Seeking HR Advice: How Should Our Tamil Nadu Textile Factory Be Classified Under the Minimum Wages Act?

natarajan.r
Dear Members,

Our company is in Tamil Nadu and is a composite unit predominantly connected with the manufacturing of home textiles. The preliminary activities include weaving, processing, dyeing (fabric), and tailoring. The majority of the workers are employed in our tailoring department (confection), where activities such as cutting, stitching, trimming, stain removal, ironing, packing, and warehousing are involved.

Coverage Under the Minimum Wages Act of 1948

It is my view that a composite unit should be considered as a whole, rather than by schedules for each department for coverage under the Minimum Wages Act of 1948. This should be determined by examining the predominant and important functions of a department, along with the majority of workers, as criteria for the entire factory. For example, the general engineering and fabrication schedule cannot be applied due to only two or three lathes functioning in a unit.

Therefore, I kindly request any HR professional to clarify under which schedule our factory should be covered under the Minimum Wages Act, based on the details I have provided.

I look forward to an early response.

Regards,
Natarajan.R
Madhu.T.K
Understanding Minimum Wages Act Coverage for Composite Units

An industry may have different departments, each with activities distinct from the main business of the factory or establishment. For example, a hotel (not a small one but under star classification) has an Engineering department responsible for maintaining AC plants, kitchen, security arrangements, etc. However, when determining the scheduled employment under the Minimum Wages Act, it falls under the broad category of hotels and restaurants only. If we were to implement minimum wages according to the activities, the Engineering department would fall under the schedule of Minor Engineering, while the rest of the departments would be categorized under Hotels, lodging houses, or others.

In a similar way, you should take the primary business as recorded in your factory license as the base and determine what wages are applicable to different skills, applying them to your employees. If the wages of a Turner are not mentioned separately, provide a wage applicable to a similar trade/designation within the same scheduled employment.

Regards,
Madhu.T.K
natarajan.r
Thank you very much, Mr. T.K. Madhu, for your valuable clarifications. I hope other members will come out with their views on the subject soon.

Regards,
Natarajan.R
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute