OBJECTIVES

The main objective of this Act, is fixing a minimum rate of wages in number of
industries where the labours are not organized and sweated labours are most
dominant. The Act aims at preventing the exploitation of workers or labours in some
industries, for which, the appropriate Government is empowered to take steps to
prescribe minimum rates of wages in certain employment. The Act enables the
Central and State Government to fix minimum rates of wages payable to employees
in selected number of sweated industries and it extends to the whole of India.

1. To provide minimum wages to the workers wokring in organised sector (schedules

employment).
2. To stop exploitation of the woprkers.
3. To empower the government to take steps for fixxing minimum wages and to
revise this wages within a period of five years.
4. To provide for appointment of Advisoruy Committees and Advisory Boards,
having equal representatives of empluers and workers.

Features

1) The act lays down for fixation of:

a) A minimum time rate of wages
b) A minimum piece rate
c) A guaranteed time rate and
d) An overtime rate
For different occupation, localities or classes of work and for adults,
adolescents, children and apprentices

2) The minimum rate of wages may consist of:

a) A basic rate of wages and a cost of living allowance or
b) A basic rate of wages with or without the cost of living allowance and the
cash value of the concessions in respect of essential commodities supplied at
concessional rates.
c) The act lays down that wages shall be paid in cash although it empowers
the appropriate government to authorize the payment of minimum wages either
wholly or partly in kind in particular cases.
d) It provides that the cost of living allowance and cash value of the
concessions in respect of supplies of essential commodities at concessional rates
shall be computed by component authority at certain interval.
e) The act empowers the appropriate government to fix the number of hours
of work per day, to provide for a weekly holiday and the payment of overtime
wages of which minimum rates of wages have been fixed under the act.
f) The act lays down for appointment of inspectors and other authorities to
hear and decide claims arising out of payment of wages at less than the minimum
rates of wages or remuneration for days of rest of work done on such days or
of overtime wages.
g) All establishments covered by the act are required to maintain registers and
office records in the prescribe manner
h) The act provides the procedure for dealing with complaints arising out of
the violation of the provisions of the act and for imposing penalties for offences
under the act.

3) The Act applied to certain employments (listed in the Schedule). Both the
governments (Central and State) have to declare minimum wages for their sphere.
The appropriate government may add any employment to the list if there are 1000
workers are working in that state.

4) Classes of fixing minimum rates of wages : (a) different scheduled employments;

(b) different classes of work in the same scheduled employment; (c) adults,
adolescents, children and apprentices; and (d) different localities (zone wise).

5) Norms to be consider for fixing minimum wage :

Standard family of four members three consumption units (2 adults + 2
children) for one earner.
Minimum food requirement should be calculated on the basis of a net intake of
calories.
Clothing a total of 72 yards;
The rent corresponding to the minimum area (one room)
Other routine expenditure 20% of the total minimum wage.
Social expenditure further constitute 25% of the total minimum wage.

6) Period to revise minimum wages by appropriate government is five years.

7) The appropriate Government shall declare special allowance after each six months
(i.e. 1st April and 1st October of every year).

8) In case of not paying minimum wage a claim can be made under section 20 before
the labour authority who can make of order of payment of 10 times of difference
amount.

9) Not paying Minimum wages is an offence punishable up to six months

imprisonment or with fine up to Rs. 500 or with both.

10) Contracting out: Any contract or agreement whereby an employee either

relinquishes or reduces his right to a minimum rate of wages or any privilege or
concession accruing to him under this Act shall be null and void.

11) Regional Labour Commissioner (C) is the authority declared by Central

Government to decide claims (less than minimum wages) made under section 20 of
the Act. Assistant Commissioner of Labour is authority in Gujarat.
OBJECTIVE:

To provide minimum wages to the workers working in organized

sector(scheduled employment)
To stop exploitation of the workers
To empower the government to take steps for fixing minimum wages
and to revise this wages within a period of five years.
To provide for appointment of Advisory Committees & Advisory
Boards, having equal representatives of employers and workers.