ASSIGNMENT OF LABOUR LAW

a) Elucidate briefly the procedure for fixing minimum wages. What is the composition of such minimum rate of wage?
The philosophy of labor laws, including the Minimum Wages Act, is that industry is for man and not man for industry. Industry should, therefore, exist to make life good and comfortable. Work in industry should be an integrated part of happiness. Employers are, therefore, under an obligation, call it economic or social, to provide their employees safe, healthy and comfortable living, employment and working conditions. The conception of minimum wages is based on the principles of equity and social justice. Its underlying idea is that he who works is entitled to a fair remuneration, which may enable him to live a life consistent with human dignity. All over the world, wages and their problems have been assuming great importance with the advancing economic and social development, which has for its result the larger proportion of population gaining their living as employees, or wage earners.

Minimum Wages and ILO

The need for regulating minimum wages has been gaining increasing attention, not only of the governments of developing and developed countries, but also of the International Labor Organization at Geneva (ILO), which is formulating International Labor Standards for its member countries since its very inception after the First World War.

Fixation of Minimum Wages in India

India has ratified the ILO convention on Minimum Wage Fixing Machinery and has enacted a central minimum wage legislation, known as Minimum Wages Act, 1948. As in other countries, here also the need for fixing minimum wages arose from the conditions created by the payment of low and sweated wages in the unorganized and organized sectors of industries.

Minimum Wages Act, 1948: Its Objectives Objects: The object of the Act is to promote the welfare of workers by fixing minimum rates of
wages in certain industries where labor is not organized and sweated labor is most prevalent. The Act seeks to prevent exploitation of workers by ensuring that they are paid the minimum wages, which would provide for their subsistence and preserve their efficiency.

Minimum Rates of Wages

a basic rate of wages and a special allowance at a rate to be adjusted to variation in the cost of living index applicable to such workers at such intervals and in such manner as the Government may direct; or An all-inclusive rate, allowing for the basic rate, the cost of living allowance, the cash value of the concession, if any.

Payment of Minimum Rates of Wages

Where in respect of any scheduled employment, minimum wages have been fixed; the employer shall pay to every employee, wages at a rate not less than the minimum rate of wages fixed for that class of employees in the employment. Such wages shall be paid without any deduction, except as may be authorized.

Fixing Hours for a Normal Working Day

Where minimum rates of wages have been fixed in regard to any scheduled employment, the appropriate government may; (1) Fix the number of hours of work, which constitute a normal working day, inclusive of one or more specified intervals. (2) Provide for a day of rest in every period of seven days and for payment of remuneration in respect of such days of rest. (3) Provide for payment for work on a day of rest at a rate not less than overtime rate.

Rates of Overtime
Where an employee, whose minimum rate of wages has been fixed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour, or for part of an hour so worked in excess, at the overtime rate fixed under this Act, or under any law of the appropriate government for the time being in force, whichever is higher.

Enforcement of the Act

Inspectors (Sec. 19): By notification in the Official Gazette, the appropriate government may appoint Inspectors, and define the local limits within which they shall exercise their functions. The Inspectors have to see that the provisions of the Act are complied with.

b) Define the following terms as used in the Employees Provident funds and Miscellaneous Provisions Act, 1952: Basic wage, exempted employees, manufacture, occupier of a factory. BASIC WAGE:
The definition of Basic Wages has been defined under Section 2(b) of the EPF & MP Act, 1952 as below: Section 2(b) basic wages means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include (i)The cash value of any food concession; (ii) Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; (iii) Any presents made by the employer; From the above definition it is clear that all the emoluments which are earned by an employee other than those specifically excluded components given under clause i, ii & iii, would be the basic wages for the purposes of contribution under the Act. All the components viz basic wages, dearness allowance and retaining allowance specified in Sec 6 have been explained at Sec 2(b) and Sec 6 categorically without leaving any room for ambiguity.

EXEMPTED EMPLOYEES
This is an employee who is defined by the Federal Labor Standards Act (FLSA) as being exempt from this law's minimum wage and overtime requirements. According to the Wage and Hours Division of the US Department of Labor, only "bona fide executive, administrative, professional and outside sales employees" who meet certain requirements are exempt from minimum wage and overtime laws.

An employee is not considered exempt simply because of his or her job title. In addition to earning a salary of at least $455 per week, one's job duties must follow a set of rules established by the FLSA. These rules differ depending on the type of employee one is. For example, to be considered an executive for the purposes of qualifying for the exemption, the employee's primary job duties must involve "managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise." In addition, he or she must supervise at least two full-time employees and have the authority to hire or fire other workers or be able to significantly influence those decisions.
To qualify for the administrative exemption, one's primary duties must include office work that is directly related to the business operations of the employer or its customers. The administrative employee also must use his or her own judgment when dealing with important matters.

MANUFACTURE
"Manufacturing process" means any process for: making, altering, repairing, ornamenting, finishing, packing, oiling, washing, cleaning, breaking up, demolishing, or otherwise treating or adapting any article or substance with a view to its use sale, transport, delivery or disposal, or pumping oil, water, sewage or any other substance; or generating, transforming or transmitting power; or composing types for printing, printing by letter press, lithography, photogravure or other similar process or book binding; constructing, reconstructing, repairing, refitting, finishing or breaking up ships or vessels; or Preserving or storing any article in cold storage.

OCCUPIER OF A FACTORY
Section 2 (n) of the Act defines occupier of a factory to mean: The person who has ultimate control over the affairs of the factory: Provided that in the case of a firm or other association of individuals, any one of the individual partners or members thereof shall be deemed to be the occupier; in the case of a company, any one of the directors shall be deemed to be the occupier; in the case of a factory owned or controlled by the Central Government or any State Government, or any local authority.

(c) Write a note on the scope and object of the Employees Provident Funds and Miscellaneous provisions act, 1952.

The Employee Provident Fund and Misc Provisions Act 1952.

The Employees Provident Fund and Miscellaneous Provisions Act 1952 were introduced for the benefits of the employees working in the factories and their family members. EPF means the provident fund established under the EPF scheme framed under Section 5 of this Act providing for all or any matters specified in Schedule II. Section 5 of the Act authorized the Central Government to frame employees provident fund scheme for the establishment of provident fund under this Act. The Central Government by notification in the Official Gazette shall have to issue such a notice before framing any such scheme. The Scheme shall apply to all employees or any class of employees of an establishment as Specified. After framing the scheme, as soon as possible a fund shall be established in accordance with the provisions of this Act and the Scheme as such. The schemes of provident funds, as a social security measure, are meant to induce employees to save a portion from their present earnings for a rainy day. The object for the Employees' Provident Funds and Miscellaneous Provision Act, 1952 is to provide for the institution of provident funds and family pension and deposit-linked insurance schemes for employees in factories and other establishments. The Act and Employees' Provident Funds Scheme were brought into force from November, 1952. Initially the Act applied to industries engaged in the manufacture of cement, cigarettes, electrical, mechanical or general engineering products, iron and steel, paper and textile. The Act now extends to over 150 industries and classes of establishments. By an amending Act in 1956, the scope of the Act which initially covered factories engaged in any industry specified in schedule I [Sec. 2 (3)] was extended to cover non-factory establishments such as plantations, mines other than coal mines, and commercial establishments. Originally, factories and establishments employing 50 or more persons were covered under the Act. The minimum limit for coverage under the Act was reduced to 20 or more persons with effect from December 31, 1960. The membership of the Employees' Provident Fund Scheme was initially restricted to employees whose monthly pay did not exceed Rs. 300. This pay limit has been raised from time to time bearing in mind the fall in the value of money due to inflation. The present limit is Rs. 6,500. The latest amendment to the Act has been made by the Employees' Provident Funds and Miscellaneous Provisions (Amendment) Act, 1998 which came into force w.e.f. 22-9-1997.

APPLICATION OF THE ACT

EMPLOYEES' PROVIDENT FUND SCHEME (1952) EMPLOYEES' PENSION SCHEME AND FUND (1995) EMPLOYEES'S DEPOSIT-LINKED INSURANCE SCHEME AND FUND (1976) CLARIFICATION PERTAINING TO CONTRIBUTIONS ADMINISTRATION OF THE SCHEMES DETERMINATION OF MONEYS DUE FROM EMPLOYERS INSPECTORS PENALTIES AND OFFENCES MISCELLANEOUS The scope of the Act can be understood from its applicability. This Act is applied in the following establishments except the exemptions contained in Section 16 of the Act.: i) The Act applies to every establishment which is a factory engaged in any industry specified in schedule I and in which 20 or more persons are employed. ii) Any establishment which employs 20 or more persons or class of such establishments which the central Government may, by notification in the Official Gazette specify in this behalf. iii) After giving not less than 2 months notice of its intention the Central Government apply the provisions of this Act to any establishment with less than 20 persons in the employment as provided under Section 1(3). iv) Not withstanding anything mentioned above as in sub section (1) of Section 16 (Certain establishment statutorily exempt from the applicability of the Act) where it appears to the Central Provident Fund Commissioner, where as an application made to him in this behalf or otherwise, that the employer and the majority of employees in relation to any establishment, have agreed that the provisions of this Act would be made applicable to the establishment. He may apply the provision of this Act to the establishment on and from the date of such agreement or from any subsequent date specified in such agreement under Section 1(4) and Section 3 v) An establishment to which this Act applies must continue to be governed by this Act, even if the number of persons employed therein falls. so at below any time under section 1(5). vi) Under Section 4, the Central Government by a notification in the official Gazette add any other industry to schedule I and it will apply to any establishment engaged in such industry.