MINIMUM WAGES ACT- 1948

INTRODUCTION

The idea of minimum wages first came about in relation to worker compensation in
those industries where pay levels were clearly lower than those for similar types of
work in other industries.

First of all, a Draft Convention on the topic of minimum wages was agreed at the
International Labour Conference in 1928. In India, a Royal Commission on Labor
was established in 1929 to study the issue of minimum wages

At the third and fourth meetings of the Standing Labour Committee, held in May
1943 and January 1944, respectively, as well as at subsequent meetings of the
Tripartite Labour Conference, held in September 1943, October 1944, and
November 1945, the issue of establishing statutory wage-fixing machinery in India
was once more discussed. The last of these gave its preliminary approval to
minimum wage legislation. A Minimum Wages Bill was introduced on April 11th,
1946, but the Indian constitutional changes caused a significant delay in the bill's
passage. Only in March 1948 did it make it onto the statute book.

The minimum wage is the lowest amount of compensation that an employer is

required to pay wage earners for the work performed during a specified period and
that cannot be reduced by a collective agreement or an individual contract,
according to the International Labour Organization (ILO). The ILO's minimum
wage policy is followed by about 90 of its member states.

The goal of the minimum wage is to shield employees from unfairly low pay. It
allows them to maintain a minimal standard of living and earn sufficient
compensation for the work they do. Additionally, it serves as a tool for eradicating
both gender discrimination and poverty. In order to support and strengthen other
 MINIMUM WAGES ACT- 1948
social and employment policies, including collective bargaining, which is used to
establish terms of employment and working conditions, this system has been
created and developed.

The Minimum Wages Act of 1948 governs and controls the payment of minimum
wages in India. Due to the fact that India has some of the most affordable labour
costs in Asia, the national minimum wage is approximately INR 176, or INR 4576
per month. The national average wage, however, will vary depending on the
geographic location and other important factors. There are nearly 2,000 different
types of jobs for unskilled workers in India, and there are over 400 different
employment categories with corresponding minimum daily wages. India uses a
complex system to determine the minimum wage.

Objects and reasons of the Minimum Wages Act- 1948

 (i)The Bill provides for fixation by the Provincial Governments of minimum

wages for employments covered by Schedule to the Bill. The items in the
Schedule are those where sweated labour is more prevalent or where there is
a big chance of exploitation of labour. After some time, when some
experience is gained, more categories of employment can be added and the
Bill provides for the addition to the Schedule. A higher period is allowed for
fixation of minimum wages for agricultural labour as administrative
difficulties in this case will be more than in other employments covered by
the Schedule. The Bill provides for periodical revision of wages fixed.

 (ii)In cases where an employer pays less than the minimum fixed by the
Provincial Government a summary procedure has been provided for
recovery of the balance with penalty and subsequent prosecution of the
offending party.
 MINIMUM WAGES ACT- 1948
 (iii) The justification for statutory fixation of minimum wage was obvious.
Such provisions which exist in more advanced countries were even
necessary in India, where workers’ organizations are yet poorly developed
and the workers’ bargaining power was consequently poor.

 (iv)In cases where an employer pays less than the minimum wages fixed by
the provincial Government a summary procedure has been provided for
recovery of the balance with penalty and subsequent prosecution of the
offending party.

 (v) It is not ordinarily proposed to make any exemption in regard to

employees of undertakings belonging to the Central Government except that
difficulties might arise when the sphere of duty of such an employer covers
more than one province and where the rates of minimum wages fixed by the
different provinces may be different. For this purpose a provision has been
included that the minimum wage fixed by a provincial Government will not
apply to employees in any undertaking owned by the Central Government or
employees of a federal railway, except with the consent of the Central
Government.

CONSTITUTIONAL ESSENCE OF THIS ACT

The Act Is Not Abnormal

It goes without saying that it is in the public's best interest for workers to be
paid a living wage that covers both their basic needs and the maintenance of
their health and decency. One of the guiding principles of state policy, as
expressed in Article 43 of the Constitution, is this.
 MINIMUM WAGES ACT- 1948
Individual employers might find it challenging to operate their businesses on
the basis of the minimum wages set by the Act, but this must entirely be
attributable to those specific employers' economic circumstances. That
cannot be an argument against declaring the law itself unreasonable.

The restrictions are reasonable and are protected by the provisions of clause
(6) of Article 19 even though they partially impede the freedom of trade and
business guaranteed by Article 19(1)(g) of the Constitution.

The "appropriate Government" has unquestionably been given very broad

powers with regard to the process for setting minimum wages. But it has to
take into consideration, before fixing wages, the advice of the committee if
one is appointed on the representations on proposals made by persons who
are likely to be affected thereby. The various provisions constitute an
adequate safeguard against any hasty or capricious decision by the
‘appropriate Government’. In suitable cases the ‘appropriate Government’
has also been given the power of granting exemptions from the operation of
the provisions of the Act. There is no provision undoubtedly for a further
review of the decision of the ‘appropriate Government’, but that by itself
would not make the provisions of the Act unreasonable.

The Act is not voilative of Article 14 Also

On a careful examination of the various provisions of the Act and the

machinery set up by it, sec. 3(3)(iv) does not contravene Art. 19(1) of the
Constitution nor does it infringe the equal protection clause of the
Constitution. The courts have also held that the constitution of the
committees and the Advisory Board did not contravene the statutory
 MINIMUM WAGES ACT- 1948
provisions in that behalf prescribed by the legislature, nor the reason that
two different procedures are provided for collecting information.

Notice of Non-Discrimination in Setting Different Minimum Wage Rates for

Various Localities

It would be difficult to maintain that a notification that fixed different rates

of minimum wages for different localities was not based on intelligent
differentiation having a rational nexus with the object of the determination
of the rates of wages and their revision in the circumstances where the rates
were brought into effect after full consideration of the representations made
by a section of the employers concerned.

By dismissing the opposing recommendation of the Committee formed

under section 5-1(a), the Government published a notification that improved
the current minimum wages as revised minimum wages, which was
unlawful and had to be made inoperative.

Because it violated the equality requirement of Article 14 of the

Constitution, the provision under section 3(2-A) that stated that minimum
rates of remuneration in scheduled employment, whether established or
changed, must not apply to employees during the term of adjudication was
null and unconstitutional.

When the State Government releases a notification setting the minimum

wage at a rate that differs from the rates suggested by a Committee under
sections 3 and 5, that fact alone cannot be used to infer that the Government
did not use its best judgement.
 MINIMUM WAGES ACT- 1948
An application for the recovery of minimum wages under the provisions of
the Minimum Wages Act, 1948, submitted by a claimant under section 33-
C(2) of the Industrial Disputes Act, 1947, is maintainable.

The term ‘minimum wages’ has not been defined in the Act presumably
because it would not be possible to lay down a uniform minimum wages for
all industries throughout the country on account of different and varying
conditions prevailing from industry to industry and from one part of the
country to another.

The minimum wage may be defined as the lowest wages, determined by

lower contract that an employer may pay an employee for a specified job.

 According to Columbia Encyclopedia, lowest wage legally permitted in an

industry or in a government or other organization is minimum wages. The
goal in establishing minimum wages has been to assure wage earners a
standard of living above the lowest permitted by health and decency.

In Hydro (Engineers) Private Ltd. v. The Workmen, 

 it was held that the concept of minimum wages takes in the factor of the
prevailing cost of essential commodities whenever such minimum wage is to
be fixed. The idea of fixing such wages in the light of cost of living at a
particular juncture of time and neutralizing the rising prices of essential
commodities by linking up scales of minimum wages with the cost of living
index cannot, therefore, be said to be alien to the concept of minimum wage.
Furthermore, in the light of spiraling of prices in recent years, if the wage
scales are to be realistic it may become necessary to fix them so as to
neutralize at least partly the price rise in essential commodities.
 MINIMUM WAGES ACT- 1948
A worker’s wage is no longer a contract between an employer and an
employee. It has the force of collective bargaining under the labour laws.
Each category of the wage structure has to be tested at the anvil of social
justice which is the live-fibre of our society today.

The minimum wage does not mean a wage enabling a worker to cover up his
bare physical needs; it should be for the preservation of the efficiency of the
worker. It should include children education, medical requirement, provision
for old age and amenities.

In Unichay v. State of Kerala, 

 it was held that the Minimum Wages Act contemplates that minimum wage
rates should be fixed in the scheduled industries with the dual object of
providing subsistence and maintenance of the worker and his family and
preserving his efficiency as a worker.

TYPES OF WAGES

In 1948 a tripartite committee, known as the ‘Committee on Fair

Wages’ was established. The committee’s report was the benchmark for the
formulation of wage policy in India. The committee not only set guidelines
for wage rates in the country but also laid down three kinds of wages
namely:

1. Minimum wage: This is the type of wage provided for bare subsistence so

that the workers can maintain a decent standard of living such as providing
for education, medical requirements and an adequate level of comfort.

2. Fair wage: Any wage paid to the employees that are more than the
minimum wage is known as a fair wage. It is the wage that seeks to maintain
 MINIMUM WAGES ACT- 1948
a level of employment in the industry and also looks after the industry’s
capacity to pay sufficient remuneration to the employees.

3. Living wage: A living wage not only meets the minimum requirement of the
employees provided by the employers but also allows individuals or families
to afford adequate shelter, food, and other necessities. It also includes health,
sanity, education, dignity, comfort, and provide for any contingency

Wages in kind under the Act

Section 11 of the Minimum wages Act, 1948 mentions how the wages will
be payable to the employees.

Minimum wages under this Act shall be paid in cash.

The appropriate government under necessary circumstances by notification

to the Official Gazette authorize the payment of the minimum wages either
wholly or partly in kind.

The appropriate government by notification to the Official Gazette

authorized a provision for the supply of essential commodities at concession
rates.

The cash value of wages and the concession rates shall be authorized in the
prescribed manner stated under the Act.

The payment of wages to the employees under this Act should be done in
accordance with Section 12 of the Act, which states that the employer shall
pay the minimum rate of wages fixed to every employee working under him
within such time and manner prescribed under the Act. 
 MINIMUM WAGES ACT- 1948
MINIMUM PAY SCALES

The minimum wages that must be paid to employees must be determined by

the relevant government, according to Section 3 of the Act. This Section
does state that the pay rate will be updated every five years, though. The
proper government could resolve:

The minimum rate of pay for time work, the minimum rate of pay for piece
work, the minimum rate of compensation to apply in the case of employees
working on piece work in order to secure to such employees a minimum rate
of pay on a time work basis, and the minimum rate of pay to replace the
minimum rate which would otherwise be applicable, in respect of overtime
work performed by employees.

As required by Section 3 of the Act, minimum wages may be set at:

Various minimum wage rates may be established for various categories of

labour, schedules of employment, locales, age groups, etc.

The minimum wage may be set according to the length of the wage period,
such as the hour, the day, etc.

According to Section 4 of the Minimum Wages Act of 1948, the minimum

wages set by the relevant government must include:

The competent government must periodically change a base rate of pay and
a special allowance to reflect the employees' cost of living.

A responsible body must calculate the cost of living allowance and the
monetary value of the concessions in relation to the supplies of essential
commodities at the intervals indicated by the relevant government.
 MINIMUM WAGES ACT- 1948
According to Section 5, the competent government may form as many
committees and subcommittees as necessary to conduct investigations into
issues pertaining to the fixing and adjustment of the minimum wage for
employees. The appropriate government also specifies the date that will be
taken into consideration, which must not be less than two months from the
date of notification of the proposals, and publishes its proposal for the
information of those who are likely to be affected by such information by
notification to the Official Gazette.

FIXATION OF MINIMUM WAGE RATE

Section 3 of the Minimum Wages Act, 1948, provides for the fixing of
minimum rates of wages.

The appropriate Government shall fix the minimum rates of wages payable
to employees employed in an employment specified in Part I or Part II of the
Schedule and in an employment added to either part by notification under
section 27(a). [Sub-section (1)]

It is also provided that the appropriate Government may, in respect of

employees employed in an employment specified in Part II of the Schedule,
instead of fixing minimum rates of wages under the clause for the whole
State, fix such rates for a part of the State or for any specified class or
classes of such employment in the whole State or any part thereof.

The appropriate Government may review the minimum rates of wages and
revise the minimum rates if necessary at such intervals as it may think fit but
such intervals should not exceed five years. [Sub-section 1(b)]
 MINIMUM WAGES ACT- 1948
It is also provided that where for any reason the appropriate Government has
not reviewed the minimum rates of waged fixed by it in respect of any
scheduled employment within any interval of five years, there is nothing in
this clause which shall be deemed to prevent it from reviewing the minimum
rates after the expiry of the period of five years and revising them, if
necessary. Until they are so revised the minimum rates in force immediately
before the expiry of the period of five years shall continue to be in force.

Sub-section (1A) contains a non obstante clause which gives overriding

effect to the contrary provisions contained in sub-section (1). It says that
notwithstanding anything contained in sub-section (1), the appropriate
Government may refrain from fixing minimum rates of wages in respect of
any Scheduled Employment in which there are in the whole State less than
one thousand employees engaged in such employment. But if at any time,
the appropriate Government comes to a finding after such inquiry, as it may
make or cause to be made in this behalf, that the number of employees in
any Scheduled Employment in respect of which it has refrained from fixing
minimum rates of wages has risen to one thousand or more, it shall fix
minimum rates of wages payable to employees in such employment as soon
as may be after such finding.

According to sub-section (2), there are four ways in which the appropriate
Government may fix the wages. They are:

 (a)a minimum rate of wages for time work, i.e., a minimum time rate.

 (b)a minimum rate of wages for piece work, i.e., a minimum piece rate.
 MINIMUM WAGES ACT- 1948
 (c)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, i.e., a guaranteed time rate.

 (d)a minimum rate (whether a time rate or piece rate) to apply in substitution
for the minimum rate which would otherwise be applicable, in respect of
overtime work done by employees, i.e., overtime rate.

Sub-section (2A) speaks about the situation when any proceeding is pending
before any Tribunal. Where in respect of employees in any Scheduled
Employment, any proceeding is pending before any Tribunal or National
Tribunal, then during the pendency of such proceeding the minimum rates of
wages fixed or revised shall not apply to those employees. Sub-section (2A)
says that where in respect of an industrial dispute relating to the rates of
wages payable to any of the employees employed in a scheduled
employment, any proceeding is pending before a Tribunal or National
Tribunal under the Industrial Dispute Act, 1947 or before any like authority
under any other law, for the time being in force, or an award made by any
Tribunal, National Tribunal or such authority is in operation, and a
notification fixing or revising the minimum rates of wages in respect of the
Scheduled Employment is issued during the pendency of such proceeding or
the operation of the award, then, notwithstanding anything contained in the
Act, the minimum rates of wages so fixed or so revised shall not apply to
those employees during the period in which the proceeding is pending and
the award made is in operation, or as the case may be, where the notification
is issued during the period of operation of an award, during that period.
Where such proceeding or award relates to the rates of wages payable to all
the employees in the Scheduled Employment, no minimum rates of wages
 MINIMUM WAGES ACT- 1948
shall be fixed or revised in respect of that employment during the said
period.

Sub-section (3) provides that in fixing or revising minimum rates of wages

under the section—

 (a)different minimum rates of wages may be fixed for:

o (i)different scheduled employments;

o (ii)different classes of work in the same scheduled employment;

o (iii)adults, adolescents, children and apprentices;

o (iv)different localities;

 (b)minimum rates of wages may be fixed by any one or more of the

following wage-periods, namely:

o (i)by the hour,

o (ii)by the day,

o (iii)by the month, or

o (iv)by such other larger wage-period as may be prescribed.

Where such rates are fixed by the day or by the month, the manner of
calculating wages for a month or for a day, as the case may be, may be
indicated. Where any wage-periods have been fixed under section 4 of the
Payment of Wages Act, 1936, minimum wages shall be fixed in accordance
with such fixation.

In Gobind Bhavan Karyalaya v. State of U.P., 

 MINIMUM WAGES ACT- 1948
1.it has been held that where a notification by itself does not intend to make
any classification of workmen except classification for fixing minimum rates
of wages for adult employees, such classification is permissible in law and
accordingly such notification is not bad or invalid.

The minimum wages must be paid by the employer notwithstanding the

want of financial capacity.

2 Employer’s capacity to pay has no bearing in fixing the minimum wages

of employees. Such a consideration is antilogous to the principles enshrined
in the Constitution of India.

The Supreme Court has held that the appropriate authorities should take into
consideration the components such as children education allowance, medical
requirements, minimum recreation, provision for old age and
marriage, etc., which should be additional 25% of the minimum wages

PROCEDURE FOR FIXING AND REVISING THE MINIMUM

WAGES

According to section 5(1) in fixing minimum rates of wages in respect of

any scheduled employment for the first time under the Act or in revising
minimum rates of wages so fixed, the appropriate Government shall either—

 (a)appoint as many committees and sub-committees as it considers

necessary to hold enquiries and advise it in respect of such fixations or
revision, as the case may be, or

 (b)by notification in the Official Gazette, publish its proposal for the
information of persons likely to be affected and specify a date, not less than
 MINIMUM WAGES ACT- 1948
two months from the date of the notification, on which the proposals will be
taken into consideration.

Fixation on Committee Report Basis

After considering the advice of the Committee or the representations

submitted on the proposals contained in the notification, the Government
shall by notification in the Gazette fix the minimum rates of wages and
unless the notification otherwise provides, the rates so fixed shall come into
force on the expiry of three months from the date of the notification.

For the purposes of co-ordinating the work of Committees and sub-

committees appointed under section 5 of the Act for holding enquiries and
advising Government, generally in the matter of fixing and revising
minimum rates of wages, the State Government has to appoint an Advisory
Board for the purpose of advising the Central Government and State
Government in the matter of fixation and revision of the minimum rates of
wages and other matters under this Act. For co-ordinating the work of the
Advisory Boards, the Central Government has to appoint a Central Advisory
Board.

In case the appropriate Government proposes to revise the minimum rates of

wages by the mode of giving notification in the Official Gazette, the
appropriate Government has to consult the Advisory Board also.

Right to Make Representations

Under section 5(2) before the Government fixes the revised minimum rates
of wages they have to take into consideration all representations received by
it. This necessarily implies that representations might be received both from
 MINIMUM WAGES ACT- 1948
the employers as well as the employees, whether they are favourable to one
or the other. Time must be specified for making representations.

Fixation on Basis of Consideration of Proposals

Under the second method, the Government publishes their proposal for the
information of persons likely to be affected. It specifies a date not less than
two months from the date of the notification, on which the proposals will be
taken into consideration. Thereafter, the Government takes into
consideration either the advice of the committee or sub-committee appointed
section 5(1)(a), or considers all representations received by it under section
5(1)(b), and thereafter by a notification fixes or as the case may be, revises
the minimum rate of wages which would come into force on the expiry of
three months from the date of its issue unless it is specified that it would
come into force on some other date.

The Supreme Court has held that the Act is valid because of the provision,
among others, which required the State Government, before fixing minimum
wages, to take into account the advice of the committee or the
representations on its proposals. If this provision and similar other
provisions relating to consultation with advisory bodies had not been made
obligatory, the Act, in all probability, would have been struck down.
Therefore, obtaining the advice of the committee under section 5(1)(a) or
consideration of representations on the proposals of the State Government is
the sine qua non of the fixation of minimum rates of wages by the State
Government. If the State Governments were to proceed to fix or revise
minimum wages without appointing a committee under section 5(1)(a), or
without publishing its proposals and inviting the representations and
 MINIMUM WAGES ACT- 1948
considering them, the notification fixing minimum rates of wages or revising
them would be clearly against the basic provisions of the Act and would
have no force and validity.

Where the provisions of section 5(1) have not been followed at all, it is not
open to the State Government to fix minimum wages, and any order fixing
minimum rates of wages without following the provisions of section 5(1) is
of no force and effect.

Compliance with procedure must be real and not in name. In N.K. Jain v.
Labour Commissioner, Rajasthan, the State Government composed a
committee consisting of six of its officers. There was no representation of
employers or of the employees in the scheduled employments on the
committee. On the advice of the committee the State Government issued
notification fixing minimum wages. It was held that though there was in
name a committee, in reality there was none. The State Government’s
notification, therefore, fixing minimum rate of wages was in effect made
without consulting the committee, and without publishing its proposal and
obtaining representation on them. In these circumstances, the notification
fixing minimum rates of wages in certain scheduled employments was of no
force and effect.

Powers of Government in Wage Fixation

If it is not shown that the appropriate Government in issuing notification has

acted mala fide or in excess of its jurisdiction or in defiance of natural
justice, the notification cannot be declared invalid. The appropriate
Government is not bound to act judicially or even quasi-judicially. The
 MINIMUM WAGES ACT- 1948
Government may seek the views of Labour Commission even after
consulting the Advisory Board.

The State Government under section 5(2) is bound to consider the advice of
the committee and to fix by notification in the Official Gazette the minimum
rates of wages applicable to the scheduled employment.

The object of this provision is to enable the Government to collect data

required for fixing the minimum wages. The Committee appointed under
section 5 is only an advisory body and the Government is not bound to
accept any of its recommendations.

Power Confined to Class of Employment and Not Individuals

The power of fixing minimum wages under section 5 can only be exercised
in respect of a class of employment.

In fixing such wages, it is also open to the State Governments to fix different
minimum rates of wages for different scheduled employments as well as
different classes of workers under the same scheduled employment. But
having fixed the minimum rates of wages, there is nothing in the Act which
authorizes the State Government to provide by notification the procedure for
deciding which of the employees fall within which particular category of the
employment whose rates of the minimum wages have been fixed under such
notification.

Validity of Retrospective Fixation

Unless the parent Act itself clearly authorizes the issue of a notification with
retrospective effect, it must be presumed that such a notification is
forbidden.
 MINIMUM WAGES ACT- 1948
No Power to Prescribe Tests for Deciding Coverage

There is nothing in the Act, which gives power to the State Government to
lay down the procedure for deciding which of the employees will fall within
the category of the artisans and the notifications issued by the Government
providing for machinery to hold trade tests have no statutory force and
cannot be regarded as notifications under section 5 of the Act. They are only
in the nature of administrative directions issued by the Government and they
are not binding on the Deputy Commissioner.

Increases in Existing Tasks or Task Load

The basic wage, the existing task and the hours of work are correlated. In
order to ascertain the minimum wage payable under any Notification under
the Act they have to be treated as co-related

AUTHORITIES TO REGULATE THE SYSTEM

“Each of the committee, 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.”
The intention of sections 5 and 9 is that before fixing minimum wages for
employees in scheduled industries the Government must have the necessary
material for consideration in the form of advice by a Committee constituted in the
prescribed manner or representations received pursuant to the Notification in the
Gazette. This implies that the Committee should be constituted of such persons
 MINIMUM WAGES ACT- 1948
who would be conversant with the conditions of the particular industry and
competent to advise the Government in the matter of fixing minimum wages for
employees in the particular industry.
Section 9 does not require that there should be on that body representative of
employers or employees in each of the many employments which were in the
schedule or were subsequently added to it. To insist that it should be so would be
to make the Advisory Board unmanageable and unwieldy and to make its
composition impracticable. It is not necessary that the person appointed on the
committee to represent employers in a Scheduled Employment should be engaged
for profit in the particular employment. It is enough if a nexus exists between the
person so appointed to represent the employers and the employment concerned. It
is enough if such members are intimately connected and if they are aware of the
particular scheduled employment.
 Explaining the concept an independent person, the court said:
“The Government employees who are entrusted with the task of implementation of
the provisions of the Minimum Wages Act cannot be characterised as interested
and not independent persons. Where the Government itself is the employer, it may
be possible to urge that Government employees are not independent persons. In a
case where the Government is not the employer, Government employees who are
entrusted with the task of implementation of fixing minimum wages do not for that
reason alone become interested persons and case to be independent persons.
Independent persons are persons who belong neither to the category of employers
nor that of employees. Government servants who implement legislation made
pursuant to the Directive Principles of State Policy and State social obligations are
not excluded from the category of independent persons.”
Where the committee consisting of employers and employees in other categories of
tobacco industry (other than snuff) was to advise the Government for fixing
 MINIMUM WAGES ACT- 1948
minimum wages for the employees of snuff industry, it was held to be an
insufficient compliance with sections 5(1) and (9) of the Act.
In Ministry of Labour & Rehabilitation v. Tiffin Barytes Asbestos & Paints Ltd.. 
 the Supreme Court observed:
“Notification fixing minimum wages cannot be lightly interfered with in the
exercise of writ jurisdiction. By the High Courts on the ground of some
irregularities in the constitution of the committee or the procedure adopted by it.
The Committee acts only as a recommendatory body and minimum wages are
fixed only by the Government. In a country where wages are already minimal, a
notification fixing minimum wages should not be interfered with under Article 26
of the Constitution except on the most substantial ground. Action taken pursuant to
a social welfare legislation to further the Directive Principles of State Policy
cannot be struck down on mere technicalities.”
PROCEDURE AND PENALTIES
In imposing any fine for an offence under the section, the Court has to take
into consideration the amount of any compensation already awarded against
the accused in any proceedings taken under section 20.47

The object behind making such provision of awarding compensation is to

induce the employer to make payment of wages to his workman in
accordance with the minimum rates of wages fixed under the Act. This is in
addition to the deterrent effect of the penalty provision.48 The Authority
under the Act awarded compensation for delay and obstructive attitude of
the employer. The court said that it is true that an honest, even if mistaken,
contention would not by itself attract the liability for compensation. But the
facts of the case were different. Hence the award of compensation could not
be faulted with.49 Compensation “not exceeding ten times the amount” is
 MINIMUM WAGES ACT- 1948
the maximum rate. No reasons were given in the order as to why the
maximum rate was awarded. The order could not be sustained.50

Penalty for Obstructing Inspector [Maharashtra Amendment]

Whoever willfully obstructs an Inspector in the exercise of any power

conferred on him by or under the Act, or fails to produce on demand by an
Inspector any registers, records or other documents in his custody kept in
pursuance of the Act, and which he is required to produce by or under the
Act shall, on conviction, be punished with fine which may extend to five
hundred rupees.

General Provision for Punishment of Other Offences [Section 22A]

Any employer who contravenes any provision of the Act or of any rule or
order made under it shall if no other penalty is provided for such
contravention by the Act, be punishable with fine which may extend to five
hundred rupees.

Cognizance of Offences [Section 22B]

No complaint is to be entertained by a Court unless a claims application had

been presented and granted wholly or in part and the Authority granting such
application has sanctioned the making of the complaint. Such complaint has
to be filed within one month of the grant of the sanction. In imposing the
fine the Court has to take into consideration the amount of compensation
already awarded under the claim application.

No Court shall take cognizance of offence —

 MINIMUM WAGES ACT- 1948
 (1)under clause (b) of section 22 or under section 22A, except on a
complaint made by, or with the sanction of an Inspector.

 (2)No Court shall take cognizance of an offence—

o (a)under clause (a) or clause (b) of section 22, unless the complaint is
made within one month of the grant of sanction under the section;

o (b)under section 22A, unless the complaint is made within six months of
the date on which the offence becomes known to the Inspector.

Offences by Companies [Section 22C]

If the person committing any offence under the Act is a company, every person
who at the time the offence was committed was in charge of, and was responsible,
to the company for the conduct of the business of the company, as well as the
company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly.

Nothing contained in the sub-section can render any such person liable to any
punishment provided in the Act if he proves that the offence was committed
without his knowledge or that he exercised all due diligence to prevent the
commission of the offence.

Notwithstanding anything contained in sub-section (1), where an offence under the

Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any neglect on
the part of, any director, manager, secretary or other officer of the company, the
company shall also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished accordingly.
 MINIMUM WAGES ACT- 1948
The Explanation appended to the section says that for the purposes of this section
“company” means anybody corporate and includes a firm or other association of
individuals, and “director” in relation to a firm means a partner in the firm.

Non-maintenance of registers, etc., is also an offence punishable with fine not

exceeding five hundred rupees. For non-maintenance of registers, etc., a complaint
will be entertained only if filed by the Inspector or with his sanction. Such
complaint has to be filed within six months of the date on which the offence
becomes known to the Inspector.

Payment of Undisbursed amounts due to Employees [Section 22D]

All amounts payable by an employer to an employee as the amount of minimum

wages of the employee under the Act or otherwise due to the employee under the
Act or any rule or order made under it shall, if such amounts could not or cannot
be paid to the employee on account of his death before payment or on account of
his whereabouts not being known, be deposited with the prescribed authority who
shall deal with the money so deposited in such manner as may be prescribed.

Protection against Attachment of Assets of Employer with Government [Section

22E]

Any amount deposited with the appropriate Government by an employer to secure

the due performance of a contract with that Government and any other amount due
to such employer from that Government in respect of such contract shall not be
liable to attachment under any decree or order of any Court in respect of any debt
or liability incurred by the employer other than any debt or liability incurred by the
employer towards any employee employed in connection with the contract.

Application of Payment of Wages Act, 1936 to Scheduled Employments [Section

22F]
 MINIMUM WAGES ACT- 1948
Notwithstanding anything contained in the Payment of Wages Act, 1936, the
appropriate Government may, by notification in the Official Gazette, direct that
subject to the provisions of sub-section (2), all or any of the provisions of the said
Act shall, with such modifications, if any, as may be specified in the notification,
apply to wages payable to employees in such scheduled employments as may be
specified in the notification.

Where all or any of the provisions of the said Act are applied to wages payable to
employees in any scheduled employment under sub-section (1), the Inspector
appointed under this Act shall be deemed to be the Inspector for the purpose of
enforcement of the provisions so applied within the local limits of his jurisdiction.

Exemption of Employer From Liability in Certain Cases [Section 23]

Where an employer is charged with an offence against the Act, he shall be entitled,
upon complaint duly made by him, to have any other person whom he charges as
the actual offender, brought before the Court at the time appointed for hearing the
charge; and if, after the commission of the offence has been proved, the employer
proves to the satisfaction of the Court—

 (a)that he has used due diligence to enforce the execution of the Act, and

 (b)that the said other person committed the offence in question without his
knowledge, consent or connivance,

that other person shall be convicted of the offence and shall be liable to the like
punishment as if he were the employer and the employer shall be discharged.