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Business Environment - Minimum Wages Act, 1948 - Part 1 - Notes - Business Management, Study notes of Business Administration

Minimum, Worker, Physical, Compulsory, Bhavan, Arbuda, Hindustan, Workmen, ) Medical Expenses, Expenses, Transport, Commensurate, Workman

Typology: Study notes

2011/2012

Uploaded on 02/19/2012

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MINIMUM WAGES ACT, 1948
INTRODUCTION
The Minimum Wages Act of 1948 is not only a measure of social security for the
poverty stricken workers, but it is also a device for improving the standard of living of
the downtrodden and thereby paving the way for their betterment and ultimate welfare.
The continuing tendency among the employer is only to exploit the labourers
who happen to be illiterates and who never possessed the necessary prowess to fight
against the ingenuity of the employers.
The Minimum Wages Act
(i) Assures wages so as to help the workers to eke out their livelihood,
at least to an extent of sustaining the adversities, namely, rise in the
cost of living.
(ii) Prevents the employers from exploiting the labourers by paying
wages far below their needs; and
(iii) Lays down principles for fixation of wages on a need based scale.
DEFINITION
Though Minimum Wages has not been defined anywhere in the Minimum
Wages Act, it can be defined generally. In common sense, minimum wages is the bare
subsistence money required by the worker not only to meet the basic needs such as
food, shelter and clothing but it is also includes monies required for medical expenses,
education for children and traveling expenses to a worker in a family. Family consists
of husband, wife, and two children.
OBJECTS AND SCOPE OF THE ACT
The Minimum Wages Act contemplates
(i) The wages that are paid to the workers should meet their physical needs
and at the same time.
(ii) Keep them above starvation level.
(iii) It should ensure sustenance for their family; and
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MINIMUM WAGES ACT, 1948

INTRODUCTION

The Minimum Wages Act of 1948 is not only a measure of social security for the poverty stricken workers, but it is also a device for improving the standard of living of the downtrodden and thereby paving the way for their betterment and ultimate welfare.

The continuing tendency among the employer is only to exploit the labourers who happen to be illiterates and who never possessed the necessary prowess to fight against the ingenuity of the employers. The Minimum Wages Act (i) Assures wages so as to help the workers to eke out their livelihood, at least to an extent of sustaining the adversities, namely, rise in the cost of living. (ii) Prevents the employers from exploiting the labourers by paying wages far below their needs; and (iii) Lays down principles for fixation of wages on a need based scale.

DEFINITION

Though Minimum Wages has not been defined anywhere in the Minimum Wages Act, it can be defined generally. In common sense, minimum wages is the bare subsistence money required by the worker not only to meet the basic needs such as food, shelter and clothing but it is also includes monies required for medical expenses, education for children and traveling expenses to a worker in a family. Family consists of husband, wife, and two children.

OBJECTS AND SCOPE OF THE ACT

The Minimum Wages Act contemplates

(i) The wages that are paid to the workers should meet their physical needs and at the same time. (ii) Keep them above starvation level. (iii) It should ensure sustenance for their family; and

(iv) Also enable them to subsist by preserving their efficiency as workmen in day-to-day life. Norms to be followed for fixation of minimum wages

(a) Irrespective of the financial adversities and other problems, an employer, has to pay compulsory minimum wages to his workmen. (b) Wages paid to workmen must be sufficient to provide, a standard family, with food, shelter, clothing, medical care and education for their children. This is known as fair wage. (c) (i)Fair wage is not a living wage. It is a mean between living wage and minimum wage. The minimum wage itself is slightly above the bare minimum. [ Sandash Ltd., Vs. Union of India A.I.R. (1958) S.C. 578 ] (ii) Living wage meets the normal ne4ds of an average worker as a human being, living in a civilized society. Living wage not only ensures bare physical subsistence, but also maintenance of health and decency, conducive to the general interest of the public. [ Bijoy Cotton Mills. Vs. State of Ajmer A.I.R. (1955) S.C.33. ] (iii) Concept of minimum wage, fair wage and living wage is bound to change in accordance with the growth and development of industries and living standard of the employees. [ Standard Vacuum Refining Co. of India vs. Its Workmen A.I.R. (19610 S.C. 895 ] (iv) Fair wage, although may be set at the level of minimum wage at the beginning, yet, it can be enhanced in gradual stages depending upon the capacity of the industry to pay. Hence, the lowest limit of fair wages is at the level of minimum wage and its upper limit may be enhanced to the level of living wage. [ Express News paper Pvt. Ltd. Vs. Union of India A.I.R. (1959) S.C.R. 12 ]

(d) (i) Wages required by the employees is more relevant than the financial capacity of the industries to meet the requirement of the labourers. [ Arbuda Bhavan vs. State of Maharashtra 91991) Lab.I.C. 1671 Bom .]