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The Woods
1

Dear Members,

As I understand it, the Minimum Wages Act 1948 applies only to "scheduled" employment as indicated in the schedule which covers various categories of employment that have been notified from time to time by the competent authority under the Act . Although, there are 66 such categories in Maharashtra in the list in respect of which the Labour Commissioner notifies basic wages and special allowance, obviously, no such list can be exhaustive.

My query concerns our organization, which is a company registered under the Companies Act, but whose shareholders are entitled to occupy the apartments owned by the company by virtue of the shares that they hold. Thus, the situation is slightly anomalous as the main object of the company is to acquire land and and to construct residential complex(es) for the sole benefit of the company and its members while it functions basically as a housing society without the members having ownership of the apartments they occupy.

The issue is whether such an entity is covered by any statute that makes the payment of minimum wages mandatory. It stands to reason that in principle any entity must pay minimum wages to tis employee(s) in the interests of social justice and no entity can get away by paying an arbitrary (and low) amount that does not allow the employee to keep body and soul together.

However, my query is regarding the statute that would apply to our organization. The Minimum Wages Act, although, it mentions 66 categories does not mention housing societies or , as in our case, companies providing housing to it members. We are not covered under the Shops and Establishment Act 1948 as we are not "a shop, commercial establishment, residential hotel, restaurant, eating house, theatre or other place of publci amusement or entertainment". We are also not a "factory" under the Factories Act 1948.

I would be grateful if any on the members could provide guidance on the issues highlighted above.

With thanks in anticipation

From India, Pune
Glidor
630

when the organisation is not covered under factory act, then it must be under shops and "establishment" act.
shops and establishment act cover all categories who are not covered under the factory act.
anyway, mere housing for the directors is not an issue, company can provide the FREE ACCOMMODATION to their shareholders, directors or members, after making a resolution in their board meeting
as you have mentioned
<quote> My query concerns our organization, which is a company registered under the Companies Act, but whose shareholders are entitled to occupy the apartments owned by the company by virtue of the shares that they hold. <unquote>
housing society or AOP/BOI does not hold the company registration, company registration itself describe the status as "corporate body"


The Woods
1

To add to what I have posted above:
I have been going through the laws that apply to this issue. I have found a notification by the Ministry of Labour & Employment for the central sphere wherein minimum wages for two categories relevant to housing societies/housing complexes, namely, 'sweeping and cleaning" and" watch and ward" have been notified. These could, thus, appear to be scheduled employments under the Minimum Wages Act, 1948.
Could someone please confirm this conclusion? Also could someone explain what is the "Central Sphere" and whether the Govt. of India's notifications over-rule/ have precedence/apply over the State Govt.'s list, particularly, in this case where the State govt. list of scheduled employments is silent over this category?
Thanks again

From India, Pune
bijay_majumdar
365

Hi going throuh the min wages notification.it states that shops and establishment act wages to be applied if the given employment is not in the schedule.co op societies act mentions that emloyees working for conducting the business of society meaning the operations of society should abide by min wages and epf act.therefore as per the state applicable min wages act and schedule thereof will call for applying the shops and etd schedule of employment in such case.
From India, Vadodara
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