MINIMUM WAGE COMPLIANCE MANDATORY IN OFFICES NOW

A BLOG BY

GAURAV RAJ BHAGAT
ADVOCATE
HIGH COURT M.P

Government of India of lately seems to be very serious about the implementation of the Minimum Wages act as a part of mandatory compliance and is stern about defiant s

Applicability of the act can be very well understood in the light of the following two verdicts

Bakshish Singh v. Darshan Engineering Works 1994 .

There is one principle which admits of no exception.  No industry has a right to exist unless it is able to pay its working men at least a bare minimum wages.  Hence if  an employer cannot maintain his enterprise without cutting down the wages of his employees he would have no right to conduct his enterprise.

 Adoni v. State of Andhra Pradesh. 1981.

    Minimum wages does not violate any of the fundamental rights.  On the other hand    it fulfills the obligations of the state under the directing principles of the state        policy. 

Employer is defined under Section 2 (e) of the act as

Employer; means any person who employs, whether directly or through another person, or whether on behalf of himself or any other person, one or more employees in any scheduled employment in respect of which minimum rates of wage have been fixed under this act, and includes, except

(1) in a factory in respect of which minimum rates of wages have been fixed under this Act.

(2) in any scheduled employment under the control of any government in India in respect of which minimum rates of wages have been fixed under this Act the person or authority appointed by such government.

(3) in any scheduled employment under any local authority in respect of which minimum rates of wages have been fixed under this Act.

(4) in any other case where there is carried on any scheduled employment in respect of which minimum rates of wages have been fixed under this Act any person responsible to the owner for the supervision and control of the employees or for the payment of wages;

  Wages are clearly defined under Section 2 (h) as  "wages" means all remuneration capable of being expressed in terms of money which would if the terms of the contract of employment express or implied were fulfilled be payable to a person employed in respect of his employment.

                           

Does not include:

(i) the value of –

(a) any house accommodation, supply of light, water, medical attendance or

(b) 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 person 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;

(v) any gratuity payable on discharge;

Employee is defined under Section2 (i) as "employee" means any person who is employed for hire or reward to do any work skilled or unskilled manual or clerical in a scheduled employment in respect of which minimum rates of wages have been fixed; and

•      includes an out-worker to whom any articles or materials are given out by another person

•      to be made up cleaned washed altered ornamented finished repaired adapted or

•      otherwise processed for sale for the purposes of the trade or business of that other person

•      and also includes an employee declared to be an employee by the appropriate government; but does not include any member of the Armed Forces of the Union.

Fixing of minimum rates of wages Section 3

(1) The appropriate government shall in the manner hereinafter provided –

          (a) fix the minimum rates of wages payable to employees employed in an                       employment specified. by notification under section 27.

(2) The appropriate government may fix –

          (a) a minimum rate of wages for time work (hereinafter referred to as "a minimum time rate");

          (b) a minimum rates of wages for piece work (hereinafter referred to as "a minimum piece rate");

          (c) a minimum rate of remuneration to apply in the case of employees employed on piece work for the purpose of securing to such employees a minimum rate of wages on a time work basis (hereinafter referred to as "a guaranteed time rate");

          (d) a minimum rate (whether a time rate or a piece rate) to apply in substitution for the minimum rate which would otherwise be applicable in respect of overtime work done by employees (hereinafter referred to as "overtime rate").

22B. Cognizance of offences

No court shall take cognizance of a complaint against any person for an offence –

          (a) unless an application in respect of the facts constituting such offence has been presented and has been granted wholly or in part and the appropriate government or an officer authorized by it is this behalf has sanctioned the making of the complaint;

          (b) under clause (b) of section 22 or under section 22A except on a complaint made by or with the sanction of an Inspector.

(2) No court shall take cognizance of an offence –

          (a) unless complaint thereof is made within one month of the grant of sanction under this section;

          (b) unless complaint thereof is made within six months of the date on which the offence is alleged to have been committed.

Section 22C Offences by companies

(1) If the person committing any offence under this Act is a company every person who at the time the offence was committed was in charge of and was responsible to the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :

•      Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

•      Explanation : For the purposes of this section –

          (a) "company" means any body corporate and includes a firm or other association of individuals and

         

          (b) "director" in relation to a firm means a partner in the firm.

Section 22D Payment of undisbursed amounts due to employees

•      All amounts payable by an employer to an employee as the amount of minimum wages of the employee under this Act or otherwise due to the employee under this Act or any rule or order made there under shall if such amounts could not or cannot be paid to the employee on account of his death before payment or on account of his whereabouts not being known be deposited with the prescribed authority who shall deal with the money so deposited in such manner as may be prescribed.

Gaurav Raj Bhagat

Chief Legal Consultant

Intellisol Legal Consultants

www.adgintellisol.com