The Minimum Wages Act, 1948

Minimum Wages Act 1948 came into force in India when India had recently gained
its freedom. Labor laws made by the Britishers were exploitative in nature. Wages
were low and different in every part of the country. There was no such thing as
“Minimum Wages” and times were pretty bad for sweat labor.
The Minimum Wages Act, 1948 was enacted by the Indian Legislature to deal with
matters relating to providing the minimum wage to the workers so that they can
afford their basic needs and maintain a decent standard of livelihood.
The Act authorises both Central and state governments in fixing the rate of minimum
wage. The Minimum Wages Act, 1948 has also laid down a provision for revision of
minimum wages in order to cope with the changing prices of basic commodities.

Salient features of the Minimum Wages Act, 1948:

The Minimum Wages Act, 1948, in India, is designed to safeguard the interests of
laborers by ensuring the fixation and payment of minimum wages. The salient
features of the Act include:
Scope of Application:
The Act applies to employees engaged in certain scheduled employments, which are
notified by the appropriate government.
Fixation of Wages:
The Act empowers the appropriate government to fix and revise wage rates for
different scheduled employments, considering factors like skill, nature of work, and
cost of living.
Working Hours and Overtime:
It allows the fixing of the number of hours of work per day and rest intervals.
Overtime rates are also specified for work beyond the normal working hours.
Payment Frequency:
Wages are to be paid at such intervals and in such manner as may be prescribed,
either daily, weekly, fortnightly, or monthly.
Maintenance of Records:
Employers are required to maintain and preserve records and notices containing
particulars of employees, the work performed, the wages paid, and receipts by
employees.
Deductions and Fines:
Specific deductions and fines from wages are permissible under certain conditions
and limitations.
Appointment of Authorities:
Authorities are appointed to hear and decide claims and disputes regarding the
payment of minimum wages and other related matters.
Inspection and Penalties:
Provision for the inspection of records and accounts by authorized persons, and
penalties for offenses such as non-payment of minimum wages or failure to maintain
records.

Who is responsible for payment of wages?

Where in respect of any scheduled employment a notification under section 5 of
Minimum wages Act, 1948 is in force, the employer shall pay to every employee
engaged in a scheduled employment under him wages at a rate not less than the
minimum rate of wages fixed by such notification for that class of employees in that
employment.
No deductions are allowed, except for what the law allows. The payment must be
made within a certain time and following certain rules. This ensures that workers are
paid fairly according to the specified minimum wage for their job. However, nothing
contained in this section shall affect the provisions of the Payment of Wages Act,
1936 (4 of 1936).

Responsibility for payment of wages-

Every employer shall be responsible for the payment to persons employed by him of
all wages required to be paid under this Act: Provided that, in the case of persons
employed (otherwise than by a contractor)-
(a) in factories, if a person has been named as the manager of the factory under
[ section 7(1)(f) of the Factories Act, 1948],
(b) in industrial or other establishments, if there is a person responsible to the
employer for the supervision and control of the industrial or other establishments;
(c) in railways (otherwise than in factories), if the employer is the railway
administration and the railway administration has nominated a person in this behalf
for the local area concerned;
the person so named, the person so responsible to the employer, or the person so
nominated, as the case may be, [shall also be responsible] for such payment.
Fixation of wage-periods.-
(1) Every person responsible for the payment of wages shall fix periods in respect of
which such wages shall be payable.
(2) No wage-period shall exceed one month.
Procedure for claim determination

The Minimum Wages Act, 1948 outlines a comprehensive procedure for addressing
claims arising from the payment of less than the minimum rates of wages. Here is a
summary of the key provisions:

Authority Appointment:
The appropriate Government has the authority to appoint a Commissioner for
Workmen's Compensation, a Labour Commissioner, or another qualified officer as
the designated Authority for a specified area. This Authority is entrusted with the
responsibility of hearing and deciding all claims related to the payment of less than
the minimum rates of wages for employees in that area.

Claim Submission:
If an employee has a claim falling within the Act's purview, they, a legal practitioner,
an authorized trade union official, an Inspector, or a person acting with the
Authority's permission, can submit an application to the designated Authority. The
application must be filed within six months from the date on which the minimum
wages became payable. However, the Authority may admit applications after this
period if the applicant provides a satisfactory reason for the delay.

Adjudication Process:
Upon entertaining an application, the Authority conducts a hearing involving the
applicant and the employer. After necessary inquiries, the Authority may issue
directions to the employer, irrespective of other penalties applicable under the Act.

Types of Directions:
 Payment of Minimum Wages: If the claim pertains to the payment of less
than the minimum rates of wages, the Authority can direct the employer to pay
the difference between the minimum wages due and the amount actually paid.
Additionally, the Authority may order compensation, not exceeding ten times
the shortfall amount.

 Other Cases: In situations unrelated to minimum rates of wages, the

Authority may direct the payment of the amount due to the employee along
with compensation, not exceeding ten rupees.
Malicious or Vexatious Claims:
The Act empowers the Authority to penalize applicants presenting malicious or
vexatious claims by directing payment of a penalty not exceeding fifty rupees to the
employer.

Recovery of Amounts:
Any amount directed to be paid by the Authority is recoverable. If the Authority is a
Magistrate, it can recover the amount as if it were a fine imposed by a Magistrate. If
the Authority is not a Magistrate, any Magistrate to whom the Authority applies can
recover the amount as if it were a fine imposed by that Magistrate.

Finality of Authority's Decision:

Every direction issued by the Authority under this section is considered final.

Authority's Powers:
The Authority appointed under this section is vested with all the powers of a Civil
Court under the Code of Civil Procedure, 1908, for taking evidence and enforcing
witness attendance and document production. The Authority is deemed to be a Civil
Court for the purposes of specific sections and chapters of the Code of Criminal
Procedure, 1898.

In essence, the Act establishes a robust mechanism for addressing wage-related

disputes, ensuring timely adjudication, and prescribing penalties for malicious claims
while empowering the designated Authority with substantial powers to enforce
compliance.