LexThe MINIMUM WAGES ACT, 1948
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9(3) The Punjab Minimum Wages Rules, 1950
INDEX
THE MINIMUM WAGES ACT, 1948
Sec. Particulars
Introduction
1. Short title and extent
2. Interpretation
3. Fixing of minimum rates of wages
4. Minimum rate of wages
5. Procedure for fixing and revising minimum wages
6. [Repealed]
7. Advisory Board
8. Central Advisory Board
9. Composition of committees, etc.
10. Correction of errors
11. Wages in kind
12. Payment of minimum rates of wages
13. Fixing hours for normal working day, etc.
14. Overtime
15. Wages of worker who works for less than normal working
day
16. Wages for two or more classes of work
17. Minimum time rate wages for piece work
18. Maintenance of registers and records
19. Inspectors
20. Claims
21. Single application in respect of a number of e mployees
22. Penalties for certain offences
22A. General provision for punishment of other offe nces
22B. Cognizance of offences
Sec. Particulars
22C. Offences by companies
22D. Payment of un-disbursed amounts due to employe es
22E. Protection against attachment of assets of emp loyer with
Government
22F. Application of Payment of Wages Act, 1936 to s cheduled
employments
23. Exemption of employer from liability in certai n cases
24. Bar of suits
25. Contracting out
26. Exemptions and exceptions
27. Power of State Government to add to Schedule
28. Power of the Central Government to give direct ions
29. Power of the Central Government to make rules
30. Power of appropriate Government to make rules
30 A. Rules made by the Central Government to be laid before
Parliament
31. Validation of fixation of certain minimum rate s of wages ...
THE SCHEDULE.— [Scheduled Employment-See section
2(g) and 27]
9(3) The Punjab Minimum Wages Rules, 1950
THE MINIMUM WAGES ACT, 1948
INTRODUCTION
The concept of minimum wages first evolved with re ference to remuneration
of workers in those industries where the level of w ages was substantially low as
compared to the wages for similar types of labour i n other industries. As far back
as 1928, the International Labour Conference of Int ernational Labour
Organisation, at Geneva, adopted a draft convention on minimum wages
requiring the member countries to create and mainta in a machinery whereby
minimum rates of wages can be fixed for workers emp loyed in industries in which
no arrangements exist for the effective regulation of wages and where wages are
exceptionally low. Also, at the Preparatory Asian R egional Labour Conference of
International Labour Organisation held at New Delhi in 1947 and then at the 3rd
session of the Asian Regional Labour Conference, it was approved that every
effort should be made to improve wage standards in industries and occupations
in Asian Countries, where they are still low. Thus, the need of a legislation for
fixation of minimum wages in India received an impe tus after World War II, on
account of the necessity of protecting the interest of demobilised personnel
seeking employment in industries. To provide for ma chinery for fixing and
revision of minimum wages a draft Bill was prepared and discussed at the 7th
session of the Indian Labour Conference in November , 1945. Thereupon the
Minimum Wages Bill was introduced in the Central Legislative Assembly.
STATEMENT OF OBJECTS AND REASONS
1. The justification for statutory fixation of mini mum wage is obvious. Such
provisions which exist in more advanced countries a re even necessary in
India, where workers’ organizations are yet poorly developed and the
workers’ bargaining power is consequently poor.
2. The Bill provides for fixation by the Provincia l Governments of minimum
wages for employments covered by Schedule to the Bi ll. The items in the
Schedule are those where sweated labour is more prevalent or where there is
a big chance of exploitation of labour. After somet ime, when some
experience is gained, more categories of employment can be added and the
Bill provides for addition to the Schedule. A highe r period is allowed for
fixation of minimum wages for agricultural labour a s administrative difficulties
in this case will be more than in other employments covered by the Schedule.
The Bill provides for periodical revision of wages fixed.
3. Provisions had been made for appointment of Adv isory Committees and
Advisory Boards, the latter for co-ordination work of the Advisory
Committees. The Committees and the Boards will have equal representation
of employers and workmen. Except on initial fixatio n of minimum wages,
consultation with the Advisory Committee will be ob ligatory on all occasions
of revision.
4. In cases where an employer pays less than the m inimum wages fixed by the
Provincial Government a summary procedure has been provided for recovery
of the balance with penalty and subsequent prosecut ion of the offending
party.
5. It is not ordinarily proposed to make any exemption s in regard to employees
of undertakings belonging to the Central Government except that difficulties
might arise when the sphere of duty of such an empl oyer covers more than
one province and where the rates of minimum wages f ixed by the different
provinces may be different. For this purpose a prov ision has been included
that the minimum wages fixed by a Provincial Govern ment will not apply to
employees in any undertaking owned by the Central G overnment or
employees of a Federal Railway, except with the con sent of the Central
Government.
ACT 11 OF 1948
The Minimum Wages Bill having been passed by the L egislature received its
assent on 15th March, 1948. It came on the Statute Book as THE MINIMUM
WAGES ACT, 1948 (11 of 1948).
LIST OF AMENDING ACTS AND ADAPTATION ORDER
1. The Adaptation of Laws Order, 1950.
2. The Minimum Wages (Amendment) Act, 1950 (56 of 1 950).
3. The Part B States (Laws) Act, 1951 (3 of 1951).
4. The Minimum Wages (Amendment) Act, 1951 (16 of 1951).
5. The Minimum Wages (Amendment) Act, 1954 (26 of 1954).
6. The Minimum Wages (Amendment) Act, 1957 (30 of 1957).
7. The Minimum Wages (Amendment) Act, 1961 (31 of 1961).
8. The Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (51
of 1970).
9(3) The Punjab Minimum Wages Rules, 1950
9. The Child Labour (Prohibition and Regulation) A ct, 1986 (61 of 1986).
10. The Delegated Legislation Provisions (Amendment) Act, 2004 (4 of 2005).
THE MINIMUM WAGES ACT, 1948 1
(11 of 1948)
[15th March, 1948] An Act to provide for fixing minimum rates of wages in certain
employments.
whereas it is expedient to provide for fixing mini mum rates of wages in certain
employments;
It is hereby enacted as follows:—
1. Short title and extent. —
(1) This Act may be called the Minimum Wages Act, 1948.
(2) It extends to
2[the whole of India] 3[***].
2. Interpretation. —In this Act, unless there is anything repugnant in the subject
or context,—
4[(a) “adolescent” means a person who has completed his fourteenth ye ar of
age but has not completed his eighteenth year;
(aa) “adult” means a person who has completed his eighteenth year of age;]
(b) “appropriate Government” means—
(i) in relation to any scheduled employment carrie d on by or under the
authority of the 5[Central Government or a railway administration], o r
1 For Statement of Objects and Reasons, see Gazette of India, 1946, Pt. V, p. 224 and for the
Report of the Select Committee, sec Gazette of India, 1 948, Pt. V, pp. 55-58. This Act has
been extended to Dadra and Nagar Haveli by Reg. 6 of 1963, sec. 2 and Sch. I, to Pondicherry
by Reg. 7 of 1963, sec. 3 and Sch. 1 and to Laccadive, Minicoy and Amindivi Islands by Reg. 8
of 1965. sec. 3 and Sch.
The provisions of this Act shall come into force in the S tate of Sikkim with effect from 1st day of
October, 2004, vide S.O. 1078 (E), dated 1st October, 2004.
2 Subs. by the A.O. 1950, for ‘all the Provinces of In dia’.
3 The words ‘except the State of Jammu and Kashmir’ omi tted by Act 51 of 1970, sec. 2 and
Sch. (w.e.f. 1-9-1971).
4 Subs. by Act 61 of 1986, sec. 23, for clause (a) (w.e. f. 23-12-1986).
5 Subs. by Act 30 of 1957, sec. 2, for “Central Govt, b y a railway administration” (w.e.f. 17-9-
1957).
in relation to a mine, oil-field or major port, or any corporation
established by 1[a Central Act], the Central Government, and
(ii) in relation to any other scheduled employment, the 2 [State
Government];
3[(bb) “child” means a person who has not completed his fourteenth year of
age;]
(c) “competent authority” means the authority appointed by the appropriate
Government by notification in its Official Gazette to ascertain from time to
time the cost of living index number applicable to the employees
employed in the scheduled employments specified in such notification;
(d) “cost of living index number” in relation to employees in any scheduled
employment in respect of which minimum rates of wag es have been
fixed, means the index number ascertained and decla red by the
competent authority by notification in the Official Gazette to be the cost of
living index number applicable to employees in such employment;
(e) “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 re spect of which
minimum rates of wages have been fixed under this A ct, and includes,
except in sub-section (3) of section 26,—
(i) in a factory where there is carried on any sche duled employment in
respect of which minimum rates of wages have been f ixed under this
Act, any person named under
4[clause (f) of sub- section (1) of section
7 of the Factories Act, 1948 (63 of 1948)], as manager of the factory;
(ii) in any scheduled employment under the control of any Government in
India in respect of which minimum rates of wages ha ve been fixed
under this Act, the person or authority appointed b y such Government
for the supervision and control of employees or whe re no person or
authority is so appointed, the head of the department;
(iii) in any scheduled employment under any local a uthority in respect of
which minimum rates of wages have been fixed under this Act, the
1 Subs. by the A.O. 1950, for “an Act of the Central Legislature”.
2 Subs. by A.O. 1950, for “Provincial Government”.
3 Ins. by Act 61 of 1986, sec. 23 (w.e.f. 23-12-1986).
4 Subs. by Act 26 of 1954, sec. 2, for “clause (e] of su b-section (1) of section 9 of the Factories
Act, 1934 (25 of 1934)” (w.e.f. 20-5-1954)
9(3) The Punjab Minimum Wages Rules, 1950
person appointed by such authority for the supervis ion and control of
employees or where no person is so appointed, the c hief executive
officer of the local authority;
(iv) in any other case where there is carried on any scheduled
employment in respect of which minimum rates of wag es 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;
(f) “prescribed” means prescribed by rules made under this Act;
(g) “scheduled employment” means an employment specified in the
Schedule, or any process or branch of work forming part of such
employment;
(h) “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 or of work done in such employment 1[and includes
house rent allowance], but 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 ge neral or special
order of the appropriate Government;
(ii) any contribution paid by the employer to any P ension Fund or
Provident Fund or under any scheme of social insur ance;
(iii) any travelling 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;
(i) “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 wag es have been
fixed; and includes an out-worker to whom any artic les or materials are
given out by another person to be made up, cleaned, washed, altered,
ornamented, finished, repaired, adapted or otherwis e processed for sale
1 Ins. by Act 30 of 1957, sec. 2 (w.e.f. 17-9-1957).
for the purposes of the trade or business of that o ther person where the
process is to be carried out either in the home of the out-worker or in
some other premises not being premises under the co ntrol and
management of that other person; and also includes an employee
declared to be an employee by the appropriate Gover nment; but does not
include any member of the Armed Forces of the 1[Union].
(i) A detective agency is not covered under the p rovisions of this Act. There is
no logic that when the employees as engaged through the detective agency
worked in an engineering industry, the employer is liable to pay the minimum
wages but when the same employees engaged by the de tective agency are
on private duty, they arc not entitled to such mini mum wages. Hence, no
relief could be granted, either against the contractor or the principal employer,
Linge Gowda Detective and Security Chamber (P) Ltd. v. Authority under
Minimum Wages Act, 1998 LTR 77.
(ii) The definition of “employer” is a restrictive definition and only a person who
employs one or more employees in any scheduled empl oyment would be the
employer within the meaning of the Act and no doubt it includes the
employees as detailed in the various sub-clauses of section 2(e); A.V.
Parkash v. Senior Labour Inspector, 1994 LLR 304 (Karn).
(iii) A piece-rated worker is also entitled to rece ive the minimum wages
irrespective of his output; Bandhua Mukti Morcha v. Union of India, (1984)
SCC (L&S) 389.
(iv) Where certain tube-well operators were working in the District and Taluka
Panchayats they would be in the Scheduled employmen t as contemplated by
section 2(g), employment under any local authority being item 6 in the
Schedule to the Act, and as such, would be entitled to minimum wages under
the Act; Patel Ishwerbhai Pramod Bhai v. Taluka Development Officer, 1983
Lab 1C 321: (1983) 1 SCC 403: 1983 (62) FJR 189: (1983) 1 LLJ 237.
(v) Any payment which partakes the nature of lay-of f compensation cannot fall
within the term “wages” as defined in section 2(h); Madhya Pradesh Bidi
Udyog Sangh, Sagar v. State of Madhya Pradesh, 1981 Lab 1C 363: 1981
Lab LN 434: (1981) LLJ 756.
1 Subs. by the A.O. 1950, for “Crown”.
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9(3) The Punjab Minimum Wages Rules, 1950
(vi) Having regard to the context and object of the Act, a discharged employee
must also be held to be an employee within the mean ing of the Act; Athni
Municipality v. Shiettappa Laxman Pattan, (1965) II LLJ 307.
(vii)Under the definition of the word “employer” in section 2(e)(iv) of the Act , any
person responsible to the owner for the supervision and control of the
employees or for the payment of wages to them is al so an employer; Shiv
Prasad Ghosh v. District Judge, 1963 (6) FJR 447: (1963) II LLR.) 384.
(viii)An ex-employee is competent to claim relief u nder the Minimum Wages Act;
Chacko v. Varkey 1961 (3) FLR 508: 1961-62 (21) FJR 493.
3. Fixing of minimum rates of wages.—
1[(1)The appropriate Government shall, in the manner hereinafter provided,—
2[(a) fix the minimum rates of wages payable to empl oyees employed in
an employment specified in Part I or Part 11 of the Schedule and in an
employment added to either Part by notification und er section 27:
Provided that the appropriate Government may, in re spect of
employees employed in an employment specified in Pa rt II of the
Schedule, instead of fixing minimum rates of wages under this clause
for the whole State, fix such rates for a part of t he State or for any
specified class or classes of such employment in th e whole State or
part thereof;]
(b) review at such intervals, as it may think fit, such intervals not
exceeding five years, the minimum rates of wages so fixed and revise
the minimum rates, if necessary:
3[Provided that where for any reason the appropriate Government has not
reviewed the minimum rates of wages fixed by it in respect of any scheduled
employment within any interval of five years, nothi ng contained in this clause
shall be deemed to prevent it from reviewing the mi nimum rates after the
expiry of the said period of five years and revisin g them, if necessary, and
until they are so revised the minimum rates in forc e immediately before the
expiry of the said period of five years shall continue in force.]
(1A)Notwithstanding anything contained in sub-secti on (1), the appropriate
Government may refrain from fixing minimum rates of wages in respect of
any scheduled employment in which there are in the whole State less
1 Subs. by Act 26 of 1954, sec. 3, for sub-section (1) (w .e.f. 20-5-1954).
2 Subs. by Act 31 of 1961, sec. 2, for da use (.1) w.e. f. 28-8-1961)
3 Ins. by Act 30 of 1957, sec. 3 (w.e.f. 17-9-1957).
than one thousand employees engaged in such employm ent, but if at any
time, 1[***| the appropriate Government comes to a finding after such
inquiry, as it may make or cause to be made in this behalf, that the
number of employees in any scheduled employment in respect of which it
has refrained from fixing minimum rates of wages ha s risen to one
thousand or more, it shall fix minimum rates of wag es payable to
employees in such employment 2[as soon as may be after such finding].]
(2) The appropriate Government may fix—
(a) a minimum rate of wages for time work (hereinaf ter referred to as ‘a
minimum time rate’);
(b) a minimum rate of wages for piece work (hereina fter 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 other wise be
applicable, in respect of overtime work done by emp loyees
(hereinafter referred to as ‘overtime rate’).
3[(2A) Where in respect of an industrial dispute rel ating to the rates of wages
payable to any of the employees employed in a sched uled employment,
any proceeding is pending before a Tribunal or Nati onal Tribunal under
the Industrial Disputes Act, 1947 (14 of 1947) or b efore any like authority
under any other law, for the time being in force, o r an award made by any
Tribunal, National Tribunal or such authority is in operation, and a
notification fixing or revising the minimum rates o f wages in respect of the
scheduled employment is issued during the pendency of such proceeding
or the operation of the award, then, notwithstandin g anything contained in
this Act, the minimum rates of wages so fixed or so revised shall not
apply to those employees during the period in which the proceeding is
pending and the award made therein is in operation or, as the case may
1 Certain words omitted by Act 31 of( 1961, see. 2 (w .e.f. 28-8-1961).
2 Subs, by Act 31 of 1961, sec. 2, for “within one yea r from the date on which it comes to such
finding” (w.e.f. 28-8-1961).
3 Ins. by Act 31 of 1961, sec. 2 (w.e.f. 28-8-1961],
9(3) The Punjab Minimum Wages Rules, 1950
be, where the notification is issued during the per iod of operation of an
award, during that period; and where such proceedin g or award relates to
the rates of wages payable to all the employees in the scheduled
employment, no minimum rates of wages shall be fixe d or revised in
respect of that employment during the said period.]
(3) In fixing or revising minimum rates of wages under this section,—
(a) different minimum rates of wages may be fixed for—
(i) different scheduled employments;
(ii) different classes of work in the same scheduled employment;
(iii) adults, adolescents, children and apprentices;
(iv) different localities;
1[(b)minimum rates of wages may be fixed by any one or more of the
following wage-periods, namely:—
(i) by the hour,
(ii) by the day,
(iii) by the month, or
(iv) by such other larger wage-period as may be pre scribed, and
where such rates are fixed by the day or by the mon th, the
manner of calculating wages for a month or for a da y, as the case
may be, may be indicated:]
Provided that where any wage-periods have been fixed under section 4 of
the Payment of Wages Act, 1936 (4 of 1936), minimum wages shall be
fixed in accordance therewith.
(i) The Govt. cannot take shelter under proviso to sec, 3(1)(b) of the Act for
postponing to issue the revised notification after five years. The Govt. cannot
indefinitely postpone the issuance of revised notif ication fixing minimum
wages. Definitely, the period of 13 years cannot be said to be reasonable
period; President, Cinema Workers’ Union affiliated to Bhartiya Mazdoor
Sangh v. Secretary, Social Welfare and Labour Department, 2005 LLR 648.
(ii) Where a notification by itself does not intend to make any classification of
workmen except classification for fixing minimum ra tes of wages for adult
employees, it was held that such classification is permissible in law, and
1 Subs. by Act 30 of 1957, sec. 3, for clause (b) (w.e.f . 17-9-1957).
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accordingly such notification is not bad or invalid ; Govind Bhawan Karyalaya
v. State of U.P., 1998 LLR 287.
(iii) The appropriate authorities should take into consideration the components
such as children education allowance, medical requi rements, minimum
recreation, provision for old age and marriage, etc ., which should be
additional 25% of the total minimum wages; The Workmen v. Management of
Reptakos Bret & Co. Ltd., 1992 LLR 1 (SC).
(iv) The minimum wages must be paid by the employer notwithstanding the want
of financial capacity; Woolcombers of India v. Workers Union, AIR 1973 SC
2758: 197,3 (27) FLR 38.
(v) In order to make the wages realistic they must be commensurate with the
price rise in essential commodities. The apology th at the employer may be
constrained to shut his business if minimum wages a re to be paid is simply
untenable; Hydro (Engineers) Put. Ltd. v. The Workmen, 1969 (18) FLR 189:
(1969) 1 LLJ 713.
(vi) Section 3 empowers the appropriate Government to fix the minimum rates of
wages, thereby enabling the appropriate Government to alter the existing
legal condition between the employer and employee w hich is not
commensurate with the provisions of the Act; Bidi, Bidi Leaves and Tobacco
Merchants Association v. State of Bombay, 1962 (4) FLR 71: (1961) II LLJ
663.
(vii)Employer’s capacity to pay is no bearing in fi xing the minimum wages of the
employees. Such consideration is antilogs to the pr inciples enshrined within
the Constitution of India; Unichoyi (U) v. State of Kerala, 1961 (3) FLR 73:
(1961) 1 LL] 631.
(viii)The Act does not confer any power on the gove rnment to insist that an
employer employing workers on time rate should pay them at piece-rates.
Neither the government has any power to issue any n otification on the basis
of section 3 to make such metamorphosis of payment; Abraham v. Industrial
Tribunal, (1961) II LLJ 556.
(ix) Cost of living index is not a strict basis for fixing the rates of minimum wages
and if not strictly adhered to, it does not constit ute a breach of statutory duty;
Bhikusa Yamasakshatriya v. Sanagmanes Akola Paluka Bidi Kamgar Union,
AIR 1960 Bom 299: (1959) II LLJ 578.
4. Minimum rate of wages.—
9(3) The Punjab Minimum Wages Rules, 1950
(1) Any minimum rate of wages fixed or revised by t he appropriate
Government in respect of scheduled employments unde r section 3 may
consist of—
(i) a basic rate of wages and a special allowance at a rate to be
adjusted, at such intervals and in such manner as t he appropriate
Government may direct, to accord as nearly as pract icable with the
variation in the cost of living index number applic able to such workers
(hereinafter referred to as the ‘cost of living allowance’); or
(ii) a basic rate of wages with or without the cost of liv ing allowance, and
the cash value of the concessions in respect of sup plies of essential
commodities at concession rates, where so authorised; or
(iii) an all-inclusive rate allowing for the basic rate, the cost of living
allowance and the cash value of the concessions, if any.
(2) The cost of living allowance and the cash valu e of the concessions in
respect of supplies of essential commodities at con cession rates shall be
computed by the competent authority at such interva ls and in accordance
with such directions as may be specified or given b y the appropriate
Government.
Section 4 is a definite indication that basic wage is an integral part of the
minimum wage. It is not correct to say that a minim um wage under section 4(1)
necessarily should consist of basic wage and dearne ss allowance. The language
of section 4 does not lend itself to such an interp retation. On the plain terms of
section 4(1) it is clear that the payment of dearne ss allowance would arise only if
the basic wage fixed for a category of workmen fell short of the minimum wage
which the State Government has to fix taking into c onsideration the needs of the
workers’ family consisting of three consumption uni ts; Karnataka Film Chamber
of Commerce, Bangalore v. State of Karnataka, 1986 Lab 1C 1890: LLR 1986
Kant 2183.
1[5. Procedure for fixing and revising minimum wages.—
1 Subs. by Act 30 of 1157, sec. 4, for section 5 (w.e.f. 17-9-1957).
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(1) In fixing minimum rates of wages in respect of any scheduled employment
for the first time under this Act or in revising mi nimum rates of wages so
fixed, the appropriate Government shall either—
(a) appoint as many committees and sub-committees a s it considers
necessary to hold enquiries and advise it in respec t of such fixation or
revision, as the case may be, or
(b) by notification in the Official Gazette, publis h its proposals for the
information of persons likely to be affected thereby and specify a date,
not less than two months from the date of the notif ication, on which
the proposals will be taken into consideration.
(2) After considering the advice of the committee o r committees appointed
under clause (a) of sub-section (1), or as the case may be, all
representations
received by it before the date specified in the not ification under clause (b)
of that sub-section, the appropriate Government sha ll, by notification in
the Official Gazette, fix, or, as the case may be, revise the minimum rates
of wages in respect of each scheduled employment, a nd unless such
notification otherwise provides, it shall come into force on the expiry of
three months from the date of its issue:
Provided that where the appropriate Government pro poses to revise the
minimum rates of wages by the mode specified in cla use (b) of sub-
section (1), the appropriate Government shall consu lt the Advisory Board
also.]
(i) The State issued a notification to pay separate allowance in addition to the
basic wages, which was not challenged as to its val idity by the appellants.
Held, they have to pay the ‘wages’ now being paid a nd in addition to that the
minimum rate of “cost of living allowance” is to be paid by them separately, as
per the notification, even if they are paying highe r rate of wages; Krishna
Flour Mills v. Commissioner of Labour, 1997 (77) FLR 241.
(ii) What is contemplated by the Act to be notified under section 5(i)(b) is no
doubt draft proposals. The objection to draft propo sals can be made both by
employers and employees as well. Thus, if the employees had exercised their
privilege to represent and ask for higher wages and if eventually the State
authorities had adopted higher rates of minimum wages, that cannot be found
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9(3) The Punjab Minimum Wages Rules, 1950
fault with; T.G. Lakshmaiah Setty & Sons, Adoni v. State of Andhra Pradesh,
1981 Lab 1C 690.
(iii) It is necessary that the appropriate Governme nt in issuing notifications for
prescribing the rates of minimum wages under the Mi nimum Wages Act,
1948, punctiliously follows the letter of law and s trictly complies with all the
procedures laid down in the Act; Bijay Unchana Paul v. State of Assam, 1969
(19) FLR 11.
6. Advisory committees and sub-committees.— [Rep. by the Minimum
Wages (Amendment) Act, 1957 (30 of 1957), sec. 5 (w.e.f. 17-9-1957).]
7. Advisory Board. —For the purpose of coordinating the work of
1[committees
and subcommittees appointed under section 5] and ad vising the appropriate
Government generally in the matter of fixing and re vising minimum rates of
wages, the appropriate Government shall appoint an Advisory Board.
8. Central Advisory Board. —
(1) For the purpose of advising the Central and
2[State Governments] in the
matters of the fixation and revision of minimum rat es of wages and other
matters under this Act and for coordinating the wor k of the Advisory
Board, the Central Government shall appoint a Central Advisory Board.
(2) The Central Advisory Board shall consist of per sons to be nominated by
the Central Government representing employers and e mployees in the
scheduled employments, who shall be equal in number , and independent
persons not exceeding one-third of its total number of members; one of
such independent persons shall be appointed the Cha irman of the Board
by the Central Government.
9. Composition of committees, etc. —Batch of the committees, sub-committees
3[***] and the Advisory Board shall consist of perso ns to be nominated by the
appropriate Government representing employers and e mployees in the
scheduled employments, who shall be equal in number , and independent
1 Subs. by Act 30 of 1957 sec. 6, for “committees, sub-co mmittees, advisory committees and
advisory sub-committees appointed under sections 5 and 6” (w.e.f. 17-9-1957).
2 Subs. by A.O. 1950 for “Provincial Governments”.
3 The words “advisory committees, advisory sub-committees” o mitted by Act 30 of 1957, sec.
7(w.e.f. 17-9-1957).
persons not exceeding one third of its total number of members; one of such
independent persons shall be appointed the Chairman by the appropriate
Government.
(i) The Advisory body has no functioning of quasi- judicial nature and their
recommendation/decision is not binding on the State Government but the
same remains only a recommendation and nothing more than that. Merely
because one member of the Board was extra, the reco mmendation of the
Advisory Board would not be vitiated; Chakradharpur Bidi and Tobacco
Merchants Association v. Stale of Bihar, 1997 (77) FLR 339.
(ii) The term “independent persons” is used in cont radiction to the words
“persons representing employers and employees in th e scheduled
employment”. Therefore, the term contemplates neith er the category of
employers nor the employees. Also there is no reaso n to think that
Government employees are excluded; Government of India v. Barium
Chemicals Ltd., 1985 Lab 1C 1634: AIR 1985 SC 1351: 1985 (67) FJR 1 57:
1985 (51) FLR 256.
(iii) The variety of expression of the term “indepe ndent persons” in section 9 is
that it has the condition of being auto-cephalous. Therefore, the provisions of
the Act do not prescribe that a government servant cannot be a member of
the Advisory Board or that if he is a member he can not be considered to be
an “independent person” within the meaning of secti on 9; Ramkrishna
Ramnath v. State of Maharashtra, 1963 (7) FLR 373: (1963) II LLJ 458.
1[10. Correction of errors.—
(1) The appropriate Government may, at any time, by notification in the
Official Gazette, correct clerical or arithmetical mistakes in any order
fixing or revising minimum rates of wages under thi s Act, or errors arising
therein from any accidental slip or omission.
(2) Every such notification shall; as soon as may b e after it is issued, be
placed before the Advisory Board for information.]
11. Wages in kind.—
1 Subs. by Act 30 of 1957, sec 8. for section 10 (w.e.f. 17-9-1957)
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9(3) The Punjab Minimum Wages Rules, 1950
(1) Minimum wages payable under this Act shall be paid in cash.
(2) Where it has been the custom to pay wages whol ly or partly in kind, the
appropriate Government being of the opinion that it is necessary in the
circumstances of the case may, by notification in t he Official Gazette,
authorise the payment of minimum wages either wholly or partly in kind.
(3) If the appropriate Government is of the opinion that provision should be
made for the supply of essential commodities at con cessional rates, the
appropriate Government may, by notification in the Official Gazette,
authorise the provision of such supplies at concessional rates.
(4) The cash value of wages in kind and of concessi ons in respect of
supplies of essential commodities at concessional r ates authorised under
sub-sections (2) and (3) shall be estimated in the prescribed manner.
12. Payment of minimum rates of wages.—
(1) Where in respect of any scheduled employment a notification under
section 5
1[***] is in force, the employer shall pay to every employ ee
engaged in a scheduled employment under him wages a t a rate not less
than the minimum rate of wages fixed by such notifi cation for that class of
employees in that employment without any deductions except as may be
authorised within such time and subject to such con ditions as may be
prescribed.
(2) Nothing contained in this section shall affect the provisions of the Payment of
Wages Act, 1936 (4 of 1936).
(i) Once a contractor’s establishment is covered u nder the Minimum Wages Act,
the employees engaged through the contractor shall be entitled to the wages
as fixed under the Act; Militant Security Bureau Put. Ltd. v. B.R. Hehar,
(1991) 2 CLK 245 (Bom).
(ii) Where a person provides labour or service to a nother for remuneration which
is less than the minimum wages, such labour is “for ced labour” within the
meaning of article 23 of the Constitution and there by entitles the person to
invoke article 32 or article 226 of the Constitutio n of India; Union for
1 The words “or section 10” omitted by Act 30 of 1957, sec. 9 (w.e.f. 17-9-1957).
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Democratic Rights v. Union of India; 1982 Lab 1C It46: 1982 (45) FLR 140:
1983 (62) FJR 1.
13. Fixing hours for normal working day, etc. —
1[(1)] In regard to any scheduled employment minimum rates of wages in
respect of which have been fixed under this Act, (h e appropriate
Government may—
(a) fix the number of hours of work which shall con stitute a normal
working day, inclusive of one or more specified intervals;
(b) provide for a day of rest in every period of se ven days which shall be
allowed to all employees or to any specified class of employees and
for the payment of remuneration in respect of such days of rest;
(c) provide for payment for work on a day of rest a t a rate not less than
the overtime rate.
2[(2)The provisions of sub-section (1) shall, in rel ation to the following classes
of employees, apply only to such extent and subject to such conditions as
may be prescribed:—
(a) employees engaged on urgent work, or in any eme rgency which could
not have been foreseen or prevented;
(b) employees engaged in work in the nature of prep aratory or
complementary work which must necessarily be carried on outside the
limits laid down for the general working in the employment concerned;
(c) employees whose employment is essentially intermittent;
(d) employees engaged in any work which for technic al reasons has to be
completed before the duty is over;
(e) employees engaged in a work which could not be carried on except at
times dependant on the irregular action of natural forces.
(3) For the purposes of clause (c) of sub-section ( 2), employment of an
employee is essentially intermittent when it is dec lared to be so by the
appropriate Government on the ground that the daily hours of duty of the
employee, or if here be no daily hours of duty as s uch for the employee,
the hours of duty, normally include periods of inac tion during which the
1 Section 13 re-numbered as sub-section (1) of that sect ion by Act 30 of 1957, sec. 10 (w.e.f 17-
9-1957).
2 Added by Act 30 of 1957, sec. 10 (w.e.f. 17-9-1957)
9(3) The Punjab Minimum Wages Rules, 1950
employee may be on duty but is not called upon to d isplay either physical
activity or sustained attention.]
14. Overtime.—
(1) Where an employee, whose minimum rate of wages is fixed under this Act
by the hour, by the day or by such a longer wage-pe riod as may be
prescribed, works on any day in excess of the numbe r of hours
constituting a normal working day, the employer sha ll pay him for every
hour or for part of an hour so worked in excess at the overtime rate fixed
under this Act or under any law of the appropriate Government for the
time being in force, whichever is higher.
(2) Nothing in this Act shall prejudice the operati on of the provisions of
1[section 59 of the Factories Act, 1948 (63 of 1948) ] in any case where
those provisions are applicable.
Section 14 provides for payment of overtime only to those employees who
are getting minimum rate of wages under the Act. It does not apply to those
getting better wages under other Statutory Rules; Municipal Council, Hatta v.
Bhagat Singh, 1998 LLR 298.
15. Wages of worker who works for less than normal working day.— If an
employee whose minimum rate of wages has been fixed under this Act by the
day works on any day on which he was employed for a period of less than the
requisite number of hours constituting a normal wor king day, he shall, save
as otherwise here in after provided, be entitled to receive wages in respect of
work done by him on that day as if he had worked fo r a full normal working
day; Provided, however, that he shall not be entitl ed to receive wages for a
full normal working day—
(i) in any case where his failure to work is caused by his unwillingness to
work and not by the omission of the employer to provide him with work,
and
(ii) in such other cases and circumstances as may be prescribed.
1 Subs. by Act 26 of 1954, sec. 4, for “section 47 of th e Factories Act, 1934 (25 of 1934)” (w.e.f.
20-5-1954).
Case Law
16. Wages for two or more classes of work.— Where an employee does two or
more classes of work to each of which a different minimum rate of wages is
applicable, the employer shall pay to such employee in respect of the time
respectively occupied in each such class of work, w ages at not less than the
minimum rate in force in respect of each such class.
17. Minimum time rate wages for piece work.— Where an employee is
employed on piece work for which minimum time rate and not a minimum
piece rate has been fixed under this Act, the emplo yer shall pay to such
employee wages at not less than the minimum time rate.
18. Maintenance of registers and records.—
(1) Every employer shall maintain such registers an d records giving such
particulars of employees employed by him, the work performed by them,
the wages paid to them, the receipts given by them and such other
particulars and in such form as may be prescribed.
(2) Every employer shall keep exhibited, in such ma nner as may be
prescribed, in the factory, workshop or place where the employees in the
scheduled employment may be employed, or in the cas e of out workers,
in such factory, workshop or place as may be used f or giving out-work to
them, notices in the prescribed form containing prescribed particulars.
(3) The appropriate Government may, by rules made u nder this Act, provide
for the issue of wage books or wage slips to employ ees employed in any
scheduled employment in respect of which minimum ra tes of wages have
been fixed and prescribe the manner in which entrie s shall be made and
authenticated in such wage books or wage slips by t he employer or his
agent.
Every employer, including a contractor who engages labourers for others who
owns the establishment/factory, etc., is bound by t he provisions of this Act, to
comply with the requirement of maintaining Registers etc., There is no exemption
to this mandatory obligation of the employer including any contractor; V. V. Surya
Rau v. Surendra Ramkrishna Tendulkar, 1997 (77) FLR 280.
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9(3) The Punjab Minimum Wages Rules, 1950
19. Inspectors. —
(1) The appropriate Government may, by notification in the Official Gazette,
appoint such persons as it thinks fit to be Inspect ors for the purposes of
this Act and define the local limits within which t hey shall exercise their
functions.
(2) Subject to any rules made in this behalf, an Inspector may, within the local
limits for which he is appointed—
(a) enter, at all reasonable hours, with such assis tants (if any), being
persons in the service of the 1[Government] or any local or other
public authority, as he thinks fit, any premises or place where
employees are employed or work is given out to out- workers in any
scheduled employment in respect of which minimum ra tes of wages
have been fixed under this Act, for the purpose of examining any
register, record of wages or notices required to be kept or exhibited by
or under this Act or rules made thereunder, and require the production
thereof for inspection;
(b) examine any person whom he finds in any such premises or place and
who, he has reasonable cause to believe, is an empl oyee employed
therein or an employee to whom work is given out therein;
(c) require any person giving out-work and any out- workers, to give any
information, which is in his power to give, with re spect to the names
and addresses of the persons to, for and from whom the work is given
out or received, and with respect to the payments t o be made for the
work;
1[(d)seize or take copies of such register, record o f wages or notices or
portions thereof as he may consider relevant in res pect of an offence
under this Act which he has reason to believe has b een committed by
an employer; and]
(e) exercise such other powers as may be prescribed.
(3) Every inspector shall be deemed to be a public servant within the
meaning of the Indian Penal Code (45 of 1860).
2[(4)Any person required to produce any document or thing or to give any
information by an Inspector under sub-section (2) s hall be deemed to be
1 Subs. by Act 30 of 1957, sec. 11, for clause (d) (w.e. f. 17-9-1957).
2 Ins. by Act 3(1 of 1957, sec. 11 (w.e.f 17-9-1957).
legally bound to do so within the meaning of sectio n 175 and section 176
of the Indian Penal Code (45 of 1860).]
20. Claims. —
(1) The appropriate Government may, by notification in the Official Gazette,
appoint 1[any Commissioner for Workmen’s Compensation or any Officer
of the Central Government exercising functions as a Labour
Commissioner for any region, or any officer of the State Government not
below the rank of Labour Commissioner or any) other officer with
experience as a Judge of a Civil Court or as a stip endiary Magistrate to
be the authority to hear and decide for any specifi ed area all claims
arising out of payment of less than the minimum rat es of wages 2[or in
respect of the payment of” remuneration for days of rest or for woExcerpt shown. Open the full act in Lexace.