Friday, March 26, 2010

Chapter: 6.2.1 Notification Fixing of Minimum Rates of Wages

Notification Fixing of Minimum Rates of Wages

• Validity of:

Any notification issued by the State Government after first complaint with the formalities under Section 5(1) and after considering the evidence of committee and all representations received is perfectly valid and not open to challenge. Manohar88 Narayan Joshi V/s State of Maharashtra, 1979~39~ FLR page 394. Section 5 does not valid the fundamental rights under Article 19(1~(g~ of the constitution. Vijay Cloth Cotton Mills V/s State of Ajmir, AIR 1955, page 33, Supreme Court.

• In fixing the minimum wage:

The fact that an employer might find it difficult to carry on his business on the basis of minimum wages is an irrelevant consideration. The Act contemplates that minimum rates of wages must ensure not merely the physical need of the worker which would keep him just above starvation but must ensure for him not only his subsistence and that of his family but also preserve the efficiency as a workman. It should therefore, provide not merely for his care subsistence of his life but for the preservation of the worker and so must provide for some measure of education, medical requirement and amenities. (AIR 1969, Supreme Court, Page 182 Hydro (Engineers) Pvt. Ltd. V/s its workmen.)

A casual worker cannot by the very nature of his employment expect the same rate of wages as is given to a permanent worker. (Workmen of Orient Paper Mills V/s Orient Paper Mills, AIR 1969, Supreme Court, Page 976.)

• Section 11 - Wages in Kind

1) Minimum wages payable under the Act shall be in cash.
2) Where there has been the custom to pay wages only or partly in kind, the Appropriate Government is of the opinion that it is necessary in the circumstances by a Notification in the Official Gazette to authorize the payment to be either made in cash or wholly or partly in kind.
3) The Appropriate Government is of the opinion that provisions should be made for the supply of essential commodities at concessional rates. The Appropriate Government may by the notification in Official Gazette authorize the provisions of such supplies at concessional rate.

Where in respect of any scheduled employment, a notification under Section 5 is in force, the employer shall pay to every employee engaged in a scheduled employment under him, wages at the rate not less than the minimum rates of wages fixed by such notification for that class of employees in that employment without any deductions as may be, except as may be authorize within such time and subject to the conditions.

In regard to the scheduled employment, Minimum rates of wages in respect have been fixed. The Appropriate Government may fix the numbers of hours of work which shall constitute a normal working day inclusive of specified intervals.

It also shall provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest. It shall also provide for payment of work on a day of rest at a rate not less than overtime rate. Overtime has been discussed under Section 14 of the Minimum Wages Act, where an employee whose minimum rates of wages is fixed under this Act by the hour, by the day or by such a longer wage period as may be prescribed and the employee 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 for part of hour so worked in excess of the overtime rate fixed under this Act or under any law of the Appropriate Government for the time being in force, whichever is higher.

In fact, employee whose minimum rates of wage 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 be entitled to receive wages in respect of work done by him on that day as if he had worked for the full normal working day.

Every employer employing persons shall maintain such registers and records giving such particulars of employees employed by him, the work performed by them, the wages paid to them, the receipts given to them and such other particulars and forms. The Appropriate Government may provide for the issue of wages book or wage slip (attendance card) to employees employed in the scheduled employment in which minimum rates of wages have been fixed and also may prescribe in the manner in which the entries are to be made and shall be made in such wage books.

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