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Labour law minimum wages act
3 months ago
Does an association of a housing society have to follow minimum wages, esi, pf or bonus act to workers rendering their services in the premises of housing society??
A.Dear Sir,
If the employees of the Association are more than 20 or so as may be prescribed then only such minimum wages etc will apply.
If the employees of the Association are more than 20 or so as may be prescribed then only such minimum wages etc will apply.
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A.Dear Client,
An association or a cooperative society cannot be termed as an industry within the meaning of Section 2 (j) of the Industrial Disputes Act, 1947even if it carries on some commercial activity, not as its predominant activity, but as an adjunct to its main activity and accordingly, labour laws are not applicable. The Bombay High Court in the case of M/s Arihant Siddhi Co-operative Housing Society Limited held that just because the housing society was carrying on some commercial activity, which was not its main activity but just an adjunct to its main activity of providing services to its own members, the society cannot be treated as an industry. So, unless the commercial activity is a predominant activity, the entity carrying the activity cannot be covered under the definition of ‘industry’ under the Industrial Dispute Act, as held by the Supreme Court in the Bangalore Water Supply and Sewerage Board case. The Minimum Wages Act 1948 was enacted to ensure that employers do not exploit their employees with unfair wages. However, if a cooperative society owns industrial units or industrial galas wherein the members carry commercial or trading activities would make the society amenable to the Minimum Wages Act, 1948, considering the number of employees working in the societies. In the case of Kiran Industrial Premises Co-operative Society Ltd. vs. Janata Kamgar Union, 2001 (89) FLR 707 (Bom.). The court held that a society, where the members carry on commercial and trading activities, cannot be treated or said to be involved in any commercial venture, trade or business, or profession and does not amount to a “commercial establishment” much less a “shop,” and, the provision of Minimum Wages Act is not applicable.
An association or a cooperative society cannot be termed as an industry within the meaning of Section 2 (j) of the Industrial Disputes Act, 1947even if it carries on some commercial activity, not as its predominant activity, but as an adjunct to its main activity and accordingly, labour laws are not applicable. The Bombay High Court in the case of M/s Arihant Siddhi Co-operative Housing Society Limited held that just because the housing society was carrying on some commercial activity, which was not its main activity but just an adjunct to its main activity of providing services to its own members, the society cannot be treated as an industry. So, unless the commercial activity is a predominant activity, the entity carrying the activity cannot be covered under the definition of ‘industry’ under the Industrial Dispute Act, as held by the Supreme Court in the Bangalore Water Supply and Sewerage Board case. The Minimum Wages Act 1948 was enacted to ensure that employers do not exploit their employees with unfair wages. However, if a cooperative society owns industrial units or industrial galas wherein the members carry commercial or trading activities would make the society amenable to the Minimum Wages Act, 1948, considering the number of employees working in the societies. In the case of Kiran Industrial Premises Co-operative Society Ltd. vs. Janata Kamgar Union, 2001 (89) FLR 707 (Bom.). The court held that a society, where the members carry on commercial and trading activities, cannot be treated or said to be involved in any commercial venture, trade or business, or profession and does not amount to a “commercial establishment” much less a “shop,” and, the provision of Minimum Wages Act is not applicable.
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