Page 169 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes that this number has increased to 1,000 or more in such employment, it shall fix minimum wage
rate.

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Caselet Bijoy Cotton Mills v. State of Ajmer

he constitutional validity of Section 3 was challenged in Bijoy Cotton Mills v. State of
Ajmer, 1955 S.C. 3. The Supreme Court held that the restrictions imposed upon the
Tfreedom of contract by the fixation of minimum rate of wages, though they interfere
to some extent with freedom of trade or business guarantee under Article 19(1)(g) of the
Constitution, are not unreasonable and being imposed and in the interest of general
public and with a view to carrying out one of the Directive Principles of the State Policy as
embodied in Article 43 of the Constitution, are protected by the terms of Clause (6) of
Article 9.
Source: indiankanoon.org/doc/1291554/

9.3.1 Revision of Minimum Wages

According to Section 3(1)(b), the appropriate Government may review at such intervals as it
may thing fit, such intervals not exceeding five years, and revise the minimum rate of wages, if
necessary. This means that minimum wages can be revised earlier than five years also.
9.3.2 Manner of Fixation/Revision of Minimum Wages

According to Section 3(2), the ‘Appropriate Government’ may fix minimum rate of wages for:
(a) time work, known as a Minimum Time Rate;
(b) piece work, known as a Minimum Piece Rate;
(c) a Guaranteed Time Rate for those employed in piece work for the purpose of securing to such
employees a minimum rate of wages on a time work basis; (This is intended to meet a situation
where operation of minimum piece rates fixed by the appropriate Government may result in a
worker earning less than the minimum wage), and
(d) a Over Time Rate i.e. minimum rate whether a time rate or a piece rate to apply in substitution
for the minimum rate which would otherwise be applicable in respect of overtime work done
by employee.
Section 3(3) provides that different minimum rates of wages may be fixed for –

(i) different scheduled employments;
(ii) different classes of work in the same scheduled employments;
(iii) adults, adolescents, children and apprentices;
(iv) different localities

Further, minimum rates of wages may be fixed by any one or more of the following wage
periods, namely:
(i) by the hour,

(ii) by the day,

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