Umakanthan53
Labour Law & Hr Consultant
Nathrao
Insolvency N Gst Professional
+2 Others

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Hai this is Bharath here recently joined as a HR Manager for retail industry, my question is my boss is instructing me not to follow minimum wages so what will be the next procedure?
From India, Suri
Tell your Boss that if he does not pay the statutory minimum wages fixed for any employment in his industry, he has no right to continue his venture in the industry. That apart, if any claim is instituted u/s 20 of the Minimum Wages Act,1948 before the Authority by any workman himself or any Trade Union or any inspector under the Act on behalf of the affected workman, if the claimant is successful, the Authority can order the payment of claim amount together with compensation not exceeding ten times of the amount claimed. In addition if any prosecution is launched, the employer can be fined with imprisonment u/s 22 of the Act.
From India, Salem
Bharath, this could be because of huge cost impact arising out of the increase in minimum wages. Please talk him with the details.
Ways how the same can be moved.
Work on improving the Productivity,
Please study real time manpower requirement. Some times we may have excess manpower
If any revisions are not done in the past the impact on the cost.
Have a study of your neighboring industries.
This is all to substantiate the ROI of the cost impact.
Lastly the legal implications if not followed. Just few inputs.

From India, Chennai
Dear Friend,
Though it is impertinent here, why is he emphasizing you to be non-compliant and also why not you convince your boss on the implications/repurcussions he would face for not paying minimum wage.
That is what you can do. Also ask him how he would represent the statutory departments if they do not pay minimum wages to employees,because any enforcement officer,inspector of labour departments will come and the company records.
Beyond cost impact following statutory guidelines is very much important for the company to run as rightly said by learned senior Mr.Umakanthan,because failure in ethics also leads to disrepute in the market.

From India, Hyderabad
Following the MW act is mandatory.
Any boss who gives verbal orders to disregard MW act is being very clever and putting the ball in the court of junior employee who could get into trouble as soon as labour authorities come to know of breach of MW Act.
As a subordinate getting an illegal order in verbal form, your role becomes difficult and needs tactful handling with your boss.
You could highlight the relevant sections of MW act and put it up to your boss on file,so that he is aware of the legal consequences which is Monetary fine and/or jail term.I am sure he will sing a different tne when his neck is on the line.Right now by verbalising the order your neck is on the line.
Tactfull handling is the essence in such matters,

From India, Pune
Expert of a judgement of the Hon'ble Apex Court in the case of Workmen V. Management of Reptakos Brett. and Co. Ltd, and another (192 SCC (1) 290), whereby it is held that "the employees are entitled to the minimum wages under all circumstances and an employer who cannot pay the minimum wage has no right to engage labour and no justification to run the industry"
Take a copy of this citation and pass on to Boss for his perusal as an interesting land mark judgement.

From India, Madras
You follow the instruction of your boss as you are earning bread & butter but inform your boss that "without paying them minimum wages constitutes a criminal offence".
The Delhi High Court said :“This court is, therefore, constrained to observe that any reluctance on the part of an employer to award minimum wages for a workman for the period during which he had admittedly worked is not only illegal and immoral but also invites criminal liability. Such an attitude erodes the very foundations of a socialist society which the preamble of the Constitution professes us to be, and belies the promises held out to every citizen by the Constitution,”.

From India, Mumbai
While agreeing to seniors' views on the citations and employee role in convincing the employer as suggested by me also in the earlier post, the employer is certainly bound to know that following MW is a must.
He cannot do away with the enactments pushing the onus on employee (though through verbal or written instructions), ultimately he is responsible for compliance of all laws pertaining to labour.
As the law states ignorance of facts can be excused and not ignorance of law.

From India, Hyderabad
1. Getting verbal orders from boss for not to fall in line of Minimum Wages Act seems to be a clever move of the boss (may be because of heavy impact cost on profitability of organisation arising out of the increase in minimum wages) so as to make you responsible in case of any notice and/or action from labour, labour union, labour department authorities and/or competent court of law and get you into trouble.
2. As a HR Manager following the MW Act is mandatory for you.
3. However, you can not directly disregard the orders given by your boss and it may take toll of your bread and butter.
Therefore you need to handle the matter tactfully. Your approach should be as under -
a. You should highlight the relevant sections of MW Act and put it up to your boss on file,so that he is aware of the legal consequences which is Monetary fine and/or jail term. Simultaneously you need to talk him with the details.
b. You need to conduct study real time manpower requirement. Some times we may have excess manpower way on improving the Productivity and thus reducing overall man power so as to keep the wages bill with the existing frame work.
c. You should study the practice being followed by other industries in your area.
d. You should study the practice being followed by competitor industries in your field.
e. You should find out any other way to find out a balance between the two.

From India, Jodhpur
1. Bharath, you may have tried your best to convince your boss through all or some of the above mentioned ways and when found of no positive response from boss then only u may have posted it over here.This is what my assumption is.
2 You can write a mail and can state on 2 points
a. If he lacks knowledge of MW : Elaborate it in details
b. If he knows MW Act but due to financial burden he denied : Share such case laws which attracts huge penalty with interest and punishment ( if any ) if something happened
c. Check that due to lack of convincing power to top mgmt to implement MW act due to financial part get involved or not and if so give confidence to ur boss positively.
Rest all the best.
With Best Regards,Prashant

From India, Pune
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