Madhu Sir,
In Gujarat, textile manufacturing units do have recognized/representative unions. Can he not take support from them to make this poor man's life easier in handling this situation? Just a thought.
Regards,
Suresh
From India, Nagpur
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In Gujarat, textile manufacturing units do have recognized/representative unions. Can he not take support from them to make this poor man's life easier in handling this situation? Just a thought.
Regards,
Suresh
From India, Nagpur
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I am forwarding a list of 46 scheduled employments in Gujarat, with the same minimum wage for all industries.
Gujarat has meager minimum wages until March 31, 2023. The Gujarat government has revised it by approximately 24.5%, effective April 1, 2023. Details can be found in the attached files.
Regards,
Suresh
From India, Thane
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253Gujarat has meager minimum wages until March 31, 2023. The Gujarat government has revised it by approximately 24.5%, effective April 1, 2023. Details can be found in the attached files.
Regards,
Suresh
From India, Thane
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Certainly, he can approach the union and make a representation through the union. But in an establishment that pays just what is required by law, you can imagine the role of a trade union. It is due to the inactiveness of the unions that these workers are getting exploited.
I have not gone into detail about the calculation side of wages, and it is possible only with the latest CPI (Consumer Price Index) based on which the dearness allowance (special allowance) is calculated. Moreover, the notification (minimum wages) says that the special allowance is Re. 0.20 per day or Rs 5.20 per month for every five points above 7270. The base for this CPI point is not available. I have noticed that there are different CPIs with different bases, and the one matching this is 1960=100, and the CPI against that base is 7608.37. That means the DA will be 7608.37-7270=338.37 divided by 5 multiplied by 0.20=13.53 or Rs 351.78 per month. If you take the basic of skilled, considering the 20 years of experience, of Zone A, then the daily wages will be Rs 474+14=488, giving a monthly total of Rs 12688.
Even an intervention of the union may result in the calculation of gratuity on this amount, but what about the arrears payable to the poor worker? True, a representation by the union as an industrial dispute may lead to calculating the minimum wages based on the minimum wages every six months backward. It is also possible that the union may demand payment with interest and the implementation of minimum wages forthwith, so that no other worker is denied this right. But my apprehension is, is it possible in a company which can deny the statutory wages over these years?
From India, Kannur
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I have not gone into detail about the calculation side of wages, and it is possible only with the latest CPI (Consumer Price Index) based on which the dearness allowance (special allowance) is calculated. Moreover, the notification (minimum wages) says that the special allowance is Re. 0.20 per day or Rs 5.20 per month for every five points above 7270. The base for this CPI point is not available. I have noticed that there are different CPIs with different bases, and the one matching this is 1960=100, and the CPI against that base is 7608.37. That means the DA will be 7608.37-7270=338.37 divided by 5 multiplied by 0.20=13.53 or Rs 351.78 per month. If you take the basic of skilled, considering the 20 years of experience, of Zone A, then the daily wages will be Rs 474+14=488, giving a monthly total of Rs 12688.
Even an intervention of the union may result in the calculation of gratuity on this amount, but what about the arrears payable to the poor worker? True, a representation by the union as an industrial dispute may lead to calculating the minimum wages based on the minimum wages every six months backward. It is also possible that the union may demand payment with interest and the implementation of minimum wages forthwith, so that no other worker is denied this right. But my apprehension is, is it possible in a company which can deny the statutory wages over these years?
From India, Kannur
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Dear Madhu Ji,
The minimum wages for the Unskilled category in Gujarat in April 2022 were Rs. 359.30 per day for Zone I and Rs. 351.30 per day for Zone II. In October 2022, it was Rs. 363.30 and Rs. 355.30 per day for Zone I and II, respectively. As I am preoccupied with an urgent assignment, I am sharing this information for your reference.
Regards,
Sna
From India, Thane
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The minimum wages for the Unskilled category in Gujarat in April 2022 were Rs. 359.30 per day for Zone I and Rs. 351.30 per day for Zone II. In October 2022, it was Rs. 363.30 and Rs. 355.30 per day for Zone I and II, respectively. As I am preoccupied with an urgent assignment, I am sharing this information for your reference.
Regards,
Sna
From India, Thane
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Ok, fine. You did it for last October, but I did it for April 2023. The DA of October can be worked out only after getting the CPI of that period. But there will be a slight deviation only.
I am also occupied for tomorrow with a session in Christ University, Bangalore, an interactive session with the students pursuing their Masters in Human Resource Management, mainly on the significance of compliance for the peaceful running of business. This is a case study that can be discussed to enlighten the budding HR professionals on the importance of sensitivity in dealing with poor workers...!
From India, Kannur
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I am also occupied for tomorrow with a session in Christ University, Bangalore, an interactive session with the students pursuing their Masters in Human Resource Management, mainly on the significance of compliance for the peaceful running of business. This is a case study that can be discussed to enlighten the budding HR professionals on the importance of sensitivity in dealing with poor workers...!
From India, Kannur
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Thank you all for taking an active interest in this case.
There is no union available in this mid-sized textile manufacturing company in Ahmedabad, Gujarat.
- Is it possible to get the increments as arrears for two decades by filing a complaint with the labor office, considering that the Provident Fund (PF) and Employee State Insurance (ESI) deductions were regular? If yes, kindly provide the relevant act clause or any similar cases that have been filed before.
- With over 20 years of continuous service in the same position, could he be classified as a skilled or semi-skilled employee under the Minimum Wages Act?
- Since no official leave was taken, and there is no existing employee agreement, what would be the maximum number of earned leave (EL) days he could cash out as a private employee, similar to the case of government employees with a maximum of 300 EL days?
Thank you in advance.
From United States, Cambridge
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There is no union available in this mid-sized textile manufacturing company in Ahmedabad, Gujarat.
- Is it possible to get the increments as arrears for two decades by filing a complaint with the labor office, considering that the Provident Fund (PF) and Employee State Insurance (ESI) deductions were regular? If yes, kindly provide the relevant act clause or any similar cases that have been filed before.
- With over 20 years of continuous service in the same position, could he be classified as a skilled or semi-skilled employee under the Minimum Wages Act?
- Since no official leave was taken, and there is no existing employee agreement, what would be the maximum number of earned leave (EL) days he could cash out as a private employee, similar to the case of government employees with a maximum of 300 EL days?
Thank you in advance.
From United States, Cambridge
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Regret to say that the calculation of minimum wages retrospectively for 20 years is not possible. As already mentioned, you can obtain it for 6 months. However, if the authority is satisfied with the non-compliance regarding the Minimum Wages Act, then you can expect it for a longer period back. Contributions to ESI and PF are irrelevant in this context.
The categorization of workers into skilled, semi-skilled, or unskilled is based on the level of supervision required for a specific job. While it is true that a person with 20 years of experience may work independently and be considered skilled, this classification cannot be established now. Any claims about skill level by the employer will need approval.
Legally, an employee can accumulate up to 24 days of leave only. The practice of encashing 300 leaves in government services does not apply in this situation.
From India, Kannur
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The categorization of workers into skilled, semi-skilled, or unskilled is based on the level of supervision required for a specific job. While it is true that a person with 20 years of experience may work independently and be considered skilled, this classification cannot be established now. Any claims about skill level by the employer will need approval.
Legally, an employee can accumulate up to 24 days of leave only. The practice of encashing 300 leaves in government services does not apply in this situation.
From India, Kannur
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Given the gravity of the issues, it is my considered opinion that the querist assumes the sagacity to pursue the issue in action by approaching the competent Labour Department authority. Once the action is pursued, the issues, as well as facts that are material to the controversy, are bound to unfold.
From India, Kochi
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From India, Kochi
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Thank you, everyone, for your valuable advice.
Under labor law, as the Minimum Wages are revised in Gujarat from April 1, 2023, after a gap of 8 years. So, for this permanent employee of a factory, will the new minimum wages be implemented immediately, i.e., from April 1, 2023, or from October 1, 2023, or from his joining (anniversary) date?
Under labor law, is this permanent employee of the factory entitled to a salary of 1 month's notice period or 3 months' notice period?
Thanks in advance.
From United States, Cambridge
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Under labor law, as the Minimum Wages are revised in Gujarat from April 1, 2023, after a gap of 8 years. So, for this permanent employee of a factory, will the new minimum wages be implemented immediately, i.e., from April 1, 2023, or from October 1, 2023, or from his joining (anniversary) date?
Under labor law, is this permanent employee of the factory entitled to a salary of 1 month's notice period or 3 months' notice period?
Thanks in advance.
From United States, Cambridge
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The notification calling on the employers to pay revised minimum wages will have a date on which the said minimum wages will be effective. In some cases, the notification may have a retrospective effect. In such cases, only the employee can demand back wages. It will be a universal date and not with reference to the anniversary date of each employee joining the company.
An employee coming under the purview of the Industrial Disputes Act is eligible to get one month notice period or salary in lieu of the notice as well as compensation for retrenchment at the rate of 15 days' wages for every year of service. This is provided under section 25F of the Industrial Disputes Act. At the same time, if the establishment has more than 100 workers, then the employer is liable to give three months' notice or salary in lieu of that notice following section 25N of the same Act.
From India, Kannur
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An employee coming under the purview of the Industrial Disputes Act is eligible to get one month notice period or salary in lieu of the notice as well as compensation for retrenchment at the rate of 15 days' wages for every year of service. This is provided under section 25F of the Industrial Disputes Act. At the same time, if the establishment has more than 100 workers, then the employer is liable to give three months' notice or salary in lieu of that notice following section 25N of the same Act.
From India, Kannur
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