Abstract

India after ratifying the International Convention has incorporated a Minimum Wages for the
workers of certain Scheduled employment mentioned in the Act. Minimum Wages Act, 1948
which was made in order to protect the basic human rights of the workers working in certain
scheduled category specified in the Act. The Act was implemented with the intention to provide
the workers of certain employment the minimum remuneration the works done by them so that
they could get what they deserve and also to safeguard them from starvation death, Also the
Act aims to reduce the exploitation against the workers, but the Constitutionality of the Act
was challenged by the employers over the country and they contended that the said Act is
violative of Article 14 and Article 19 (1) (g) of the Indian Constitution. Whereas the Supreme
Court in its landmark judgement held that non-payment of minimum wages leads to forced
labour which is prohibited under Article 23 of the Constitution of India. The Court in regard to
the violation of Article 19(1)(g) in the case of Bijay Cotton Mills Ltd. Vs The State of Ajmer1
held that the restriction that are imposed on the freedom of contract by fixation of Wages are
reasonable and permissible under Article 19(6) of the Constitution of India and also it is
imposed in the interest of general public and with a view to promote the DPSP as envisaged in
Article 43 of the Constitution of India. While in regard to Article 14 the Court held that the Act
reasonably classifies the workers on the basis of intelligible differentia and provides this to
only scheduled employees listed in the Act so, the Act follows both the principle of Article 14
and is not violative of this Article.

In this article the Author has also tried to discuss the Minimum Wages Act, its objective,
features and also its compatibility with different Article of the Constitution of India.

1
1955 AIR 33

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Introduction
As we all know that India is a labour extensive country and labour in India refers to the
employment in the economy of the country. According to the 2020’s data there were around
501 million labour in India, which is the second largest after China.2 The evolution of the
concept of Minimum Wages can be traced back to year 1928, when first Draft Convention
pertaining to minimum wages was accepted at International Labour Convention, while in 1929
India accepted the Royal Commission on Labour on the subject pertaining to minimum wages.
The concept of Minimum Wages was initially evolved with reference to the remuneration of
workers in those industries where the wages were substantially low as compared to the wages
of labours in other similar industries. The UDHR also provides that everyone who works has
the right of just and favorable remuneration and ensuring for himself and his family an
existence worthy of human dignity. It also provides that the above benefits can be extended to
housing, safe drinking water, sanitation, educational and cultural facilities and above all a
minimum wage which helps them to live a life with dignity and not only a bare subsistence.
The Minimum Wages Act, 1948 came into picture to protect the rights of the labours working
in some scheduled or unorganized sector. This Act provides provisions for fixation and revision
of minimum wages and other basic needs for the labours of certain employments. Here’s the
employment refers to those employments which are included in schedule also called
‘Scheduled Employments’. The Act aims to expand the concept of social justice to the workers
of scheduled employments and also providing them the rates of minimum wages fixed by the
statute. The Act also provides a provision for workers protection against exploitation.

Definitions of Minimum Wage

According to International Labour Organization “Minimum wage is the minimum amount of
remuneration that an employer is required to pay wage earners for the work performed during
a given period which cannot be reduced by collective agreement or an individual contract.3
Minimum wages can be provided by any statute, decision of a competent authority, a wage
board, a wage council, or by industrial or labour courts or tribunals.

Types of wages
Wages are divided into three types:
1. Minimum Wage- This type of wage provides a bare subsistence and is at poverty line
level.
2. Fair Wage- The wage which is a little more than the minimum wage is called fair wage
3. Living Wage- The wage which not only provides the basic needs of workers but also
the comfort living is known as living wage.

2
The World Bank IBRD Data
3
ILO General Survey concerning the Minimum Wage Fixing Convention 1970 (No. 131), and the Minimum
Wage Fixing Recommendation, 1970 (No. 135)

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Fixation of a wage-structure is always a delicate task to cope up with the problem of fixing the
wages the Court in case of Kamani Metals & Alloys v. Their Workmen4 set out two
principles the first principle is that there is a minimum wage which, in any event, must be paid,
irrespective of the tent of profits, the financial condition of the establishment or the availability
of workmen on lower wages., This minimum wage is independent of the kind of industry and
applies to all alike big or small. It sets the lowest limit below which wages cannot be allowed
to sink in all humanity.

Brief about the Act (Minimum Wages Act, 1948)

In November 1948, the Central Consultative Committee appointed the Working Committee on
fail wages in order to set the concept of fair wages in motion. To provide the basic needs to the
workers and other requirements such as childcare, medical care and level of comfort, the
committee introduced minimum wage concept. In order to give both the Central and State
governments of India, a degree of competence in fixing the wages the Minimum Wages Act,
1948 was implemented. The Act was passed in 1948, but came into force on 15th March, 1948.
The National Commission on Labour has described the passing of the Act as a landmark in the
history of labour legislation in the Country.
The main object of the Act was to provide with the provision for fixation of minimum wage by
the appropriate governments for the workers of the scheduled employments under the Act. 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 Central Act comes under the purview of Central Sphere and in these cases the
Central Government will be deemed to be the appropriate government, while in relation to
other scheduled employment the State Government will be responsible. The Act is applicable
to whole of India. As per the Act the specified government will have the power to review or
revise the minimum wage under the scheduled employments under respective jurisdiction at
an interval not exceeding five years.5 In the case of Unichoyi v. State of Kerala6 the Supreme
Court explained the philosophy and the significant of the Minimum Wages Act and its
significance in context of conditions of India as follows:
“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 the wages in the scheduled industries. In an underdeveloped country which faces the
problem of unemployment on very large scale, it is not unlikely that labour may offer to the
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 states assumes every employer must pay before he employs labour.”

4
1967 AIR 1175, 1967 SCR (2) 463
5
The Minimum Wages Act, 1948 s. 30
6
AIR 1962 SC 12

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Objectives of Act

• The Act is made to protect the employee’s right to have basic physical necessity, proper
health, and comfort.
• Its aim to provide for fixation of minimum wages in scheduled employments and ensure
that the labour gets fair wages.
• It’s object is to revise the minimum wage amount periodically.
• Aim is to reduce the chances of workers getting exploited in the hands of their
employers.

Silent Features of the Act

• The Act is applied to certain employments and also empower both Central and State
government to fix amount of wage for their respective areas.
• Minimum wage means all types of remuneration which should be in cash.
• Minimum Wages can be revised by the appropriate government in every 5 years
• In contravention of the Act by not paying minimum wages to the employee will attract
Section 20 of the Act.
• Non-Payment of Minimum Wages is an offence punishable with Six months
imprisonment or fine up to Rs. 500 or both.
• The minimum wages can be fixed on the basis of:
1. A minimum time rates.
2. A minimum piece rates.
3. A guaranteed time rates.
4. A time rate or a piece rate applicable to overtime rate.

Constitutionality of the Minimum Wages Act, 1948

India after ratifying the International Convention has incorporated a Minimum Wage for the
workers of certain Scheduled employment mentioned in the Act. But the employers were not
happy with this and later on they challenged the Constitutionality of the Act and contended that
the said Act is violative of Article 14 and Article 19 (1) (g) of the Indian Constitution. The
Supreme Court of India in its landmark judgment also held that non-payment of minimum
wages leads to forced labour which is prohibited under Article 23 of the Indian Constitution.

While in the case of Union for Democratic Rights v. Union of India7 the Court held that

“If a person provides labour or services for remuneration which is less than the minimum
wages, then such labour will be called as forced labour under Article 23 of the Constitution of
India and will invoke Article 32 and Article 226 of the Constitution of India.”

7
1982 AIR 1473 1983 SCR (1) 456

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Constitutional Validity as per Article 19

The Constitutional Validity of the Act was first challenged in the case of Bijay Cotton Mills
Ltd. Vs The State of Ajmer8, in this Case it was contented that the Act is violative of Article
19 (1)(g) of the Constitution of India which guarantees Freedom of Trade and Businesses etc.
It was held by the Court that the restriction that are imposed on the freedom of contract by
fixation of Wages are reasonable and permissible under Article 19(6) of the Constitution of
India and also it is imposed in the interest of general public and with a view to promote the
DPSP as envisaged in Article 43 of the Constitution of India.

While in the Case of Bhikusa Yamasa Kshatriya v. Sangamner Akola Bidi Kamgar Union9
The Courts also held that “the constitution of the committees and the Advisory Wage Board
did not contravene the statutory provisions in that behalf prescribed by the legislature and also
on a careful examination of the various Acts and the machinery set up by this Act, Section
3(3)(iv) neither contravene Article 19(1) of the constitution nor does it violate the equal
protection clause of the constitution.”

Constitutional Validity as per Article 14

Article 14 of the Constitution of India which provides the Right to Equality before law and
Equal Protection of Laws, which means everyone will be treated equally and every person is
equal in the eyes of law, however the principle of equality does not mean that the law should
be applied to everyone universally who are different in some aspects. It only means different
should be treated differently and in order to pass the test for permissible classification these
two conditions must be fulfilled:

1. The classification must be founded on intelligible differentia which distinguishes

persons or things that are grouped together from others left out of the group.
2. The differentia must have a rational nexus with the object sought to be achieved by the
statute in question.

So, here as per this Act the minimum wages is provided to certain scheduled employments
which are listed in the Act which are different from the others because of their position in the
society and it must be noted that minimum wages are not fixed equally everyone for the whole
nation but it has an intelligible differentia which distinguishes fixation of minimum wages
varying from occupation to occupation and industry to industry and place to place.

Conclusion

The Minimum Wages Act was implemented to safeguard the rights and liberties of the workers
working in some scheduled class of employment which is provided in the Act and also it neither
violates any of the provisions of the Constitution nor it is intended to be made for the loss of
any employer. Its only objective is to provide the basic needs of the workers of scheduled

8
1955 AIR 33
9
1959 61 BOMLR 764

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category and provide them with minimum wages to survive with their livelihood and also to
promote the Directive Principle of State Policy provided under Article 43 of the Constitution
of India

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