Minimum Wages Act
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What is Minimum wages Act?
An act to provide for fixing minimum rate of wages in certain employments. Where it is expedient to provide for fixing minimum rates of wages in certain employments: It is hereby enacted as follows: “The justification for statutory fixation of minimum wages is obvious. Such provisions which exists in more advanced countries are even more necessary in India, where workers organizations are yet poorly developed and worker’s bargaining power is consequently poor.” (Gazette of India).
Why should you get it done?
- Employees need to be aware of this law to know their rights and not be taken advantage of monetarily. On the other hand, employers need to be aware of this law to make sure they are not disregarding it. Since not following the law can lead to heavy penalties.
Deliverables
- A supremely important law for employers and employees is the Minimum Wages Act 1948. As per this Act, the Central and State Governments establish a minimum wage for payment to all employees. This law is enforced and monitored by the Labour Ministry of the respective states and centers.
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