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PROJECT REPORT

FIXATION
&
REVISION
OF
MINIMUM
WAGES

Submitted to: Submitted by:

M.s. Jaimala Abhinandan Pandhi

03/08

5th Semester
FIXATION & REVISION OF MINIMUM WAGES

TABLE OF CONTENTS

Acknowledgement………………………………………………II

Table of Cases………………………………………………….III

Introduction……………………………………………….…..…1

Background………………….…………………………….….….1

Aim and Objects of Minimum Wages Act...…………………….2

Wages……………………………………………………………..2

Definition of Minimum Wage…………………………………..3

Fixation of Minimum Wage………………………………….…4

Minimum Rate of Wages………………………………………..6

Revision of Wages……………………………………………….8

Irrelevant Considerations in Fixation of Minimum Wages…..9

Procedure for Fixing and Revising Minimum Wages…….…10

Advisory Board…………………………………………………11

Central Advisory Board…………………………………..……12

Correction and Errors………………………………………….13

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ACKNOWLEDGEMENT

I would like to thank our honorable teacher Ms. Jaimala Maam, for without her valuable
guidance, constant encouragement and detailed approach would not have made it possible
for me to make a proper research for the topic- Fixation and Revision of Minimum Wages.
Her précised examples, detailed descriptions and enthusiastic approach made my efforts to
flourish in a right direction.
The work contained herein is an amalgamation of the remarkable work of various authors
and I am thankful to them for their publications that have helped me prepare this research
paper to the best of my abilities

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TABLE OF CASES

1. Airfreight Ltd v. State of Karnataka and others, 1999 SCC (L&S) 1185
2. Bhikusa Yamess Kshatriya v. Regional Labor Commissioner, A.I.R. 1963 S.C. 806
3. Chandra Bhawan Boarding and Lodging v. State of Mysore, AIR 1968 Mys. 156
4. Chandra Bhawan Boarding and Lodging, Bangalore v. State of Mysore, AIR 1970
SC 204
5. Crown Aluminium Works v. Their Workmen, AIR 1958 SC 30
6. D.Salt Works v. State AIR 1971 Guj 14
7. Gujarat State Bakers'' Federation ... vs State Of Gujarat (1995) 1 GLR 73, (1995)
ILLJ 1224 Guj
8. Gulam Ahmad v. State of Bombay, AIR 1962 Bom 97
9. Hydro (Engineers) Pvt. Ltd v. The Workmen, AIR 1969 SC 182
10. Hydro (Engineers) Pvt. Ltd. v. Workmen, AIR 1969 SC 182
11. Jaswant Rai Beri v. State of Punjab, AIR 1958 Punj 425
12. K.T. Appannah vs State Of Mysore By Its Chief Secretary To Government And Anr.
AIR 1962 Kant 157, AIR 1962 Mys 157, 1962 (5) FLR 502
13. Kamani Metals and Alloys Ltd v. Workmen, AIR 1967 SC 1175
14. Karnataka Film Chamber of Commerce v. State of Karnataka (1987)I LLJ 182
(Karn)
15. Mahendra Chandra v. State, AIR 1971 Tri 32
16. Raptakos Brett &Co. case 1977 WLN 461
17. Sahadeo Sahu v. State of M.P. and another (1990) II LLJ 402 (MP)
18. Sangam Press v. Workmen, AIR 1969 SC 2035
19. U.Unichay v. State of Kerala, AIR 1969 SC 12

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I. INTRODUCTION

In a developing economy like India where about 90 percent of the workers work in the
informal sector, not having collective bargaining power.1 In India, 422.6 million workers
out of the total workforce of 467 million belong to the unorganized/informal sector. These
workers contribute to more than 60 per cent to India’s GDP growth.2 There are large groups
of unorganized workers in small industry, agriculture, construction, domestic service,
garment industry, many forms of self-employment, etc. Their condition resembles that of
workers in large industry in the early years of union formation. Few laws apply to them; even
the ones that are passed are not implemented. Many of these workers have no education, few
skills and little ability to organize themselves.3

Over the years, in our country, except certain highly organized industries, the labor as a
whole was not able to put a face of collective bargaining and look after their own interests. 4
In a labor surplus economy like India wages couldn’t be left to be determined entirely by
forces of demand and supply as it would lead to the fixation of wages at a very low level
resulting in exploitation of less privileged class. Keeping this in view, the Government of
India enacted the Minimum Wages Act, 1948.

II. BACKGROUND

On the recommendation of the 8th Standing Labor Committee, the Minimum Wages Bill was
introduced in the Central Legislative Assembly on 11th April, 1946 to provide for fixation of
minimum wages in certain employments. The Minimum Wages Bill was passed by the Indian
Dominion Legislature and came into force on 15th March, 1948. Under the Act, both Central
and the State Governments are “Appropriate Governments” for fixation/ revision of
minimum rates of wages for employments covered by the Schedule to the Act.5

Article 39 states that the State shall, in particular, direct its policy towards securing (a) that
the citizen, men and women equally shall have the right to an adequate livelihood and (b) that
there is equal pay for equal work for both men and women. Article 43 states that the State
shall endeavor, by suitable legislation or economic organization or in any other way, to give
all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work
1
“Report On The Working Of Minimum Wages Act”; for the year 1998 www.laborbureau.nic.in
2
“Minimum Wages India – Current Minimum Wage Rate India”; www.paycheck.in
3
“ Law Relating to Minimum Wages”, Anuja Mirchandaney, Alternative Law Forum
4
“ Chapter 5- Wages”; http://labour.nic.in/annrep/annrep0304/english/Chapter05.pdf
5
Ibid

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ensuring a decent standard of life and full enjoyment of leisure, and social and cultural
opportunities.6

Under the Act, Central and State Governments are appropriate governments and can do the
two actions:

1. notify scheduled employment (specified in Part I- carpet weaving, mill and other
mines, plantation etc; Part II- agriculture, cultivation, harvesting etc specified in
the schedule).

2. fix/revise minimum wages

III. AIM AND OBJECTS OF MINIMUM WAGES ACT

The purpose of the Act is to provide that no employer shall pay to workers in certain
categories of employments wages at a rate less than the minimum wage prescribed by
notification under the Act. The Act provides for fixation / periodic revision of minimum
wages in employments where the labor is vulnerable to exploitation. Under the Act, the
appropriate Government, both Central and State can fix / revise the minimum wages in such
scheduled employments falling in their respective jurisdiction.7

The object of the Act is to prevent exploitation of the workers, and for that purpose it aims at
fixation of minimum wages which the employer must pay. The legislature undoubtedly
intended to apply the Act to those industries or localities in which by reason or causes such as
unorganized labor or absence of machinery for regulation of wages, the wages paid to
workers, were in the light of general level of wages and substantive level, inadequate.8

In the essence what the Act purports to achieve is to prevent exploitation of labor and for the
purpose it authorizes the appropriate Government to take steps to prescribe minimum rates of
wages in the scheduled industries.

IV. WAGES

This Act defines Wages under Section 2(h) which reads as under-

6
Khan, Kamaluddin, “Directive Principles For the establishment of the welfare state”, 19th Feb, 2009
7
“Report On The Working Of Minimum Wages Act”; for the year 2001 www.laborbureau.nic.in
8
Bhikusa Yamess Kshatriya v. Regional Labor Commissioner, A.I.R. 1963 S.C. 806

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“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 and
includes house rent allowance”
But does not include
The value of- any house, accommodation, supply of water, light etc or any
other amenity or any service excluded by general or spl. order of the
appropriate govt.

Any contribution paid by the employer to any pension fund or provident


fund or under any scheme of social insurance.

Any traveling allowance or the value of any traveling concession.

Any sum paid tot eh person employed to defray special expenses entailed
on him by the nature of his employment.

Any gratuity payable on discharge.

V. DEFINITION OF MINIMUM WAGE

A criticism against the Act has been that it does not define the term “Minimum wages”.
Trade Unions have urged that to avoid differences in interpretation by wage fixing authorities
“minimum wages” should be spelt out in precise terms. While fixing rigid cash equivalent of
the statutory minimum wage may not be a good idea (because of rise in prices due to inflation
and differences in regional conditions)9, some norms should be followed to guide the
fixation. The Act it self does not contain any clue as to the principles, criteria or norms, to be
followed while fixing a minimum wage for a given employment.
The 2nd National Labor Commission which came out with its report in 2002 recommends
that the Minimum wages should be such as to satisfy the needs of the worker and his family,

9
Here is should be mentioned that the 2nd National Commission on Labor has proposed a National Floor Level
Minimum wage fixed by the Central Government, applicable to every employed worker, through out the
country. This will not take away the power of the state governments which should notify a separate State
Minimum wage which should not be less than the National level minimum wage(in Volume I, Part I at p.433,
434 of its Report).

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arrived at on the need based formula of the 15 Indian Labor conference. This should be
supplemented by the judgment of the Supreme Court in Raptakos Brett &Co. case10 they
said. In spite of endorsing such a wage, the Commission went on to say “the Appropriate
Government should keep in mind the capacity of the industry to pay as well as the basic
needs of the worker.11

VI. FIXATION OF MINIMUM WAGES

The term ‘Minimum Wage Fixation’ implies the fixation of the rate or rates of minimum
wages by a process or invoking the authority of the State. 12 The statutory minimum wage has
the force of law and it becomes obligatory on the part of the employers not to pay below the
prescribed minimum wage to its employees. The obligation of the employer to pay the said
wage is absolute. This process helps the employees in getting fair and reasonable wages more
particularly in the unorganized sector. Also the other gain which could be derived by fixing
minimum wages under statutory provisions are to eliminate exploitation of labor to ensure
rapid growth and equitable distribution of the national income thereby ensuring sound
development of the national economy.13

Section 3 of the Minimum Wages Act, 1948 lays down that the appropriate Government shall
be empowered to fix the minimum rates of wages in the manner prescribed under this Act,
payable to employees employed in the scheduled employments and in an employment added
to either Part I or Part II of the Schedule by Notification under Section 27.14

The appropriate Government shall review the minimum rates of wages to fix and revise the
minimum rates, if necessary, at such intervals as it may think fit, where the intervals as
aforesaid may not exceed five years. But where for any reason the appropriate Government
has not reviewed the minimum rates of wages fixed by it within an interval of five years, the
appropriate Government shall not be without power to review or revise after five years. Until
the minimum rates are so revised the minimum rates in force immediately before the expiry
of the said period of five years shall continue in force.

Under Section 3 (1-A) the appropriate government can refrain from fixing and revising
minimum wage in certain circumstances if the workers are less than 1000 in the whole State.

10
1977 WLN 461
11
‘Report of the National Commission of Labour, Volume I, Part I’ at p. 366.
12
“Minimum Wages Act 1948”, www.nidfm.nic.in
13
Supranote no. 7
14
Gujarat State Bakers'' Federation ... vs State Of Gujarat (1995) 1 GLR 73, (1995) ILLJ 1224 Guj

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But if at any time after the inquiry appropriate govt. finds that the workers are more than
1000 regarding that same employment appropriate government can fix the minimum wages.15

It has been provided under the provisions of Section 3(2) of the Minimum Wages Act that 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 rate 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’;
Clause (c) of Section 3(2) is intended to meet a situation where operation of minimum
piece rate fixed by Government may result in worker earning less than minimum wage.16
(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 over-time work done by
employees, hereinafter referred to as “over-time”.17

The minimum rates of wages shall not apply in the following cases during the period in
which the proceeding is pending and the award made therein is in operation or where the
notification is issued during the period of operation of an award during that period:

(i) Where in respect of an individual dispute relating to the rates of wages payable to any of
the employees employed in a scheduled employment any proceeding is pending before a
Tribunal or National Tribunal under the Industrial Disputes Act, 1947, or before any like
authority; or
(ii) Where an award made by any such authority as aforesaid is in operation; and
(iii)A notification fixing or revising the minimum rates of wages in respect of the scheduled
employment is issued during the pendency of such proceeding or the operation of the
award.

15
Sahadeo Sahu v. State of M.P. and another (1990) II LLJ 402 (MP)
16
Hydro (Engineers) Pvt. Ltd. v. Workmen, AIR 1969 SC 182
17
The Minimum Wages Act, 1948, Section 3(2); Airfreight Ltd v. State of Karnataka and others, 1999 SCC
(L&S) 1185

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Where such proceeding or award relates to the rates of wages payable to all the employees in
the scheduled employment no minimum rates of wages shall be fixed or revised in respect of
that employment during the said period.

In fixing or revising minimum rates of wages under Section 3(3):


(a) Different minimum rates of wages may be fixed for-
(i) Different scheduled employment;
(ii) Different classes of work in the same scheduled employment;
(iii)Adults, adolescents, children and apprentices;
(iv) Different localities;
(b) Minimum rates of wages may be fixed by 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 longer
wage-period as may be prescribed.

Fixing of different rates of minimum wages for different industries or in different localities
by dividing State into different several zones will be in conformity with Section 3 or the
scheme of the Act.18 This Act purports to prevent exploitation of labor. For that purpose the
appropriate Government is authorized to take steps to prescribe minimum rates of wages in
the scheduled industries. This Act prescribes minimum wage rates which a welfare State
assumes every employer must pay before he employs labor.19 The minimum rates of wages
are fixed with the dual object of providing sustenance and maintenance of the worker and his
family and preserving his efficiency as a worker.20 However, the minimum prescribed is not
the economic or industrial minimum but contains several components which take the
statutorily prescribed minimum near the level of the fair wage, and when that is the effect of
the statutory provision capacity to pay may, no doubt, have to be considered.21

VII. MINIMUM RATES OF WAGES

Section 4(1) provides with the minimum rates of wages. It provides that any minimum rates
of wages fixed or revised by the appropriate Government in respect of scheduled
employments under Section 3 may consist of :-

1. A basic rate of wages; and

18
Chandra Bhawan Boarding and Lodging, Bangalore v. State of Mysore, AIR 1970 SC 204
19
Crown Aluminium Works v. Their Workmen, AIR 1958 SC 30
20
U.Unichay v. State of Kerala, AIR 1969 SC 12
21
Ibid

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2. A special allowance at a rate to be adjusted, at such intervals and in such a manner as the
appropriate Government may direct, to accord as nearly as practicable with the variation in
the cost of living index number applicable to such workers, hereinafter referred to as the
cost of living allowance; or
3. A basic rate of wages with or without the cost of living allowance and the cash value of
concessions in respect of supplies of essential commodities at concessional rates where so
authorized; or
4. An all-inclusive rate allowance for the basic rate, the cost of living allowance and the cash
value of the concessions, if any.
The cost of living allowance and the cash value of the concessions in respect of supplies of
essential commodities at concessional rates shall be computed by the competent authority at
such intervals and in accordance with such directions as may be specified or given by the
appropriate Government.22
The special allowance mentioned in Section 4(1) of the Act, is a variable amount forming part
of the wages, being linked with the cost of living index number. The phrase ‘a special
allowance’ does not take within its ambit the “trip allowance”. This allowance is specifically
referred to in Section 4(1) as “cost of living allowance”. Therefore “trip allowance” and “cost
of living” fall in different categories for the former has not much to do with the prevailing
cost of living index number.23
In Karnataka Film Chamber of Commerce v. State of Karnataka24, it was held that the
language of Section 4 does not lend itself to the interpretation that a minimum wage under
Section 4(1) necessarily should consist of basic wages and dearness allowance. Minimum
wages may consist of a basic rate of wages and a special allowance at a rate adjusted at such
intervals and in such manner as the appropriate Government may direct to accord as nearly as
practicable with the variation in the cost of living index number applicable to such workers,
or basic rate of wages with or without cost of living allowance and the cash value of the
concessions in respect of supplies of essential commodities at concessional rates, where so
authorized, or all inclusive rate allowing for the basic rate, the cost of living allowance and
the cash value of the concessions, if any. Therefore minimum wage may consist of basic
wages and a special allowance to be adjusted with variations with increase or decrease in

22
The Minimum Wages Act, 1948, Section 4(2)
23
Mahendra Chandra v. State, AIR 1971 Tri 32
24
(1987)I LLJ 182 (Karn)

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basic wages when question of neutralization of cost of living arises by payment of dearness
allowance.
As indicated earlier, the main object of the Act was to fix statutory minimum wages in those
industries where sweated labor is most prevalent or where there is a considerable chance for
exploitation of labor. The Act lays down these employments in Parts I and II of its schedule.

Sl. No. Scheduled Employments

1(a) Employment in Agriculture:


Agricultural works
1 (b) Employment in Agriculture: Soil
Conservation
2 Aerated Water Manufacturing
Industry
3 Agarbathi Industry
4 Automobile Engineering (including
servicing & repairing works)
5 Bakeries
6 (a) Tobacco Industry: Beedi Making
6 (b) Tobacco Industry: Tobacco
Processing
7 Biscuit Manufacturing Industry
8 Brass Copper and Aluminium Utensils
manufacturing industry
9 Bricks Industry
10 (a) Wood Work including: Carpentry
industry and Saw Mill industry
10 (b) Wood Work including: Match Works
(Match Box)Industry
10 (c) Wood Work including: Plywood
Industry

VIII. REVISION OF WAGES

Revision of wages is necessary mainly for 2 reasons:


1. To provide for the erosion of the real value of money due to inflation and
2. To allow for the workers to share in the fruits of development.

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At present the Act requires that a wage once fixed should be revised periodically, with
intervals not exceeding 5 years. The past experience has shown that minimum rate of wage
once fixed remain in operation for more than five years in many employments.25 The First
National Commission on Labor (1967) recommended that the Act should be amended to
make it obligatory on the appropriate government to revise the minimum wage every three
years. This is followed in Karnataka There are two ways to protect against inflation: the first
being to revise the wage at frequent intervals. This is not the practice in almost all the
states.26 The second is to link the cost of living to the minimum wage. This is called the
linking of dearness allowance (D.A) and is most commonly followed. In 1990 The Ministry
of Labor, Government of India decided that D.A would be announced every 6 months for
Industries for whom the Central government is the Appropriate Government.
Points to Lobby for: The dearness allowance must be provided every six months and
therefore the Act should be amended so that there is provision for enhancement automatically
every six months on the basis of the Consumer Price index.27 At present in Karnataka, it is
revised once a year.

IX. IRRELEVANT CONSIDERATIONS IN FIXATION OF MINIMUM WAGES

The following considerations are not relevant in fixation of wages:--

(a) The fact that an employer may find it difficult to carry on his business on the basis of
minimum wages;28
(b) The financial capacity of the employee i.e., his capacity to pay;29
(c) The fact of the employer-company having incurred losses during the previous years;
(d) Employer’s difficulties in importing raw materials; and

25
Observed by the Ist National Commission on Labour, 1969.
26
As per Parduman Singh and R.K.A Subrahmanya in “A New Approach To Minimum Wages as an instrument
of Social Protection” Published by Social Security Association of India & Friedrich Ebert Stiftung, 1999.
27
Dearness Allowance or ‘DA’ is basically an additional sum of money to neutralise the effect of inflation. If
the price of goods increase and workers wages remain the same then they cannot purchase
all their basic requirements. The Consumer Price Index is a list (published by the statistical department of the
government) which measures the rise in price in a fixed basket of commodities from a year called the ‘Base
year’. The consumer price index measures the rise in price of this fixed basket of goods in terms of points. The
DA is fixed by the government is ‘x’ paise, per point of the
consumer price index. Example: In 1997, beedi workers (piece rate workers), were getting a wage of Rs 40/- for
1000 beedis rolled. From the period, 1997 to 1998 the variable points of the consumer price index was 136 and
the D.A fixed by the State Government was 2.5 paise. The Variable D.A. is therefor Rs. 3.625 ( 2.5 paise
multiplied by 136 points), which was added to the basic wage of Rs. 40/-.

28
Hydro (Engineers) Pvt. Ltd v. The Workmen, AIR 1969 SC 182
29
Sangam Press v. Workmen, AIR 1969 SC 2035

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(e) The region-cum-industry principles.

However in fixing fair wages the financial capacity of the employer and the wages scale
prevailing in the comparable industries in the region are some of the relevant
considerations.30 Minimum wages must be paid irrespective of the extent of profits, the
financial condition of the establishment or availability of workmen, on lower wages. 31 The
minimum wages is independent of the kind of industry and applies to all alike, big or small.
It sets the lowest limit below which wages cannot be allowed to sink in all humanity.

X. PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES

Section 5 lays down that in fixing rates of wages in respect of any scheduled employment for
the first time under this Act or in revising minimum rates of wages so fixed, the appropriate
Government shall either :--

(a) appoint as many committees and sub-committees as it considers necessary to hold


enquiries and advise it in respect of such fixation or revision, as the case may be, or

(b) by notification in the Official Gazette, publish 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
notification, on which the proposals will be taken into consideration.

After considering the advice of the committees appointed, and all representations received by
it before the date specified in the Gazette notification, the appropriate Government may by
notification in the official Gazette, fix or revise the minimum rates of wages in respect of
each scheduled employment, which shall come into force after the expiry of 3 months unless
otherwise provided in the notification.

However where the appropriate government proposes to revise the minimum rates of wages
by the mode specified in Section 5(1)(b), the appropriate Government shall consult the
Advisory Board also. The Advisory Board is constituted to co-ordinate the work of the
committees and the sub-committees and to advise the Government generally in the matter of
fixing and revising the minimum rates. However, in the initial fixation of minimum wages,
consultation with the Advisory Board is not compulsory.32

30
Ibid 28
31
Kamani Metals and Alloys Ltd v. Workmen, AIR 1967 SC 1175
32
Chandra Bhawan Boarding and Lodging v. State of Mysore, AIR 1968 Mys. 156

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For the purposes of advising the Central and State Governments in the matter of fixation and
revision of minimum rates of wages and other matters under this Act and for coordinating the
works of the Advisory Boards, the Central Government shall appoint a Central Advisory
Board. Thus, the Central Advisory Board is constituted by the Central Government under
Section 8 of the Minimum Wages Act, for the following purposes:
1. To advise the Central and State Governments in the matters of fixation and revision of
minimum rates of wages;
2. To advise on any matters within the scope of this Act;
3. To co-ordinate the work of the Advisory Boards.

The object of Section 5 is to enable the Government to collect data required for fixing the
minimum wages, the committee appointed under Section 5 is only an advisory body and
Government is not bound to accept any of its recommendations.33 The Act speaks of two
procedures by which a minimum wage can be fixed by the government for a given
employment. It is in the government’s discretion to choose either of these methods or a
combination of both. In one, the committees hold enquiries and advice in respect of the
fixation or revision and the Government in the light of advice, ultimately decides. In the
other, the Government formulates its proposals, invites the representations and after
consulting the Advisory Board, arrives at its decision.

XI. ADVISORY BOARD

The appropriate Government shall according to Section 7 appoint an Advisory Board for the
purpose of-

(a) Co-ordinate the work of committees and sub-committees, appointed under Section 5; and
(b) Advising the appropriate Government in the matter of fixing and revising minimum rate
of wages.

Besides the Advisory Board may device the procedure to be adopted for discharging its
function under Section 5 of the Act.34

33
Jaswant Rai Beri v. State of Punjab, AIR 1958 Punj 425
34
Gulam Ahmad v. State of Bombay, AIR 1962 Bom 97

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XII. CENTRAL ADVISORY BOARD

Section 8 makes it obligatory upon the Central Government to appoint a Central Advisory
Board for the following purposes:

(i) Advising the Central and State Governments in the matters of the fixation and revision of
minimum rates of wages and other matters under the Act; and
(ii) For coordinating the work of the Advisory Boards.

Section 8(2) provides that Central Advisory Board shall consist of:-

(i) Advising the Central and State Governments in the matters of the fixation and revision of
minimum rates of wages and other matters under the Act; and
(ii) For coordinating the work of the Advisory Boards.

Section 8(2) provides that the Central Advisory Board shall consist of:-

(i) Persons to be nominated by the Central Government representing employers and


employees in the scheduled employment who shall be equal in number; and
(ii) Independent persons not exceeding one-third of its total number of members. The
Chairman of the Central Board shall be one of the independent persons and shall be
appointed by the Central Government

XIII. COMPOSITION OF COMMITTEES ETC.

Section 9 provides that such of the committee, sub-committees and the Advisory Board shall
consist of persons to be nominated by the appropriate Government. Persons who can be
appointed to these committees shall be representatives of the employers and employees in the
scheduled employments and shall be equal in number. Independent persons not exceeding
one-third of the total number of members in such bodies shall be appointed. The appropriate
Government shall appoint one of such independent to be the Chairman.35

The expression ‘independent person’ in this section means a person other than those who are
employer and employees in relation to the scheduled employment in respect of which
minimum wages are sought to be fixed.36

35
K.T. Appannah vs State Of Mysore By Its Chief Secretary To Government And Anr. AIR 1962 Kant 157, AIR
1962 Mys 157, 1962 (5) FLR 502
36
D.Salt Works v. State AIR 1971 Guj 14

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XIV. CORRECTION AND ERRORS

Section 10 empowers the appropriate to correct clerical or arithmetical mistakes in any order
fixing or revising minimum rates of wages under this Act or errors arising from any
accidental slips or omissions by Notification in the Official Gazette. Every such notification
shall be placed before the Advisory Board for information. The notification making necessary
corrections in order of fixing or revising minimum wages issued by the Government under
Section 10(2) is not a piece of legislation of any kind, neither delegated legislation nor
subordinate legislation nor conditional legislation. The Legislature in enacting Section 10(2)
had no intention to assign to the appropriate Government anything more than a mere
accessory power of taking an executive action of issuing notifications which were necessary
to carry out the policy of the Act.37

37
AIR 1960 Bom 229

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TABLE OF CONTENTS

Books

1. Goswami, V.G. Dr., Labor & Industrial Laws, 8th edition, Central Law Agency,
2004
2. Malhotra, O.P.,The Law Of Industrial Disputes, 6th Edition, LexisNexis
ButterWorths Wadhwa, 2004
3. Mishra ,S.N., Modern Labour Laws And Industrial Relations, Deep & Deep
Publications Pvt. Ltd, 1992
4. Singh, Avtar, Introduction To Labour & Industrial Law, LexisNexis
ButterWorths Wadhwa

Articles

1. ‘Report of the National Commission of Labour, Volume I, Part I’ at p. 366.


2. “Chapter 5- Wages”
3. “Minimum Wages Act 1948”,
4. “Minimum Wages India – Current Minimum Wage Rate India”; “Report On
The Working Of Minimum Wages Act”; for the year 1998 “Report On The
Working Of Minimum Wages Act”; for the year 2001 Khan, Kamaluddin,
“Directive Principles For the establishment of the welfare state”, 19th Feb, 2009
5. Mirchandaney, Anuja “Law Relating to Minimum Wages”, Alternative Law
Forum

Websites

1. http://labour.nic.in/annrep/annrep0304/english/Chapter05.pdf
2. www.laborbureau.nic.in
3. www.nidfm.nic.in
4. www.paycheck.in

LABOR AND INDUSTRIAL LAWS Page | IV

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