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8/8/2019 Legal Frame Work Governing Human Relations-presentation
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LEGAL FRAME WORK
GOVERNING HUMANRELATIONS
UNIT-5
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BY
RAMPRABHA.K2ND YEAR MBA
LAW OF MINIMUM WAGES
THE MINIMUM WAGES
ACT,1948
2Dept. of Business Administration,Annamalai University
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INTRODUCTION
Over the years, in a country like India,
except certain highly organizedindustries, the labor as a whole was notable to put a face of collective bargaining
and look after their own interests. Thus,Minimum Wages Act, was enacted in1948.
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OBJECTIVE
To provide minimum wages to the workersworking in organized sector(scheduledemployment).
To stop exploitation of the workers. To empower the government to take steps for
fixing minimum wages and to revise this
wages within a period of five years. To provide for appointment of Advisory
Committees & Advisory Boards, having equal
representatives of employers and workers. 4Dept. of Business Administration, Annamalai University
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APPLICABILITY OF THE ACT
The Act extends to whole of India.
To any employment in any State if it employs 1000
employees.
The Act will not apply to employees in anyundertaking owned by the Central Govt. or of Federalrailway, except with the consent of the Central Govt.
Thus, the wages have to be statutorily paid.
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SCHEDULE
SCHEDULED
EMPLOYMENT
SCHEDULED
EMPLOYMENT
PART 1specifies certain types
of Industries
PART 1specifies certain types
of Industries
PART 2deals with persons workingin Agriculture, Horticultureand Live Stock or Poultry.
PART 2deals with persons workingin Agriculture, Horticultureand Live Stock or Poultry.
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PART 1:
Employment in any woolen carpet making or shawlweaving establishment.
Employment in any rice mill, flour mill or dhal mill.
Employment in any tobacco (including bidimaking) manufactory.
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Employment in any plantation, that is to say, anyestate which is maintained for the purpose of growingcinchona, rubber, tea or coffee.
Employment in public motor transport.
Employment in tanneries and leather manufactory.
Employment in gypsum , bauxite and manganesemines.
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PART 2:
Employment in agriculture, that is to say, inany form of farming, including the cultivation and
tillage of the soil, dairy farming, the production,cultivation, growing and harvesting of anyagricultural or horticultural commodity, the raisingof livestock, bees or poultry, and any practice
performed by a farmer or on a farm as incidental toor in conjunction with farm operations.
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WAGES
According to section2(h), wages means allremuneration capable of being expressed in terms ofmoney.
Includes:
house rent allowance
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Does not include:
value of house accommodation, supply of light, water,medical attendance.
Value of any other amenity provided, if excluded byGovernment order.
Contribution to pension fund or provident fund orinsurance.
Traveling allowance
special expenses incurred by the nature of employmentand Gratuity payable on discharge.
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EMPLOYEE
Employed for Hire or Reward
To do skilled or unskilled work
Manual or Clerical
Job Worker
Any person declared by the appropriate Governmentas Employee but, does not include any member of
armed forces12
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MINIMUM WAGE FIXATION
According to section 3, The appropriategovernment shall fix and revise the minimum wages
payable to employees employed in an employmentspecified in part I & II of the Schedule.
The rate can be fixed on
time work basis piece work basis guaranteed rate basis when rate is fixed on piece
work basis and overtime rate basis.
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MINIMUM NUMBER OF EMPLOYEES:
The appropriate Government may refrain fromfixing minimum rates of wages in respect of anyscheduled employment in which there are in the whole
State less than 1,000 employees engaged in suchemployment. But if at any time, the appropriateGovernment comes to a finding after an inquiry that
the number of employees in any scheduled
employment has risen to 1,000 or more, it shall fixminimum rates of wages payable as soon as may beafter such finding [Sec. 3 (1-A)].
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FIXING OF MINIMUM WAGES BY THE
APPROPRIATE GOVERNMENT
MINIMUM
TIME RATE The
MinimumWages paidforTimeWork.
MINIMUM
PIECE RATE The
MinimumWages paidfor PieceWork.
GUARANTEE
D TIME RATE Those
employedunder thescheme ofPiece Work
but,GuaranteedWages willbe paid onthe basis ofTime.
OVERTIME
RATE Time Rate of
Piece Ratewill applywhere theEmployee
has workedovertimeover andabove hisnormalworkinghours.
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FIXING OF MINIMUM WAGES BY THE
GOVERNMENT
MINIMUM RATE OF WAGES WILLBE FIXEDFOR
Employments provided in Schedule I & II
Different Types of Employments provided inSchedule I&II
Adults, Adolescents, Children and Apprentices.
Different Localities16
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WAGEP
ERIOD
S FIXED
UND
ER MINIMUM RATEOF WAGES
By the Hour
By the Day
By the Month
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FIXING OF MINIMUM WAGES
The Minimum Wages has to be paid irrespective of the extent ofProfit or Financial Condition of theEstablishment.
The Minimum Wages has to be paid irrespective ofavailability of workmen willing to work on lower
wages.
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The Committees appointed will recommend theMinimum Wages to be paid which is
recommendatory. The final decision has to be madeby the appropriate Government.
In case the Employers have not adhered toMinimum Wages then, the Employee can move toLabor Courts before proceeding to High Courts.
Minimum Wages has been fixed for the baresubsistence of life and also to preserve the efficiencyof the worker which will provide education, medicalrequirements and amenities of himself and his
family. Dept. of Business Administration, Annamalai University19
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The appropriate Government is empowered to fix the
Minimum Wages irrespective of the strength (evenbelow one thousand employees)
The Minimum Wages will be fixed based on the
Nature of Work and Quantum of work.
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COMPONENTS OF MINIMUM WAGES
METHOD 1
Basic Rate ofWages +Special
Allowancecalled as Cost
of LivingAllowance
METHOD 2
Basic Rate ofWages withoutany Cost ofLiving
Allowance
METHOD 3
ConsolidatedPay withoutsplitting intoBasis Rate ofWages, Cost of
LivingAllowance orCash Value of
Concession.
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PROCEDURE FOR FIXING & REVISING
MINIMUM WAGES
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COMMITTEEMETHOD
Committees and Sub-Committees appointed by the AppropriateAuthority will hold enquiries, collect information and will submit theproposal for Revision of Minimum Wages to the Appropriate Authority.
NOTIFICATIONMETHOD
The Appropriate Authority after perusing the proposal will publish itsdecision by notification in the official gazette and the specific datefrom which the revised wages has to be paid. The specific dateshould not be less than two months from the date of notification.
EFFECT
The notification will be applied after two months and will also beapplicable from retrospective effect also.
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AUTHORITIES
ADVISORYBOARD
Government is required toconstitute Advisory Boardto recommend minimumwages. The
recommendations ofAdvisory Board are notbinding on Government.
CENTRALADVISORY
BOARD It is constituted from
persons nominated bycentral government.
And consist of
representatives ofemployers, employees andindependent members (upto 1/3rd of the total
strength).
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PAYMENT OF WAGES
According to Sec.11,Minimum Wages payable under this Act, shall be
paid in Cash.
Where it is customary that, Minimum Wages hasto be paid partly in cash and partly in kind. Thatis provision of essential commodities at
concessional rates.According to Sec.12,
The Minimum Wages has to be paid without anydeductions other than Statutory Deductions.
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NORMAL WORKING HOURS
According to Sec.13,
For an Adult Worker, Working in Factories the
number of Working Hours should not exceed 48Hours in a week.
One Day should be given as a holiday as Weekly
Holiday. The Day can be any day but it should beadhered for every week. The same should bedisplayed in the notice board of the Factory.
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The Daily Hours should not exceed more than 9Hours with 1 Hour Rest Interval.
According to Sec.13(1),
Where a person has worked on a Holiday either aCompensatory Holiday may be provided or AnOvertime Wages will be paid.
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EXCEPTIONS TO NORMAL WORKING
HOURS
According to Sec.13(1),the Normal Working Hoursneed not be adhered in the following cases:
Where the persons were employed to meet emergencyor urgent work.
Whose Employment is dependent on Natural
Factors
Employees those who have not completed their duty
in time for technical reasons.Dept. of Business Administration, Annamalai University27
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Where the Nature of Duties has to be necessarilycarried out beyond Normal Working Hours.
OVER TIME WAGESAccording to Sec 14, Where a person has worked
more than the Normal Working Hours for anyday, the excess hours worked will be treated asOvertime.
Where the Fixed Normal Working Hours for anyday is in excess of 8 Hours we have to go by themethod of weekly worked hours. If the person hasworked for more than 48 hours in a week then, the
excess hours worked will be treated as Overtime.28
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WAGES FOR THE PERSON WHO WORKS
LESS THAN THE NORMAL WORKING HOURS
According to Sec.15,
Where an Employee worked on any day less thanthe Normal Working Hours due to the fact that,
Employer could not provide the activities of the jobthen, the Employee is entitled to receive full salary.
Where an Employee worked on any day less thanthe Normal Working Hours due to the fact that,Employee has not worked due to his unwillingness
then, the employee is not entitled to receive full
salary.Dept. of Business Administration, Annamalai University29
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WAGES FOR TWO OR MORE CLASSES OF
WORK
According Sec.16,
Where an Employee does two types of works whichhas different Minimum Wages then, the Employershall pay to such Employee based on working hours
allocated to each type of job.
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MINIMUM TIME RATE FOR PIECE WORK
According to Sec.17,
Where an employee is employed on piece work forwhich minimum time rate and not a minimum piecerate has been fixed under the Act, the employer shall
pay to such employee wages at not less than theminimum time rate.
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MAINTENANCE OF REGISTERS &
RECORDS
According to Sec.18,
Employer should maintain a Register of Employeescontaining the details such as the name, address,
fathers name, age, sex, the work performed, the
wages paid to them.
Every Employer should display the above particulars in the premises where the Employee
works. Dept. of Business Administration, Annamalai University32
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The other Registers to be maintained are:
(1) Register of Fines.(2) Register of Deductions for Damage / Losscaused to the employer, by the neglect / default of
the employed persons.(3) Overtime Register for Workers
The Registers shall be preserved for a period of 3years after the date of last entry made therein.
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INSPECTION
According to Sec.19,
The Appropriate Government through notificationin the official gazette appoint inspectors and alsodefine the local limits for such inspectors.
The inspectors have right to enter the premises ofemployers at all reasonable hours and have right toverify all the records as required to be maintainedby law.
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The inspectors have right to examine any personthey find in the premises.
Inspectors have right to enquire about the workgiven to workers and have right to get information
from the employers about the payment of wages,
etc.,
The Inspectors have right to cease or take copies of
registers maintained by the Employer in case, theInspectors feel that the Employee has committedany mistake.
The Inspector shall be deemed to be a Public Servant.De t. of Business Administration Annamalai Universit35
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CLAIMS
According to Sec.20,
An Employee who has claim over the Employer through his legal practitioner or a official of aregistered Trade Union or Employee himself may
apply to the Authority for claims for getting adirection.
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The Appropriate Authority will hear the applicantand the Employer and after giving both the personsa reasonable opportunity to hear and after makingsuch further inquiry will pass an order.
In case the Appropriate Authority finds that theEmployer is guilty then, the Appropriate Authoritywill direct the Employer for Payment of
Compensation which may not exceed 10 times of theactual Compensation.
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In case the Appropriate Authority finds that theEmployee is guilty then, no Compensation is
payable.
In case the Appropriate Authority finds that bothEmployer and Employee is not guilty then,Employee has to pay Rs.50/- to Employer.
The direction given by the Appropriate Authorityshall be final.
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OFFENCES & PENALITIES
According to Sec.22,
Any employer who had violated the provisions of theAct will be treated as he had made an offence andRs.500 fine will be collected from the employer.
The Appropriate Authority will pass orders for anyclaims made by Employee against Employer.
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No Court shall take any case directly.
No Court shall take up a Case of Appeal against the order of the Appropriate Authority not morethan 30 days from the date of order.
According to Sec.22(c),
In the case of a Company, the person in-charge atthe time of offence happened will be responsible todischarge the liability under this Act.
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In the case of a Partnership Firm, the ManagingPartner at the time of Offence happened will beresponsible to discharge the liability under this Act.
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EXEMPTIONS & EXCEPTIONS
According to Sec.26,
The Appropriate Government depending on thesituation may direct that this Act shall not be
applicable in relation to Wages payable todisabled Employees.
The Act will not be applicable to the Wages payable by an Employer to a member of hisfamily who is living with him and dependent onhim. Family includes his / her spouse, child,
parent, brother or sister.Dept. of Business Administration, Annamalai University42
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THANK YOU!!!!!