Minimum Wages Act, 1948

S.22 Penalties for certain offences.

¹[22. Penalties for certain offences.--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 a

S.22A General provision for punishment of other offences.

¹[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 for such contravention by this Act, be punishable with fine which may extend to five hundred rupees.]

STATE AMENDMENTS

Kerala--

S.22B Cognizance of offences.

¹[22B. Cognizance of offences.--(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--

¹[22C. Offences by companies.--(1) If the person committing any offence under this Act is a company, every person who at the time the offence was committed, was in charge 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 an offence under this Act has been committed by a

S.22D Payment of undisbursed amounts due to employees.

¹[22D. Payment of undisbursed amounts due to employees.--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.]

S.22E Protection against attachment of assets of employer with Government.

¹[22E. Protection against attachment of assets of employer with Government.--Any amount deposited with the appropriate Government by an employer to secure the due performance of a contract with that Government and any other amount due to such employer from that Government in respect of such contract shall not be liable to attachment under any decree or order of any Court in respect of any 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.]

S.22F Application of Payment of Wages Act, 1936, to scheduled employments.

¹[22F. Application of Payment of Wages Act, 1936, to scheduled employments.--(1) Notwithstanding anything contained in the Payment of Wages Act, 1936 (4 of 1936). the appropriate Government may, by notification in the Official Gazette, direct that, subject to the provisions of sub-section (2), all or any of the provisions of the said Act shall with such modifications, if any, as may be specified in the notification, apply to wages payable to employees in such scheduled employments as may be specified in the notification.

(2) Where all or any of the provisions of the said Act are applied to wages payable to employees in any scheduled employment under sub-section (1), the Inspector appointed under this Act shall, be deemed to be the Inspector for the purpose of enforcement of the provisions so applied within the local limits of his jurisdiction.]

S.23 Exemption of employer from liability in certain cases.

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:

S.24 Bar of suits.

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

(d) could have been recovered by an application under that section.

S.25 Contracting out.

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.

S.26 Exemptions and exceptions.

(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 emp

S.27 Power of State Government to add to Schedule.

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 State be deemed to be amended accordingly.

S.28 Power of Central Government to give directions.

The Central Government may give directions to a State Government as to the carrying into execution of this Act in the State.

S.29 Power of the Central Government to make rules.

The Central Government may, subject to the condition 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.

S.30 Power of appropriate Government to make rules.

(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 subjectmatter of the enquiry before

S.30A Rules made by Central Government to be laid before Parliament.

¹[30A. Rules made by Central Government to be laid before Parliament.--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 A

S.31 Validation of fixation of certain minimum rates of wages.

¹[31. Validation of fixation of certain minimum rates of wages.--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

S.2 Interpretation.

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, oilfield or major port, or

Legal Commentary on Section 2 of The Minimum Wages Act, 1948 with Delhi Amendment

Introduction

Section 2 of the Minimum Wages Act, 1948, provides definitions crucial for interpreting the scope and application of the Act. The Delhi Amendment has introduced modifications to the Act, especially concerning the scope of scheduled employments, the definition of employer and employee, and the mode of wage payment, aligning with the specific needs of Delhi’s socio-economic context.

What does Section 2 Say

Section 2 contains definitions of key terms such as "advisory board," "employee," "employer," "scheduled employment," and "wages." The Delhi Amendment has notably included definitions relevant to private establishments, charitable organizations, and the mode of wage payment, and has clarified the scope of scheduled employments in Delhi.

Essential Ingredients

Definitions of "employer" and "employee" encompassing various employment types.
"Scheduled employment" includes employment specified in the Schedule or any process/branch forming part of such employment.
Power of the government to add to the Schedule via notifications.
Clarification that "wages" include all remuneration in cash.
Mode of wage payment, including provisions for electronic payment and bank accounts, especially in Delhi.

Scope of Section 2

Applies to all scheduled employments, including private, charitable, and government-controlled sectors.
The scope has been expanded through notifications, such as in Delhi, to include all shops, establishments, and certain services.
The definitions ensure broad coverage, including out-workers, contractual workers, and volunteers if they are paid wages or remuneration.
Clarifies mode of wage payment, emphasizing the importance of timely and proper disbursement, including through bank accounts.

Punishment for Section 2

Section 2 itself does not prescribe punishment; however, violations of its provisions—such as paying less than minimum wages, failing to maintain records, or not following prescribed modes of wage payment—are punishable under Sections 22A and 22B, which prescribe penalties including fines and imprisonment.

Legal Comments

"Scope of application" - Section 2 broadly defines "scheduled employment" to include various sectors, including shops, charitable organizations, and private enterprises, as amended for Delhi, extending coverage to a wide array of establishments [Section 2(g); Delhi Shops & Establishments Act, 1954; Delhi Amendment Notification, 1965].
"Definition of employer" - The term "employer" includes any person responsible for employment, covering direct, indirect, or contractual employment, including charitable and voluntary organizations, as clarified in the Delhi Amendment and subsequent notifications [Section 2(e); Delhi Shops & Establishments Act, 1954].
"Employee" scope - The definition includes even out-workers, volunteers receiving wages, and persons employed in various capacities, provided they are paid remuneration, aligning with the broad interpretation to prevent exploitation [Section 2(i); Supreme Court judgments].
"Power to add to Schedule" - The government’s power under Section 27 to notify additional employments in the Schedule has been exercised extensively, notably in Delhi to include shops, establishments, and services [Notification No. F.40(10)/64-Lab, 1965].
"Mode of wage payment" - The amendments emphasize electronic wage payment, including through bank accounts, aligning with modern banking practices but also raising issues of voluntariness and practical feasibility, especially in remote areas [Section 2(5); Delhi Amendment, 2017; WPS Rules].
"Inclusion of charitable and social organizations" - The Delhi Amendment clarifies that charitable organizations like Sulabh International are covered if they employ paid workers, even if their primary purpose is social welfare, not profit [Section 2(e); Sulabh International case].
"Volunteers and forced labor" - Deployment of volunteers or social workers receiving wages could be construed as employment under the Act, thus entitling them to minimum wages, which raises concerns about forced labor and exploitation [Section 2; Article 23 of the Constitution; Sulabh case].
"Penalties for violations" - Violations such as non-payment of minimum wages, record-keeping failures, or not following prescribed modes of wage payment attract penalties under Sections 22A and 22B, including fines up to Rs. 50,000 and imprisonment [Section 22A; Delhi Amendment, 2017].
"Retrospective amendments" - Amendments like the 2017 revision to include e-payment and increased penalties have been upheld as valid, but their retrospective application is subject to judicial scrutiny, emphasizing the importance of natural justice and fair process [Section 2; Supreme Court judgments].
"Legal interpretation" - The broad interpretation of "scheduled employment" and "employer" aims to prevent evasion of minimum wages obligations, but also invites judicial review on grounds of natural justice, natural justice, and constitutional rights [Section 2; Supreme Court case law].
"Application to private, charitable, and government sectors" - The definitions ensure coverage of private and charitable sectors, including social organizations, provided they employ paid workers, aligning with the welfare objectives of the Act [Section 2(g); Sulabh International case; Charitable organizations].
"Mode of enforcement" - Enforcement relies heavily on record maintenance, inspections, and complaints, with penalties for non-compliance, emphasizing the importance of strict adherence to the definitions and provisions of Section 2 [Section 22A; 22B; Delhi Amendment].
"Impact of amendments" - The Delhi Amendment and subsequent rules have expanded the scope, clarified definitions, and introduced modern wage payment modes, but also pose challenges in implementation, especially in remote areas or for informal workers [Section 2(5); WPS Rules; Supreme Court judgments].
"Judicial oversight" - Courts have consistently held that definitions under Section 2 should be interpreted in a manner that promotes the object of the Act—preventing exploitation and ensuring fair wages—while safeguarding rights against arbitrary actions [Section 2; Manipal Academy case].
"Protection of workers" - The comprehensive definitions aim to protect workers from underpayment, delayed wages, and exploitative practices, aligning with constitutional mandates under Articles 23 and 39 [Section 2; Constitution of India].
"Limitations and challenges" - Practical challenges in enforcing electronic payments, especially in rural or remote areas, and in verifying employment status of volunteers, require judicial and legislative attention [Section 2; Supreme Court cases].

In summary, Section 2, as amended for Delhi, provides a broad and inclusive framework for defining "employer," "employee," and "scheduled employment," ensuring comprehensive coverage to protect workers' rights under the Minimum Wages Act. The amendments aim to modernize wage payment mechanisms and expand coverage but also necessitate vigilant enforcement and judicial oversight to prevent misuse and ensure effective implementation.

S.1 Short title and extent.

(1) This Act may be called the Minimum Wages Act, 1948.

(2) It extends to the whole of India ²***.

S.3 Fixing of minimum rates of wages.

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 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;]

S.4 Minimum rate of wages.

(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

¹[5. Procedure for fixing and revising minimum wages.--(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.

S.6 [Omitted.].

[Advisory committees and sub-committees.] Omitted by the Minimum Wages (Amendment) Act, 1957 (30 of 1957), s. 5.

S.7 Advisory Board.

For the purpose of co-ordinating the work of ¹⁸[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.

S.8 Central Advisory Board.

(1) For the purpose of advising the Central and 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 Boards, 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.

S.9 Composition of committees, etc.

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.

S.10 Correction of errors.

¹[10. Correction of errors.--(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.]

S.11 Wages in kind.

(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 concession rates, the appropriate Government may, by notification in the Official Gazette, authorise the provision of such supplies at concession rates.

(4) The cash value of wages in kind and of concessions in respect of supplies of essential commodities at concession rates authorised under sub-sec

S.12 Payment of minimum rates of wages.

(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).

S.13 Fixing hours for a normal working day, etc.

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;

S.14 Overtime.

(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.

S.15 Wages of worker who works for less than normal working day.

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 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 circum

S.16 Wages for two or more classes of work.

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.

S.17 Minimum time rate wages for piece work.

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.

S.18 Maintenance of registers and records.

(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 out-workers, 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

S.19 Inspectors.

(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 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

S.20 Claims.

(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

S.21 Single application in respect of a number of employees.

(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.