The Minimum Wages Act, 1948

Question 1

came into force on

Answer 1

15th March, 1948

Question 2

the convention for fixing minimum wages was first held in _____ and resolution was embodied in international labour code to give effect to minimum wages

Answer 2

Geneva in 1928

Question 3

the act does not define the concept of minimum wages but empowers the _____ to fix minimum wages from time to time

Answer 3

central government as well as state government

Question 4

the aim of the minimum wages act, 1948 is to prevent _____

Answer 4

exploitation of labour in industries

Question 5

important definitions: section 2

• adult, adolescent, child
• appropriate government
• employer
• employee
• wages

Answer 5

adult- 18+
adolescent- 14 to 18
child- who has not completed 14th year of age

• AG: in relation to any scheduled employment carried on by or under the authority of the central government or a railway administration, in relation to a mine, oilfield or major port or any corporation established by a central act, the central government
  in relation to any other scheduled employment, the state government

Question 6

section 3

Answer 6

fixing of minimum rate of wages

the AG
- shall fix minimum rates of wages for an employment specified in Part 1 or Part II of the Schedule and added by notification in the official gazette

• may fix rates for a part of the state or for any specific class/classes instead of fixing minimum rate of wages for whole state
• shall review and revise at intervals not exceeding 5 years the minimum rates of wages
• may refrain from fixing minimum rates of wages in respect of any scheduled employment in which there are in the whole state less than one thousand employees but if at any time the number to 1000 or more, the appropriate government shall fix minimum rates of wages.
• may fix a minimum time rate, a minimum piece rate, a guaranteed time rate or an overtime rate

Question 7

different minimum wages may be fixed by the government for (4) SCAL

Answer 7

1. different scheduled employments
2. different classes (eg: skilled, semiskilled, unskilled) of work in the same employment
3. adults, adolescents, children and apprentices
4. different localities

Question 8

minimum rates of wages may be fixed by any one or more of the following wage- periods
(4)

Answer 8

• by the hour
• by the day
• by the month
• by such other larger wage period as may be prescribed

Question 9

section 4

Answer 9

any minimum rate of wages may consist of

• basic + special allowance (which varies with the cost of living index)
• basic + cash value of concessional supply of materials like food, clothes, etc.
• an all inclusive rate which includes basic + cost of living allowance + cash value of concessional supply of materials

Question 10

in fixing or revising minimum rate wages (section 5), the appropriate government shall either [5] CPF

Answer 10

1. constitute committees/sub-committees for the purpose
2. publish its proposals in the official gazette asking comments from the affected parties within two months
3. after considering the advice/comments received, the appropriate government shall fix/revise the wages and it shall come into force on expiry of 3 months from the date of its issue.
   - the committee, subcommittee shall consist of equal number of employees and employers and 1/3rd independent persons
   - appropriate government will appoint one such independent person as its chairman

Question 11

advisory board

Answer 11

it is appointed by the government for coordinating the work of committees and sub-committees and also for advising the government

Question 12

central advisory board

Answer 12

• appointed by central government
• to advice the central and state governments in fixation and revision of minimum rates of wages
• to coordinate the work of advisory boards
• shall consist of equal number of employees and employers and 1/3rd independent persons
• central government will appoint one such independent person as its chairman

Question 13

wages in kind

Answer 13

• minimum wages shall be paid in cash
• the appropriate government may authorize such payment in kind where there has been a custom of payment of wages wholly or partly in kind
• the appropriate government may authorize the supply of essential commodities at the concessional rates
• the minimum wages has to be paid without deductions other than statutory deductions
• payment of wages less than minimum wages on ground of less performance or output is illegal.

Question 14

working hours:

the government shall fix the number of working hours in a normal working day including intervals and also provide for a day of rest in every period of seven days which is to be paid at a rate of not less than the overtime rate

such provisions apply to a limited extent to employees engaged in

UPIBI

Answer 14

• urgent or emergency work which cannot be foreseen
• preparatory or complementary work
• intermittent employment
• work which for technical reasons has to be completed before duty is over
• work dependent on irregular action of natural forces

Question 15

where an employee works in excess of normal working hours, the excess hours shall be treated as overtime and an overtime rate shall be paid

where an employee works for a period less than the requisite number of hours constituting a normal working day -

Answer 15

• if the employer could not provide him work, he is entitled to receive full salary
• if the employee has not worked due to his unwillingness then, the employee is not entitled to receive full salary

Question 16

number of working hours should not exceed ____ hours in a week with a weekly holiday

Answer 16

48 hours

• compensatory holiday/ overtime wages if working on holiday or overtime
• overtime wage rate shall be twice the normal wage rate

Question 17

the daily hours should not exceed ____ hours with 1 hour rest interval

Answer 17

9

Question 18

section 16

Answer 18

when an employee does two or more classes of work, wages shall be paid in respect of the time respectively occupied in each such class of work at rate not less than the minimum rate of each class

• where an employee is employed on piece rate for which minimum piece rate is fixed, the employer shall pay to such employee wages at not less than the minimum rate

Question 19

section 18

Answer 19

• every employer shall maintain registers, containing the following particulars

1. particulars of employed persons
2. the work performed by them
3. the wages paid to them
4. the receipts given to them

the appropriate government may provide for the issue of wage books or wage slips to employees

Question 20

section 20

Answer 20

claims:

the appropriate government may appoint as authority
- any commissioner for Workmen’s Compensation or
- any officer of the central government exercising functions as a labour commissioner for any region
- any officer of the state government not below the rank of labour commissioner
- any other officer with experience as a judge of a civil court or as a stipendiary magistrate

to hear claims of payment of less than the minimum rates of wages

Question 21

the employee himself or any legal practitioner or any authorized official of a registered trade union or any inspector may apply to Authority for a claim within 6 months from the date on which the minimum wages or amount becomes payable

the authority may direct-

Answer 21

• in case of claim arising out of payment of less than the minimum rate of wages, the difference between minimum wages and amount actually paid + compensation equal to 10 times the amount of excess
• in any other case the payment of amount due to the employee + compensation up to 10 rupees
• if the claim is vexatious or malicious, penalty of rs 50 to be paid to the employer
• a single application may be presented in behalf of any number of employees and in such cases maximum compensation shall not exceed ten times the aggregate amount of such excess or ten rupees per head

Question 22

penalties sections:

Answer 22

22, 22A, 22B, 22C, 22D, 22E, 22F, 23

Question 23

SECTION 22

Answer 23

penalty for employer
- payment of less than minimum wage
- contravention of rule or order relating to working hours

imprisonment which may extend to six months or fine which may extend to rs 500

Question 24

SECTION 22A

Answer 24

penalty for contravention of provisions of this act if no other penalty is provided

fine which may extend to rs 500

Question 25

SECTION 22B

Answer 25

cognizance of offences in case of payment of less wages, an application must be presented to the Authority for claim and the appropriate government or officer must sanction the making of complaint in case of contravention of rules relating to working hours or any other provision of this act, complaint can be made only after sanctioned by inspector

Question 26

SECTION 22C

Answer 26

offence by companies every person in charge of the company as well as the company shall be liable

Question 27

SECTION 22D

Answer 27

payment of undisbursed amounts due to employees if undisbursed amount cannot be paid to the employee on account of his whereabouts not being known, such amount shall be deposited with the prescribes authority

Question 28

SECTION 22E

Answer 28

protection against attachment of assets of employer with government any amount deposited with the appropriate government by an employer to secure the due performance of a contract with that government and any other amount due to such employer from that government in respect of such contract shall not be liable to attachment under any decree or order of any court in respect of any debtor liability incurred by the employer towards any employee employed in connection with the contract aforesaid

Question 29

SECTION 22F

Answer 29

application of payment of wages act, 1936, to scheduled employments notwithstanding anything contained in the payment of wages act, 1936. the appropriate government may apply the provisions of this act to wages payable to employees in such scheduled employments as may be specified in the notification

Question 30

section 23

Answer 30

exemption of employer from liability in certain cases employer may bring before the court the person whom he charges as the actual offender and take the defense that he has used due diligence to enforce the execution of this act and that the said other person has committed the offence without his knowledge, consent or connivance

Question 31

contracting out

Answer 31

any contract or agreement, whether made before or after the commencement of this Act, 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 in so far as it purports to reduce the minimum rate of wages fixed under this act

Question 32

section 27

Answer 32

power of government: - the appropriate government, may add to either Part of the schedule in respect of which it is of opinion that minimum rates of wages should be fixed under this act after giving by notification in the official gazette not less than 3 months' notice of its intention to do so - the central government may give directions to a state government as to the carrying into execution of this act in the state - the central government may make rules for prescribing the term of office of the members, the procedure to be followed in the conduct of business, the method of voting, the manner of filling up casual vacancies in membership and the quorum necessary for the transaction of business of the central advisory board

Question 33

schedule to the act - part I: - part II :

Answer 33

- employment in industrial establishments - employment in agriculture

Question 34

the appropriate government may make rules for: [13] 1-6 MEV PPR

Answer 34

1. prescribing the term of office of the members, the procedure to be followed in the conduct of business, the method of voting, the manner of filling up casual vacancies in membership and the quorum necessary for the transaction of business of the committees, sub-committees and the advisory board 2. prescribing the method of summoning witnesses, production of documents relevant to the subject-matter of the enquiry before the committees, sub-committees, and the advisory board 3. prescribing the mode of computation of the cash value of wages in kind and of concessions in respect of supplies of essential commodities at concession rates 4. prescribing the time and conditions of payment of, and the deductions permissible from wages 5. providing for giving adequate publicity to the minimum rates of wages fixed under this act 6. providing for a day of rest in every period of seven days and for the payment of remuneration in respect of such day

Question 35

the appropriate government may make rules for: [13] 7-13 every rule made by the central government under this act shall be before each house pf parliament while it is in session for a total period of 30 days

Answer 35

7. prescribing the number of hours of work which shall constitute a normal working day 8. prescribing the cases and circumstances in which an employee employed for a period of less than the requisite number of hours constituting a normal working day shall not be entitled to receive wages for a full normal working day 9. prescribing the form of registers and records to be maintained and the particulars to be entered in such registers and records 10. providing for the issue of wage books and wage slips and prescribe the manner of making and authenticating entries in wage books and wage slips 11. prescribing the powers of inspectors for the purposes of this act 12. regulating the scale of costs that may be allowed in proceedings under section 20 13. prescribe the amount of court-fees payable in respect of proceedings under section 20