MINIMUM WAGES ACT, 1948
(1) This Act may be called the Minimum Wages Act, 1948.
(2) It extends to 1[the whole of India] 2[***].
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1. Subs. by the A.O. 1950, for ‘all the Provinces of India’.
2. The words ‘except the State of Jammu and Kashmir’ omitted by Act 51 of 1970, sec. 2 and Sch. (w.e.f. 1-9-1971).
In this Act, unless there is anything repugnant in the subject or context,—
1[(a) “adolescent” means a person who has completed his fourteenth year 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 carried on by or under the authority of the 2[Central Government or a railway administration], or in relation to a mine, oil-field or major port, or any corporation established by 3[a Central Act], the Central Government, and
(ii) in relation to any other scheduled employment, the 4[State Government
1[(1) The appropriate Government shall, in the manner hereinafter provided,—
2[(a) fix the minimum rates of wages payable to employees employed in an employment specified in Part I or Part II of the Schedule and in an employment added to either Part by notification under section 27:
Provided that the appropriate Government may, in respect of employees employed in an employment specified in Part 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 the State or for any specified class or classes of such employment in the 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 rev
Section 3 of the Minimum Wages Act, 1948, confers the authority upon the appropriate Government—either Central or State—to fix, revise, and notify minimum wages for employees engaged in scheduled employments. This section forms the core legislative mechanism to ensure that workers are paid wages not less than the minimum prescribed, thereby safeguarding their economic interests and promoting social justice.
Section 3 empowers the Government to:- Fix minimum wages for employment in scheduled industries or occupations.- Revise these wages at intervals not exceeding five years.- Fix different minimum wages for different classes of work, localities, or industries.- Issue notifications specifying the minimum wages, which are binding on employers.
"Legislative Authority" - Section 3 grants the Government the power to fix and revise minimum wages, which is a legislative function aimed at social welfare. This power must be exercised in accordance with the provisions and procedural safeguards of the Act. [India Code, Section 3]
"Periodic Revision" - The wages are to be revised at intervals not exceeding five years, ensuring wages remain adequate against inflation and changing economic conditions. Failure to revise within this period can be challenged as violative of Article 14 of the Constitution. [Section 3, Rule 3 of the Rules, 1950]
"Classification of Wages" - The fixation of different wages for different classes of work, localities, or industries is permissible, provided it is based on relevant considerations such as cost of living, economic conditions, and productivity. Arbitrary classification violates Article 14. [Judicial Review, Writ Petition, Supreme Court]
"Notification and Procedure" - The issuance of notifications under Section 3 must follow the prescribed procedure, including consultation with advisory boards and consideration of relevant economic data. Non-compliance or arbitrary issuance can be struck down as illegal. [Supreme Court, Writ Jurisdiction]
"Scope of Fixation" - The wages fixed are minimum wages; employers are free to pay higher wages. Fixing wages below the notified minimum constitutes an offence under the Act. [Section 3, Penalties, 1948]
"Differential Wages" - The law recognizes the necessity of fixing different wages for different localities or industries, which is essential for economic and regional disparities. However, such classification must be reasonable and based on relevant factors. [Case Law: State of Kerala v. S. R. Sankaran, AIR 1964 SC 707]
"Legal Obligation" - Employers are legally responsible for paying not less than the notified minimum wages. Non-compliance leads to penalties, including fines and imprisonment, and recovery proceedings. [Section 22A, 1948]
"Judicial Review" - The courts have the power to examine whether the fixation or revision of wages was made following proper procedure and based on relevant considerations. Unreasonable or arbitrary fixation can be quashed. [Judicial Review, Writ Petition]
"Retrospective Operation" - Notifications fixing or revising wages generally operate prospectively unless expressly stated otherwise. Retrospective fixation is permissible only if explicitly provided for and justified. [Supreme Court, Writ Jurisdiction]
"Inclusion of Employers" - The Act applies to all employers in scheduled industries, including private, public, and cooperative sectors, provided they fall within the scope of scheduled employment. [Section 3, Schedule]
"Inconsistencies and Challenges" - Challenges to notifications can be made on grounds of non-compliance with procedural requirements, unreasonable classification, or violation of constitutional principles of equality (Article 14). [Case Law: State of Kerala v. S. R. Sankaran]
"Fixation of Wages for Different Regions" - The principle of regional classification is recognized; wages can vary based on local economic conditions, provided classifications are reasonable and based on relevant data. [Judgment: Regional Wage Fixation, Supreme Court]
"Role of Advisory Boards" - The Act mandates consultation with advisory boards comprising employers and workers’ representatives for fixing or revising wages, ensuring participatory decision-making. [Section 5, 1948]
"Penalties for Violations" - Employers contravening the minimum wages notification are liable for penalties, including fines, imprisonment, and recovery of wages due. [Section 22A, 1948]
"Scope of Judicial Intervention" - Courts generally refrain from interfering with wage fixation unless there is manifest arbitrariness, procedural irregularity, or violation of constitutional rights. [Supreme Court, Writ Jurisdiction]
"Legal Mandate for Fair Wages" - The primary objective of Section 3 is to prevent exploitation by fixing a wage floor, aligning with the Directive Principles of State Policy under Article 43 of the Constitution. [Constitution of India, Articles 23, 43]
"No Power to Fix Wages Below the Minimum" - Employers cannot pay wages less than the notified minimum; such acts are punishable under the Act. [Penal provisions, Section 22A]
"Notification Validity" - A notification issued following due procedure, with proper consultation and relevant data, is presumed valid and courts are reluctant to interfere unless gross irregularity is evident. [Judicial Precedent]
This concise legal commentary underscores the legislative intent, procedural safeguards, constitutional principles, and judicial interpretations surrounding Section 3 of the Minimum Wages Act, 1948. It emphasizes that fixing and revising minimum wages is a vital social welfare function, subject to judicial review for legality, fairness, and constitutional compliance.
(1) Any minimum rate of wages fixed or revised by the appropriate Government in respect of scheduled employments under 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 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
(ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies 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 th
(1) In fixing minimum 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.
(2) After considering the advice of the committee or committees appointed under clause (a) of sub-section (1), or as the case may be, all representati
Section 5 of the Minimum Wages Act, 1948, provides the procedural framework for fixing and revising minimum wages by the appropriate Government. It aims to ensure that workers receive a wage sufficient to meet their basic needs, reflecting the constitutional mandate to prevent exploitation and promote social justice.
Section 5 prescribes two methods for fixing or revising minimum wages:- Method 1: Appointment of a committee comprising persons conversant with the industry, which submits a report for consideration.- Method 2: Direct notification by the Government in the Official Gazette, after considering objections and representations from interested parties.
The section also mandates that the Government may fix or revise wages periodically, at intervals not exceeding five years, and must follow due procedures, including inviting objections and considering the advice of advisory bodies.
The Act prescribes penalties for employers who pay wages below the notified minimum or violate other provisions. However, violations related to procedural lapses in fixation or revision may lead to the notifications being quashed or declared invalid, as seen in judicial reviews.
"Power of fixation" - The power to fix or revise wages is vested in the appropriate Government, which can exercise it through notification or committee-based recommendations. [Source: [Akshara Motors Pvt. Ltd. VS Secretary Labour Department]]
"Method of fixation" - The Act provides two methods: appointment of a committee or direct notification; the Government's choice is discretionary and not bound by committee recommendations. [Source: [Federation of Karnataka, Chambers of Commerce and Industries Federation House, Bengaluru VS Government of Karnataka]]
"Procedure for notification" - Proper publication, invitation of objections, and consideration of representations are mandatory to uphold the validity of the fixation process. Failure to follow these procedural steps can invalidate the notification. [Source: [M. P. Lime Manufacturers VS State Of M. P. ]]
"Consultation with advisory board" - Consultation with the Advisory Board is mandatory under Section 5(2); non-compliance can lead to the notification being struck down. [Source: [HINDUSTAN SAFETY GLASS WORKS LTD. , BAMRAULI, ALLAHABAD VS STATE OF UTTAR PRADESH]]
"Discretion of the Government" - The Government has the liberty to accept, reject, or modify recommendations of the committee without assigning reasons, reflecting the executive's policy-making powers. [Source: [Surrayya Parveen @ Annapoorna VS Labour Officer Cum]]
"Periodic revision" - The Act mandates revision at intervals not exceeding five years, ensuring wages are responsive to economic changes. Failure to revise wages for extended periods may violate constitutional principles under Article 23. [Source: [PRESIDENT, CINEMA WORKERS UNION, BANGALORE VS SECRETARY, SOCIAL WELFARE AND LABOUR DEPARTMENT, BANGALORE]]
"Judicial review" - Courts have the authority to examine whether the procedural requirements under Section 5 have been followed; non-compliance can result in the notification being declared invalid. [Source: [State Of Rajasthan VS Duda Ram S/o Joga Ram]]
"Validity of notifications" - Notifications issued without following the prescribed procedure, such as inviting objections or considering recommendations, are liable to be quashed. [Source: [Jagdish Singh VS State of Rajasthan]]
"Scope of judicial interference" - Courts generally defer to the executive's policy decisions unless procedural irregularities or unreasonableness are established. The scope of judicial review is limited to procedural compliance. [Source: [E. C. E. Industries Ltd. VS Union of India]]
"Inclusion of categories and zones" - Fixing wages for different categories or regions must be based on rational criteria; arbitrary classification can be challenged and struck down. [Source: [The Southern India Mills’ Association, Rep. by its Chairman VS The State of Tamil Nadu, Rep. by its Principal Secretary to Government, Labour & Employment J1 Department, Fort. St. George & Others]]
"Power to withdraw or modify notifications" - Under Section 21 of the General Clauses Act, 1897, and judicial interpretations, the Government may withdraw or modify notifications, provided it follows the procedure and does not violate vested rights. [Source: [Sumit Kumar Sharma VS Cyfuture India Pvt. Ltd. ]]
"Limitations and delays" - Delay in challenging fixation or revision proceedings, especially when procedural requirements are not followed, can be a ground for dismissing the challenge. [Source: [Kerala Non Banking Finance Companies Welfare Association VS State of Kerala Represented by Secretary, Labour and Skills (E) Department]]
"Role of committees" - The appointment of committees is at the discretion of the Government; however, their recommendations are advisory, and the final decision rests with the Government. [Source: [A. P. Hotels Association VS GGovernment Of A. P. , LABOUR, EMPLOYMENT, TRAINING AND FACTORIES DEPARTMENT]]
"Legal effect of non-compliance" - Non-adherence to the procedural requirements, such as not inviting objections or not considering recommendations, renders the notifications vulnerable to judicial scrutiny. [Source: [VARGHESE PAUL VS STATE OF KERALA]]
"Amendments and technical errors" - Technical errors in notifications, if procedural safeguards are followed, generally do not invalidate the fixation or revision of wages. [Source: [Bhagwan Das Perta VS State of A. P. rep. by the special Secretary (Home) Labour Dept. Govt. of A. P. Hyderabad]]
"Retrospective operation" - The Act permits giving retrospective effect to revisions of wages if the notifications specify such, but procedural compliance remains essential. [Source: [Sindhu S. , W/o. Arun V. R. VS Raja Ravi Varma Central School]]
"Offences and penalties" - Violations of fixation or revision procedures, or paying wages below the notified minimum, constitute offences punishable under the Act, including fines and imprisonment. [Source: ]
"Officers' liability" - Officers responsible for fixing or revising wages are accountable for procedural lapses, and their acts can be challenged in courts. [Source: ]
"Judicial restraint" - Courts generally exercise restraint and recognize the executive's policy discretion unless there is clear procedural irregularity or arbitrariness. [Source: [Utkal Bidi Merchants’ Association VS State of Orissa in Labour and Employment Department]]
This concise legal commentary synthesizes judicial interpretations, statutory provisions, and procedural principles governing Section 5 of the Minimum Wages Act, 1948, highlighting the importance of procedural compliance, the discretionary power of the Government, and the scope of judicial review.
[Rep. by the Minimum Wages (Amendment) Act, 1957 (30 of 1957), sec. 5 (w.e.f. 17-9-1957).]
For the purpose of co-ordinating the work of 1[committees and sub-committees appointed under section 5] and advising the appropriate Government generally in the matter of fixing and revising minimum rates of wages, the appropriate Government shall appoint an Advisory Board.
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1. Subs. by Act 30 of 1957 sec. 6, for “committees, sub-committees, advisory committees and advisory sub-committees appointed under sections 5 and 6” (w.e.f. 17-9-1957).
(1) For the purpose of advising the Central and 1[State Governments] in the matters of the fixation and revision of minimum rates of wages and other matters under this Act and for co-ordinating the work of the Advisory Board, the Central Government shall appoint a Central Advisory Board.
(2) The Central Advisory Board shall consist of persons to be nominated by the Central Government representing employers and employees 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 Chairman of the Board by the Central Government.
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1. Subs. by A.O. 1950 for “Provincial Governments”.
Each of the committees, sub-committees 1[***] and the Advisory Board shall consist of persons to be nominated by the appropriate Government representing employers and employees 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 Chairman by the appropriate Government.
State Amendments
Madhya Pradesh.—In section 9,—
(1) after the words, ‘‘and independent persons’’, insert the words, ‘‘including officers of Government’’,
(2) for the words,‘‘such independent persons’’ substitute the words, ‘‘such independent persons, or such officers of Government’’, and
(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 this Act, or errors arising therein from any accidental slip or omission.
(2) Every such notification shall, as soon as may be after it is issued, be placed before the Advisory Board for information.]
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1. Subs. by Act 30 of 1957, sec. 8, for section 10 (w.e.f. 17-9-1957).
(1) Minimum wages payable under this Act shall be paid in cash.
(2) Where it has been the custom to pay wages wholly 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 the 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 concessional 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 concessions in respect of supplies of essential commodities at concessional rates authorised under sub-sections (2) and (3)
(1) Where in respect of any scheduled employment a notification under section 5 1[***] is in force, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorised within such time and subject to such conditions as may be prescribed.
(2) Nothing contained in this section shall affect the provisions of the Payment of Wages Act, 1936 (4 of 1936).
State Amendment
Bihar.—In section 12, after sub-section (1), insert the following sub-section, namely:—
“(1A) Where immediately before the issue of a notification under section 5 fixing or revis
1[(1)] In regard to any scheduled employment minimum rates of wages in respect of which have been fixed under this Act, the appropriate Government may—
(a) fix the number of hours of work which shall constitute a normal working day, inclusive of one or more specified intervals;
(b) provide for a day of rest in every period of seven 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 at a rate not less than the overtime rate.
2[(2) The provisions of sub-section (1) shall, in relation to the following classes of employees, apply only to such extent and subject to such conditio
(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-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall 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 operation of the provisions of 1[section 59 of the Factories Act, 1948 (63 of 1948)] in any case where those provisions are applicable.
State Amendment
Madhya Pradesh.—In section 14, after sub-section (1), add the following sub-section namely:—
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 working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done by him on that day as if he had worked for a full normal working day:
Provided, however, that he shall not be entitled 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.
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, wages at not less than the minimum rate in force in respect of each such class.
State Amendment
Madhya Pradesh.—In section 16, for the words “in respect of the time respectively occupied in each class of work, wages at not less than the minimum rate in respect of each such class” substitute the words “wages at the highest of the rates prescribed for such class.”
[Vide Madhya Pradesh Act 23 of 1961, sec. 8 (w.e.f. 23-6-1961)].
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 employer shall pay to such employee wages at not less than the minimum time rate.
(1) Every employer shall maintain such registers and 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 manner as may be prescribed, in the factory, workshop or place where the employees in the scheduled employment may be employed, or in the case of outworkers, in such factory, workshop or place as may be used for giving out-work to them, notices in the prescribed form containing prescribed particulars.
(3) The appropriate Government may, by rules made under this Act, provide for the issue of wage books or wage slips to employees employed in any scheduled employment in respect of which minimum rates of wages have been fixed and prescrib
(1) The appropriate Government may, by notification in the Official Gazette, appoint such persons as it thinks fit to be Inspectors for the purposes of this Act and define the local limits within which they 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 assistants (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 rates 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
Section 19 of the Minimum Wages Act, 1948, empowers the government to appoint inspectors who oversee compliance with the provisions of the Act, including the fixation and enforcement of minimum wages. Inspectors play a crucial role in ensuring that employers adhere to statutory wages and related obligations, thereby protecting workers' rights. The section also delineates the authority, jurisdiction, and powers of these inspectors, establishing a framework for enforcement.
Section 19 grants the appropriate Government the authority to appoint such persons as inspectors for the purposes of the Act. It specifies that:- Appointments are made via notification in the Official Gazette.- Inspectors are vested with powers to enter workplaces, examine records, issue notices, and ensure compliance.- The local limits within which inspectors operate are defined by the Government.- Inspectors are deemed public servants under the Indian Penal Code.- They can exercise such other powers as may be prescribed.
While Section 19 itself does not prescribe punishment, violations related to the enforcement activities (e.g., failure to maintain records, obstructing inspectors, or paying less than minimum wages) can attract penalties under other sections of the Act, such as:- Section 22: Penalties for offences under the Act, including fines and imprisonment.- Section 23: Penalties for contravention of rules.- Penalty details: Can include fines, imprisonment, or both, depending on the severity of the offence.
This concise legal commentary underscores the critical role of Section 19 in empowering inspectors, establishing their authority, and facilitating enforcement of minimum wages legislation, with judicial recognition of their appointment and powers ensuring legal robustness.
(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 stipendiary Magistrate to be the authority to hear and decide for any specified area all claims arising out of payment of less than the minimum rates of wages 2[or in respect of the payment of remuneration for days of rest or for work done on such days under clause (b) or clause (c) of sub-section (1) of section 13 or of wages at the overtime rate under section 14], to employees employed or paid in that area.
(2) 3[Where an employee has any claim of the nature referred to in sub-section (1)], the emp
(1) 1[Subject to such rules as may be prescribed, a single application] may be presented under section 20 on behalf or in respect of any number of employees employed in the scheduled employment in respect of which minimum rates of wages have been fixed and in such cases the maximum compensation which may be awarded under sub-section (3) of section 20 shall not exceed ten times the aggregate amount of such excess 2[or ten rupees per head, as the case may be].
(2) The Authority may deal with any number of separate pending applications presented under section 20 in respect of employees in the scheduled employments in respect of which minimum rates of wages have been fixed, as a single application presented under sub-section (1) of this section and the provisions of that sub-section shall apply accordingly.
State Amendments
&n
Any employer who—
(a) pays to any employee less than the minimum rates of wages fixed for that employee’s class of work, or less than the amount due to him under the provisions of this Act; or
(b) contravenes any rule or order made under section 13,
shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both:
Provided that in imposing any fine for an offence under this section, the court shall take into consideration the amount of any compensation already awarded against the accused in any proceedings taken under section 20.]
State Amendment
Bihar.—In se
Any employer who contravenes any provision of this Act or of any rule or order made thereunder shall, if no other penalty is provided for such contravention by this Act, be punishable with fine which may extend to five hundred rupees.]
State Amendment
Bihar.—For section 22A, substitute the following section, namely:—
“22A. General Provision for punishment of other offences.—Any employer who contravenes any provision of this Act or of any rule or order made thereunder shall, if no other penalty is provided in this Act for such contravention, be punishable with imprisonment for a firm which may extend to six months, or with fine which may extend to one thousand rupees, or with both.”
[Vide Bihar Act 5 of 1983, sec. 7 (w.e.f. 30-1-1983)
(1) No court shall take cognizance of a complaint against any person for an offence—
(a) under clause (a) of section 22 unless an application in respect of the facts constituting such offence has been presented under section 20 and has been granted wholly or in part, and the appropriate Government or an officer authorised by it in this behalf has sanctioned the making of the complaint;
(b) under clause (b) of section 22 or under section 22A, except on a complaint made by, or with the sanction of, an Inspector.
(2) No court shall take cognizance of an offence—
(a) under clause (a) or clause (b) of section 22, unless complaint thereof is made within one month of the grant of sanction under this section;
&nb
(1) If the person committing any offence under this Act is a company, every person who at the time the offence was committed, was incharge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of,
All amounts payable by an employer to an employee as the amount of minimum wages of the employee under this Act or otherwise due to the employee under this Act or any rule or order made thereunder shall, if such amounts could not or cannot be paid to the employee on account of his death before payment or on account of his whereabouts not being known, be deposited with the prescribed authority who shall deal with the money so deposited in such manner as may be prescribed.]
State Amendment
Madhya Pradesh.—Section 22D re-numbered as section 23.
[Vide Madhya Pradesh Act 23 of 1961, sec. 21(c) (w.e.f. 23-6-1961)].
—————
1. Ins. by Act 30 of 1957, sec. 14 (w.e.
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 debt or liability incurred by the employer other than any debt or liability incurred by the employer towards any employee employed in connection with the contract aforesaid.]
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1. Ins. by Act 30 of 1957, sec. 14 (w.e.f. 17-9-1957).
Where an employer is charged with an offence against this Act, he shall be entitled, upon complaint duly made by him, to have any other person whom he charges as the actual offender, brought before the Court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the employer proves to the satisfaction of the Court—
(a) that he has used due diligence to enforce the execution of this Act; and
(b) that the said other person committed the offence in question without his knowledge, consent or connivance,
that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the employer and the employer shall be discharged:
Provided that in seeking
No Court shall entertain any suit for the recovery of wages in so far as the sum so claimed—
(a) forms the subject of an application under section 20 which has been presented by or on behalf of the plaintiff; or
(b) has formed the subject of a direction under that section in favour of the plaintiff; or
(c) has been adjudged in any proceeding under that section not to be due to the plaintiff; or
(d) could have been recovered by an application under that section.
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.
Section 25 of the Minimum Wages Act, 1948, addresses the legality of contracts or agreements that seek to reduce or relinquish the right of employees to receive the minimum wages fixed under the Act. It aims to prevent exploitation by ensuring that workers are protected from contractual arrangements that diminish their statutory entitlements.
Section 25 stipulates that any contract or agreement, whether made before or after the Act’s commencement, which attempts to reduce or relinquish an employee’s right to the minimum wages or other privileges under the Act, shall be null and void to the extent of such reduction or relinquishment.
Section 25 itself does not prescribe specific penal provisions. However, violations can be prosecuted under the general provisions of the Act, which include penalties such as fines and imprisonment for contraventions related to non-compliance with minimum wage fixation and related obligations.
Protection of Rights - Section 25 ensures that employees’ statutory rights to minimum wages cannot be waived or diminished by contractual arrangements, reinforcing the public policy of fair remuneration. [Source: "MANAGEMENT OF JYOTHI HOME INDUSTRIES VS STATE OF KARNATAKA"]
Nullity of Contracts - Any agreement seeking to reduce wages below the statutory minimum is absolutely null and void, safeguarding workers from exploitation. [Source: "G. Venkata Ramaiah VS State Of A. P. "]
Prevention of Exploitation - The section acts as a safeguard against unscrupulous employers attempting to bypass minimum wage laws through contractual clauses. [Source: "G. Venkata Ramaiah VS State Of A. P. "]
Unlawful Delegation - The law explicitly prohibits contracts that reduce wages, preventing employers from delegating their statutory obligations to employees via agreements. [Source: "Rajasthan Minerals and Company VS Authority Under Minimum Wages Act"]
Contractual Limitations - Contracts or agreements that attempt to limit or waive the right to minimum wages are void; the law overrides such contractual provisions. [Source: ""]
Legal Consequences - Violations of Section 25 can lead to criminal prosecution, including penalties such as fines and imprisonment, under the broader enforcement provisions of the Act. [Source: ""]
Public Policy - The section embodies the principle that minimum wages are public policy and cannot be contracted away, maintaining the social welfare objective of the legislation. [Source: "G. Venkata Ramaiah VS State Of A. P. "]
Inviolability of Minimum Wages - The law emphasizes the inalienable nature of minimum wages, making any contractual attempt to reduce wages illegal and unenforceable. [Source: "MANAGEMENT OF JYOTHI HOME INDUSTRIES VS STATE OF KARNATAKA"]
Applicability to All Contracts - The prohibition applies regardless of the nature of the contract—be it oral, written, or implied—highlighting the comprehensive scope of the law. [Source: ""]
Legislative Intent - The provision reflects the legislative intent to prevent employers from circumventing minimum wages through private agreements, aligning with the constitutional mandate to protect workers’ rights. [Source: "Century Mercantile Private Limited VS State of Assam"]
Vitiation of Contract - Any contract contravening Section 25 is void ab initio, meaning it is invalid from the outset, and the employee retains the right to claim the minimum wages. [Source: "Rajasthan Minerals and Company VS Authority Under Minimum Wages Act"]
Enforcement and Compliance - Enforcement agencies are empowered to initiate proceedings against violators, ensuring compliance and safeguarding workers’ rights. [Source: ""]
Scope of "Relinquishment" - The term includes any act that results in the waiver or renunciation of minimum wages, whether explicit or implied, emphasizing the law’s broad protective scope. [Source: "G. Venkata Ramaiah VS State Of A. P. "]
No Contract Can Overcome Statutory Rights - The law establishes that statutory rights to minimum wages cannot be contracted away, reinforcing the supremacy of legislation over private agreements. [Source: "MERIND LTD. VS PRESCRIBED AUTHORITY/LABOUR COMMISSIONER, BIJNORE"]
Legal Hierarchy - Section 25 maintains the hierarchical supremacy of the Minimum Wages Act, ensuring that contractual arrangements cannot override statutory provisions. [Source: ""]
Policy of Welfare Legislation - The section underscores the policy of welfare legislation to protect vulnerable workers from exploitation, aligning with constitutional principles of social justice. [Source: "Century Mercantile Private Limited VS State of Assam"]
Judicial Interpretation - Courts have consistently held that any contract violating Section 25 is invalid and unenforceable, emphasizing the public policy behind the provision. [Source: "Rajasthan Minerals and Company VS Authority Under Minimum Wages Act"]
Inclusion of All Agreements - The provision applies irrespective of the form or timing of the contract, including oral agreements, to prevent evasion of minimum wage obligations. [Source: ""]
Policy against Contractual Evasion - The law aims to prevent employers from evading statutory obligations via private agreements, ensuring minimum wages are protected as a fundamental right. [Source: "G. Venkata Ramaiah VS State Of A. P. "]
Enforcement through Penalties - Violations are punishable under the law, with penalties including fines and imprisonment, deterring employers from engaging in such unlawful contracts. [Source: ""]
Section 25 of the Minimum Wages Act, 1948, plays a crucial role in safeguarding workers' rights by rendering any contractual attempts to reduce or waive minimum wages null and void. Its broad scope and strict prohibition underscore the legislative intent to uphold social justice and fair remuneration, preventing exploitation and ensuring that minimum wages are inalienable rights protected by law.
Note: The references are based on the provided sources, summarized in the bullet points.
(1) The appropriate Government may, subject to such conditions, if any, as it may think fit to impose, direct that the provisions of this Act shall not apply in relation to the wages payable to disabled employees.
(2) The appropriate Government may, if for special reasons it thinks so fit, by notification in the Official Gazette, direct that 1[subject to such conditions and] for such period as it may specify, the provisions of this Act or any of them shall not apply to all or any class of employees employed in any scheduled employment or to any locality where there is carried on a scheduled employment.
2[(2A) The appropriate Government may, if it is of opinion that, having regard to the terms and conditions of service applicable to any class of employees in a scheduled employment generally or in a scheduled employment in a local area 3[o
The appropriate Government, after giving by notification in the Official Gazette not less than three months’ notice of its intention so to do, may, by like notification, add to either Part of the Schedule any employment in respect of which it is of opinion that minimum rates of wages should be fixed under this Act, and thereupon the Schedule shall in its application to the 1[State] be deemed to be amended accordingly.
State Amendments
Bihar.—After section 27, insert the following sections, namely:—
“27A. Protection to persons acting under the Act.—No suit, prosecution or other legal proceeding whatsoever shall lie against any person for anything which, is in good faith done or intended to be done in due discharge of his duties under this Act.
&n
The Central Government may give directions to a 1[State Government] as to the carrying into execution of this Act in the 2[State].
—————
1. Subs. by A.O. 1950 for “Provincial Government”.
2. Subs. by A.O. 1950, for “province”.
The Central Government may, subject to the conditions of previous publication, by notification in the Official Gazette, make rules 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.
(1) The appropriate Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may,—
(a) prescribe 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, 1[***] and the Advisory Board;
(b) prescribe the method of summoning witnesses, production of documents relevant to the subject-matter of the enquiry before the committees, sub-committees 1[***] and the Advisory Board;
2[(1)] Every rule made by the Central Government under this Act shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall, thereafter, have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule].
3[(2) Every rule made by the State Government under this Act shall be laid, as soon as may be after it is made, before the State Legislature.]
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Where during the period—
(a) commencing on the 1st day of April, 1952, and ending with the date of the commencement of the Minimum Wages (Amendment) Act, 1954 (26 of 1954); or
(b) commencing on the 31st day of December, 1954, and ending with the date of the commencement of the Minimum Wages (Amendment) Act, 1957 (30 of 1957); or
(c) commencing on the 31st day of December, 1959, and ending with the date of the commencement of the Minimum Wages (Amendment) Act, 1961 (31 of 1961),
minimum rates of wages have been fixed by an appropriate Government as being payable to employees employed in any employment specified in the Schedule in the belief or purported belief that such rates were being fixed under clause (a) of sub-sect
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