dear seniors , what penality labour authority can imposed maximum under minimum wages act if employer is not pay minimum wages to workmen . paramjeet singh
From India, Dehra Dun
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The authority can award the difference in Minimum Wages. Additionally, the authority under the Minimum Wages Act has the discretion to impose a penalty of 10 times the total difference in wages in accordance with section 20(3) of the Minimum Wages Act, 1948.

With best wishes,

Regards,
B. LAKSHMAN RAO
Head-HR, Ramky Pharma City [India] Limited, Visakhapatnam [AP]

From India, Hyderabad
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Ten times penalty has been declared un-justified by the Allahabad High Court. Madras High Court has justified 3 times penalty. regards, Kamal-
From India, Pune
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boss2966
1189

Why do you want to pay less than the minimum wages fixed by the appropriate government? If you pay properly, then obviously you can extract the required work from the workforce. If you pay less, then you must pay the same with retrospective effect and a three times penalty. In addition to that, you must spend your valuable time in the Labour Office and Labour Court, and you must take care of Labour Department Officials as well. Furthermore, your company's name and fame will also be questioned, which will have an undue impact on your career too.

Please explain the same to your management. To resolve the issue, please discuss with the labour department official and explain that you are providing food for them, which costs Rs.____, and accommodation & transportation to all the workmen. Additionally, you are sending money to their homes as well (for which you must have some proof).

Kind regards

From India, Kumbakonam
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