A PROJECT ON

“Procedure for Fixation and Revision of minimum wages”

[Submitted as a partial fulfilment of the requirements for B.A. LL.B (HONS.) 5 Year Integrated
Course]

Session: 2022-23

Submitted on: 29th April 2023

Submitted by: Submitted to:

Dilraj Singh Chouhan Ms.Astha Poonia
Semester- V Sec: B Faculty: Labour law
Roll no:- 85

UNIVERSITY FIVE YEAR LAW COLLEGE

UNIVERSITY OF RAJASTHAN

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 JAIPUR

DECLARATION

I, Dilraj Singh Chouhan hereby declare that this project titled “Procedure for Fixation and
Revision of minimum wages ” is based on original research work carried out by me under the
guidance and supervision of Ms.Astha Poonia.
The interpretation put forth is based on my reading and understanding of the original texts. The
books, articles etc. We have been relied upon by me have been duly acknowledged at the respective
places in the text.

For the present project which I am submitting to the University, no degree and diploma has been
conferred on me before, either in this or any other university.

Date: 29th April 2023 Dilraj Singh Chouhan

Roll no. 85

Semester: V -B

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 CERTIFICATE

Ms.Astha Poonia Date:29.04.2023

Faculty

University Five Year Law College

This is to certify that Dilraj Singh Chouhan of Semester V section B of University Five Year Law
College, University of Rajasthan has carried out the project entitled “Procedure for Fixation and
Revision of minimum wages ” under my supervision and guidance. It is an investigation report of
a minor project. The student has completed research work in my stipulated time and according to
the norms prescribed for the purpose.

Supervisor

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 ACKNOWLEDGMENT
I have written this project “Procedure for Fixation and Revision of minimum wages” under the
supervision of Ms.Astha Poonia, Faculty, University Five Year Law College, University of
Rajasthan, Jaipur. Her Valuable suggestions herein have not only helped me immensely in making
this work but also in developing an analytical approach this work.

I found no words to express my sense of gratitude for Director ,Dr.Akhil Kumar for constant
encouragement at every step.

I am extremely grateful to librarian and library staff of the college for the support and cooperation
extended by them from time to time.

Dilraj Singh Chouhan

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 TABLE OF CONTENTS

Page No.

1. Title I
2. Declaration II
3. Certificate III
4. Acknowledgement IV
5. Abstract VI
6. Research Methodology VII
 Statement of Question
 Objective

7. Chapter-1 ……………………………………………………………….1
Introduction

8. Chapter-2 ……………………………………………………………… 3
General overview of procedure

9. Chapter-3 ………………………………………………………………. 5
Appointment of committees,Sub-committees, Advisory Board etc

Chapter -4 ………………..……………………………………………...7

Publication of proposals in Official Gazette

10. Conclusion ……………………………………………………………… 8

11. Web Sources …………………………………….……………………… 9

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 ABSTRACT
India is a labour-intensive country as we have a great amount of human capital to invest in our
industries and other areas of work. Minimum wage is an indispensable part of any such country
because there is a huge chunk of population which is dependant on daily wages for their bread and
butter.

The concept of minimum wages in India was brought in by Mr K. G. R. Chaudhary in 1920. After
the International Labour Conference, 1928, the machinery of wage-fixing was brought into actual
policy formulation. The bill regarding the same was brought in 1946 and by the year 1948, the bill
was enforced and we had saviour rights for all the blue-collar workers. Blue-Collar Workers refer
to those people whose profession requires them to perform manual labour.

The advent of this Act ensured that sweated labour was protected from any type of exploitation and
their rights are duly recognized.

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 RESEARCH METHODOLOGY

The researcher has used non- doctrinal method and relied only upon secondary sources of data to
prepare this project.

Statement of Problems

• What is the procedure for fixation and revision of minimum wages under Minimum wages
act,1948

Objectives

• To study the importance of Constitutional aspects with regard to minimum wages

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 CHAPTER 1
INTRODUCTION

The Central Legislative Assembly enacted the Minimum Wages Act '1948 in 1948 that fixed the
minimum rates of wages in certain types of employment. The provisions of the Act are intended to
achieve the objective of doing social justice to workers employed in the scheduled employment by
prescribing the minimum rate of wages for them. In other words, the Act aims to provide a statutory
fixation of minimum wages with a view to preventing the exploitation of labour. After the Act's
introduction, it brought a sense of equality and justice to the blue-collar people and was guided by
the standards recommended by the Fair Wage Committee.

The primary objective of the Act is to ensure that the Government duly recognizes the labor's
rights.However, the Act looks forward to several objectives to ensure the protection of the labor.

The objectives of the Minimum Wages Act'1948 are mentioned below:

1. To prohibit the exploitation of labor in the workplace.

2. To ensure the minimum wages to all the blue-collar workers in the organized sector.
3. To ensure the application of the Act to the maximum number of organized sector
employees.
4. To empower the Government to fix minimum wages and revise those wages within five
years, based on the country's economic situation.
5. To safeguard the employee such that they can meet their necessities, proper health, and
comfort.

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Constitutional Aspect :-

The Act is constitutionally valid and it can be ascertained from the following pointers:

1. The Act does not violate Article 19 of the Constitution: The constitutional validity of the
Act was challenged in the cases of U. Unichonoy vs State of Kerala and Gulmuhommad
Tarasaheb vs State of Bombay. The parties challenged that this law restricted
their Article 19(1)(g), as it puts a restriction on freedom of trade. But, the court held in
favour of the Act. It was held that, in the absence of any such Act, the employers will
pay wages, arbitrarily.
2. The Act does not violate Article 14 of the Constitution: It was contended that the Act
violates the ‘equal protection of laws’ clause. However, the court ruled that the Act does
not violate Article 14 in the case of Bhikusa Yamasa Kshatriya vs Sangammar Akola Bidi
Kamgar Union.

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 CHAPTER – 2

GENERAL OVERVIEW OF THE PROCEDURE

As far as section 5 of the Minimum Wages Act is concerned, there are two modes of procedures
for fixing and revising the minimum wages.

One common thing among both of the procedures is to empower the Government in reaching a
favourable result about the fixation of minimum wage.

1. Appointment of committee, boards etc :-

In this procedure, the Government is required to appoint a committee and subcommittee that will
be in a position to advise on the fixation of minimum wages.

As for section 7 of the Act, a committee of the Advisory Board is formed by the Government. The
advisory board holds the necessary inquiries for the fixation of a minimum rate of wages, based on
the living cost in indices and requirements.

2. Publication of proposals in Official Gazette:-

In this procedure, the Government should publish the minimum wage fixation proposal in the
newspapers and inform the stakeholders regarding the changes. It is recommended to share the
publication at least before the two months of the implementation. After going through the proposal,
the stakeholders can raise issues or share their suggestions. Based on that, the minimum wage is
published in the Official Gazette.

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 CHAPTER – 3

APPOINTMENT OF COMMITTEES,ADVISORY BOARD AND CENTRAL

ADVISORY BOARD

(i) Committee [Sec. 5(1)(a)]:-

The Committee and sub-committees are appointed by the appropriate Government under clause
(a) of sub-section (1) of Sec. 5. The appropriate Government may appoint as many committees
and sub-committees as it considers necessary to hold inquiries and advise it in respect of fixation
or revision of minimum wages, as the case may be. Clause(a) of sub-section (1) of Sec. 5 of the
Minimum. Wages Act, 1948 reads as under :-

"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"—

(a) 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.

(ii) Advisory Board (Sec. 7) :-

The Advisory Board is also appointed by the appropriate Government. The Advisory Board is
appointed to co-ordinate the work of committees and sub-committees appointed under Sec. 5.
The Advisory Board also advises the appropriate Government in the matter of fixing and revising
minimum rates of wages.

Sec. 7 reads as under "7. For the purpose of co-ordination the work of committees and sub-
committees appointed under. Sec. 5 and advising the appropriate Government generally in the

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matter of fixing and revising minimum rates of wages, the appropriate Government shall appoint
an Advisory Board."

(iii) Central Advisory Board (Sec. 8):-

The Central Advisory Board is appointed by the Central Government. The Central Advisory
Board co-ordinates the work of the Advisory Boards appointed by the appropriate Government
under Sec. 7 of the Act. The Central Advisory Board also advises the Central and State
Governments in the matter of ,Fixing and revision of minimum wage.

Sec. 8(1) is as follows

"Sec. 8(1). For the purpose of advising the Central and State Governments in the matter of the
fixation and revision of minimum rates of wages and other matters under this Act for co-
ordinating the work of Advisory Boards, the Central Government shall appoint a Central
Advisory Board."

Composition of Committees and Advisory Boards, etc. [Sec. 9, 8(2):-

1 According to Sec. 9, the committees, sub-committees and the Advisory the appropriate
Government consist of persons representing employers and employees in the scheduled
employment in equal number. One-third of total number of members are "independent" persons
the appropriate Government.

2.Similarly, according to Sec. 8(2), the central advisory Board consists of members representing
employees and employer. in the scheduled employment in equal number. One third of total no. of
members of the Central Advisory board also consists of "independent" persons nominated by the
central government.

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 CHAPTER – 4
PUBLICATIONS OF THE PROPOSALS IN THE OFFICIAL GAZETTE

The appropriate Government may follow the other procedure specified under Sec. 5(1)(b)
of the Minimum Wages Act, 1948 for the fixation or revision of the minimum wage.

According to Sec. 5(1)(b), the appropriate Government may notify its proposals of fixation
or revision of minimum wages in the Official Gazette. These notified proposals are
published for the information of persons likely to be affected thereby. The appropriate
Government specifies a date, not less than two months from the date of the notification, on
which the proposals will be taken into consideration.

According to Section 5(2) of the Minimum Wages Act, 1948, after considering all
representation from the affected parties, i.e., the employers and employees, the appropriate
Government fixes or revises the minimum wages, as the case may be, in respect of each
scheduled employment. But the appropriate Government must consult Advisory Board also
if it follows the procedure of publication of its proposals under Sec. 5(1)(b) in the fixation
or revision of the minimum wages.

In the case of a particular employment the Government may have sufficient data in its
possession to formulate proposals under Sec. 5(1)(b). The Supreme Court in Chandra
Bhavan Boarding and Lodging v. State of Mysore, held that if the Government is satisfied
that it has enough material before it to enable it to proceed under Sec. 5(1)(b), it can very
well do so. The appropriate Government can go beyond its draft proposals under Sec.

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5(1)(b) after taking into consideration all the representations received and the opinion of
the Advisory Boards.

Thus, the Government may fix or revise the rate of minimum wages other than those
proposed in the draft proposals under Sec. 5(1)(b).10 The Patna High Court in M/s. Rurmal
Jhawarmal v. State of Bihar," held that State has got jurisdiction to fix more Minimum
Wages by final notification than the proposed wages notified in the proposals .”

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 CONCLUSION
The Minimum wages Act, 1948 brought about a revolution in the employees’ wage systems
because the relief provided in this Act provides for complete protection from exploitation of
manual labour at the workplace. The fixed minimum rates of wages shall be valid until the
appropriate government revises this minimum rate of wages. This is provided under Section 31 of
the Act. This Act also provides for the maintenance of itself. The rules and regulations are sufficient
for its own sustenance.

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 WEB SOURCE & REFERENCES

BOOK :-

Labour and Industrial Laws ,Meenu Paul ,Allahabad law agency

WEB SOURCES :-

1. https://www.deskera.com/blog/minimum-wages-act/

2. http://supremecourtofindia.nic.in/FileServer/2016-10-26_1477486855.pdf

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