Understanding Exemptions and Compliance in the Minimum Wages Act: Insights and Implications

Hi,

I work in Visakhapatnam, Andhra Pradesh. I would like to know if there are any exemptions to the Minimum Wages Act. I work for a jewelry firm.

Thanks,
Vyjayanthi

Though the Minimum Wages Act is a central Act, the schedule of employment to which this Act applies is added by the respective State Government. I have not verified the schedule of employment of Andhra Pradesh, but I believe that "employment in Shops and Establishments" is covered under the Minimum Wages Act. If so, there is no need to say that employees of jewelry are covered by the Act since the shop comes under 'Shops and Establishments'.

The Minimum Wages Act provides for the bare minimum of wages. I don't think that getting exempted from the operation of this Act would benefit the employer in any way. Therefore, implement the rates as prescribed under the Act.

Regards, Madhu.T.K

Unable to understand what type of exemptions you are expecting. If the same is about the payment of wages, there is no such exemption. All the workers/employees working either in a factory/shops or establishments should be paid the minimum wages under the categories mentioned, if not the basic minimum wage. If this is not complied with, there will be severe implications. The labor department officials will inspect and impose huge penalties and legal actions. The employer will be in deep trouble. Even the same applies to all categories of employees, i.e., regular, casual, and contract, etc.

Thanks and regards,
Kameswarao

Dear,

The persons working in Special Economic Zones do not require anything to eat or do not have a family. If someone is working for you, at least pay them minimum wages. Forget about the law; I do not understand why you think about exemptions. SEZs are established by the government to boost exports and provide duty cuts to employers. All labor-related acts will apply there.

Thank you,
J. S. Malik

Dear Vyjayanthi,

In our opinion, we would like to inquire whether minimum wages are applicable to your shop and if there are any exemptions regarding the enforceability of the rates of minimum wages under the Minimum Wages Act of 1948. If your state has classified your business under scheduled employments, then there are no exemptions regarding the payment of minimum wages to the employees in your shop. You may also consider reaching out to the Labour Department office in your area.

Submitted as requested by you.

Regards,
R N Khola
Senior Associate
Skylark Associates, Gurgaon

I just want to know if a man getting more than the minimum wage limit should have their wages reduced each year to align with the minimum wage.

Salary more than minimum wages should be protected, and you should not bring it down. Therefore, if your employees are paid more than the bare minimum wages, they should continue to receive the higher wages.

Madhu.T.K

Dear Sir,

In the minimum wages document, the rates are divided into ZONE I, ZONE II, and ZONE III. Could you please clarify which zone rates are applicable to VSEZ units?

Thank you.

Zones put in the notification pertain to the area, like Zone 1 may relate to Corporations and Special Grade Municipalities, Zone 2 may relate to Municipalities and Special Grade Panchayats, etc. The explanation should be there in the notification itself. Please read the notification in full before posting.

It is very good if you get information at your fingertips, but you will never take that information to your mind and will continue to ask for the same again and again. On the other hand, the information that you get by putting at least a reasonable effort from your side will last forever.

Madhu.T.K