CMA Laws and Ethics Minimum Wages Act 1948 Question and Answers

Minimum Wages Act 1948

Question 1. Objective and Scope of the Minimum Wages Act, 1948
Answer:

• An Act to protect the interests of workers employed in the unorganized sector.
• The Act extends to the whole of India.
• The objective of the Act was to prevent the exploitation of labor and prescribe the minimum wages for employees in certain employment.

Question 2. Who is an Employee
Answer:

• Employee means any person who is employed for:
• Hire or reward to do any work
• skilled or unskilled
• manual or clerical in scheduled employment in respect of which minimum rates of wages have been fixed

Includes:

• • An out-worker to whom any articles or materials are given out by another person to be made up, cleaned, washed, altered, ornamented, finished, repaired, adapted, or otherwise processed.
  • Employee declared to be an employee by the appropriate Government;
  • Employeo includes contract employees

Excludes: Member of the Armed Forces.

Question 3. What is meant by the term Wages
Answer:

Wages means all remunerations, capable of being expressed in terms of money, which would be payable to a person employed in respect of his employment in case the terms of the contract of employment were fulfilled.

Includes: House rent allowance

Read and Learn More CMA Laws and Ethics Paper

Excludes:

• Any house accommodation supply of light, water, medical attendance
• Any other amenity or any service excluded by Appropriate Government
• Any contribution paid by the employer to any PF
• Any traveling allowance
• Any sum paid to the person employed to defray special expenses
• Any gratuity payable on discharge

Question 4. Who fixes the minimum rates of Wages
Answer:

• The Appropriate Government has to fix the minimum rates of wages payable to employees employed in employment.
• The appropriate Government shall review the minimum rates so fixed at such intervals as it may think fit, such intervals not exceeding 5 years, and revise the minimum rate of wages, if necessary.
  • This can be fixed only if there are a minimum of 1000 employees in the state in that Scheduled Industry
  • Minimum wages can be revised on a retrospective basis.
• Minimum wages under the Minimum Wages Act, of 1948 may be fixed as:
  • Time work
  • Piece work
  • Guaranteed time rate
  • Overtime rate
• Apart, from the aforesaid manner, it can also be fixed as follows:
  • Different scheduled employments
  • Different classes of work
  • Based on adults, adolescents, etc.

Question 5. Procedure for Fixing End Revising Minimum Wages
Answer:

There are two methods the Appropriate government may follow in fixing the minimum rate of wages:

Committee Method:

• Under the committee method, the appropriate Government appoints Committees and sub-committees
• After considering the toe ed/tee of the committee, the appropriate Government  one  fix or revise the minimum wages by official notification in the Official Gazette
• The government is not bound to accept the recommendations given by, the rate.

Notification Method:

• Notification MetUndernder’s notification  method is the appropriate Government by rate-caution to the Office Gazette publish the proposals for “horn rates of wages from a date rat less than 2 months from the date of ras-etcetera, The persons so affected by the rates of wages may t^/e them represented,
• After remastering tea representation from the various groups, the Government will prescribe the minimum rates of wages

Other Noteworthy Points:

• Payment of less than  minimum wage is an offense
• Even though the Company is running into Josses it has to pay minimum wages
• Minimum wages need to be paid in cash, though they may be paid in kind too.
• In case of termination of service of an employee, wages are to be paid within 2 days from the date of such termination.
• Imprisonment of 6 months or a fine of up to 500 or both in case of breach of the Act by paying lesser than stipulated minimum wages.

Question 6. Central Government
Answer:

For Scheduled employment carried under the authority of the central Act

• Railway
• Mines
• Oil field

Minimum Wages Act 1948 Short Note Question And Answers

Question 1. Write short notes on Overtime under the Minimum Wages Act, of 1943 )
Answer:

Overtime:

Section 14(1) states that 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 authorized, works on any day over the number of hours constituting a normal working day, the employer shall pay him for every hour or part of an hour so worked in excess at the eve rime rate fixed under this Act or any law of the appropriate government for the time being in force whichever is higher.

1. Rule 25 states that when a worker works more than 9 hours on any day or more than 48 hours in a week, he shall be entitled to overtime v/ages.
2. In the case of employment in agriculture – one and a half times the ordinary rate of wages; in the case of any other scheduled employment – double the ordinary rate of wages.
3. A register in this regard should be maintained. If no overtime wage is paid for a particular month a NIL entry in the register should be made.
4. Section 14(2) states that this Act shall not prejudice the operation of the provisions of Section 59 of the Factories Act in any case where those provisions are applicable.

Minimum Wages Act 1948 Descriptive Question And Answers

Question 1. Explain the Cost of Living Index Number under the Minimum Wages Act, of 1948.
Answer:

“Cost of living Index Number” about employees in any scheduled employment in respect of which minimum rates of wages have been fixed,
means the Index Number ascertained and declared by the Competent Authority by notification in the official gazette to be the cost of living index number applicable to employees in such employment.

Question 2. A is engaged in two types of jobs in a factory, that of mechanic and watchman. The wage rates are different for two different jobs. The employer calculates his minimum wage on an average rate. State whether this is correct, and explain your views as per the Payment of Minimum Wages Act, 1948.
Answer:

• 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
• 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.
• Thus, the employer just cannot pay him at a simple average rate of both wages of both classes of job.

Question 3. Explain the procedure for fixing and revising minimum wages under the Minimum Wages Act, of 1948.
Answer:

Procedure for Fixing and Revising Minimum Wages (Sec.5):

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:
   • appoint as many committees and sub-committees as it considers necessary to hold inquiries and advise it in respect of such fixation or revision as the case may be, or
   • 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 committee appointed under clause (a) of sub-sec. (1) or as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate government shall by notification in the Official Gazette, fix or as the case may be revise the minimum rates of wages in respect of each scheduled employment and unless such notification otherwise provides it shall come into force on the expiry of three months from the date of its issue :
   • Provided that where the appropriate government proposes to revise the minimum rates of wages by the mode specified in clause (b) of sub-sec. (1) the appropriate government shall consult the Advisory Board also.

Question 4. The Minimum Wages Act, of 1948 prescribes payment of wages in cash only. Comment.
Answer:

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 thinking that it is necessary in the circumstances of the case may by notification in the Official Gazette authorize the payment of minimum wages either wholly or partly in kind.
3. If the Appropriate Government thinks that provision should be made for the supply of essential commodities at concession rates the Appropriate Government may by notification in the Official Gazette authorize 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 authorized under sub-section (2) and (3) shall be estimated in the prescribed manner

Question 5. Explain the procedure for fixing and revising minimum wages under the Minimum Wages Act, of 1948.
Answer:

Procedure for Fixing and Revising Minimum Wages (Sec. 5)

In fixing minimum rates of wages in respect of any scheduled employment for the first time or in revising minimum rates of wages so fixed, the appropriate Government shall follow either of the following 2 methods:

1. Appointment of committees: The appropriate Government shall appoint 1. as many committees and sub-committees as it considers necessary to hold inquiries and advise it in respect of fixation or revision of minimum rates of wages, as the case may be
2. Publication of proposals in the Official Gazette: The appropriate Government shall, by notification in the Official Gazette, publish its proposals for the information of persons likely to be affected by the fixation or revision of minimum rates of wages. It shall also specify a date on which the proposals will be taken into consideration. The date so specified shall not be less than 2 months from the date of the notification.

• • After considering the advice of the committee or committees [under Sec. 5(1) or all representations received by it before the date specified in the notification [under Sec. 5(1) (b)], the appropriate Government shall, by notification in the Official Gazette, fix or revise the minimum rates of wages in respect of each scheduled employment.
  • The fixation or revision shall come into force on the expiry of 3 months from the date of the issue of notification unless the notification otherwise provides [Sec. 5(2)].
  • The power of the Government under Sec. 5(2) to issue notification revising minimum wages includes the power to give retrospective effect to the notification.

Question 6. Describe the procedures for an employee to claim the short payment of wages or non-payment of wages under the Minimum Wages Act, of 1948.
Answer:

• If there is any short payment of wages or wages over time etc., may be claimed by the employee himself or through any legal practitioner or any official of a registered trade union authorized by him or any Inspector or any person acting with the permission of the Authority by applying to the concerned authority.
• For this purpose the appropriate Government may appoint any commissionerforworkmen’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 Labor 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 for all claims.
• The claim shall be presented to the authority by the employee within six months from the date on which the minimum wages or other amount became payable.
• The Authority may a claim beyond the six months if he is satisfied that the applicant had sufficient cause for not making the application within the prescribed period.
• Rule 27 provides that a single application in respect of several employees may be filed before the authority.
• The application shall be made in duplicate in Forms 6, 6A, or 7, one copy of which shall bear the prescribed court fee.
• The authorization shall be given in Form 8.
• The Authority shall serve the copy of the application to the employer by registered post a notice in Form 9 to appear before him on a specified date.
• He shall hear the applicant and the employer and after such further inquiry, if any, as it may consider necessary may, without prejudice of any other penalty to the employer, direct the payment to the employee of the amount by which the minimum wages payable to him exceed the amount paid, together with compensation as the authority may think fit, not exceeding 10 times the amount of such excess; in any other case, the payment of the amount together with the payment of such compensation as the Authority may think fit, not exceeding $ 10.
• If the employer fails to appear on the specified date the Authority may hear and determine the application ex-parte.
• If the applicant fails to appear on the specified date the application will be dismissed.
• Any such order may be set aside on sufficient cause being shown by the defaulting party within one month of the date of the said order and the application shall be re-heard.
• If the Authority finds the application is a vexatious one he may impose a penalty on the employees not exceeding $ 50 to the employer.
• The amount due may be recovered as if it were a fine imposed by the Authority of a Magistrate.
• Every direction of the Authority shall be final.