extent and extent of control which is requisite to establish the relationship of employer and employee must necessarily vary with each business and is by its very nature incapable of prescribed definition. But the correct approach is to consider having regard to the nature of work whether or not there is due control and supervision over the manner of execution of the work.