Satisfactory performance of work by the Employee and consequent payment of wages by the Employer for the work performed constitute reciprocal considerations in Employer-Employee relationship. With increasing competition and merging of cross-border economy, employers at times tend to set aggressive expectations from its employees in order to increase productivity and outcome. While this becomes necessary to forge ahead of the times, difficulties may arise when the payment of minimum wages to employees is linked to expected level of performance from them. Such decisions stand in violation of the Minimum Wages Act, 1948.
The Act provides for fixation of minimum wages by the Appropriate Government in respect of scheduled employments and mandates payment of the same to all employees in such employments. The mandate of the law is strict to the extent that failure to pay minimum wages exposes the employer to criminal prosecution along with loss of reputation. Compliance of law relating to minimum wages, hence, becomes essential for avoidance of such consequences.
