Minimum Wages under the Minimum Wages Act, 1948.

Minimum Wages under the Minimum Wages Act, 1948.

Minimum Wages

Minimum wages are at the poverty line level. It is the lowest limit of wages and it cannot further sink. Minimum wages provides bare subsistence and should be paid irrespective of the companies extent of profit, financial condition of establishment and availability of workmen. Minimum wages are independent wages and applies to all industries weather big or small.

Minimum wages are not defined in any act because there are various industries and each industry is different from the other and it is also different from one part of country to the other part of the country, therefore it is not possible to lay down same uniform minimum wages for all.

Case Laws :-

1) Hydro (Engineers) Private Ltd V. The workmen.

In this case it was held that minimum wages should be set based on three factors such as:- 

First factor - The prevailing cost of essential commodities

(which simply means that in today's time what is the price or rate of things or commodities that are essential in daily life).

Second factor - Cost of living at a particular Juncture of time.

( Which simply means in today's time what is the cost of living or rent of a particular place).

 Third factor -  on scales of cost of living index.

(Which simply means minimum wages shall be fixed referring to the index of scales which shows cost of living of the present time).

2) Unichay Vs. State of Kerala.

In this case it was held that, the minimum wage rates which are fixed for scheduled industries shall provide dual object such as :-

First object - Subsistence maintenance of worker and his family.

Second Object - Preserving his efficiency as worker.

3) Workmen of Reptakos Brett and Co. Ltd Vs. Management.

In this case it was held that:-

Firstly a workers wage is no longer a contract between employer and employee. And hence collective bargaining can be done.

Secondly - while fixing minimum rates of wages, socio economic aspect shall be kept in view and the following aspects should be added with the minimum wages such as:-

Children education.

Medical requirements.

Minimum recreation including festivals, Ceremonies etc.

Provisions for old age and marriage.

The above stated aspects shall be added as 25% of total minimum wage only.

Thirdly - the workmen is entitled to get minimum wages at all time and under all circumstances, If the employer cannot afford to pay minimum wages, they should not hire workers and have no reason to continue operating the business. If the employer cannot afford to pay minimum wages, they should not hire workers and have no reason to continue operating the business.

4) People's Union for Democratic Rights Vs. Union of India.

In this case it was held that, According to the Employment of Children Act 1938, children below 14 years of age cannot be employed. Still if someone employees children and don't give them minimum wages and those children's or any person due to poverty or socially backward situation cannot approach the court then any member of public can complaint on their behalf and sought legal redressal on their behalf.

Reference  :-

Textbook - Labour and Industrial Laws, 29th Edition by S.N. MISRA