Page 165 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes As per provisions of the Act (Sec 3, 4 & 11) the Minimum Wage may be fixed at “time rate”,
“piece rate”, “guaranteed time rate” and “overtime rate”. The minimum wage may consist of
basic wage, and an allowance linked to cost of living index. The minimum wage shall be paid in
cash, although payment of wages wholly or partly in kind may be allowed in particular cases.
The Government can also fix the number of hours of work, provide for weekly day of rest,
payment of remuneration in respect of such days of rest, payment of overtime wages, and
payment for work on a day of rest at a rate equal to overtime rate. Section 2(3) of the Act
provides that in fixing or revising minimum rates of wages, different minimum rates of wages
may be fixed for (a) different scheduled employments, (b) different classes of work in the same
scheduled employment, (c) adult, adolescent, children and apprentices or (d) different localities.
Such minimum wage may be fixed by hour, by the day, by the month or any other period as may
be prescribed.
The Act provides for the appointment of Committees and sub-committees to hold enquiries and
advise the appropriate Government in fixing or revising the minimum rates of wages and to
appoint an Advisory Board for the purpose of coordinating the work of the Committees and
sub-committees and also to advise the appropriate Government generally in the matter of
fixing and revising the minimum rate of wages. The rates may be revised at such intervals not
exceeding five years as the appropriate Government thinks fit. All these bodies are tripartite in
composition, consisting of persons nominated by the appropriate Government, persons
representing the employers and employees concerned in equal number and independent persons
not exceeding one third of the total number of members. One independent person has to be
appointed as the Chairman by the appropriate Government. (Secs. 5, 7, 8 & 9)
The Act provides for two different procedures for fixation and revision of minimum rates of
wages. Either of them, the “Committee method” or the “Notification method” may be followed.
In the first method the appropriate Government may appoint Committees or sub-committees to
hold enquires and to advise it in respect of such fixation or revision. Based on the advice of the
Committees the appropriate Government may fix or revise the rates by a notification in the
Official Gazette. The other method requires the appropriate Govt. to publish its proposal by a
notification in the Official Gazette for information of persons likely to be affected and specify a
date not less than two months from the date of notification on which the proposal will be
considered. The Government then considers the representations received before the specified
date, consults the Advisory Board and fixes or revises the rate by notification in the Official
Gazette. The State Government has fixed minimum wages in 55 employments out of which
notifications in respect of a few employments have been quashed by Honourable Calcutta High
Court.

Self Assessment

Fill in the blanks:

1. ‘Appropriate Government’ mean in relation to any scheduled employment means , The
Central Government, The railway administration and The ……………………………..

2. According to Section 3(2), the “Appropriate Government” fix minimum rate of wages for
time work, piece work and ……………………………..

3. The first method used by the ‘Appropriate Government‘ to fix minimum wages in respect
of scheduled employment is called the …………………

4. Under this Act, payment of less than the minimum rates of wages notified by the
“Appropriate Government is an …………………

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