UNIT II NOTES Theories of Wages Some of the most important theories of wages are as follows: 1. Wages Fund Theory 2. Subsistence Theory 3. The Surplus Value Theory of Wages 4, Residual Claimant Theory 5. Marginal Productivity Theory 6. The Bargaining Theory of Wages. 7. Behavioural Theories of Wages. How much and on which basis wages should be paid to the workers for services rendered by them has been a subject matter of great concern among economic thinkers for a long time This has given birth to several wage theories, i.e. how wages are determined. Out of them, some important theories of wages are discussed here. 1. Wages Fund Theory: This theory was developed by Adam Smith (1723-1790). His theory was based on the basic assumption that workers are paid wages out of a pre-determined fund of wealth. This fund, he called, wages fund created as a result of savings. According to Adam Smith, the demand for labour and rate of wages depend on v7] Edit with WPS Officethe size of the wages fund. Accordingly, if the wages fund is large, wages would be high and vice versa. 2. Subsistence Theory: This theory was propounded by David Recardo (1772-1823). According to this theory, “The labourers are paid to enable them to subsist and perpetuate the race without increase or diminution”. This payment is also called as ‘subsistence wages’. The basic assumption of this theory is that if workers are paid wages more than subsistence level, workers’ number will increase and, as a result wages will come down to the subsistence level. On the contrary, if workers are paid less than subsis-tence wages, the number of workers will decrease as a result of starvation death; malnutrition, disease etc. and many would not marry. Then, wage rates would again go up to subsistence level. Since wage rate tends to be at, subsistence level at all cases, that is why this theory is also known as ‘Iron Law of Wages’. The subsistence wages refers to minimum wages. 3. The Surplus Value Theory of Wages: This theory was developed by Karl Marx (1849-1883). This theory is based on the basic assump-tion that like other article, labour is also an article which could be purchased on payment of its price i e wages. This payment, according to Karl Marx, is at subsistence level which is less than in propor-tion to time labour takes to produce items. The surplus, according to him, goes to the owner. Karl Marx is well known for his advocating in the favour of labour. 4. Residual Claimant Theory: This theory owes its development to Francis A. Walker (1840- 1897). According to Walker, there are four factors of production or business activity, viz. land, labour, capital, and v7] Edit with WPS Office © sewned wth Xt Scannerentrepreneurship. He views that once all other three factors are rewarded what remains left is paid as wages to workers. Thus, according to this theory, worker is the residual claimant. 5. Marginal Productivity Theory: This theory was propounded by Phillips Henry Wick-steed (England) and John Bates Clark of U.S.A. According to this theory, wages is determined based on the production contributed by the last worker, ie. marginal worker. His/her production is called ‘marginal production’. 6. The Bargaining Theory of Wages: John Davidson was the propounder of this theory. According to this theory, the fixation of wages depends on the bargaining power of workers/trade unions and of employers. If workers are stronger in bargaining process, then wages tends to be high. In case, employer plays a stronger role, then wages tends to be low. 7. Behavioural Theories of Wages: Based on research studies and action programmes conducted, some behavioral scientists have also developed theories of wages. Their theories are based on elements like employee's acceptance to a wage level, the prevalent internal wage structure, employee's consideration on money or’ wages and salaries as motivators. KINDS OF WAGES Wages can broadly be divided into three categories ie Living Wages, Minimum Wages and Fair Wages. 1. LIVING WAGES: Living wages means the wages that may be sufficient to provide for the bare necessities as well as certain amenities for the v7] Edit with WPS Office © sewned wth Xt Scanneremployee. It means the level of wages that may be sufficient to provide for the bare necessities and such amenities that are considered necessary for the well-being of the employee and his family members in accordance with his social status. Article 43 of the Constitution of India 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, conditions of work ensuring decent standard of life and full enjoyment of leisure and social and cultural opportunities. The term Living Wages has been defined as, the Fair Wage Committee Report, “The living wage should enable the male earner to provide himself and his family not merely the base essentials of food, clothing and shelter but a measure of frugal comfort including education for the children, protection against ill health, requirements of essential social needs, and measures of insurance against the more import misfortunes against old age.” Justice Higgives, “Living wage is a wage sufficient to ensure the workman food, shelter, clothing, frugal comfort, provision for evil days etc., as regard for the skill of an artisan, if he is one.” Thus, Living Wage must provide not only for the bare necessities, such as ,food, clothes and shelter, but also for some comforts and amenities estimated by current human standards such as—travelling, health, education of children, social needs, old age and recreation etc. These Standards of Living are classified as Follows: 1. Minimum Subsistence Level: v7] Edit with WPS Office 0 seamed vith one SeamerWhen an employee gets the remuneration enough only for providing the bare necessities for himself and his family members, is called minimum subsistence level. In this situation, the remuneration of an employee can meet only the bare requirements for himself and his family members. 2. Comfortable Level: When an employee can provide for all the bare necessities and can enjoy all the amenities, it is called comfortable level, in this case, the remuneration of an employee is so high that he can provide for all the bare necessities and meet all the requirements of comfort for himself and his family members. 3. Poverty Level: When an employee is unable in providing for bare necessities also for himself and his family members, this situation is known as poverty. In this situation, the remuneration of an employee is less than he requires for providing food, clothes and shelter for himself and his family members. 4. Semi-Comfortable Standard of Living: When the remuneration of an employee is sufficient for providing the bare necessities and meeting social needs, it is called Semi- comfortable level. In this case the employee can provide for the basic needs of clothes, food, and shelter for himself and his family members. Besides he can meet his social needs also such as—maintenance, education of children, travelling, insurance and recreation etc. On the basis of above classification, the adequate wage in India can be determined easily. In the present economic conditions of our country, Semi-comfortable level can be taken as the basis of wage determination. The wages of employees should enable v7] Edit with WPS Office © sewned wth Xt Scannerthem to maintain their efficiency. 2. FAIR WAGES: It is very difficult to give a precise definition of Fair Wages because it varies from country to country and from time to time. Therefore, it is possible that an amount of wages that is fair for one country at one time may not be fair for another country or for next time. Therefore, fair wages can be determined only after considering the specific circumstances of the industry for which the wages are to be determined. The term ‘Fair Wages’ has been defined as under: Encyclopaedia of Social Sciences, “Fair wages mean the remuneration which is paid to the workers for the jobs requiring equal efficiency, difficulty and pains.” Prof. Marshall, “Rate of wages in a particular industry can be regarded as fair wages only when it is almost equal to the wages which is paid in other industries for the works which are of the same caliber and equally difficult and require almost equal efficiency and training.” Prof. Pigou, “Fair wages is the wages which is paid at the rate which is being paid to the workers of same status in the enterprises of the same type and of near-by areas”. On the basis of analytical study of above definitions, it can be concluded that Fair Wages is the amount of wages that may provide the basic needs and amenities to the workers according to their social status. Fair Wage is more than minimum wages. Fair Wage is determined after considering several factors such as the wages paid for similar work in other trades and industries requiring same amount of ability and adjustment, productivity of the labour and paying v7] Edit with WPS Office © sewned wth Xt Scannercapacity of the industry. Fair Wage is determined between the lower and upper limits. The lower limit of wage is the minimum wage and the upper limit is the capacity of the industry to pay. Norms for the Fixation of Minimum Wages: The 15th Indian Labour Conference considered the question of minimum wage and adopted a resolution, the relevant portion of which is reproduced below: With regard to the minimum wage fixation it was agreed that the minimum wage was need based” and should ensure the minimum human need of the industrial worker, irrespective of any other considerations. To calculate the minimum wage, the committee accepted the following norms and recommended that they should guide all wage fixing authorities, including minimum wage committees, wage boards and adjudicators etc. (i) In calculating the minimum wage, the standard of working class family should be taken to consist of three consumption units for earners; the earnings of women, children and adolescents should be disregarded. (ii) Minimum food requirements should be calculated on the basis of a net intake of 2700 calories, as recommended by Dr. Aykroyd for an average Indian adult of moderate activity. (iii) Clothing requirements should be estimated at per capita consumption of 18 yards per annum which should give for the average worker's family four, a total of 72 yards. (iv) In respect of housing, the norm should be the minimum rent charged by government in any area for houses provided under the Subsidised Industrial Housing Scheme for low income groups. (v) Fuel, lighting and other, “Miscellaneous” items of expenditure should constitute 20 per cent of the total minimum wage. v7] Edit with WPS Office 0 seamed vith one SeamerWhile agreeing to these guidelines for fixation of minimum wage for industrial workers throughout the country, the committee recognized the existence of instances where difficulties might be experienced in implementing these recommendations. Wherever the minimum wage fixed went below the recommendations, it would be incumbent on the authorities concerned to justify the circumstances which prevented them from adherence to the norms laid down. The resolution has been considered as ‘important, as for the first time, it has tried to give correctness to the whole concept of minimum wage. The Wage Boards were asked to keep in view the norms laid down in the resolution while making their recommendations. However, the committee on the functioning of the system of wage boards reported that the majority of wage boards had not found it feasible to fix the “need-based minimum” of the wage because of one or more of the following reasons: (i) It would be beyond the capacity of the industry to pay; (ii) It would result in excessive and abrupt increase in wages; (iii) It would unduly affect the relativity of wages among industries in the same region; and (iv) It would be extravagance at the cost of the consumer on whom the burden of increase wages and salaries would fall. It should, however, be noted that the committee on Fair Wages categorically stated that an industry which was incapable of paying the minimum wage had no right to exist. The Committee was of the definite view that for fixing minimum wages no regard should be paid to the capacity of an industry to pay and it should be based solely on the requirements of worker and his family. v7] Edit with WPS Office © sewned wth Xt ScannerOn the other hand, the upper limit of the fair wage, according to the committee on fair wages (C F W) “is equally set by what may be called the capacity of the industry to pay.” It is, thus, obvious that the Committee is of the view that, while fixing the minimum wage no regard should be paid to the capacity of the industry to pay and it should be solely based on the requirements of the worker and his family. But, the upper limit of fair wages should be based solely on the capacity of the industry to pay. But, the National Commission on Labour was of the view that capacity to pay of the industry should be taken into account, while fixing fair wage, “the need-based minimum wage is also a level of fair wage and represents a wage higher than the minimum obtaining at present in many industries, though it is only the lower reaches of the fair wage. We, therefore, hold that in fixing the need-based minimum, the capacity to pay will have to be taken into account. 3. MINIMUM WAGES: According to Fair Wages Committee, “Minimum Wages should provide not only for the bare necessities of a worker. It should also provide for the maintenance of efficiency of the worker. From this point of view, minimum wages must be sufficient to provide for all requirements of education, health and other essential amenities”. Minimum Wages means the minimum payment to worker so that he may be able in providing for basic needs for himself and his family members and to maintain his working efficiency only. Some other scholars are of the view that minimum wages should also provide for minimum education, medical facilities and other amenities. According to them, minimum wages should ensure a v7] Edit with WPS Officeminimum standard of living considering the health, efficiency and well-being of the worker. What should be the amount of fair wages is a question for which no specific answer can be given. It depends upon the economic, social and geographical factors of the country. Besides, it depends upon the size and paying capacity of the enterprise also. However, it can be said that minimum wages is the amount that is enough for providing basic needs of the worker and his family and to enable him to maintain his efficiency. Objects of Minimum Wages: Important objectives of minimum wages are as under: 1. To maintain the efficiency of workers, particularly in the industries where the workers do not get fair wages. 2. To check the unhealthy competition among entrepreneurs. 3. To discourage the strikes, lock-outs and industrial disturbances so that industrial peace may be maintained. 4. To check the exploitation of workers by the entrepreneurs. 5. To increase the efficiency of workers. 6. To protect the interests of workers, particularly when the workers are not organized. 7. To strengthen labour unions. 8. To help the workers in maintaining and increasing their standard of living. 9. To check the unhealthy competition among the workers. v7] Edit with WPS Office © sewned wth Xt Scanner10. To provide economic and social justice to the workers. 11. To increase the productivity of workers. 12. To improve the management system. MINIMUM WAGES ACT 1948 The Minimum Wages Act, 1948 envisages to provide minimum statutory wages for scheduled employments with a view to obviate the chances of exploitation of labour through payment of very low and sweating wages. The Act also provides for the maximum daily working hours, weekly rest day and overtime. Rates fixed under Minimum Wages Act prevail over the rates fixed under award or an agreement. The Act applies to all establishments employing one or more persons and engaged in any Scheduled employment. The State Governments have been empowered to fix rates of wages for different classes of employees ie skilled, unskilled, clerical, supervisory, etc. employed in any Scheduled employment and to review and revise the same from time to time, the interval between two revisions not to exceed five years, considering the change in price index and dearness allowance. Object of minimum wages act 1948 1. To ensure the employees will have basic physical needs good health & level of comfort. 2. To ensure a secure adequate living wages for all labourers in the interest of public. 3. To ensure that the employee has enough to provide for his v7] Edit with WPS Office © sewned wth Xt Scannerfamily. 4. To ensure decent standards of living to ensures to social comforts of the employee. The Minimum Wages Act, 1948 is a Central legislation aimed at statutory fixation of minimum rates of wages in the employments where sweated labour is prevalent with possibility for exploitation of unorganized labour. The provisions of the Act are intended to achieve the object of doing social justice to workmen employed in the scheduled employments by prescribing minimum rates of wages for them. The Act aims at statutory fixation of minimum wages with a view to prevent exploitation of labour. DEFINATIONS: SEC 2 Sec 2 (d) "cost of living index number", in relation to employees in any scheduled employment in respect of which minimum rates of wages have been fixed, means the index number ascertained and declared by the competent authority by notification in the Official Gazette to be the cost of living index number applicable to employees in such employment. Sec (e) "employer" means any person who employs, whether directly or through another person, or whether on behalf of himself or any other person, one or more employees in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, and includes, except in sub- section (3) of section 26,(i) in a factory where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, any person named under ,clause (f) of sub section (1) of section 7 of the Factories Act,1948, as manager of the factory, (ii)in any scheduled employment under the control of any v7] Edit with WPS Office © sewned wth Xt ScannerGovernment in India in respect of which minimum rates of wages have been fixed under this Act, the person or authority appointed by such Government for the supervision and control of employees or where no person or authority is so appointed, the head of the department((iii) in any scheduled employment under any local authority in respect of which minimum rates of wages have been fixed under this Act, the person appointed by such authority for the supervision and control of mployees or where no person is so appointed, the chief executive officer of the local authority; (iv) in any other case where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, any person responsible to the owner for the supervision and control of the employees or for the payment of wages. Sec 2 (h) wages: means all remuneration, capable of being expressed in terms of money, which would, if the terms of the contract of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes house rent allowance, but does not include ; (i) the value of (a) any house-accommodation, supply of light, water, medical attendance, or (b) any other amenity or any service excluded by general or special order of the appropriate Government; (ii) Any contribution paid by the employer to any Pension Fund or Provident Fund or under any scheme of social insurance; (iii) Any travelling allowance or the value of any travelling concession; v7] Edit with WPS Office © sewned wth Xt Scanner(iv) Any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; or (v) Any gratuity payable on discharge. Sec (i) employee : means any person who is employed for hire or reward to do any work, skilled or unskilled, manual or clerical, in a scheduled employment in respect of which minimum rates of wages have been fixed; and includes an out-worker to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted or otherwise processed for sale for the purposes of the trade or business of that other person where the process is to be carried out either in the home of the out- worker or in some other premises not being premises under the control and management of that other person; and also includes an employee declared to be an employee by the appropriate Government; but does not include any member of the Armed Forces of the Union. Under the Minimum Wages Act, 1948 in its schedule includes about 65 employments (industry related) under part-| and 8 (Agriculture related) Scheduled employments under part-Il of the said Act. Presently, the wages have been fixed to each and every category under the above specific employments and as a result wages are fixed covering nearly for 20 to 40 categories of workers in each employment. Due to a large number of Scheduled Employments much time is being consumed for revision of wages without uniformity causing discrimination among the workers. It is becoming very difficult to the Inspectors notified under the Act for implementation of wages v7] Edit with WPS Office © sewned wth Xt Scannerdue to innumerable schedules. Moreover, variation in wages from employment to employment for similar category of worker. Variation in wages to similar categories of workers in various scheduled employments leads to anomalies and discontentment among the workers doing same and similar type of work. In order to overcome this problem, it is considered necessary to simplify and rationalize the existing Scheduled employments under the Act and to fix uniform rates to the similar category of workers and simultaneously to reduce the categories as well as employments and the Government through , have constituted the Rationalization Committee for Simplification and Rationalization of the schedule of Employments under the Minimum Wages Act, 1948, with a term of 2 years to recommend to the government on simplification and rationalization of fixation and revision of minimum wages and the committee has given its recommendations and a proposal on the recommendations is being submitted to the government. The Government took a decision to implement the Variable Dearness Allowance component to the scheduled employments covered under Part-II of the Schedule under Minimum Wages Act on par with the scheduled employments covered under Part-l. Recently, two new Scheduled Employments viz. 1. Sales Promotion 2. Contract labour have been added to Part-! of the Schedule by issuing preliminary notification under Section 27 of the Act. The issue of payment of appropriate statutory wages to contract labour, of late has become disputed due to litigation by many employers where both minimum wages and contract labour wages notified under Contract Labour Act exist and fixation of minimum wages in respect of the contract labour employment, where minimum wages are not fixed is expected to resolve the above issue. v7] Edit with WPS Office © sewned wth Xt ScannerThe process of revision of minimum rates of wages in the respective Scheduled Employments is being taken up for every 5 years against the Scheduled Employments where the VDA(variable Dearness Allowence) component is a part of wages and for every two years, where the VDA is not incorporated. The procedure to be adopted for fixation/revision of minimum wages has been provided under Sections 3 and 5 of the Minimum Wages Act, 1948. Two methods are provided under Section 5 of the Act, for fixation/revision of minimum wages in any Scheduled Employment under the Minimum Wages Act, 1948, which are detailed below. Procedure for fixing and revising minimum wages. (1) In fixing minimum rates of wages in respect of any scheduled employment for the first time under this 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 fixation or revision, as the case may be, or (b) by notification in the Official Gazette, publish its proposals for the information of 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. RECOMMENDATIONS AND SUGGESTIONS REGARDING NORMS FOR FIXATION AND REVISION OF MINIMUM WAGES There are no norms prescribed for fixing/revising minimum rates of wages so far under Minimum Wages Act, 1948 and the Act is silent on the point of gradation of wages according to the Skill level. v7] Edit with WPS OfficeThe Indian labour conference In the year 1957, the Indian Labour Conference has recommended to adopt the following 5 elements while fixing minimum wages:- 1) For the purpose of fixation of minimum wages, a family is taken, as a norm, to include three units (one earner, wife and children) 2) Dr. Aykrovd’s prescription of the average of 2700 calories of nutrition may be taken as the standard for calculating the minimum nutritional requirements. 3) Provision of 72 yards of cloth by considering a family as four units in connection with the requirements of 18 yards of cloth per capita, per annum. 4) For the purposes of fixation of house rent, the rates of rent granted by Industrial Housing Plan may be considered. 5) 20 per cent of the minimum wages may be ear-marked for meeting the expense on fuel, light and other ancillaries. The Hon'ble Supreme Court in the case of Reptakos Brett and Co. Ltd., while affirming the use of the five above norms prescribed in the 15th Indian Labour conference for fixation of Wage has directed that keeping in view the Socio economic aspect “25% of the Total minimum wages shall also be taken into account for Children education, medical requirement, minimum recreation including festivals/ceremonies and provision for old age, marriage etc.,” The above norms are only useful for arriving the wage for the lowest category worker. THE GUIDELINES OF GOVERNMENT OF INDIA The Principal Advisor, Planning Commission, Government of India, New Delhi in his letter dated 18-09-2006 had informed that it is proposed to have the wage differential at 15 per cent between v7] Edit with WPS Office © sewned wth Xt Scannerunskilled to Semi- Skilled and semi-skilled to Skilled. He has also stated that in the year 1999-2000 a study on the pay differences was carried out through job Evaluation Technique and it was proposed to have pay difference 19- 20 percent between Unskilled to Semi-Skilled and 12-13 percent between Semi Skilled to Skilled. 10 NATIONAL FLOOR LEVEL WAGE FIXED BY THE GOVERNMENT OF INDIA The Government of India has stated that while reviewing the movement of Consumer Price Index for Industrial Workers (CPI- IW) during October 2012 to March, 2013 over the period October 2010 to March 2011, it was observed that the National Floor Level Minimum Wage has been revised upwards from Rs.115/- to Rs.137/- per day w.e.f 01.07.2013. The minimum wage of the lowest categories in all scheduled employments reached the National Floor Level in Andhra Pradesh. It is, however, clarified that the National Floor Level Minimum Wage, is a non-statutory measure to ensure upward revision of minimum wages in different in States & union territories. Thus, the State Governments are persuaded to fix minimum wages such that in none of the scheduled employments, the minimum wage is less than National Floor Level Minimum Wage. This method has helped in reducing disparity among different rates of minimum wages to some extent. Commissioners of Labour, Deputy Commissioners of Labour and Joint Commissioners of Labour as Inspectors under Section- 19 in their respective jurisdictions. The inspector under the Act is responsible to ensure payment of minimum wages by conducting regular inspections. He should verify maintenance of certain registers like muster roll and wages register and to secure to every employee a wage slip every month. Department under Payment of Wages Act, 1936 and the provisions of Payment of v7] Edit with WPS OfficeWage Department to all establishments engaged in scheduled employments, all factories, all industries and all shops and establishments. It is required to pay wages to every employee by remittance in the bank account of the employee in accordance with the said and the inspectors under the Act should ensure the same towards simplification of enforcement. IMPORTANT provisions IN BRIEF: Section 3: Fixation of minimum rates of wages: Appropriate Government shall fix the minimum rates of wages in respect of the employment specified in Part-| or Il of the Schedule and review at such intervals not exceeding (5) years, to revise the wages. Section 4: Minimum rate of wages: The Minimum rate of wage may consist of basic rate of wage and special allowance (cost of living allowance) to be notified by the commissioner of labour once in six months effective 1st April and 1st October. Section 5: Minimum rate of wages: Procedure for fixing and revising minimum wages (a) Appoint as many committees and sub-committees as it considers necessary to hold enquiries and advise it in respect of such fixation or revision, as the case may be, or (b) By notification in the Official Gazette, publish its proposals for the information of persons likely to be affected thereby and specify a date, not less than two months from the date of the v7] Edit with WPS Office © sewned wth Xt Scannernotification, on which the proposals will be taken into consideration. Section 7: Advisory Board: Appropriate Government shall appoint an Advisory Board to advise the Government in the matters of fixing and revising of minimum wages and for coordinating the work of Committees and Sub Committees appointed under Section 5. The term of office of the non-official member is 2 years but continues till replaced. The Committees/sub committees/Advisory Board shall consist of persons representing in equal number, the employers and the employees and independent persons not exceeding 1/3rd of the total members, one of them to be nominated as chairman. Section 12: Payment of Minimum rates of wages: Wages paid in respect of scheduled employments shall not be less than the minimum rates of wages. Section 13: Fixing hours for a normal working day etc: The number of hours of work should not exceed (9) per day including rest for half an hour and 48 per week and a day of rest in every (7) days normally on Sunday shall be allowed. This section for Fixing hours for a normal working day, etc. In regard to any scheduled employment minimum rates of wages in respect of which have been fixed under this Act, the appropriate Government may(a) fix the number of hours of work which shall v7] Edit with WPS Office © sewned wth Xt Scannerconstitute a normal working day, inclusive of one or more specified intervals; (b) 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; (c) provide for payment for work on a day of rest at a rate not less than the overtime rate. (2) The provisions of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subject to such conditions as may be prescribed :— (a) employees engaged on urgent work, or in any emergency which could not have been foreseen or prevented; (b) employees engaged in work in the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned; (c) employees whose employment is essentially intermittent; (d) employees engaged in any work which for technical reasons has to be completed before the duty is over; (e) employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces. (3) For the purposes of clause (c) of sub-section (2), employment of an employee is essentially intermittent when it is declared to be so by the appropriate Government on the ground that the daily hours of duty of the employee, or if there be no daily hours of duty as such for the employee, the hours of duty, normally include periods of inaction during which the employee may be v7] Edit with WPS Office © sewned wth Xt Scanneron duty but is not called upon to display either physical activity or sustained attention. Sec14 Overtime; Overtime. (1) Where an employee, whose minimum rate of wages is fixed under this Act by the hour, by the day or by such alonger wage-period as may be prescribed, 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 an hour so worked in excess at the overtime rate fixed under this Act or under any law of the appropriate Government for the time being in force, whichever is higher. Sec15. Wages of worker who works for less than normal working day.- If an employee whose minimum rate of wages 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, save, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day, Provided, that he shall not be entitled to receive wages for a full normal working day, (i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work, and (ii) in such other cases and circumstances as may be prescribed. Sec 16, Wages for two or more classes of work.-Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the v7] Edit with WPS Office © sewned wth Xt Scannerminimum rate in force in respect of each such class of employment . Sec 17, Minimum time rate wages for piece work.- Where an employee is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Act, the employer shall pay to such employee wages at not less than the minimum time rate of wages. Sec18 Maintenance of registers and records: (1) Every employer 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 by them and such other particulars and in such form as may be prescribed. (2) Every employer shall keep exhibited, in such manner as may be prescribed, in the factory, workshop or place where the employees in the scheduled employment may be employed, or in the case of out- workers, in such factory, workshop or place as may be used for giving out-work to them, notices in the prescribed form containing prescribed particulars. Section 18: Maintenance of Registers and Records: Registers like muster roll and wages register shall be maintained by the employer as per the prescribed forms under the Rules. (1) Every employer 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 by them and such other particulars and in such form as may be v7] Edit with WPS Office © sewned wth Xt Scannerprescribed. (2) Every employer shall keep exhibited, in such manner as may be prescribed, in the factory, workshop or place where the employees in the scheduled employment may be employed, or in the case of out- workers, in such factory, workshop or place as may be used for giving out-work to them, notices in the prescribed form containing prescribed particulars. (3) The appropriate Government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescribe the manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent. Sec 19. Inspectors.- (1) The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of this Act, and define the local limits within which they shall exercise their functions. (2) Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed (a) enter, at all reasonable hours, with such assistants (if any), being persons in the service of the Government or any local or other public authority, as he thinks fit, any premises or place where employees are employed or work is given out to out-workers in any scheduled employment in respect of which minimum rates of wages have been fixed under this Act, for the purpose of examining any register, record of wages or notices required to be kept or exhibited by or under this Act or rules made there under, and require the production thereof for inspection; (b) examine any person whom he finds in any such premises or place and who, v7] Edit with WPS Office © sewned wth Xt Scannerhe has reasonable cause to believe, is an employee employed therein or an employee to whom work is given out therein; (c) require any person giving out-work and any out-workers, to give any information, which is in his power to give, with respect to the names and addresses of the persons to, for and from whom the work is given out or received, and with respect to the payments to be made for the work; (d) seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has_ reason to believe has been committed by an employer; and (e) Exercise such other powers as may be prescribed. (3) Every Inspector shall be deemed to be a public servant within the meaning of the Indian Penal Code (45 of 1860). (4) Any person required to produce any document or thing or to give any information by an Inspector under sub-section (2) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860). 20. Claims.- (1) The appropriate Government may, by notification inthe Official Gazette, appoint any Commissioner of Workmen's Compensation or any officer of the Central Government exercising functions as a Labour Commissioner for any region, or any officer of the State Government not below the rank of Labour Commissioner or any other officer with experience as a Judge of a Civil Court or as a stipendiary Magistrate to be the Authority to hear and decide for any specified area all claims arising out of payment of less than the minimum rates of v7] Edit with WPS Office © sewned wth Xt Scannerwages or in respect of the payment of remuneration for days of rest or for work done on such days under clause (b) or clause (c) of sub-section (1) of section 13 or of wages at the overtime rate under section 14, to employees employed or paid in that area. (2) Where an employee has any claim of the nature referred to in sub-section (1), the employee himself, or any legal practitioner or any official of a registered trade union authorized in writing to act on his behalf, or any Inspector, or any person acting with the permission of the Authority appointed under sub-section (1), may apply to such Authority for a direction under sub-section (3) (3) Provided that every such application shall be presented within six months from the date on which the minimum wages or other amount became payable, Provided further that any application may be admitted after the said period of six months when the applicant satisfies the Authority that he had sufficient cause for not making the application within such period. (3) When any application under sub-section (2) is entertained, the Authority shall hear the applicant and the employer, or give them an opportunity of being heard, and after such further inquiry, if any, as it may consider necessary, may, without prejudice to any other penalty to which the employer may be liable under this Act, direct; (i) in the case of a claim arising out of payment of less than the minimum rates of wages, the payment to the employee of the amount by which the minimum wages payable to him exceed the amount actually paid ,together with the payment of such compensation as the authority may think fit, not exceeding ten times the amount of such excess. (ii) in any other case, the payment of the amount due to the employee, together with the payment of such compensation as the Authority may think fit, not exceeding ten rupees, and the v7] Edit with WPS Office © sewned wth Xt ScannerAuthority may direct payment of such compensation in cases where the excess or the amount due is paid by the employer to the employee before the disposal of the application. (4) If the Authority hearing any application under this section is satisfied that it was either malicious or vexatious, it may direct that a penalty not exceeding fifty rupees be paid to the employer by the person presenting the application. (5) Any amount directed to be paid under this section may be recovered; (a) if the Authority is a Magistrate, by the Authority as if it were a fine imposed by the Authority as a Magistrate, or (b) if the Authority is not a Magistrate, by any Magistrate to whom the Authority makes application in this behalf, as if it were a fine imposed by such Magistrate. (6) Every direction of the Authority under this section shall be final. (7) Every Authority appointed under sub-section (1) shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908,for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such Authority shall be deemed to be a Civil Court for all the purposes of section 195 of the Code of Criminal Procedure, 1898 . Sec21. Single application in respect of a number of employees — (1) Subject to such rules as may be prescribed, a single application may be presented under section 20 on behalf or in respect of any number of employees employed in the scheduled employment in respect of which minimum rates of wages have been fixed and in such cases the maximum v7] Edit with WPS Officecompensation which may be awarded under sub-section (3) of section 20 shall not exceed ten times the aggregate amount of such excess or ten rupees per head, as the case may be. (2) The Authority may deal with any number of separate pending applications presented under section 20 in respect of employees in the scheduled employments in respect of which minimum rates of wages have been fixed, as a single application presented under sub-section (1) of this section and the provisions of that sub-section shall apply accordingly. Sec 22: Penalties for certain offences: Imprisonment up to 6 months or fine up to Rs.500/- or both. Any employer who (a) pays to any employee less than the minimum rates of wages fixed for that employee's class of work, or less than the amount due to him under the provisions of this Act, or (b) contravenes any rule or order made under section 13, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both Provided that in imposing any fine for an offence under this section, the Court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 20. 22A. General provision for punishment of other offences; Any employer who contravenes any provision of this Act or of any rule or order made there under shall, if no other penalty is provided for such contravention by this Act, be punishable with fine which may extend to five hundred rupees. v7] Edit with WPS Office © sewned wth Xt Scanner