Meaning:
The term 'Minimum Wages' has not been defined in the Minimum Wages Act, 1948. The minimum wage is the lowest wage in the scale below which the efficiency of a worker is likely to be impaired. The minimum wage, includes not only the bare physical necessities but also a modicum of comfort otherwise known as conventional necessities.
The minimum wage must, therefore, provide not merely for the bare subsistence of life but also for the preservation of the efficiency of worker. For this purpose the minimum wage must also provide for same measure of education, medical requirements and amenities. Therefore, any employer who is unable to pay this minimum wage to workers has no right to exist. In India since national income is very low, it is not possible by law, to prescribe minimum wage. The term 'minimum wage' literally means "the minimum payment, an employer has to give to an employee for a particular work i.e., the lowest limit, below which, wages cannot be allowed to sink". The appropriate Government is empowered to fix the minimum wages and the employer is bound to pay irrespective of his profit or economic position and availability of workmen (labour) on lower rate of wages.
In the light of the above discussion there is a difference between minimum wage and fair wages. In Sangam Press vs. Its Workmen, the Supreme Court observed that in case of fair wage, besides the principle of industry-cum-region, the company's capacity to bear the financial burden must receive due consideration. But mere hopeful observation made in the director's annual report cannot be the basis for awarding increased wages because such observations are sometimes made to inspire hope and confidence in shareholders and they cannot be a substitute for actual audited figures.
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Athorities under the minimum wages Act:
For successful implementation and strict compliance of the provisions of the Act, the following authorities are appointed-
(i) Advisory Board (Section 7)
(ii) Central Advisory Board (Section 8)
(iii) Inspectors (Section 19)
(i) Advisory Board (Section.7):
The appropriate Government shall according to Section 7 appoint an Advisory Board for the purpose of -
(a) co-ordinating the work of committees and sub-committees, appointed under Section 5; and ammini
(b) advising the appropriate Government in the matter of fixing and revising minimum rates of wages.
Besides the Advisory Board may devise the procedure to be adopted for discharging its functions under Section 5 of the Act (State of Bombay vs. Gulam Ahamad, AIR 1962, Bom. 97).
(ii) Central Advisory Board (Section. 8):
Section 8 makes it obligatory upon the Central Government to appoint a Central Advisory Board for the following purposes:
(a) advising the Central and State Governments in the matters of the fixation and revision of minimum rates of wages and other matters under the Act.
(b) for co-ordinating the work of the Advisory Boards.
Section 8 (2) provides that the Central Advisory Board shall consist of-
(1) persons to be nominated by the Central Government representing employers and employees in the Scheduled employment who shall be equal in number.
(2) independent persons not exceeding one-third of its total number of members.
The Chairman of the Central Board shall be one of the independent persons and shall be appointed by the Central Govemment.
(iii) Inspectors (Section 19): An appropriate Government has been empowered to appoint Inspectors for the purposes of this Act.
They are required to exercise the functions assigned to them within such local limits as prescribed by the Government.
The powers of the Inspectors are as follows-
(1) to enter any premises of 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, for the purpose of examining and production of any register, record of wages, notice required to be kept or exhibited under the Act or rules framed thereunder-
(b) examine any person whom he believes to be an employee employee it or to whom work is given out.
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