What are minimum wages? Explain the procedure for the fixation of minimum wages. Elucidate the objectives of the Contract Labour (Regulation and Abolition) Act, 1970.
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Question: What are minimum wages? Explain the procedure for the fixation of minimum wages. Elucidate the objectives of the Contract Labour (Regulation and Abolition) Act, 1970.Find the question and answer of Labour Law only on Legal Bites. [What are minimum wages? Explain the procedure for the fixation of minimum wages. Elucidate the objectives of the Contract Labour (Regulation and Abolition) Act, 1970.]AnswerMinimum wages refer to the minimum amount of remuneration that an employer is...
Question: What are minimum wages? Explain the procedure for the fixation of minimum wages. Elucidate the objectives of the Contract Labour (Regulation and Abolition) Act, 1970.
Find the question and answer of Labour Law only on Legal Bites. [What are minimum wages? Explain the procedure for the fixation of minimum wages. Elucidate the objectives of the Contract Labour (Regulation and Abolition) Act, 1970.]
Answer
Minimum wages refer to the minimum amount of remuneration that an employer is legally required to pay to their employees for their services. The objective of minimum wages is to ensure that workers are paid a fair wage for their labour, which allows them to maintain a decent standard of living. The minimum wage rate varies from country to country and is usually fixed by a government body. In some cases, it may also be fixed by industry associations or collective bargaining agreements. Minimum Wages Act, 1948 is an important law that helps to ensure that workers in India receive fair wages for their work and that their rights are protected in the workplace.
The Minimum Wages Act of 1948 provides for the fixation and revision of minimum wages in certain employments. Section 5 of the Act gives the procedure for fixing and revising the minimum wages. Here are the general procedures for fixing and revising minimum wages under this Act:
Notification: The appropriate government notifies in the official gazette of the proposed schedule of minimum wages for different employments. This notification should mention the date and place where the draft proposal will be available for inspection by the public.
Objections and suggestions: Any person can submit their objections or suggestions regarding the proposed schedule of minimum wages to the appropriate government. The government will consider these objections and suggestions while finalizing the minimum wages.
Advisory committee: The appropriate government forms an advisory committee consisting of representatives of employers, employees, and independent persons to provide advice on the fixation and revision of minimum wages.
Consideration of advice: The appropriate government considers the advice of the advisory committee and other relevant factors before fixing or revising the minimum wages.
Publication: After fixing or revising the minimum wages, the appropriate government publishes them in the official gazette.
Enforcement: The employer must pay the minimum wages to the employees as per the schedule fixed or revised by the government. Failure to do so may result in penalties and legal action.
Revision: The minimum wages can be revised periodically by the appropriate government after considering the prevailing economic conditions and other relevant factors.
The Contract Labour (Regulation and Abolition) Act, 1970, is an Indian law that regulates the employment of contract labour in certain industries. The main objectives of the Act are:
- To regulate the working conditions and welfare of contract labourers: The act seeks to ensure that contract labourers receive the same basic amenities and working conditions as regular employees, such as access to health and safety measures, sanitation facilities, and protective gear.
- To prevent the exploitation of contract labourers: The act seeks to prevent the exploitation of contract labourers by requiring employers to pay them fair wages and provide them with benefits such as leave, overtime pay, and social security.
- To abolish contract labour in certain circumstances: The act provides for the abolition of contract labour in certain industries where the work is perennial, such as loading and unloading of goods, or where the work is of a specialized nature, such as engineering or construction work.
- To ensure compliance with labour laws: The act provides for the registration of contractors who employ contract labourers and requires them to comply with various labour laws, such as those relating to minimum wages, working conditions, and social security.
One important judgment under the Minimum Wages Act is the case of State of Karnataka v. Umadevi & Ors., (2006). In this case, the Supreme Court of India clarified the scope of the Minimum Wages Act, particularly concerning the engagement of contract labour.
The court held that the principle of 'equal pay for equal work' would apply to contract labour engaged in the same or similar work as regular employees. The court further stated that if contract workers were performing the same work as permanent employees, they would be entitled to the same wages and benefits as permanent employees.
The court also ruled that contract labour could not be engaged in work that was perennial or was essential to the functioning of the establishment. The judgment has had significant implications for employers who engage in contract labour, as they are now required to pay wages and benefits on par with regular employees if the contract workers are performing similar work.