Legal Frame Work Governing Human Relations-presentation

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.

3Dept. of Business Administration, Annamalai University


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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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Dept. of Business Administration, Annamalai University


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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.

Dept. of Business Administration, Annamalai University20


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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

Dept. of Business Administration,Annamalai University

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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.

Dept. of Business Administration,Annamalai University

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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


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


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


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


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


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


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


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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Legal Frame Work Governing Human Relations-presentation

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