If Minimum wages act is not followed by a company, what will happen?
Hi Soma Saha,
The establishments have to follow the respective State’s Minimum Wages rules as applicable to the workers/employees. If the establishment fails to follow, it will lead to non-compliance and the aggrieved worker/employee, or the Labour Inspector are entitled to file a claim to that effect before the Labour Court and take legal action.
The Minimum Wages Act,1948 is an important Central Labor Law ensuring the payment of statutory rates of minimum wages to employees employed in certain notified industries… This is an Act passed by the Indian Parliament pursuant to Article 43 of the Constitution of India and as per the convention of the ILO ratified by India. Therefore, no employer should take it lightly.
If an employer fails to pay minimum wages, the aggrieved workman, an inspector under the Act or a trade union authorised by the workman can file a claim u/s 20 of the Act before the designated authority and the authority can direct the employer to pay the minimum wages together with fine and/or impose penalty of ten times of the claim amount.
That apart, it is an offence punishable u/s 22 of the Act with fine and imprisonment.
thanks for the information