Summary / Important Points of MINIMUM WAGES ACT 1948 India in Word / Doc / Pdf Free Download
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FORM X (Notice
Rule 23)
Abstract of the
Minimum Wages Act, and the Rules made there under
I. Whom the Act affects
(a) The Act applies to persons engaged on scheduled
employments on specified class of work in respect of which minimum wages have
been fixed.
(b) No employee can give up by contract or agreement his
rights in so far it purports to reduce the minimum rates of wages fixed under
the Act.
II. Definitions of Wages
1) "wages" means all remuneration, payable to
an employed person on the
fulfillment
of his Contract of employment. It includes:
(i) the value of
any house- accommodation, supply of light, water, medical attendance, or
any
other amenity or any service excluded by general or special order of the
appropriate
Government;
(ii) Any contribution paid by the employer to any
Pension Fund or Provident Fund or
Under
any scheme of social insurance;
(iii) Any
traveling allowance or the value of any traveling concession;
(iv) Any sum
paid to the person employed to defray special expenses entailed on him by the
nature
of his employment; or
(v) Any
gratuity payable on discharge;
2)
The minimum rates of wages may consist of:
i)
A basic rate of
wages and a special allowance called the cost of living allowance
ii)
A basic rate of
wage with or without a cost of living allowance and the cash value of any
concessions, like supplies of essential commodities at concession rates
iii)
An all-inclusive
rate comprising of basic rate, cost of living allowance and cash value of
concession, if any.
3) The
minimum wages payable to employees of scheduled employments notified under
Section 5 read with Section 3 or as revised from time to time under Section 10
read with section 3 may be:
a)
A minimum time
rate,
b)
A minimum piece
rate,
c)
A guaranteed time
rate,
d)
An overtime rate
Differing with (1) different scheduled employments, 2)
different classes of work, 3) different localities, 4) different wage period,
5) different age group.
III. Computation and conditions of Payment
The employer shall pay to every employee engaged in
scheduled employment under him wages at a rate not less than the minimum rate
of wages fixed for that class of employee.
The minimum wages payable under this Act shall be paid
in cash unless the Government authorizes payment thereof either wholly or
partly in kind.
Wage periods shall be for the payment of wages at
intervals not exceeding one month.
Wage shall be paid on working day within 7 days of the
end of the wage periods or within 10 days if 1000 or more persons are employed.
The wages of a person discharged shall be paid not
latter than the second working days after his discharge. If an employee is
employed on any day for a period less than the normal working day he shall be
entitled to receive wages for a full normal working day provided his failure to
work is not caused by his unwillingness to work but by the omission of the
employer to provide him with work for that period.
Where an employee does two or more classes of work for
which a different minimum rate of wages is applicable, the employer shall pay
to such employee in respect of the time occupied in each such class of work
wages as not less than minimum rate in force in respect of each such class.
Where an employee is employed on piecework for which
minimum time rate and not a minimum piece rate has been fixed, the employer
shall pay to such employee wages not less than the minimum time rate.
IV.
Hours of
Work and Holidays
The number of hours that shall constitute a normal working
day shall be
a)
In the case of an
adult 9 hrs, b) In the case of a child 4 ½ hrs
The
working day of an adult worker inclusive of the intervals of rest shall
Not
exceed 12 hours on any day.
“The employer shall allow a day of rest with wages to
the employees every week. Ordinarily Sunday will be weekly day of rest but any
other day of the week may be fixed as such rest day. No employee shall be
required to work on a day fixed as rest day, unless he is allowed a substituted
rest day (see rile 24)”.
When a worker works in an employment for more than 9
hours on any day or more than 48 hours in any week, he shall in respect of
overtime worked be entitled to wages in scheduled employment other than
agriculture at double the ordinary rate of wages.
V.
Fines and
deductions.
No deductions shall be made from wages except those
authorized by or under the rules. Deductions from the Wages shall be one or
more of the following kinds, namely:
i)
Fine: - The act
or omission in respect of which the fine is proposed to be imposed shall be
explained in person and also in writing to an employed person and he shall be
given an opportunity to offer any explanation in the presence of another
person. The amount of the said fine shall also be intimated to him. It shall
be, the State Government may specify such. It shall be utilized in accordance
with the directions of the State Government.
ii)
Deductions for
absence from duty
iii) Deductions or damages to or loss of goods entrusted to
the employee for custody, or for loss of money for which he is required to
account, where such damages or loss is directly attributable to his neglect or
default, the damages or loss in respect of which the deduction is proposed to
be made shall be explained in person and also in writing to the employed
person, and he shall be given an opportunity to offer any explanation in the
presence of another person. The amount of the said deduction shall also be
intimated to him. It shall be such as may be specified by the State Government.
iv) Deductions for house accommodation supplied by the
employer
v) Deductions for such amenities and services supplied by
the employer as the State Government may by general or special order authorize.
These will not include the supply of tools and protective required for the
purpose of employment.
vi) Deductions for recovery of advances or for adjustment
of over payment of wages such advances shall not exceed an amount equal to
wages for two calendar months of the employed person and the monthly
installment of deduction shall not exceed 1/4th of the wages earned
in that month.
vii) Deductions of Income- tax payable by the employed
person,
viii) Deductions required to be made by order of a court or
other component authority
ix) Deductions for payment to Co-operative Societies or a
scheme of Insurance approved by the State Government.
VI. Maintenance of Registers and Records
Every employer shall maintain a register of wages
specifying the following particulars for each period in respect of each
employed person:
a)
The minimum rates
of wages payable.
b)
The number of
days in which overtime was worked
c)
The gross wages
d)
All deductions
made from wages
e)
The wages
actually paid and the date of payment
Every employer shall issue wage slips containing
prescribed particulars to every person
employed.
Every employer shall get the signature or the thumb
impression of every person employed on the wage- books and wage slips.
The employer or his agent shall properly authenticate
entries in the Wages Books and Wage slips.
A muster roll shall be maintained by every employer and
kept in the form prescribed.
Every employer shall keep exhibited at such places
selected by the Inspector notices in English and in language understood by
majority of the workers of the following particulars in a clean and legible
form:
a) Minimum rate
of wages
b) Extract form
the Act and the rules made there under
c) Name and
address of the Inspector
VII. Inspections
An Inspector can enter in any
premises and can exercises powers of inspection (including examination of
documents and taking of evidence) as he may deem necessary for carrying out the
purposes of the act
VIII.
Where an employee is paid less than the minimum rates of wages fixed for his class of work or less than the amount due to him under the provisions of this Act, he can make an application in the prescribed form within 6 months to the authority appointed for the purpose. An application delayed beyond this period may be admitted if the authority is satisfied that the applicant had sufficient causes for not making the application within such period.
Any legal practitioner,
official of a registered Trade Union, Inspector under the Act or other person
acting with the permission of the authority can make the complaints on behalf
of the employed person.
A single application may be
presented by or on behalf of any number of persons belonging to the same
factory; the payment of wages has been delayed.
A complaint regarding less
payment of notified wages under Section 22 of the Act can be made to the Court
only with the sanction of the authority within 01 month of the grant of such
sanction.
A complaint under Section 22
of the Act can be made to the Court only or with the sanction of an Inspector
within 06 months of the date on which the offences are alleged to have been
committed.
IX.
Action by
the Authority
The authority may direct the
payment by which the minimum wages payable exceeds the amount actually paid
together with the payment of compensation not exceeding 10 times the amount of
such excess. The authority may direct payment of compensation in cases where
the excess is paid before the disposal of the application.
If a malicious or vexatious
complaint is made, the authority may impose a penalty not exceeding Rs. 50/- on
the applicant and order that it be paid to the employer. Every direction of the
Authority shall be final.
X.
Penalty
for the offence under the Act
Any employer who pays to any
employee less than the amount due to him under the provisions of this Act or
infringes any order or rules in respect of normal working day, weekly holiday,
shall be punishable with imprisonment of either description for a term which
may extend to 06 months or with fine which may extend to Rs. 500/- or both.
Any employer who fails to
maintain a register or record required to be maintained under Section 18, shall
be punishable with fine, which may extend to Rs. 500/-.
XI.
Minimum rates
of wages fixed
S. N.
|
Categories of
Employees
|
Minimum Wages
|
1
|
High Skilled
|
|
2
|
Skilled
|
|
3
|
Semi Skilled
|
|
4
|
Un Skilled
|
XII. Name(s) and Address of
the Inspector(s)
S. N.
|
Name
|
Address
|
1
|
||
2
|
||
3
|
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