Const Validity of MW - Act

What is the Constitutional Validity of Minimum Wages Act
1948?
The constitutionality of Minimum Wages Act 1948 was
challenged in court cases. The judiciary played a key role in
establishing its constitutionality, affirming that the Act
safeguards workers’ interests, ensuring access to essentials like
food, shelter, clothing, education and medical aid. It was
emphasised that paying below the minimum wage amounts to
forced labour.
Minimum Wages Act is Not violative of Article 19 of the

Constitution
The first challenge to the constitutional validity of the Minimum
Wages Act, 1948 arose in the case of Bijay Cotton Mills Ltd. V.
The State of Ajmer, 1954. In this matter, a dispute emerged
between a company and its workers concerning wage
improvements. The company contended that the Act’s
provisions were unlawful, asserting that they unreasonably
restricted employers. The company claimed that these
provisions hindered the resumption of trade or business unless
minimum wages were paid to workers.
The company also argued that the rights of employees were
curtailed, as they couldn’t work in a trade or industry unless
mutually agreed terms existed between them and their
employers. Thus, the company alleged that this Act violated
Article 19(1)(g) of the Indian Constitution, which safeguards
trade and business freedom.
However, the Supreme Court of India ruled that the Act’s
provisions were not unreasonable and were allowed under
Article 19 of the Indian Constitution. The Court highlighted that
these provisions were enacted for the public’s benefit, in line
with the Directive Principles of State Policy outlined in Article 43
of the Constitution. Although these provisions might pose
challenges for employers in conducting or initiating businesses,
they were established to safeguard the broader public interest.
As such, the Act could not be considered unreasonable or
invalidated on these grounds.
Similarly, in the case of Bhikusa Yamasa Kshatriya v. Sangamner
Akola Bidi Kamgar Union, 1958, the Bombay High Court
determined that the establishment of committees and Advisory
Boards under the Minimum Wages Act, 1948 did not violate the
legal stipulations of the enacted legislation. Upon thorough
scrutiny of the Act, it was observed that Section 3(3)(iv) of the
Act did not conflict with Article 19(1) of the Indian Constitution,
nor did it infringe upon the Constitution’s guarantee of equal
protection under the law. Hence, the Minimum Wages Act is
constitutionally valid with respect to Article 19.
Minimum Wages Act is Not violative of Article 14 of the
Constitution
Minimum Wages Act is not violative of Article 14 of the
Constitution which states equality before the law.
India’s Union Labour and Employment Minister, Shri
Mallikarjuna Kharage, highlighted that the variation in minimum
wages among different states stems from diverse socio-
economic conditions, commodity prices, paying capacity,
productivity and more.
These factors influence the wage rates paid to workers in
specific states.
In the case of N.M. Wadia Charitable Hospital v. State of
Maharashtra, 1986, the Bombay High Court ruled that setting
distinct minimum wage rates for various localities is in
accordance with the Constitution and the nation’s labour laws.
As such, establishing different minimum wage rates for different
regions is not discriminatory and does not violate the principles
of the Constitution.
Hence, the Minimum Wages Act is constitutionally valid with
respect to Article 14.
Minimum Wages Act is Not Violative of Article 43
The importance of providing labourers with wages that cover
not only basic survival but also uphold health and dignity is a
matter that’s difficult to challenge. This aligns with a directive
principle of State policy found in Article 43 of our Constitution.
Employers shouldn’t raise concerns if they are required to pay
minimum wages to their labourers, even if these labourers, due
to their financial constraints and vulnerability, might agree to
work for lower wages. This perspective was upheld in the case
of Bijay Cotton Mills Ltd v/s The State Of Ajmer.
Present Status of Constitutional Validity of Minimum Wages

Act 1948?
The Minimum Wages Act 1948 is constitutionally valid.
Despite challenges, the Act has been found constitutionally
sound and in line with the principles of the Indian Constitution.
The Act’s provisions have been recognised as serving the public
interest by ensuring fair wages for workers, promoting their
well-being and safeguarding their basic rights.
The Act’s alignment with the Directive Principles of State Policy,
particularly Article 43, which emphasises the importance of
securing living wages for labourers, further supports its
constitutionality. Moreover, the Act has been held not to violate
fundamental rights such as Article 19 (freedom of trade and
business) and Article 14 (equality before the law) of the Indian
Constitution.
Courts have considered factors such as diverse socio-economic
conditions and local variations in setting minimum wages,
finding them to be reasonable and non-discriminatory. Overall,
the Act’s constitutionality has been upheld based on its
contribution to the general welfare and the betterment of
workers’ conditions.
Conclusion
The Constitutional Validity of Minimum Wages Act is upheld
through judicial affirmation, aligning with the Indian
Constitution’s principles. The Act addresses social and economic
goals by ensuring a minimal standard of living for workers and
promoting productivity. It empowers federal and state
governments to set minimum wages, protects workers’ rights
through dispute resolution mechanisms and penalises non-
compliance. The Act’s enactment supports social justice,
prevents exploitation and contributes to equitable labour
practices.

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What is the Constitutional Validity of Minimum Wages Act

Minimum Wages Act is Not violative of Article 19 of the

Present Status of Constitutional Validity of Minimum Wages

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