Page 277 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 11.5.1 Procedure for Fixing and Revising Minimum Wages

Minimum rates of wages, in respect of any scheduled employment, can be fixed or revised by
the appropriate Government in either of two methods: (a) It shall appoint as many committees
and sub-committees as it considers necessary to hold enquiries and advise it in respect of such
fixation or revision, as the case may be. Or it shall, by notification in the Official Gazette, publish
its proposal for the information of the persons likely to be affected thereby, and specify a date,
not less than two months from the date of notification, on which the proposal will be taken into
consideration.
After considering the advice of the committee or committees or all representations received by
it before the date specified in the notification, the appropriate Government, by notification in
the official Gazette, shall fix or revise the minimum rates of wages in respect of each scheduled
employment. The fixation or revision shall come into force on the expiry of three months from
the date of issue of notification, unless otherwise directed.
Where the appropriate Government proposes to revise the minimum rates of wages by
notification, it shall also consult the Advisory Board appointed under Sec. 7 of the Act. Before the
Government fixes the revised minimum rates of wages, it shall take into consideration
re-presentation received by it. Time must be specified for making representation.
Consultation with the Advisory Board is obligatory for revision of minimum wages and not
initial fixation.

The conferment of discretion on the Government to use either of the two procedures for fixation
of minimum wages cannot be held to be violative of Art. 14 of the Constitution (Chandra Bhavan
Boarding & Lodging, Bangalore vs. State of Mysore, A.I.R. (1968 Mys. 156).
A committee appointed under Sec. 5 is only an advisory body. The Government is not bound to
accept its recommendation in every case. Further, any irregularity in the constitution of the
committee or the procedure adopted by it cannot affect the validity of the notification issued by
the appropriate government under Sec. 5 (i) (b).

If no advice is given by the committee, or if in-adequate advice is given, Sec. 5 does not deprive
the appropriate Government of its power and duty to fix or revise the minimum rates of wages.
(Section 5).

11.5.2 Advisory Board

For the purpose for co-ordinating the work of committees and sub-committees appointed under
Sec. 5 of the Act, 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 to function. It can devise its own procedure.

Composition of Committees and Advisory Board (Sec. 9)

Each of the Committee, Sub-Committee, and the Advisory Board shall consist of persons to be
nominated by the appropriate 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 the independent persons shall be appointed
the Chairman by the appropriate government. An official of the Government can be appointed
as an independent person. The mere fact that a person happens to be a Government servant will
not divest him of the character of an independent person. (State of Rajasthan vs. Hari Ran Nathwani,
A. I. R. (1976) S.C. 277).

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