Foreign LegislationLegislation Updates

On 5th April 2022, Employment and Social Development Canada (ESDC) has announced that the minimum wage will increase from $15 to $15.55 per hour. Prior to 2022, the minimum wage in Ontario was $ 14.25 per hour. It is an effort by Canadian Government to protect workers from inflation, because of this reason the rise in general minimum wage by 8%. The general minimum wage applies to most employees in the province.

 

On 1st October 2022, minimum wage rates in Ontario will also be raised for the following workers:

Government promises to hike:

  • The province’s student minimum wage, who are under 18, from $14.10 to $14.60 per hour.
  • Home workers (those who do paid work out of their own homes for employers), from $16.50 to $17.05 per hour and,
  • Hunting, fishing and wilderness guides: from $75 to 77.60$ per day, when working less than five consecutive hours in a day; and from $150.05 to $155.25 per day, when working five or more hours in a day

*Disha Srivastava, Publication Assistant has reported this brief.

Legislation UpdatesNotifications

The Government of Madhya Pradesh has revised the minimum rate of wages with effect from 1st October, 2021 vide notification dated October 01, 2021 as under:

Class of Employment Basic Per Day Basic Per Month
Unskilled 250.00 6500.00
Semi-skilled 271.42 7057.00
Skilled 324.42 8435.00
Highly Skilled 374.42 9735.00

 



Tanvi Singh, Editorial Assistant has reported this brief.

Legislation UpdatesNotifications

The Government of Uttarakhand has revised the minimum rate of wages for shops & establishment with effect from October 1, 2021, till March 31, 2022, vide notification dated October 12, 2021, as under:

 

S. No

Classification

Rates for Adult workers in Towns of more than 1 Lakh Population Rates for Remaining part of State

1.

Unskilled Workers Rs. 9211.00 per month Rs. 9093.00 per month

2.

Semi-skilled Workers Rs. 9804.00 per month Rs. 9668.00 per months

3.

Skilled Workers Rs. 10,398.00 per month Rs. 10250.00 per month

4.

Clerical category – I Rs. 11,400.00 per month Rs. 11,208.00 per month
5. Clerical category – II Rs. 10,652.00 per month Rs. 10,491.00 per month

 


*Tanvi Singh, Editorial Assistant has reported this brief.

Legislation UpdatesRules & Regulations

The Government of Gujarat has issued the Code on Wages (Gujarat) Rules, 2021 vide notification dated October 5, 2021.

Key provisions under the Rules are:

  • The Code will supersede-
    1. The Payment of Wages (Procedure) Rules, 1937;
    2. The Gujarat Payment of Wages Rules, 1963;
  • The Gujarat Payment of Wages (Unclaimed Amounts) Rules, 1963;
    1. The Gujarat Payment of Wages Deductions for National Defence Fund and Defence Savings Scheme) Rules, 1964;
    2. The Payment of Wages (Manner of recovery of excess deductions) Rules, 1967;
    3. The Gujarat Minimum Wages Rules, 1961;
  • The Ease of Compliance to Maintain Registers under various Labour Laws (Gujarat) Rules, 2017 to the extent these rules are made in exercise of the powers conferred by Section 26 of the Payment of Wages Act, 1948.
  • Minimum Wages: Chapter II of the Rules prescribes provisions with respect to minimum wages, which includes:
    1. The manner of calculating minimum rate of wages.
    2. The norms will be fixed for minimum rate of wages.
  • Revision of wages
    1. The time interval for revision of dearness allowance.
    2. The number of hours of work which will constitute a normal working day.
    3. The weekly day of rest and Night shifts.
  • Payment of Wages: Chapter III of the Rules constitute provisions with respect to payment of wages, which includes:
    1. Recovery of Wages
    2. The manner of exhibiting the notice
  • Intimation of deduction
  1. Procedure for deduction
  • State Advisory Board: Chapter IV of the Rules prescribes provisions for constitution of state advisory board its functions, quorum, meetings etc.
  • Payment of Dues and Claims: Chapter V of the Rules provides the provisions for payment of dues and claims, which includes:
    1. Deposit of the undisbursed dues.
    2. Payment under clause (a) of sub-section (1) of section 44.
  • Manner of dealing with the undisbursed dues.
  • Forms, registers and wage slips: Chapter VI of the Rules prescribe provisions for Forms, registers and wage slips.


*Tanvi Singh, Editorial Assistant has reported this brief.

Case BriefsHigh Courts

Andhra Pradesh High Court: Opining that, a Math, which is a separate institution rendering certain religious and other functions pertaining to a particular denomination is different from a temple which is open to all for worship, D.V.S.S. Somayajulu, J., held that,

Minimum Wages Act, 1948 will not be applicable to the Math.

Instant petition was filed by the petitioner – Math to seek reliefs.

Senior Counsel, C.R. Sridharan, for the petitioner submitted that petition was a Math which is a specific religious denomination.

He added that the petition was filed because the respondent was attempting to interfere with the activities of the Math and directing the petitioner to pay minimum wages, etc. to the persons employed in the Math.

Respondent’s action was challenged.

Senior Counsel added that respondent-State does not have the right to interfere with the Management of the math and issue the directions contained in the impugned memos.

Petitioner’s counsel submitted that there is a fundamental distinction between a Math and a temple although both can be called a religious institution.

Government Pleader argued that coming to the issue of wages, the respondents are not insisting upon the payment of the wages, more so, under the Minimum Wages Act, but are essentially trying to ensure that the equal pay for equal work principle as enunciated in the case of State of Punjab v. Jagjit Singh, (2017) 1 SCC 148, is actually followed.

Analysis, Law and Decision

High Court noticed that it is a fact that a “Math” is distinct from a “Temple”.

Temple and Math are both religious institutions, but the purposes for which they are established and the manner in which they function are clearly specified in Section 2(17) of  A.P. Charitable and Hindu Religious Institutions & Endowments Act, 1987 Act.

 As per the above-stated Sections, Math is an institution headed by a person whose primary job is to engage himself in teaching, propagation of religious philosophy etc., and impart religious training etc.

On the other hand, Temple is a place, which is dedicated to and keep used as a place of public religious worship.

Hence in view of the above distinction between the two institutions is clear.

Under Section 6 of the Act also, the income or the change in income of the Math cannot lead to a change in the classification of the Math. It is only possible for the institutions and endowments under Section 6(a), 6(b) and 6 (c) of the Act, which are included in this section. If their income exceeds or falls below the stipulated limit, for the three years, their position can be changed, but this is clearly not applicable to a Math.

Whether Commissioner’s power extends to giving the direction to pay Minimum Wage of the Minimum Time Scale?

In Court’s opinion, the general power of superintendence given to the Commissioner does not extend to interfere in the secular activity and was limited in its scope.

Section 8 makes it clear that the superintendence and control includes the power to pass an order to ensure that institution is properly administered and the income is spent for the purpose for which they were found.

Section 8 (1) is to ensure that the funds are spent for the purposes for which they are intended only.

Section 8(2) which starts with a non-obstante clause also talks of exercise of powers ‘conferred’ on him or the functions ‘entitled’ to him by the Act.  

No statutory provision has been pointed out by which this particular power to give directions to pay minimum wages etc., is shown to the Court.

 Further, Court also added that on the issue that, if Section 8(1) and Section 49 of the Act are read together, the limited powers of the Commissioner become clear. They are limited to the fixing/spending/utilization of the “dittam‟ only. In case of disagreement, the matter has to be referred to a Court for decision (Section 49-Proviso). Similarly, the amendments to Sections 51-53 etc., where the Commissioner has been substituted by the “Dharmika Parishad” also makes it clear that the role of the Commissioner is very limited.

The Minimum Wages Act applies to certain employments (preamble) which are specified as “scheduled employments” Section 2(g). Employments specified in Part-I/II of the Schedule (Section 3). The schedule is silent about employment in a Math.

“…only in cases of misconduct or mismanagement of the properties by the Mahant, it would be permissible for the State to interfere under Section 51 of the Act.”

 While reaching the conclusion, Bench expressed that the autonomy given to a Math to maintain and administer its activities also supports the view that the respondents cannot interfere in every activity, in case respondents have such a power to interfere every activity it would run contrary to the constitutional and other guarantees given to the religious denominations to carry their own activities.

Therefore, in view of the above analysis, High Court held that the memos dated 04.07.2018; 05.12.2018 and the consequential memo dated 19.04.2021 will not be applicable to the petitioner – Math. [Sri Raghavendra Swamy Mutt v. State of Andhra Pradesh, 2021 SCC OnLine AP 2938, decided on 21-9-2021]


Advocates before the Court:

Counsel for the Petitioners: Sri C.R. Sridharan, Senior counsel rep. Sri G.V.S.Ganesh

Counsel for the Respondents: Government Pleader for Endowments

Legislation UpdatesRules & Regulations

On July 14, 2021, the Jharkhand Government has issued the Draft Code on Wages (Jharkhand) Rules, 2021. The Rules provide 9 Chapters further divided into 56 sections.

Key features of the Rules

  1. Manner of calculating minimum rate of wages: Minimum rate of wages shall be fixed on the day basis keeping in few of following criteria:
  • The standard working class family which includes a spouse and two children apart from the earning worker an equivalent of three adult consumption units;
  • a net intake of 2700 calories per day consumption unit; 66 mtrs cloth per year per standard working class family;
  • housing rent expenditure to constitute 10 percent of food and clothing expenditure.
  • fuel, electricity and other miscellaneous items of expenditure to constitute 20 percent of minimum wage;
  • expenditure for children education, medical requirement, recreation, and expenditure on contingencies to constitute 25 percent of minimum wages;
  • When the rate of wages for a day is fixed, then, such amount shall be divided by eight for fixing the rate of wages for an hour and multiplied by twenty-six for fixing the rate of wages for a month and in such division and multiplication the factors of one-half and more than one-half shall be rounded as next figure and the factors less than one-half shall be ignored.

2. Number of hours of work which shall constitute a normal working day shall be 9 hours.

3. An employee shall be allowed a day of rest every week which shall ordinarily be Sunday, but the employer may fix any other day of the week as the rest day for any employee or class of employees.

  • Any such employee shall not be required or allowed to work on the rest day unless he has or will have a substituted rest day for a whole day on one of the five days immediately before or after the rest day.

4. Where an employee in an employment works on a shift which extends beyond midnight then:

  • a holiday for the whole day means a period of twenty four consecutive hours beginning from the time when his shift ends; and
  • the following day in such case shall be deemed to be the period of twenty-four hours beginning from the time when such shift ends, and the hours after midnight during which such employee was engaged in work shall be counted towards the previous day.

5. The longer wage period for the purpose of minimum rate of wage shall be by the month.

6. The State Government shall fix the minimum wage not below the Floor Wages so fixed by the Central Government.

Legislation Updates

The brief discusses minimum wages of Federal and State Level of USA.

 

USA Minimum Wage 2021

States

2021

Federal $7.25
Alaska $10.34
Arizona $ 12.15
Arkansas $11.00
California $13.00 (employer with 25 employees or less)
$14.00 (employer with 26 employee or more)
Connecticut $12.00 (September 1, 2020)
$13.00 (August 1, 2021)
Colorado $12.32
Delaware $9.25
District of Colombia $15
Florida $8.65
Georgia $5.15
Note: Georgia’s law sets minimum wage as $5.15 per hour. However, the federal minimum wage of $7.25 still applies to most jobs. But those that are not covered under the Fair Labor Standards Act may pay the lower rate.
Hawaii $10.10
Idaho $7.25
Illinois $11.00 (January 1, 2021)
Indiana $ 7.25
Iowa $7.25
Kansas $7.25
Kentucky $7.25
Louisiana No state law governing minimum wage.
Federal Law Minimum wage applicable
$7.25
Maine $12.15
Maryland $11.75 ( non-exempt Maryland workers who work for employers with more than 14 employees)
$11.60 ( non-exempt Maryland workers who work for employers with 14 or fewer employees)
Massachusetts $13.50
Michigan $9.65
Minnesota $10.08 (Large employer)
$ 8.21 (small employer)
Mississippi No state law governing minimum wage.
Federal Law Minimum wage applicable
$7.25
Missouri $10.30
Montana $8.75
Nebraska $9.00
Nevada $8.75 (for employees with employer-offered qualifying health benefits)
$9.75 ( for all other employees)
New Hampshire $7.25
New Jersey $12.00
New Mexico $10.50
New York $14.00(employer in Long Island & Westchester)
$12.50 (remainder of new York state workers)
$15.00 (New York City- Small employer)
$15.00 (New York City- Big employer, i.e. every employer with 11 or more employees)
North Carolina $7.25
North Dakota $7.25
Ohio $8.80
Oklahoma $7.25
Oregon $12.75 Standard Counties (effective July 01, 2021)
$14.00 Portland Metro (effective July 01, 2021)
Pennsylvania $7.25
Puerto Rico $6.55
Note: Puerto Rico law sets minimum wage as $6.55 per hour. However, the federal minimum wage of $7.25 still applies to most jobs. But those that are not covered under the Fair Labor Standards Act may pay the lower rate.
South Carolina No state law governing minimum wage.
Federal Law Minimum wage applicable
$7.25
South Dakota $9.45
Tennessee No state law governing minimum wage.
Federal Law Minimum wage applicable
$7.25
Texas $7.25
Utah $7.25
Vermont $11.75 per hour
Virginia $9.50 – Effective May 1, 2021;
$11.00- Effective January 1, 2022;
$12.00- Effective January 1, 2023;
$13.50- Effective January 1, 2025
$15.00- Effective January 1, 2026
Washington $13.69
West Virginia $8.75
Wisconsin $7.25
Wyoming $ 7.25
Case BriefsCOVID 19Supreme Court

Supreme Court: The 3-judge bench of NV Ramana, SK Kaul and BR Gavai, JJ has refused to direct Central Government and the State Governments to ensure payments of wages/minimum wages to all the migrant workers. It, however, asked the Government to take necessary steps in order to resolve the issues relating to migrant workers.

The Court was hearing the petition seeking direction to the Central Government and the State Government to jointly and severally ensure payments of wages/minimum wages to all the migrant workers within a week. Advocate Prashant Bhushan, appearing for petitioner Harsh Mander, had argued that despite governmental measures, thousands of laborers still lack access to basic amenities. He, further, argued that studies conducted by NGOs indicated that there are several areas where the aid is not reaching to the migrant workers.

Solicitor General Tushar Mehta, on the other hand, filed a status report and submitted that various measures are in place to address the issues concerning the migrant
workers. He further argued that helpline number has been provided to report issues concerning the implementation at the ground level, and that whenever any complaint is received, the authorities are attempting to address the same immediately.

Satisfied with the Government’s response, the Court disposed of the petition with the direction to the Government to take such steps as it finds fit to resolve the issues raised in the petition.

[Harsh Mander v. Union of India,  2020 SCC OnLine SC 376 , order dated 21.04.2020]

COVID 19Hot Off The PressNews

Supreme Court:  The bench headed by CJI SA Bobde has slated for April 13 hearing on a public interest litigation seeking immediate direction for the payment of basic minimum wages to migrant workers, adversely affected by the COVID-19 lockdown.

During the hearing through videoconferencing, the bench said that it received the affidavit filed by the Central government this morning and slated the hearing for April 13.

The petition was filed by social activists Harsh Mander and Anjali Bhardwaj through senior advocate Prashant Bhushan. The Court asked the Bhushan to go through the affidavit in the meantime.

Bhushan told the court that more than four lakh migrant workers are living in shelter homes and are making a mockery of social distancing.

“If they’re kept in the shelter homes, even if one person has coronavirus they will all get infected,”

Adding that many people will die by Monday, Bhushan said,

“They should be allowed to go back to their own homes. Families need money for survival because they are dependant on the wages,”

Solicitor General Tushar Mehta said that the Central government is on the top of this situation and that it is looking into the complaints received. A call center had also been set up to address and resolve issues, he added. Mehta said that the Ministry of Home Affairs is monitoring the helpline daily.

The PIL sought an immediate direction to the Central government for payment of basic minimum wages to migrant workers and said that the lockdown, imposed in a bid to prevent the spread of coronavirus in the country, discriminated among the citizens.

Last week, the bench of L. Negeswara Rao and Deepak Gupta, JJ had issued a notice to the Central government on a petition seeking immediate direction for the payment of basic minimum wages to migrant workers, adversely affected by the COVID-19 lockdown.

(Source: ANI)

COVID 19Hot Off The PressNews

Supreme Court:  A bench of L. Negeswara Rao and Deepak Gupta, JJ has issued a notice to the Central government on a petition seeking immediate direction for the payment of basic minimum wages to migrant workers, adversely affected by the COVID-19 lockdown. The bench has sought a response by April 7.

The petition, filed by social activists Harsh Mander and Anjali Bhardwaj, sought an immediate direction to the Central government for payment of basic minimum wages to migrant workers.The plea said that the 21-day lockdown, imposed in a bid to prevent the spread of coronavirus in the country, under the Disaster Management Act discriminated among the citizens.

(Source: ANI)