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Rimikachauhan - Labour Project - Constitutional Validity of Minimum Wages Act

The Minimum Wages Act of 1948 aims to provide a minimum wage to workers across India. While wage rates vary between states, sectors, and occupations, the Act was established to ensure workers earn enough for basic necessities and prevent exploitation. Several court cases have upheld the constitutionality of the Act. Fixing different minimum wages for different areas is permitted, and the Act does not violate equality or labor laws. The overall objective is to guarantee fair and living wages for workers.

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Rimika Chauhan
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935 views3 pages

Rimikachauhan - Labour Project - Constitutional Validity of Minimum Wages Act

The Minimum Wages Act of 1948 aims to provide a minimum wage to workers across India. While wage rates vary between states, sectors, and occupations, the Act was established to ensure workers earn enough for basic necessities and prevent exploitation. Several court cases have upheld the constitutionality of the Act. Fixing different minimum wages for different areas is permitted, and the Act does not violate equality or labor laws. The overall objective is to guarantee fair and living wages for workers.

Uploaded by

Rimika Chauhan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONSTITUTIONAL VALIDITY OF MINIMUM WAGES ACT, 1948

India introduced the Minimum Wages Act in 1948, giving both the Central government and
State government jurisdiction in fixing wages. The act is legally non-binding, but statutory.
Payment of wages below the minimum wage rate amounts to forced labour. Wage Boards are
set up to review the industry’s capacity to pay and fix minimum wages such that they at least
cover a family of four’s requirements of calories, shelter, clothing, education, medical
assistance, and entertainment. Under the law, wage rates in scheduled employments differ
across states, sectors, skills, regions and occupations owing to difference in costs of living,
regional industries' capacity to pay, consumption patterns, etc. Hence, there is no single
uniform minimum wage rate across the country and the structure has become overly complex.
(A) The Act doesn’t violate Article 14 of the Indian Constitution
On a careful examination of the various Acts and the machinery set up by this Act, Section
3(3)(iv) neither contravene Article 19(1) of the constitution nor does it violate the equal
protection clause of the constitution. The Courts also held that the constitution of the
committees and the Advisory Wage Board did not contravene the statutory provisions in that
behalf prescribed by the legislature”, - this was held in the case of ‘Bhikusa Yamasa
Kshatriya v. Sangamner Akola Bidi Kamgar Union
(B) The act is not unreasonable
The same judgment given in other case named Shamrao v. State of Bombay. Another
important judgment that favours and supports the constitutionality of the Minimum Wages
Act, 1948 is Unichonoy v. State of Kerala, held that “ Fixation of minimum wages is for
preservation of public order, and if no minimum wage is fixed then it shall lead to
arbitrariness by the employers and that shall lead to the matter of dispute between employer
and labour which shall cause friction in society”. The Article 14 of the Indian Constitution
which states equality before the law, it must be noted that minimum wages are not fixed
equally across the whole nation but they vary according from occupation to occupation and
industry to industry and from place to place.
(C) Notification fixing different rates of minimum wages for different localities is not
discriminatory
N.M. Wadia Charitable Hospital v. State of Maharashtra, held that “Fixing different
minimum wages for different localities is permitted under the constitution and under labour
laws, hence the question that any provision of the Minimum Wages Act is in any way against
the provision of constitution is wrong.”
(D) Sanctity of The Minimum Wage Act
In Sanjit Roy v. State of Rajasthan (1983), the Supreme Court held that “the Exemption
Act in so far as it excluded the applicability of the Minimum Wages Act 1948 to the
workmen employed in famine relief work is “clearly violative” of Article 23. Thus, even
public works ostensibly initiated by the government for the sole purpose of providing
employment are subject to the Minimum Wage Act.
Objective:

 To safeguard that the employee has a basic physical necessity, proper health, and
comfort.
 To provide for fixation of minimum wages in scheduled employments and Ensure that
the labour gets fair wages.
 To revise the minimum wage amount periodically.
 To reduce the chances of workers getting exploited in the hands of their employers.
Conclusion:
The Minimum Wages Act, 1948 was set up with the aim of providing at least minimum
wages to the workers. This Act was formed to provide social justice and living wages. Even
in the preamble of this Act said “To provide for fixing minimum rates of wages in certain
employments. Although to some extent it can be said that aforesaid Act contravenes with the
fundamental rights provided by the Indian Constitution but even the fundamental rights
imposes some restriction with respect to public interest, morality and public order.
Accordingly, this Act is constitutionally valid.

Reference

 Minimum Wages Act, 1948


 Unichoyi v. State of Kerala (A.I.R. 1962 SC 12)
 Shamrao v. State of Bombay, AIR 1962 Bom 97
 Bhikusa Yamasa Kshatriya v. Sangamner Akola Bidi Kamgar Union”, AIR 1963 SC
306
 N.M. Wadia Charitable Hospital v. State of Maharashtra, 1993 IIILLJ 536 Bom
 Sanjit Roy v. State of Rajasthan 1983 AIR 328, 1983 SCR (2) 271

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