Minimum Wages Act Labour Law Project

LABOUR LAW PROJECT

LABOUR LAW PROJECT

TOPIC – MINIMUM WAGES

TOPIC – MINIMUM WAGES

ACT-CONSTITUTIONAL VALIDITY AND NEW ASPECT

CONSTITUTIONAL VALIDITY AND NEW ASPECT

1.)

1.) The minimum wages act up hails the AR

The minimum wages act up hails the ARTICLE 43 of the Indian

TICLE 43 of the Indian

constitution, which states that,

constitution, which states that,



Living wage, e!, "#$ w#$%e$&Living wage, e!, "#$ w#$%e$& The !tate shall endea"o# to  The !tate shall endea"o# to secu#e, $% suita$lesecu#e, $% suita$le legislation o# economic o#gani&ation o# in an% othe# wa%, to all wo#'e#s, ag#icultu#al, legislation o# economic o#gani&ation o# in an% othe# wa%, to all wo#'e#s, ag#icultu#al, indust#ial o# othe#wise, wo#', a li"ing wage, conditions of wo#' ensu#ing a decent indust#ial o# othe#wise, wo#', a li"ing wage, conditions of wo#' ensu#ing a decent standa#d of life and full en(o%ment of leisu#e and social and cultu#al oppo#tunities standa#d of life and full en(o%ment of leisu#e and social and cultu#al oppo#tunities and, in pa#ticula#, the !tate shall endea"o# to p#omote cottage indust#ies on an and, in pa#ticula#, the !tate shall endea"o# to p#omote cottage indust#ies on an indi"idual o# coope#ati"e $asis in #u#al a#eas

indi"idual o# coope#ati"e $asis in #u#al a#eas



 The spi#it of the minimum

 The spi#it of the minimum wages act of India is #eli

wages act of India is #elied in the soul on of the

ed in the soul on of the

a#ticle 43

a#ticle 43

11

 _{of Indian}

 _{of Indian constitution, which !A*L}

_{constitution, which !A*L+ is ensh#ined in}

_{+ is ensh#ined in pa#t I of the}

_{pa#t I of the}

constitution and hence

constitution and hence is non-enfo#cea$le $% law

is non-enfo#cea$le $% law..

.)

.) Anothe# constitutional p#o"i

Anothe# constitutional p#o"ision that the minimum wages act is said to

sion that the minimum wages act is said to

def% is the ARTICLE 1/01g) which sa%s that

def% is the ARTICLE 1/01g) which sa%s that

''

T# ($a!i!e an) ($#"e&&i#n #$ # !a$$) #n an) #!!*(ai#n, $a+e #$T# ($a!i!e an) ($#"e&&i#n #$ # !a$$) #n an) #!!*(ai#n, $a+e #$ *&ine&&e&

*&ine&&e&

It is uestioned $%

It is uestioned $% ce#tain (u#ists that the p#o"isions of the minimum wages

ce#tain (u#ists that the p#o"isions of the minimum wages

act that as'

act that as' fo# p#o"iding a 2ed minimum wage $% the emplo%e#s to the

fo# p#o"iding a 2ed minimum wage $% the emplo%e#s to the

la$ou#s is a AR

la$ou#s is a AR to thei# fundamental #ight gua#anteed unde# 1/01g).

to thei# fundamental #ight gua#anteed unde# 1/01g).

1

ut this uestion has $een #aised again and again in the hono#a$le cou#ts

which ha"e dissented f#om this opinion and upheld the "alidit% of minimum

wages act.

In

GUL MUAMMAD TARA SAEB VS STATE O. BOMBAY 

/

_,

5he#e the hono#a$le cou#t pointed out that the p#o"ision of 1/01g) is su$(ect

to #est#iction ensh#ined in 1/06) of the Indian constitution.

A#ticle 1/06) states that,

7othing in su$ clause 0g) of the said clause shall a8ect the ope#ation of an%

eisting law in so fa# as it imposes, o# p#e"ent the

Sae "$#0 0a%ing an)

1aw i0(#&ing, in 2e ine$e&& #" 2e gene$a1 (*1i!, #easona$le

#est#ictions on the ee#cise of the #ight confe##ed $% the said su$ clause.

e$e in 34567 2e w#$+&, '2e ine$e& #" gene$a1 (*1i!8 !$eae& a

$e&$i!i#n #n 2e e9e$!i&e #" 2i& $ig2 wi2 $e&(e! # (*1i! #$+e$

i:e # ($e&e$ve (*1i! #$+e$, 2e $ig2 !an e !*$ai1e+:

 The same uestion was #aised in

V:UNICOV VS STATE O. ;ERALA 346/,

And the cou#t upheld the "iew of 9:L ;<=A;;A* case.

It was held in this case that the 2ation of minimum wages is fo# the

p#ese#"ation of pu$lic o#de#. As if no minimum wage is 2ed, it shall

lead to a#$it#a#iness $% the emplo%e# and lead

TO CLASES O.

INTEREST BETWEEN EMPLOYER AND LABOUR, which shall cause

.RICTION IN SOCIETY:

  1/6

3.) The ARTICLE 14 of the Indian constitution, which #elates to eualit%.

7ow, it must $e noted that minimum wages a#e not 2ed in the nation.

 The% "a#% f#om places to places and #egion to #egion. This p#o"ision of

the minimum wages act is condemned $% ce#tain (u#ist as to sa% to

"iolate RI9=T T< E>:ALIT+.

ut this "iew is also put down $% the cou#ts th#oughout the nation.

In

BI;USA v& SANGAMARA 1/63

I wa& 2e1+ ) 2e !#*$ 2a (e$&#n w#*1+ e 1ia1e # +i<e$en

0ini0*0 wage& i" 2e) a$e w#$%ing in +i<e$en 1#!a1i):

In

C B BOARDING AND LODGING v& STATE 34=>,

I wa& 2e1+ 2a (e$&#n& w#$%ing in +i<e$en in+*&$), even 2#*g2

2e) w#$% in 2e &a0e 1#!a1i) w#*1+ e g$ane+ +i<e$en wage&:

=ence the uestion of the di8e#ence of wages th#oughout nation is totall%

dis#ega#ded $% the cou#ts.

In

N:M:WADIA CARITABLE OSPITAL v& STATE O. MAARASTRA

344?,

I wa& 2e1+ ) 2e !#*$ 2a @9ing +i<e$en 0ini0*0 wage& "#$

+i<e$en 1#!a1i) i& (e$0ie+ *n+e$ 2e !#n&i*i#n an+ *n+e$

1a#*$ 1aw&:

=ence the uestion that an% p#o"ision of the minimum wages act is in an%

wa% against the p#o"isions of constitution is w#ong.

 The "a#iation of minimum wages

3

 _{$etween the !tates is due to di8e#ences in}

socio-economic and ag#o-climatic conditions, p#ices of essential

commodities, pa%ing capacit%, p#oducti"it% and local conditions in?uencing

the wage #ate. The #egional dispa#it% in minimum wages is also att#i$uted to

the fact that $oth the Cent#al and !tate 9o"e#nments a#e the app#op#iate

9o"e#nment to 2, #e"ise and enfo#ce minimum wages in scheduled

emplo%ments in thei# #especti"e (u#isdictions unde# the Act.

 TE MINIMUM WAGES ACT, 34:

India int#oduced the ;inimum 5ages Act in 1/4@, gi"ing $oth the Cent#al

go"e#nment and !tate go"e#nment (u#isdiction in 2ing wages. The act is legall% non-$inding, $ut statuto#%. a%ment of wages $elow the minimum wage #ate

amounts to fo#ced la$ou#. 5age oa#ds a#e set up to #e"iew the indust#%s capacit% to pa% and 2 minimum wages such that the% at least co"e# a famil% of fou#s

#eui#ements of calo#ies, shelte#, clothing, education, medical assistance, and ente#tainment. :nde# the law, wage #ates in scheduled emplo%ments di8e# ac#oss states, secto#s, s'ills, #egions and occupations owing to di8e#ence in costs of li"ing, #egional indust#iesB capacit% to pa%, consumption patte#ns, etc. =ence, the#e is no single unifo#m minimum wage #ate ac#oss the count#% and the st#uctu#e has

$ecome o"e#l% comple.4

In a de"eloping econom% li'e India whe#e a$out / pe#cent of the wo#'e#s wo#' in the info#mal secto#, not ha"ing collecti"e $a#gaining powe#, wages couldnt $e left to $e dete#mined enti#el% $% the inte#pla% of ma#'et fo#ces and inte#"ention on the pa#t of the go"e#nment $ecame imminent. It is with this o$(ecti"e of p#otecting the "ulne#a$leDless p#i"ileged st#ata of the societ% f#om eploitation $% the capitalist class that go"e#nment of India enacted the ;inimum 5ages Act, 1/4@. The act

3

 As pointed out $% the :7I<7 LA<:R A7* E;L<+;E7T ;I7I!TER !=RI ;ALLIARI:7 =AR9E,

4

p#o"ides fo# 2ationD#e"ision of minimum #ates of wages in sweating emplo%ments $% in"ol"ing the autho#it% of the state. The minimum #ates of wages helps in

#educing the ineualities in the standa#d of li"ing of di8e#ent social g#oups of wo#'e#s $% statuto#il% p#esc#i$ing minimum wage #ates. La$ou# u#eau,

5A7 TE ACT IS NOT UNREASONABLE

It can sca#cel% $e disputed that secu#ing of li"ing wages to la$ou#e#s which ensu#e not onl% $a#e ph%sical su$sistence $ut also the maintenance of health and decenc% is conduci"e to the gene#al inte#est of the pu$lic. This is one of the di#ecti"e

p#inciples of the state polic% em$odied in A#ticle 43 of the constitution.

Indi"idual emplo%e#s might 2nd it diGcult to ca##% on the $usiness on the $asis of minimum wages 2ed unde# the Act $ut this must $e not $e the enti#e p#emise and #eason to st#i'e down the law itself as un#easona$le.

HThe #est#ictions, though the% inte#fe#e to some etent with the f#eedom of t#ade o# $usiness gua#anteed unde# A#ticle 1/01)0g) of the constitution, a#e #easona$le and , $eing imposed on the gene#al inte#est of the gene#al pu$lic, a#e p#otected $% the te#ms of the clause 06) of the a#ticle 1/. This uote is a pa#t of (udgement in the case H9ulmuhommad Ta#asahe$J _{, a $idi facto#% $% its p#op#ieto#s !ham#ao D!D}

!tate of om$a% , AIR 1/6 om /KF AIR1/JJ, !c33F1/63, e# 11JF 1/64 T#i 3. An anothe# impo#tant (udgement that fa"ou#s and suppo#ts the constitutional alitit% of the ;inimum 5ages Act,1/4@ is , H . :nichono% D!D !tate of

e#ala,1/6, !C1. This case #aised the same uestions which we#e #aised in the case of 9ulmuhommad Ta#asahe$ D"sD !tate of om$a%, AIR 1/6 om /K., which we#e , Hthat , can a state $e p#e"ented f#om ma'ing an% law, in the inte#est of gene#al pu$lic, whe#e it c#eates #est#ictions and inte#fe#es to some etent with the f#eedom of t#ade o# $usiness gua#anteed unde# A#ticle 1/01)0g) , of the Constitution of India, and it was held that , H iation of minimum wages is fo# p#ese#"ation of J

pu$lic o#de# , and if no minimum wage is 2ed then it shall lead to a#$it#a#iness $% the emplo%e#s and that shall lead to clashes of inte#est $etween emplo%e# and la$ou# which shall cause f#iction in societ%.

 The a#ticle 14 of the Indian Constitution which #elates to eualit% $efo#e the law, it must $e noted that minimum wages a#e not 2ed euall% ac#oss the whole nation $ut the% "a#% f#om occupation to occupation and indust#% to indust#% and f#om place to place.

 The case of :chino% D"sD !tate of e#ala ,1/6 !C1, fu#the# uotes the following , H As #ega#ds to the p#ocedu#e fo# 2ing of the minimum wages, the app#op#iate

go"e#nment has undou$tedl% $een gi"en "e#% la#ge powe#s , $ut it has to ta'e into conside#ation, $efo#e 2ing wages, the ad"ice of the committee if one is appointed on the #ep#esentations on p#oposals made $% pe#sons who a#e li'el% to $e a8ected the#e$%. The "a#ious p#o"isions constitute an adeuate safegua#d against an% hast% o# cap#icious decision $% the app#op#iate go"e#nment. In suita$le cases, the

app#op#iate go"e#nment has also $een gi"en the powe# of g#anting eemptions f#om the ope#ations of the p#o"isions of the Act. The#e is no p#o"ision undou$tedl%, fo# a fu#the# #e"iew of the decision of the app#op#iate go"e#nment , $ut that itself would not ma'e the p#o"isions of the act un#easona$le.

5B7 TE ACT DOES NOT VIOLATE ARTICLE 3

O. TE INDIAN CONSTITUTION:

H<n a ca#eful eamination of the "a#ious of the Act and the machine#% setup $% this Act, !ection 303)0i") neithe# cont#a"ene A#ticle 1/01) of the constitution no# does it inf#inge the eual p#otection clause of the constitution. the Cou#ts ha"e also held that the constitution of the committees and the Ad"iso#% oa#d did not cont#a"ene the statuto#% p#o"isions in that $ehalf p#esc#i$ed $% the legislatu#e,- this was held in the case of hi'usa +amasa shat#i%a D"sD !angamma# A'ola idi amga# :nion, AIR 1/63 !C36. u#the# , as decided in the case HC.. oa#ding M Lodging,

mentioned case that , H... no# the #eason that two di8e#ent p#ocedu#es a#e p#o"ided fo# collecting info#mation. .

5C7 NOTI.ICATION .IFING DI..ERENT RATES

O. MINIMUM WAGES .OR DI..ERENT

LOCALITIES IS NOT DISCRIMINATORY:

whe#e the 2ation of #ates of wages and thei# #e"ision we#e manifestl% p#eceded $% a detailed su#"e% and enui#% and the #ates we#e $#ought into fo#ce afte# a full

conside#ation of the #ep#esentations which we#e made $% a section of the emplo%e#s conce#ned, it would $e diGcult in the ci#cumstances to hold that

noti2cation which 2ed di8e#ent #ates of minimum wages fo# di8e#ent localities was not $ased on intelligent di8e#entia ha"ing a #ational neus with the o$(ect of the Act, and the#e$% "iolated a#ticle 14. when the 9o"e#nment issued noti2cation imp#o"ing upon the eisting minimum wages as #e"ised minimum wages

dis#ega#ding the cont#a#% #epo#t of the committee appointed unde# !ection J-10a) O such noti2cation was $ad unde# the law and was to $e made inope#ati"e..

As pointed out $% one of the Indias :nion La$ou# and Emplo%ment ;iniste# !h#i ;alli'a#(una ha#age O, HThe "a#iation of minimum wages $etween the states is due to di8e#ences in socio-economic and ag#o-climatic conditions, p#ices of essential commodities, pa%ing capacit%, p#oducti"it% and local conditions in?uencing the wage #ate. The #egional dispa#it% in minimum wages is also att#i$uted to the fact that $oth the Cent#al and the !tate 9o"e#nments a#e the app#op#iate 9o"e#nments to 2, #e"ise and enfo#ce minimum wages in !cheduled emplo%ments in thei#

#especti"e (u#isdictions unde# the Act.

Refe##ing the case of H7.;.5adia Cha#ita$le =ospital D!D !tate of ;aha#asht#a , 1//3, it was decided $% the Cou#t that P H iing di8e#ent minimum wages fo#

the uestion that an% p#o"isio of the ;inimum 5ages Act is in an% wa% against the p#o"isio of constitution is w#ong.

 The constitution of India accepts the #esponsi$ilit% of the !tate to c#eate an economic o#de#, in which e"e#% citi&en 2nds emplo%ment and #ecei"es a Hfai# wage. This made it necessa#% to uantif% o# la% down clea# c#ite#ia to identif% fai# wage. The#efo#e, a Cent#al Ad"iso#% Council, in its 2#st session in 7o"em$e# 1/4@, appointed a t#ipa#tite Committee on ai# 5ages. The committee consisted of

#ep#esentati"es of emplo%e#s, emplo%ees, and the 9o"e#nment. Thei# tas' was to enui#e into and #epo#t on the su$(ect of fai# wages to the la$ou#.

0*)

SANCTITY O. TE MINIMUM WAGE ACT

!up#eme Cou#t in th#ee sepa#ate #ulings has held that non payment of minimum wages is tantamount to ‘forced labour’ prohibited under Article 23 of the

Constitution. The !up#eme Cou#t holds that fo#ced la$ou# ma% a#ise in se"e#al wa%s, including Hcompulsion a#ising f#om hunge# and po"e#t%, want and

destitution. In !an(it Ro% s. !tate of Ra(asthan 01/@3), the !up#eme Cou#t held that the Eemption Act in so fa# as it ecluded the applica$ilit% of the ;inimum 5ages Act 1/4@ to the wo#'men emplo%ed in famine #elief wo#' is Hclea#l% "iolati"e of A#ticle 3. Thus e"en pu$lic wo#'s ostensi$l% initiated $% the go"e#nment fo# the sole pu#pose of p#o"iding emplo%ment a#e su$(ect to the ;inimum 5age Act.

*#awing on the !up#eme Cou#t #ulings, Andh#a =igh Cou#t set aside the

9o"e#nment of India 09oI) noti2cation mandating that p#e"ailing state minimum wage $e paid. This has $een unde#sco#ed in the legal opinion p#o"ided $% Additional !olicito# 9ene#al, ;s. Indi#a Naising, to the Cent#al Emplo%ment 9ua#antee Council 0CE9C) 5o#'ing 9#oup on 5ages whe#e she made it clea# that using !ection 601) to allow a pa%ment of less than minimum wage in ;97RE9A wo#'s will amount to

fo#ced la$ou#. 1J eminent (u#ists and law%e#s of India too ha"e as'ed 9o"e#nment of  India to immediatel% #e"o'e its unconstitutional noti2cation and ensu#e that

 The Act and the (udgements a#e in fa"ou# of eualit% p#o"ided unde# A#ticle 14 of the Constitution and a (udgement in the case namel%, HEnginee#ing 5o#'e#s

:nion D"sD :nion of India01//4) I .LLN!up./4om., p#onounces the (udgement that , HThe p#o"ision unde# !ection 30)0A), that minimum #ate of wages in

scheduled emplo%ment 2ed o# #e"ised, shall not appl% to the emplo%ees du#ing the pe#iod of ad(udication, "iolated eualit% clause of A#ticle 14 and hence that section is "oid.

In the "iew of the *i#ecti"e #inciples of !tate olic% as contained in the A#ticle 43 of  the Indian Constitution, it is $e%ond dou$t that secu#ing of li"ing wages to la$ou#e#s which ensu#es not onl% $a#e ph%sical su$sistence $ut also the maintenance of

health and decenc%, it is conduci"e to the gene#al inte#est of the pu$lic.

 The ;inimum wages Act was passed to ful2ll the aspi#ation as contained in the following

#esolutionF-H If the la$ou#e#s a#e to $e secu#ed the en(o%ment of minimum wages and the% a#e to $e p#otected against eploitation $% thei# emplo%e#s, it is a$solutel% necessa#% that #est#aints should $e imposed upon the f#eedom of cont#act and such

#est#ictions cannot $e said to $e un#easona$le. <n the othe# hand, the cannot $e hea#d to complain if the% a#e compelled to pa% an% minimum wages to thei#

la$ou#e#s e"en though the la$ou#e#s , on account of thei# po"e#t% and helplessness, a#e willing to wo#' e"en at lesse# wages.

In the case of HETITI<7ERF INA+ C<TT<7 ;ILL! LT*.Ds.D RE!<7*E7TF T=E !TATE < AN;ER.*ATE < N:*9;E7TF 14D<cto$e# D1/J4,

 The Constitutional "alidit% of this Act was attac'ed on the g#ound that it "iolates the gua#antee of f#eedom of t#ade o# $usiness etc., en"isaged $% A#ticle 1/01)0g) of the

Indian Constitution, 0Constitution of India, A#ticle. 1/01)0g), 1/06)-;inimum 5ages Act 0QI of 1/4@), sections. 3,4 and J-App#op#iate

9o"e#nment-iing minimum #ate of wages-5hethe# o8ends fundamental #ights gua#anteed unde# A#t. 1/01)0g).)

, it was held that , the #est#ictions imposed upon the f#eedom of cont#act $% the 2ation of minimum #ates of wages though the% inte#fe#e to some etent with the f#eedom of t#ade o# $usiness gua#anteed unde# A#t. 1/01)0g) of the Constitution a#e not un#easona$le and $eing imposed in the inte#est of gene#al pu$lic and with a "iew to ca##% out one of the *i#ecti"e #inciples of !tate olic% as em$odied in A#t. 43 of the Constitution a#e p#otected $% the te#ms of el. 06) of A#t. 1/. It can thus $e said that the p#o"isions of the Act a#e $ound to a8ect ha#shl% and e"en opp#essi"el% a pa#ticula# class of emplo%e#s, who fo# pu#el% economic #easons a#e una$le to pa% the minimum #ate of wages 2ed $% the autho#ities , $ut ha"e a$solutel% dishonest intention of eploiting thei# wo#'e#s.

 The fact that emplo%e# might 2nd it diGcult to ca##% on $usiness on settled p#inciple cannot $e a suGcient #eason fo# st#i'ing down the law itself as un#easona$le. The po"e#t% of la$ou#e#s is also a facto# to $e ta'en into conside#ation while dete#mining the uestion whethe# a pa#ticula# p#o"ision is in the inte#est of the gene#al pu$lic. San!i) #" T2e Mini0*0 Wage A!

!up#eme Cou#t in th#ee sepa#ate #ulings, has held that non payment of minimum wages is tantamount to ‘forced labour’ prohibited under Article 23 of the

Constitution. The !up#eme Cou#t holds that fo#ced la$ou# ma% a#ise in se"e#al wa%s, including Hcompulsion a#ising f#om hunge# and po"e#t%, want and

destitution. In !an(it Ro% s. !tate of Ra(asthan 01/@3), the !up#eme Cou#t held that the Eemption Act in so fa# as it ecluded the applica$ilit% of the ;inimum 5ages Act 1/4@ to the wo#'men emplo%ed in famine #elief wo#' is Hclea#l% "iolati"e of A#ticle 3. Thus e"en pu$lic wo#'s ostensi$l% initiated $% the

go"e#nment fo# the sole pu#pose of p#o"iding emplo%ment a#e su$(ect to the ;inimum 5age Act.

*#awing on the !up#eme Cou#t #ulings, Andh#a =igh Cou#t set aside the

9o"e#nment of India 09oI) noti2cation mandating that p#e"ailing state minimum wage $e paid. This has $een unde#sco#ed in the legal opinion p#o"ided $% Additional !olicito# 9ene#al, ;s. Indi#a Naising, to the Cent#al Emplo%ment 9ua#antee Council 0CE9C) 5o#'ing 9#oup on 5ages whe#e she made it clea# that using !ection 601) to allow a pa%ment of less than minimum wage in ;97RE9A wo#'s will amount to

fo#ced la$ou#. 1J eminent (u#ists and law%e#s of India too ha"e as'ed 9o"e#nment of  India to immediatel% #e"o'e its unconstitutional noti2cation and ensu#e that

minimum wages a#e paid to all wo#'e#s in India.

 Th#ee Chief ;iniste#s 0Ra(asthan, Andh#a #adesh and e#ala) ha"e w#itten to the #ime ;iniste# #euesting the ;inist#% of Ru#al *e"elopments 0;oR*) compliance with the ;inimum 5age Act, followed $% a lette# f#om the Chai#pe#son, 7AC and :A, to the #ime ;iniste# calling his attention to 2nd u#gent #esolution of this

matte#. inall%, the La$ou# ;inist#% too has #eite#ated its Hfundamental o$(ection to !ection 601), wa#ning that using !ection 601) to allow pa%ment of less than

p#e"ailing state minimum wage will not stand legal sc#utin%.

=owe"e# despite this o"e#whelming legal and political consensus, $oth the 9oI and the 9o"e#nment of Andh#a #adesh continue to $e in contempt of the Andh#a

#adesh =igh Cou#t 0Nul% /) citing 2scal conce#ns. In fact in his #esponse to the Chai#pe#son, 7AC #ega#ding "iolation of minimum wages in 7RE9A, the ; has asse#ted that the wage #ate unde# 7RE9A is independent of the p#o"isions of the ;inimum 5ages Act, a statement that #uns counte# of the esta$lished Constitutional, legal and political opinion

 The Act and the (udgments a#e in fa"ou# of eualit% p#o"ided unde# A#ticle 14 of the Constitution and a (udgment in the case namel%,

 HEnginee#ing 5o#'e#s :nion D"sD :nion of India01//4) I .LLN!up./4om.,

p#onounces the (udgment that , HThe p#o"ision unde# !ection 30)0A), that minimum #ate of wages in scheduled emplo%ment 2ed o# #e"ised, shall not appl% to the

emplo%ees du#ing the pe#iod of ad(udication, "iolated eualit% clause of A#ticle 14 and hence that section is "oid.

In the "iew of the *i#ecti"e #inciples of !tate olic% as contained in the A#ticle 43 of  the Indian Constitution, it is $e%ond dou$t that secu#ing of li"ing wages to la$ou#e#s which ensu#es not onl% $a#e ph%sical su$sistence $ut also the maintenance of

health and decenc%O it is conduci"e to the gene#al inte#est of the pu$lic.

T2e Mini0*0 wage& A! wa& (a&&e+ # "*1@11 2e a&(i$ai#n a& !#naine+ in 2e "#11#wing $e&#1*i#n

HIf the la$ou#e#s a#e to $e secu#ed the en(o%ment of minimum wages and the% a#e to $e p#otected against eploitation $% thei# emplo%e#s, it is a$solutel% necessa#% that #est#aints should $e imposed upon the f#eedom of cont#act and such

#est#ictions cannot $e said to $e un#easona$le. <n the othe# hand, the cannot $e hea#d to complain if the% a#e compelled to pa% an% minimum wages to thei#

la$ou#e#s e"en though the la$ou#e#s , on account of thei# po"e#t% and helplessness, a#e willing to wo#' e"en at lesse# wages.

 In the case of HETITI<7ERF INA+ C<TT<7 ;ILL! LT*.Ds.D RE!<7*E7TF T=E !TATE < AN;ER.*ATE < N:*9;E7TF 14D<cto$e# D1/J4,

 The Constitutional "alidit% of this Act was attac'ed on the g#ound that it "iolates the gua#antee of f#eedom of t#ade o# $usiness etc., en"isaged $% A#ticle 1/01)0g) of the Indian Constitution, 0Constitution of India, A#ticle. 1/01)0g), 1/06);inimum 5ages Act 0QI of 1/4@), sections. 3,4 and J App#op#iate.

9o"e#nment 2ing minimum #ate of wages 5hethe# o8ends fundamental #ights gua#anteed unde# A#t. 1/01)0g).) .

 It was held that, the #est#ictions imposed upon the f#eedom of cont#act $% the 2ation of minimum #ates of wages though the% inte#fe#e to some etent with the f#eedom of t#ade o# $usiness gua#anteed unde# A#t. 1/01)0g) of the Constitution a#e not un#easona$le and $eing imposed in the inte#est of gene#al pu$lic and with a "iew to ca##% out one of the *i#ecti"e #inciples of !tate olic% as em$odied in A#t.

43 of the Constitution a#e p#otected $% the te#ms of el. 06) of A#t. 1/. It can thus $e said that the p#o"isions of the Act a#e $ound to a8ect ha#shl% and e"en opp#essi"el% a pa#ticula# class of emplo%e#s, who fo# pu#el% economic #easons a#e una$le to pa% the minimum #ate of wages 2ed $% the autho#ities, $ut ha"e a$solutel% dishonest intention of eploiting thei# wo#'e#s.

 The fact that emplo%e# might 2nd it diGcult to ca##% on $usiness on settled p#inciple cannot $e a suGcient #eason fo# st#i'ing down the law itself as un#easona$le. The po"e#t% of la$ou#e#s is also a facto# to $e ta'en into conside#ation while dete#mining the uestion whethe# a pa#ticula# p#o"ision is in the inte#est of the gene#al pu$lic.

7E5 A!ECT! I7 ;I7I;:; 5A9E! ACT

 The :nion La$ou# M Emplo%ment ;iniste# !h#i ;alli'a#(un ha#ge has

info#med the Ra(%a !a$ha that the no#ms #ecommended $% the Indian

La$ou# Confe#ence 0ILC), held in 1/JK a#e ta'en into account while 2ing the

minimum wages. These a#e as followsF

-a)

3 consumption units fo# one ea#ne#.

$)

;inimum food #eui#ements of K calo#ies pe# a"e#age Indian

adult.

c)

Clothing #eui#ements of K %a#ds pe# annum pe# famil%.

d)

Rent co##esponding to the minimum a#ea p#o"ided fo# unde#

9o"e#nments Indust#ial =ousing !cheme.

e)

uel, Lighting and othe# miscellaneous items of ependitu#e to

constitute  of the total minimum wage.

REPTA;OS  CO: VS: ITS WOR;ERS

2a 2e !2i1+$en8& e+*!ai#n, 0e+i!a1 $eH*i$e0en, 0ini0*0

$e!$eai#n in!1*+ing "e&iva1&!e$e0#nie&, ($#vi&i#n "#$ #1+ age,

0a$$iage e!: &2#*1+ !#n&i*e /K #" 2e 0ini0*0 wage an+ *&e+

a& a g*i+e in @9ai#n #" 0ini0*0 wage& . The !tate 9o"e#nments ha"e

$een #euested f#om time to time to 'eep the a$o"e no#ms and (udicial

p#onouncement in "iew while 2ingD#e"ising the minimum wages.

T2e $e!en1) 2e1+ 2 In+ian La#*$ C#n"e$en!e, inte# alia, discussed

the issue of amendment of the ;inimum 5ages Act and made ce#tain

#ecommendations fo# inco#po#ation in the amendment p#oposals. The

#ecommendations we#e mainl% on national minimum wage, enhancement of

penal p#o"isions, adoption of *A in all !tatesD:Ts, etc.

A Confe#ence Committee of the 44th session of ILC was constituted to

discuss Agenda Item 7o.0i) conce#ning ;inimum 5ages and #elated issues.

 These issues, inte# alia, include no#ms fo# 2ationD#e"ision of minimum #ates

of wages, a#ia$le *ea#ness Allowance0*A), 7ational loo# Le"el ;inimum

5ages etc. <n the $asis of detailed discussion, the following points eme#ged.

1.

The#e was $#oad consensus that the 9o"e#nment ma% 2 minimum

wages as pe# the no#msD c#ite#ia #ecommended $% the 1Jth ILC 01/JK) and

the di#ections of the =on$le !up#eme Cou#t 0Repta'osM Co. s. its wo#'e#s

:nion) 1//. The 9o"e#nment ma% ta'e necessa#% steps acco#dingl%.

.

It was suggested that the ;inimum 5ages Act should co"e# all

emplo%ments and the eisting #est#iction fo# its applica$ilit% on the

scheduled emplo%ments onl% should $e deleted. This will also help India

#atif% IL< Con"ention 7o.131.

3.

It was $#oadl% ag#eed that the#e should $e national minimum wages

applica$le to all emplo%ments th#oughout the count#%.

4.

It was pointed out that the pa%ment to the app#entices should $e

t#eated di8e#entl% f#om the othe# catego#ies.

J.

The Committee noted that at p#esent the#e a#e 1 !tatesD:Ts who

ha"e not adopted *A. The#e was consensus that all !tatesD:Ts should adopt

*A.

6.

It was also #ecommended that the pa%ment of minimum wages

should $e done th#ough an'sDost <Gces etc.

K.

It was felt that the enfo#cing agencies should not $e gi"en the powe#

of ad(udication and, the#efo#e, this p#oposal should $e #e-eamined.

@.

Rega#ding penal p#o"ision fo# "iolation of the Act, it was felt that

imp#isonment clause unde# !ection  and A is ha#sh to the emplo%e# and

ma% $e #e-eamined. u#the#, it was felt that non-maintenance of #egiste#s

should not att#act imp#isonment.

/.

The p#oposal of pa%ing di8e#ent minimum wages in #espect of same

emplo%ment eithe# in the Cent#e o# in the !tates should $e done awa% with.