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MINIMUM WAGES MAXIMUM CURIOSITY PowerPoint PPT Presentation


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BY:- M.K.Dwivedi Advocate & Management Consultant MOBILE: 98-681-75231 97-185-00131. MINIMUM WAGES MAXIMUM CURIOSITY. May - day. Struggle for the shorter work day Resolution on 07.10.1884 Eight hours = One day’s Labour Effective from 01.05.1886. SPREAD OVER .

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MINIMUM WAGES MAXIMUM CURIOSITY

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By m k dwivedi advocate management consultant mobile 98 681 75231 97 185 00131 l.jpg

BY:-

M.K.Dwivedi

Advocate

&

Management

Consultant

MOBILE: 98-681-75231

97-185-00131

MINIMUM WAGES MAXIMUM CURIOSITY


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May - day

Struggle for the shorter work day

Resolution on 07.10.1884

Eight hours = One day’s Labour

Effective from 01.05.1886


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SPREAD OVER

  • The working day of an adult worker shall be so arranged that inclusive of the intervals of rest, if any, shall not spread over more than twelve hours on any day.

  • Delhi Shops & Establishment prescribes Max. 10-1/2 hours total spread over in commercial establishment

  • 12 hour total spread over in shops

  • Nothing in this rule shall be deemed to affect the provisions of the Factories Act, 1948


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Supreme Court of India

  • The Minimum wages must be paid by the employer notwithstanding the want of financial capacity

    Woolcombers of India Vs Workers Union AIR 1973 SC 2758

  • In order to make the wages realistic they must be commensurate with the price rise in essential commodities. The apology that the employer may be constrained to shut his business if minimum wages are to be paid is simply untenable

    Hydro[Engineers] Pvt. Ltd. Vs the workmen 1969[18] FLR 189


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Apex Court Guidelines

The following components have been advised to be considered while fixing Min. wages

  • Children Education Allowance

  • Medical requirement

  • Minimum recreation

  • Provision for old age & Marriage

    The above should be additional 25% of the Min. wages

    workmen Vs the management of Reptakos Bret & Co. Ltd. 1992 LLR 1[ SC]


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DELHI HIGH COURT

  • When disability of an employee is incurred during his employment, his minimum wages can not be reduced since it will be prejudicial to the dignity of the labour

    Delhi Admn. Through Directorate of social welfare Vs Presiding Officer; 2004 LLR 83

  • A society is liable to pay minimum wages to its employees

    Delhi council for child welfare Vs Sheela Devi 2006 LLR 1181

  • Plea of society that it cannot pay minimum rates of wages as notified under the MW Act would not be tenable

    Multipurpose training centre for deaf Vs GNCT 2011 LLR 548


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Kinds of wages

  • Living Wages-

    Wages for all the necessities of life

  • Fair Wages-

    Above Minimum but below Living Wages

  • Minimum Wages-

    Bare Minimum necessity


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PARLIAMENT & JUDICIARY

  • LAW IS MADE BY PARLIAMENT WHICH REFLECTS THE LEGISLATIVE INTENT

  • LAW IS MADE BY JUDGMENTS WHICH REFLECTS THE JUDICIAL INTENT


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SPLITTING OF MINIMUM WAGES

WHETHER

PERMISSIBLE

?


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CENTRAL GOVT. & STATE GOVT.

CENTRAL GOVT. & STATE GOVT. FIX AND DECALRE CONSOLIDATED MINIMUM RATES OF WAGES FOR THE ESTABLISHMENTS FALLING UNDER THEIR RESPECTIVE DOMAIN


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NO BIFURCATION OF WAGES BY GOVT.

NEITHER THE CENTRAL GOVT. NOR STATE GOVT. HAS EVER DECLARED MINIMUM RATES OF WAGES IN BIFURCATED MANNER


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BIFURCATION BY EMPLOYER

EMPLOYERS HAVE SPLITTED MINIMUM WAGES AS UNDER

BASIC+DA+HRA+CONVEYANCE+

OTHER ALLOWANCES


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SPLITTING UNDER MW ACT-1948

  • NO CONTRAVENTION OF MINIMUM WAGES ACT-1948 IF THE EMPLOYER HAS PAID THE TOTAL WAGES MORE THAN THE MINIMUM RATES OF WAGES

    Airfreight Ltd. Vs State of Karnatka 1999 LLR 1008 SC


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SPLITTING VS BONUS

MINIMUM WAGES CANNOT BE SPILT UP IN TO HRA TO DEPRIVE THE WORKMAN PART OF BONUS .

EMPLOYER CANNOT ARROGATE ITSELF TO THE POWERS OF APPROPRIATE AUTHORITY TO DECIDE HRA IN THE CONSOLIDATED FIGURE OF MINIMUM WAGES

Globe detective agency pvt. Ltd. Vs POIT-III

2011 LLR P-236, Delhi High Court


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OBSERVATION OF DELHI HIGH COURT

  • IN THE MATTER OF GLOBE DETECTIVE , JUSTICE VALMIKI J MEHTA OBSERVED :-

    “THE MANAGEMNT IS NOT ENTITLED TO BREAK UP THE FIGURE OF MINIMUM WAGES BY STATING THAT THE MINIMUM WAGE INCLUDES THE FIGURE OF HRA WHICH SHOULD BE DEDUCTED FROM THE MINIMUM WAGE AND BONUS IS THEN PAYABLE ON REDUCED FIGURE OF MINIMUM WAGE AFTER REMOVING THE ALLEGED FIGURE OF HRA”


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Splitting vsesi

No benefit from splitting of Minimum Wages can be drawn because ESI is applicable almost on all the components


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Splitting vsepf

EMPLOYER CAN SPLIT THE MINIMUM WAGES IN TO ALLOWANCES LIKE HRA, CONVEYANCE AND WASHING ALLOWNCE ETC. WHICH WOULD NOT ATTRACT PROVIDENT FUND CONTRIBUTION

APFC VS M/S G4S SECURITY SERVICES [I] LTD

2011 LLR 316, PUNJAB & HARYANA HIGH COURT


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BONE OF CONTENTION

  • ALL OVER INDIA, PF AUTHORITIES ARE TAKING SERIOUS VIEW IN CASE THE PF CONTRIBUTION IS NOT PAID ON MINIMUM WAGES.

  • THIS ISSUE NEEDS TO BE SETTLED BY THE SUPREME COURT OF INDIA BECAUSE PF AUTHORITIES EXCEPT PUNJAB & HARYANA ARE NOT ACCEPTING THE POSITION SETTLED BY THE P& H HIGH COURT.


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SPLITTING VS GRATUITY

IN MY VIEW, THE SAME ANALOGY WHICH HAS BEEN ADOPTED IN CASE OF BONUS MUST BE ACCEPTED HERE ALSO. GRATUITY BEING TERMINAL BENEFIT MUST BE PAID AT LEAST ON MINIMUM WAGES.


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MIN.WAGES VS CONTRACT LABOUR

  • BURNING QUESTION

    CONTRACT LABOUR DEPLOYED IN AN ESTABLISHMENT OF CENTRAL GOVT. THROUGH A CO. FALLING UNDER THE JURISDICTION OF STATE GOVT.

    WHETHER CONTRACT LABOUR WILL GET WAGES DECLARED BY CENTRAL OR STATE GOVT.-?


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opinion no.-1

  • Since contract labour has been recruited by a co. under the domain of state Govt. as per their own terms and conditions therefore rates of wages declared by state govt. shall be payable. The services of the employees being transferable so they can be posted at any establishment.


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Opinion No.-2

  • Since the contract labour is employed in the establishment falling under the domain of central govt. and contract labour is to be treated at par with the labour employed by the Principal employer directly so Min. wages declared by the central govt. shall be followed


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My opinion

  • If the contractor co. recruits employees specifically in order to fulfill contract with the establishment falling under the domain of central govt. and their services are liable to continue till the contract subsist then the contract labour is entitled for wages as declared by the central govt.


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MY OPINION

  • If the employees are regular employees of contractor co. and their services do not depend on subsistence of contract with a specific establishment and transferable in nature then wages declared by state govt. shall be payable.


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FINAL ADVICE/CONCLUSION

“KEEPING IN VIEW THE CONTROVERSY PREVAILING IN RESPECT OF SPLITTING THE MINIMUM WAGES VIS A VIS OTHER STATUTES LIKE BONUS, GRATUITY, EPF ETC. THE COMPLAINCE UNDER VARIOUS STATUTES BE MADE AT LEAST ON THE BASIS OF MINIMUM WAGES”


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MINIMUM RATE OF WAGES IN DELHI

WE.F. 01.02.2011

UNSKILLED6084.00 SEMI-SKILLED 6734.00 SKILLED 7410.00 NON-MATRIC 6737.00 MATRICULATE 7410.00 GRADUATE & ABOVE 8060.00


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WISHING YOU A HAPPY, HEALTHY& MEANINGFUL LIFE

THANKING YOU

DWIVEDI & ASSOCIATES

ADVOCATES & MANAGEMENT CONSULTANTS

CH.NO.573,WESTERN WING,

TIS HAZARI COURTS,

DELHI-110054


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