Page 171 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes As regards composition of the Committee, Section 9 of the Act lays down that it shall consist of
persons to be nominated by the appropriate Government representing employers and employee
in the scheduled employment, who shall be equal in number and independent persons not
exceeding 1/3rd of its total number of members. One of such independent persons shall be
appointed as the Chairman of the Committee by the appropriate Government.
Second Method [Section 5(1)(b)]

The method is known as the ‘Notification Method‘. When fixing minimum wages under Section
5(1)(b), the appropriate Government shall 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 2 months from the date of notification, on which the proposals will be taken into
consideration.
The representations received will be considered by the appropriate Government. It will also
consult the Advisory Board constituted under Section 7 and thereafter fix or revise the minimum
rates of wages by notification in the Official Gazette. The new wage rates shall come into force
from such date as may be specified in the notification. However, if no date is specified, the
notification shall come into force on expiry of three months from the date of its issue. Minimum
wage rates can be revised with retrospective effect [1996 II LLJ 267 Kar}.

Did u know? Minimum wage – whether to be paid in cash or kind
Section 11 of the Act provides that minimum wages payable under the Act shall be paid in
cash. But where it has been the custom to pay wages wholly or partly in kind, the appropriate
Government, on being satisfied, may approve and authorize such payments. Such
Government can also authorize for supply of essential commodities at concessional rates.
Where payment is to be made in kind, the cash value of the wages in kind or in the shape
of essential commodities on concessions shall be estimated in the prescribed manner.

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Caution Payment of minimum wages is obligatory on employer (section 12): Payment of
less than the minimum rates of wages notified by the appropriate Government is an
offence. Section 12 clearly lays down that the employer shall pay to every employee
engaged in a scheduled employment under him such wages at a rate not less than the
minimum rate of wages fixed by the appropriate Government under Section 5 for that
class of employment without deduction except as may be authorized, within such time
and subject to such conditions, as may be prescribed.

9.3.4 Fixing Hours for a Normal Working Day (Section 13)

Fixing of minimum rates of wages without reference to working hours may not achieve the
purpose for which wages are fixed. Thus, by virtue of Section 13 the appropriate Government
may –
(a) fix the number of work which shall 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
day of rest;

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