Page 304 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 13: Industrial Law

Notes

Task Critically analyse he challenges which the employees faces in getting their
provident fund after leaving the organisation.

13.7 Minimum Wages Act, 1948

Minimum Wages Act, 1948 is an act to provide for fixing minimum rates of wages in certain
employments. It is expedient to provide for fixing minimum rates of wages in certain
employments. “The justification for statutory fixation of minimum wages is obvious. Such
provisions which exist in more advanced countries are even more necessary in India, where
workers organizations are yet poorly developed and worker’s bargaining power is consequently
poor.”

Object: For fixing minimum rates of wages in certain employments.
Applicability: It extends to the whole of India and applies to scheduled employments in respect
of which minimum rates of wages have been fixed under this act.

Scheduled employments: An employment specified in the schedule, or any process or branch of
work forming part of such employment (Section-2g).

Fixing of Minimum Rates of Wages

1. The appropriate government shall fix the minimum rates of wages payable to employees
employed in a scheduled employment.
2. Review at such intervals not exceeding five years, the minimum rates of wages so fixed
and revise the minimum rates if necessary. The minimum rates of wages may be fixed as
a minimum time rate or a minimum piece rate or as a guaranteed time rate (Section-3).

Advisory Board

For the purpose of co-ordinating the work of [committees and sub committees appointed under
section 5] and advising the appropriate Government generally in the matter of fixing and
revising minimum rates of wages, the appropriate Government shall appoint an Advisory
Board.
Central Advisory Board

1. For the purpose of advising the Central and State Governments in the matters of the
fixation and revision of minimum rates of wages and other matters under this Act and for
co-ordinating the work of the Advisory Boards, the Central Government shall appoint a
Central Advisory Board.
2. The Central Advisory Board shall consist of persons to be nominated by the Central
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 of
the Board by the Central Government.
Payment of minimum rates of wages: The employer shall pay to every employee in a scheduled
employment under him wages at the rate not less than the minimum rates of wages fixed under
the Act. (Section-12).

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