CONSTITUTIONAL VALIDITY OF

MINIMUM WAGES ACT

SUBJECT - LABOUR LAW II

SUBMITTED TO :-

Dr. S.C.ROY SUBMITTED BY:-

SUSHANT

(FACULTY OF LABOUR LAW II) ROLL NO. 1443

DATED 10TH NAVOMBER 2017

CHNAKYA NATIONAL LAW

UNIVERSITY
CHANAKYA NATIONAL LAW UNIVERSITY Page 1
 NYAYA NAGAR, PATNA
TABLE OF CONTENTS

I. TABLE OF CONTENTS...................................................................................... 2

II. ACKNOWLEDGEMENT.................................................................................... 3

III. OBJECTIVE.......................................................................................................... 4

III. RESEARCH METHODOLOGY......................................................................... 5

IV. INTRODUCTION................................................................................................. 6

V. HISTORICAL BAKEGROUND.......................................................................... 8

VI. OBJECT OF THE LEGISLATION……............................................................ 10

VII. MINIMUM WAGES………………..................................................................... 13

VIII. RECENT INITITATIVE…................................................................................... 16

IX. STEPS TAKEN TO REDUCE DESPARETIES…………………………………17

X. SANCTITY OF MINIMUM WAGES ACT………………………………………

18

XI CONCLUSION.....................................................................................................
21

X. BIBLIOGRAPHY.................................................................................................. 22

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 Acknowledgement

Intuition and concepts constitute ... the elements of all our knowledge, so that neither
concepts without an intuition in some way corresponding to them, nor intuition
without concepts, can yield knowledge. In a similar way the credit of developing this
project goes to many others who helped me in building both my concepts and
intuitions.

I feel highly elated to present the Doctrinal Research on “CONSTITUTIONAL

VALIDITY OF MINIMUM WAGES ACT”, which owes its very existence to a
number of people without thanking whom, I would fail to do proper justice to its
original propounder.

I am indebted to my faculty of LABOUR LAW II, Dr. S.C.ROY for providing me

with a challenging & interesting project. I owe the credit of developing this project to
him. Without his guidance realization of this project would not have been possible.
Thus I extend a sincere heart-felt thanks to My Preceptor Dr. S.C.ROY the ever
helping Labour Law II law faculty of Chanakya National Law University.

I would also like to thank my brother for the discussions that I had with them. All
these have resulted in the enrichment of my knowledge and their inputs have helped
me to incorporate relevant issues into my project.

---- Sushant

1443

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OBJECTIVE

The project topic “CONSTITUTIONAL VALIDITY OF MINIMUM WAGES

ACT”, on which the doctrinal research is being submitted. This paper would further seek to
identify the development of aspects as to the judicial interpretations on the concept. The Research

paper thereby aims to provide a totality in terms of the concept of CONSTITUTIONAL

VALIDITY OF MINIMUM WAGES ACT, in a comprehensive and conceptualized form

for the better understanding of the same.

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 RESEARCH METHODOLGY
Aims and Objectives:

The aim of the project is to present a detailed study of the CONSTITUTIONAL

VALIDITY OF MINIMUM WAGES ACT through different writings.

Scope and Limitations:

Though this is an immense project and pages can be written over the topic but because of
certain restrictions and limitations I was not able to deal with the topic in great detail.

Method of Writing:

The method of writing followed in the course of this research paper is primarily descriptive.

Mode of Citation:

The researcher has followed a uniform mode of citation throughout the course of this
research paper.

Research Technique:

The research methodology used is basically Doctrinal in nature.

Sources of Data:

The following secondary sources of data have been used in the project-

1. Books

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 2. Websites

INTRODUCTION

The Minimum Wages Act was enacted primarily to safeguard the interests of the
workers engaged in the unorganized sector. The Act provides for fixation and
revision of minimum wages of the workers engaged in the scheduled employments.
Under the Act, both central and State Governments are responsible, in respect of
scheduled employments within their jurisdictions to fix and revise the minimum
wages and enforce payment of minimum wages. In case of Central sphere, any
Scheduled employment carried on by or 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, the Central Government is the
appropriate Government while in relation to any other Scheduled employment, the
State Government is the appropriate Government. The Act is applicable only for
those employments, which are notified and included in the schedule of the Act by the
appropriate Governments. According to the Act, the appropriate Governments
review/revise the minimum wages in the scheduled employments under their
respective jurisdictions at an interval not exceeding five years. However, there is
large scale variation of minimum wages both within the country and internationally
owing to differences in prices of essential commodities, paying capacity,
productivity, local conditions, items of the commodity basket, differences in
exchange rates etc.

The objective of this study lesson is to thoroughly acclimatize the students with the
law relating to minimum wages. The Minimum Wages Act, 1948, is an Act to
provide for fixing minimum rates of wages in certain employments. The

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employments are those which are included in the schedule and are referred to as
‘Scheduled Employments’.

The concept of minimum wages first evolved with reference to remuneration of

workers in those industries where the level of wages was substantially low as
compared to the wages for similar types of labours in other industries. As far back as
1928, International Labour Conference of International Labour Organisation, at
Geneva adopted a draft convention on Minimum Wage requiring the member
countries to create and maintain a machinery whereby minimum rates of wages can
be fixed for workers employed in industries in which no arrangements exits for the
effective regulation of wages and where wages are exceptionally low. Also, at the
Preparatory Asian Regional Labour Conference of International Labour Organisation
held at New Delhi in 1947 and then at the third session of the Asian Regional Labour
Conference, it was approved and occupation in Asian Countries, where they are still
low. Thus, the need of legislation for fixation of minimum wages in India received
an impetus after World War II, on account of the necessity of protecting the interest
of demonbilised personnel seeking employment in the industries. To provide for
machinery for fixing and revision of minimum wages a draft bill was prepared and
discussed at the 7th Session of the Indian Labour Conference in November, 1945.
Thereupon the Minimum Wages bill was introduced in the Central Legislative
Assembly.1

The Act was enacted so as to provide 'social justice' and 'living wages' as pointed out
in Article 43 of the Constitution (Directive Principles of State Policy). Living Wages
and fair wages are possible after getting awareness and collective bargaining by trade
unionism. Preamble says: To provide for fixing minimum rates of wages in certain
employments. Minimum Wages Act, 1948 is Act XI of 1948. It has 31 Sections and
1 Schedule. The Sections are not arranged in Chapters. The Minimum Wages
(Central) Rules, 1950 and Minimum Wages (Central Advisory Board) Rules, 1949
are enacted by following the Act. Individual states brought their own rules, such as
the Andhra Pradesh Minimum Wages Rules, 1960.

1
The Minimum Wages Act,1948

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The minimum wages act up hails the ARTICLE 43 of the Indian constitution, which
states that, „Living wage‟, etc, for workers. The State shall endeavor to secure, by
suitable legislation or economic organisation or in any other way, to all workers,
agricultural, industrial or otherwise, work, a living wage, conditions of work
ensuring a decent standard of life and full enjoyment of leisure and social and
cultural opportunities and, in particular, the State shall endeavor to promote cottage
industries on an individual or cooperative basis in rural areas. The spirit of the
minimum wages act of India is relied in the soul on of the article 43 of Indian
constitution, which SADLY is enshrined in part IV of the constitution and hence is
non-enforceable by law. Another constitutional provision that the minimum wages
act is said to defy is the ARTICLE 19(1g) which says that „to practice any
profession, or to carry on any occupation, trade or businesses‟. 25 The Minimum
Wages Act, 1948 It is questioned by certain jurists that the provisions of the
minimum wages act that ask for providing a fixed minimum wage by the employers
to the labours is a „BAR‟ to their fundamental right guaranteed under 19(1g). But
this question has been raised again and again in the honorable courts which have
dissented from this opinion and upheld the validity of minimum wages act.

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CHAPTER-2

HISTORICAL BACKGROUND

A tripartite Committee Viz., "The Committee on Fair Wage" was set up in 1948 to
provide guidelines for wage structures in the country. The report of this Committee
was a major landmark in the history of formulation of wage policy in India. Its
recommendations set out the key concepts of the 'living wage', "minimum wages"
and "fair wage" besides setting out guidelines for wage fixation.
Article 39 states that the State shall, in particular, direct its policy towards securing
a. that the citizen, men and women equally shall have the right to an adequate
livelihood and
b. That there is equal pay for equal work for both men and women.

Article 43 states that the State shall endeavour, by suitable legislation or economic
organization or in any other way, to give all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent standard of life
and full enjoyment of leisure, and social and cultural opportunities.

Historical Backdrop:
 The initiative started with the resolution placed by one Shri. K. G. R.
Choudhary in 1920 for setting up Boards for determination of minimum
wages in each industry.
 The International Labour Conference adopted in 1928 Convention No. 26
and Recommendation No. 30 relating to wage fixing machinery in trades or
parts of trades.
 On the recommendation of the Standing Labour Committee and Indian
Labour Conference, a Labour Investigation Committee was appointed in
1943 to investigate into the question of wages and other matters like housing,
social conditions and employment.
 A draft bill was considered by the Indian Labour Conference in 1945.

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  The 8th meeting of the Standing Labour Committee recommended in 1946 to
enact a separate legislation for the unorganized sector including working
hours, minimum wages and paid holidays.
 A Minimum Wages Bill was introduced in the Central Legislative Assembly
on 11.4.46 to provide for fixation of minimum wages in certain employments.
It was passed in 1946 and came into force with effect from 15.3.1948.

CHAPTER-3

OBJECT AND SCOPE OF THE LEGISLATION

The Minimum Wages Act was passed in 1948 and it came into force on 15th March,
1948. The National Commission on Labour has described the passing of the Act as
landmark in the history of labour legislation in the country. The philosophy of the
Minimum Wages Act and its significance in the context of conditions in India has
been explained by the Supreme Court in Unichoyi v. State of Kerala, as follows:2
“What the Minimum Wages Act purports to achieve is to prevent exploitation of
labour and for that purpose empowers the appropriate Government to take steps to
prescribe minimum rates of wages in the scheduled industries. In an
underdeveloped country which faces the problem of unemployment on a very large
scale, it is not unlikely that labour may offer to work even on starvation wages.
The policy of the Act is to prevent the employment of such sweated labour in the
interest of general public and so in prescribing the minimum rates, the capacity of
the employer need not to be considered. What is being prescribed is minimum
wage rates which a welfare State assumes every employer must pay before he
employs labour”.

According to its preamble the Minimum Wages Act, 1948, is an Act to provide for
fixing minimum rates of wages in certain employments. The employments are those
which are included in the schedule and are referred to as „Scheduled
Employments‟. The Act extends to whole of India.

Criteria for notification of scheduled employment:-Under the provisions of the

Minimum Wages Act, 1948, both Central and State Governments are appropriate
Governments to fix, review and revise the minimum wages of the workers employed
in the scheduled employments under their respective jurisdictions. The appropriate
Governments have also been empowered to notify any employment in the schedule
2
(A.I.R. 1962 SC 12)

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where the number of employees is 1000 or more and fix the rates of minimum wages
in respect of the employees employed therein.
 There are 45 scheduled employments in the Central Sphere while in the State
Sphere the number of such employments is as many as 1596.
 The Minimum Wages Act does not provide for any discrimination between
male and female workers or different minimum wages for them. All the
provisions of the Act equally apply to both male and female workers.

Methods for fixation or revision of minimum wages Fixation:- Section 3

empowers appropriate Government to fix the minimum rates of wages in the
scheduled employments.

Section 3 lays down that the „appropriate Government‟ shall fix the minimum rates
of wages, payable to employees in an employment specified in Part I and Part ii of
the Schedule, and in an employment added to either part by notification under
Section 27. In case of the employments specified in Part II of the Schedule, the
minimum rates of wages may not be fixed for the entire State. Parts of the State may
be left out altogether. In the case of an employment specified in Part I, the minimum
rates of wages must be fixed for the entire State, no parts of the State being omitted.
The rates to be fixed need not be uniform. Different rates can be fixed for different
zones or localities.3

The constitutional validity of Section 3 was challenged in Bijoy Cotton Mills v. State
of Ajmer,4 The Supreme Court held that the restrictions imposed upon the freedom of
contract by the fixation of minimum rate of wages, though they interfere to some
extent with freedom of trade or business guarantee under Article 19(1) (g) of the
Constitution, are not unreasonable and being imposed and in the interest of general
public and with a view to carrying out one of the Directive Principles of the State
Policy as embodied in Article 43 of the Constitution, are protected by the terms of
Clause (6) of Article 9.

Revision: Revise the Minimum rates at an appropriate interval not exceeding five
years.
3
Basti Ram v. State of A.P. A.I.R. 1969, (A.P.) 227
4
1955 S.C. 3

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Procedure for Fixation/Revision: In Section 5 of the Minimum Wages Act, 1948,
two methods have been provided for fixation/revision of minimum wages. They are
Committee method and Notification method.

Committee Method:-Under this method, committees and sub-committees are set up

by the appropriate Governments to hold enquiries and make recommendations with
regard to fixation and revision of minimum wages, as the case may be.
Notification method:-In this method, Government proposals are published in the
Official Gazette for information of the persons likely to be affected thereby and
specify a date not less than two months from the date of the notification on which the
proposals will be taken into consideration.
After considering advice of the Committees/Sub-committees and all the
representations received by the specified date in Notification method, the appropriate
Government shall, by notification in the Official Gazette, fix/revise the minimum
wage in respect of the concerned scheduled employment and it shall come into force
on expiry of three months from the date of its issue.

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CHAPTER-4

MINIMUM WAGE

The Indian economy is characterised by a dualism, i.e., the existence of

comparatively well organised sector along with the decentralised sector with a large
population which is self-employed5. According to reports, 422.6 (94%) million
workers out of the total workforce of 457.5 million belong to the
unorganised/informal sector6 in India. These workers contribute to more than 60 per
cent to India‟s GDP growth.
The Constitution of India envisages a just and humane society and accordingly gives
place to the concept of living wage in the chapter on Directive Principles of State
Policy. The Minimum Wages Act, 1948 is based on Article 43 of the Constitution of
India which states that, "The State shall endeavour to secure by suitable legislation
or economic organisation or in any other way to all workers, agricultural, industrial
or otherwise, work, a living wage (emphasis added) conditions of work ensuring a
decent standard of life and full enjoyment of leisure and social and cultural
opportunities".7
The term 'Labour' is included in the 'concurrent list' of the Constitution which
provides for labour legislation both by the central and the state governments. Labour
laws for most workers in the informal sector are enforced by the state governments,
while that for contractors and casual workers in establishments is regulated by the
central government. All labour laws enacted by the central government directly or
indirectly influence wage level and structure of wages in the informal sector.
The Minimum wage legislation is the main labour legislation for the workers in
unorganized sector. In India, the policy on wage determination had been to fix
minimum wages in sweating employments and to promote fair wage agreements in
5
http://planningcommission.nic.in/plans/planrel/fiveyr/6th/6planch24.html
6
Informal sector in India is broadly characterized as consisting of units engaged in the production of goods
and services with the primary objectives of generating employment and incomes to the persons concern. The
workers in informal sector are engaged in economic activities which are not officially regulated and which
operate outside the incentive system offered by the state and its institutions.
7
http://nceus.gov.in/Report_Bill_July_2007.htm

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the more organised industries. Wages in the organised sector are determined through
negotiations and settlements between employer and employees. On the other hand, in
unorganised sector, where labour is vulnerable to exploitation due to illiteracy and
does not have effective bargaining power, the intervention of the government
becomes necessary.

The Minimum Wage Act, 1948 provides for fixation and enforcement of minimum
wages in respect of schedule employments to prevent sweating or exploitation of
labour through payment of low wages. The objective of the Act is to ensure a
minimum subsistence wage for workers. The Act requires the appropriate
government to fix minimum rates of wages in respect of employment specified in the
schedule and review and revise the minimum rates of wages at intervals not
exceeding five years. Once a minimum wage is fixed according to the provisions of
the Act, it is not open to the employer to plead his inability to pay the said wages to
his employees.

The minimum wage rate may be fixed at:-

 Time rate,

 Piece rate,

 Guaranteed time rate and

 Overtime rate.

The Act provides that different minimum wage rate may be fixed for:-
 Different scheduled employments,

 Different works in the same employment,

 Adult, adolescent and children,

 Different locations or

 Male and female.

Also, such minimum wage may be fixed by:-

 An hour,

 Day,

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  Month, or

 Any other period as may be prescribed by the notified authority.

The Minimum Wage Act, 1948 (Section 12.1) states “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 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…”.

As per Section 4(1), the minimum rates of wages fixed or revised by the appropriate
authority (Central or State Government) for the scheduled employments shall take
into account the following:
 A basic rate of wages and a special allowance at a rate to be adjusted at
intervals with the variation in the cost of living index number applicable to
such workers; or

 A basic rate of wages with or without the cost of living allowance, and the
cash value of the concessions in respect of supplies of essential commodities
at concessional rates, where so authorised; or

 A an all-inclusive rate allowing for the basic rate, the cost of living allowance
and the cash value of the concessions, if any

The 15th Indian Labour Conference (1957) defined the following norms to calculate
minimum wage:
 3 consumption units for one earner.

 Minimum food requirements of 2700 calories per average Indian adult.

 Clothing requirements of 72 yards per annum per family

 Rent corresponding to the minimum area provided for under Government‟s

Industrial Housing Scheme.

 Fuel, lighting and other miscellaneous items of expenditure to constitute 20%

of the total Minimum Wages

Other parameters

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  Children education, medical requirement, minimum recreation including
festivals/ceremonies and provision for old age, marriage etc. should further
constitute 25% of the total minimum wage."
 Local conditions and other factors influencing the wage rate.

These norms were further enhanced by the Supreme Court in its judgment in the case
of Reptakos Brett and Co. v. Its workmen8 by an additional 25% of the total
minimum wage for education, medical requirement, minimum recreation including
festivals/ceremonies and provision for old age, marriage etc

CHAPTER-5

RECENT INITIATIVE

Based on the recommendations of the Minimum Wages Advisory Board (MWAB) in its
meeting held on 22.01.2008 and 26.06.2008, the Ministry of Labour & Employment has
issued the Final Notification in the Gazette of India (Extra Ordinary) fixing the minimum
rates of wages for workers employed in the scheduled employments

Employment of Sweeping and Cleaning in the Central sphere at Rs.120/-, Rs. 150/- and
Rs.180/- per day and for “Employment of Watch and Ward.
 Without arms at Rs.120/-, Rs.150/- and Rs.180/- per day and,

 With arms at Rs.140/-, Rs.170/- and Rs.200/- per day for Area „C‟, „B‟ and „A‟
respectively and the Final Notifications in respect of revision of minimum rates of
wages for workers engaged in the scheduled employments of “Construction” and
“Loading and Unloading” in the Central sphere at Rs.120/-, Rs.150/- and Rs.180/-
per day for unskilled workers to Rs.200/-, Rs.220/- and Rs.240/- per day for highly
skilled workers in Area „C‟,‟B‟ and „A‟ respectively and for workers engaged in
“Non-Coal Mines” in the Central sphere at Rs.120/- per day for unskilled Workers
(Above Ground) to Rs.240/- per day for highly skilled workers (Below Ground).

5.1. Amendment in the Minimum Wages Act, 1948

There should be one single statutory National Floor Level Minimum Wage (NFLMW) for
the entire nation below which wages in any employment cannot be paid. A single wage rate
by its very simplicity will be easy to understand and implement. Standardization of
minimum wages under NFLMW should also reduce procedural complications in
implementation of the law and enhance compliance.
The Minimum Wages Act defines wages to include basic, DA and HRA. Some employers
split the consolidated wages announced by the Government into these heads so that they do

8
(1991)

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not have to pay PF etc on the full Minimum Wage announced by the Government. They also
then do not pay Gratuity on the HRA component. One of the following solutions can be
considered:
 ¾ Wage in Minimum Wages Act to be defined as basic and DA only.

 ¾ Section 20 to be amended to provide for the recovery of the amount determined by

the Authority, as arrears of land revenue as is done in Payment of Gratuity Act so
that the Authority does not have to file an application before the Court.

 ¾ Section 22 B (a) – Filing of claim application and its being upheld should not be a
condition precedent to the initiation of prosecution proceedings.

 ¾ The Minimum Wages Act should also provide for Payment of Wages by
remittance in bank account of the employee.

CHAPTER-6

STEPS TAKEN TO REDUCE DESPARTIES

Five Regional Committees:-

There is disparity in rates of minimum wages in various regions of the country. This
is due to differences in socio-economic and agro-climatic conditions, prices of
essential commodities, paying capacity, productivity and local conditions influencing
the wage rate. The regional disparity in minimum wages is also attributed to the fact
that both the Central and State Governments are the appropriate Government to fix,
revise and enforce minimum wages in scheduled employments in their respective
jurisdictions under the Act. To bring uniformity in the minimum wages of scheduled
employments, the Union Government has requested the States to form regional
Committees. At present there are five Regional Minimum Wages Advisory
Committees in the country, which are as under: -
Region States/UTs covered
 Eastern Region :- West Bengal, Orissa, Bihar, Jharkhand, Chhattisgarh and
Andaman & Nicobar Islands.
 North Eastern Region:- Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Tripura and Sikkim.
 Southern Region:- Andhra Pradesh, Karnataka, Kerala, Tamil Nadu,
Pondicherry and Lakshadweep.
 Northern Region:- Punjab, Rajasthan, Himachal Pradesh, Jammu & Kashmir,
Haryana, Uttar 34 Pradesh, Uttarakhand, Delhi and Chandigarh.
 Western Region:- Maharashtra, Gujarat, Goa, Madhya Pradesh, Dadra &
Nagar Haveli and Daman & Diu.

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CHAPTER-7

SANCTITY OF MINIMUM WAGES ACT

Supreme Court in three separate rulings has held that nonpayment of minimum
wages is tantamount to „forced labour‟ prohibited under Article 23 of the
Constitution. The Supreme Court holds that „forced labour‟ may arise in several
ways, including “compulsion arises from hunger and poverty, want and destitution”.
In Sanjit Roy v. State of Rajasthan9, the Supreme Court held that the Exemption Act
in so far as it excluded the applicability of the Minimum Wages Act 1948 to the
workmen employed in famine relief work is “clearly violative” of Article 23. Thus
even public works ostensibly initiated by the government for the sole purpose of
providing employment are subject to the Minimum Wage Act.

In the case of Edward Mills v. State of Ajmer10, wherein, power was delegated to the
administrative authority to add any industry within the ambit of the Minimum Wages
Act, 1948. The court held that there is no excessive delegation as the purpose of the
Act, which was to avoid exploitation of labour due to unequal bargaining power,
provided sufficient policy guideline for executive to act.

In case of Workmen Represented by Secretary v. Management of Reptakos Brett

and Co. Ltd. and Anr11, the court held that the children‟s education, medical
requirement, minimum recreation including festivals/ceremonies, provision for old
age, marriage etc. should be constitute 25% of the minimum wage and used as a

9
(1983)
10
1955 AIR 25, 1955 SCR (1) 735
11
1992 AIR 504, 1991 SCR Supl. (2) 129

CHANAKYA NATIONAL LAW UNIVERSITY Page 18

guide in fixation of minimum wages. The State Governments have been requested
from time to time to keep the above norms and pronouncement in view while
fixing/revising the minimum wages.

In Burmah-Shell Oil Storage and Distributing Co. of India, Ltd., Bombay v. Their
Workmen12, the Labour Appellate Tribunal had occasion to consider the content of
the living wage. In that connection it referred to the Report of the Fair Wages
Committee, and observed that the level of national income in India is so low that the
country is unable to afford to prescribe by law a minimum wage which would
correspond to the concept of a living wage. The rudder is set in the direction of a
living wage", observed the Appellate Tribunal, but the destination is not yet within
sight; the gradual emergence of a welfare State will naturally help but even here
progress is necessarily slow.

In Standard Vacuum Oil Company v. Their Employees13, the Labour Appellate

Tribunal was called upon to consider the plea that the companies were paying a
living wage to their employees. In dealing with the said contention the Appellate
Tribunal observed that "the measurement of the living wage standard in terms of
money has not been prescribed by law of the country, nor, as far as we are aware, has
been determined anywhere in any scientific basis ". In its opinion, it was neither
possible nor necessary to fix the amount with exactitude which should form the
minimum living wage after an exhaustive enquiry for considering the question of
bonus, because, according to the principle laid down the whole gap between the
existing wages and the living wage need not be filled up. That is why it thought that
it would be sufficient for the purpose if an approximate idea can be formed by taking
into account the approximate expenditure on the necessary items of requirements of
the living wage standard. On these considerations the plea raised by the companies
was rejected. It would thus be seen that the oil companies have been persistently
making the claim before the industrial tribunals that they need not be called upon to
pay bonus to their employees on the ground that they are paying them a living wage.

In the case of Linge Gowda Detective and Security Chamber (P) Ltd. v. Authority14,
A detective agency is not covered under the provisions of this Act. There is no logic
that when the employees as engaged through the detective agency worked in an
engineering industry, the employer is liable to pay the minimum wages but when the
same employees engaged by the detective agency are on private duty, they are not
12
1953] 2 L.L.J. 246
13
1954] 1 L.L.J. 484J
14
1998 LTR 77

CHANAKYA NATIONAL LAW UNIVERSITY Page 19

entitled to such minimum wages. Hence, no relief could be granted, either against the
contractor or the principal employer.

In A. V. Parkash v. Senior Labour Inspector15, The definition of “employer” is a

restrictive definition and only a person who employs one or more employees in any
scheduled employment would be the employer within the meaning of the Act and no
doubt it includes the employees as detailed in the various sub-clauses of section 2(e).

In Bandhua Mukti Morcha v. Union of India16, it was held that a piece-rated worker
is also entitled to receive the minimum wages irrespective of his output.

In Patel Ishwerbhai Pramod Bhai v. Taluka Development Officer17, Where certain

tube-well operators were working in the District and Taluka Panchayats they would
be in the Scheduled employment as contemplated by section 2(g), employment under
any local authority being item 6 in the Schedule to the Act, and as such, would be
entitled to minimum wages under the Act.

In Bidi, Bidi Leaves and Tobacco Merchants Association v. State of Bombay18,

Section 3 empowers the appropriate Government to fix the minimum rates of wages,
thereby enabling the appropriate Government to alter the existing legal condition
between the employer and employee which is not commensurate with the provisions
of the Act.

In Unichoyi (U) v. State of Kerala19, Employer‟s capacity to pay is no bearing in

fixing the minimum wages of the employees. Such consideration is antilogs to the
principles enshrined within the Constitution of India.

In Abraham v. Industrial Tribunal20, The Act does not confer any power on the
government to insist that an employer employing workers on time rate should pay
them at piece-rates. Neither the government has any power to issue any notification
on the basis of section 3 to make such metamorphosis of payment.

15
1994 LLR 304 (Karn)
16
1984) SCC (L&S) 389
17
1983 Lab 1C 321: (1983) 1 SCC 403: 1983 (62) FJR 189: (1983) 1 LLJ 237
18
1962 (4) FLR 71: (1961) II LLJ 663
19
Ibid 23
20
1961) II LLJ 556

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In Bhikusa Yamasakshatriya v. Sanagmanes Akola Paluka Bidi Kamgar Union21,
Cost of living index is not a strict basis for fixing the rates of minimum wages and if
not strictly adhered to, it does not constitute a breach of statutory duty.

In Karnataka Film Chamber of Commerce, Bangalore v. State of Karnataka22,

Section 4 is a definite indication that basic wage is an integral part of the minimum
wage. It is not correct to say that a minimum wage under section 4(1) necessarily
should consist of basic wage and dearness allowance. The language of section 4 does
not lend itself to such an interpretation. On the plain terms of section 4(1) it is clear
that the payment of dearness allowance would arise only if the basic wage fixed for a
category of workmen fell short of the minimum wage which the State Government
has to fix taking into consideration the needs of the workers‟ family consisting of
three consumption units.

CONCLUSION

To sum up, effective implementation of the Minimum Wages Act, 1948, including
that of the revision of minimum wages at national floor level minimum wage or
higher; which primarily falls in the State sphere, is assiduously pursued by us
through discussion, writing letters, personal interaction and visits to States, including
the North-Eastern States. The State Governments are regularly asked to fix and
revise minimum wages in scheduled employments to be at least at par with National
Floor Level Minimum Wage of Rs.80/- per day as at present. What they actually do
is in keeping with their respective paying capacity.

The objective of this study lesson is to thoroughly acclimatize the students with the
law relating to minimum wages. The Minimum Wages Act, 1948, is an Act to
provide for fixing minimum rates of wages in certain employments. The
employments are those which are included in the schedule and are referred to as
‘Scheduled Employments’

21
AIR 1960 Bom 299: (1959) II LLJ 578
22
1986 Lab 1C 1890: LLR 1986 Kant 2183

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The minimum wages act up hails the ARTICLE 43 of the Indian constitution, which
states that, „Living wage‟, etc, for workers. The State shall endeavor to secure, by
suitable legislation or economic organisation or in any other way, to all workers,
agricultural, industrial or otherwise, work, a living wage, conditions of work
ensuring a decent standard of life and full enjoyment of leisure and social and
cultural opportunities and, in particular, the State shall endeavor to promote cottage
industries on an individual or cooperative basis in rural areas.

BIBLIOGRAPHY

BOOKS;-

 S.N.MISHRA, LABOUR LAW, 9TH EDITION.

ONLINE SOURCES;-

 Labour and Industrial Laws- S.N. Misra(25th edition) central law publishing
 An introduction to labour and industrial law- Avtar Singh (2nd edition) Lexis Nexis
Publication

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  A study of Industrial Law- G.M. Kothari (5th edition) lexis nexis publication
http://labour.nic.in/upload/uploadfiles/files/Divisions/wage_cell/4fd9bebab42a0mwa
ct.pdf
 https://www.google.co.in/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=7&cad=rja&uact=8&ved=0CFAQFjAG
&url=http%3A%2F%2Fwww.slideshare.net%2Ftanujpoddar%2Fminimum-wages-
act-1948-5843728&ei=PKU5U8W5BMn9rAfc-
4DoAQ&usg=AFQjCNGwRxgr__5yzbXfh9qPuwEYsBtd0w&bvm=bv.63808443,d.
bmk
 http://karunadu.gov.in/karnatakachildlabour/ChildLaborLawsRights/Minimum
%20wages%20act-1948.pdf
 https://www.google.co.in/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=12&cad=rja&uact=8&ved=0CC8QFjAB
OAo&url=http%3A%2F%2Fpblabour.gov.in%2Fpdf%2Fnotifications
%2Fnc08_minimum_wages_act_1948.pdf&ei=ZaU5U_rEFMGKrQf3sIDAAQ&usg
=AFQjCNFQ3UQy8bkFTHU3VvC9LyL6hUXTCw&bvm=bv.63808443,d.bmk

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