Managing a Business/Human Resource management
Should central and state governments be able to legislate minimum wages rather than adopting a laissez-faire attitude that would allow employers operating on a slim profit margin to pay only what they could afford? Discuss.
• The Minimum Wages Act
This act provides for fixing minimum rates of wages.
Wages shall mean all remuneration payable to an employed person on the fulfillment of the contract employment and includes HRA.
(i) a basic rate of wages and special allowance call the cost of living allowance
(ii) a basic rate with or without cost of living allowance plus any concession on the supply of essential commodities.
(i) The value of rent free accommodation, supply of light, water, medical .....
(ii) Contributions paid by the employer towards the PF or any scheme of social insurance
(iii) Travelling allowance / Travelling concession
The appropriate government may fix-:
A minimum rate of wages for time work ("a minimum time rate").
A minimum rates of wages for piece work ("a minimum piece rate").
A minimum rate of wages on a time work basis ("a guaranteed time rate")
A minimum rate of overtime work done (“a overtime rate")
• The Minimum Wages Act
The inspectorate staff of the Labour Department takes action on complaints received from workmen/Unions.
The penalty for violation of is fine of R.500/- or imprisonment upto a period of six months or both.
If a worker gets less payment, he can also file a claim before the Competent Authority appointed under the Act, which are Deputy Labour Commissioners for the respective districts.
The authority can impose penalty up to 10 times the difference in minimum wages that was due and paid
GOVERNMENT SHOULD ENACT LAWS ON MINIMUM WAGE.
BENEFITS OF MINIMUM WAGE
The minimum wage is the lowest wage an employer is allowed to pay. Although a federal minimum wage is set, the individual states can choose to use the federal wage or make their own laws.. There are advantages to offering a minimum wage.
that nearly 40 percent of the minimum wage earners in the United States are working parents. To go even further, nearly 33 percent of the minimum wage earners are married couple raising children. Without a minimum wage, these workers may be forced to work for less money.
Reduces Tax Burden
A person making at least minimum wage is not using as many public services as someone on unemployment, . An unemployed worker is given welfare, rent assistance and food stamps in many states. With minimum wage, the need for public assistance is lowered and this reduces the tax burden on the community and the state.
A minimum wage gives an unemployed person incentive to take a job because he knows what his minimum pay will be, according to economics website Economics Help. An unemployed person can compare the money he gets from public assistance and compare it to the minimum wage to determine the financial incentive to taking a job.
Without a minimum wage, it can be difficult for small businesses to budget their money. With a minimum wage in place, a small business owner knows what he will be expected to pay per hour and he can create new jobs with his company based on this budgeting information.
The minimum wage makes the hiring process easier for young or unskilled workers and employers. The worker knows upfront what kind of wage she can expect, and the employer does not have to go through the process of negotiating a wage with a new employee.