Solutia Company is engaged in the cotton mill business. It has challenged the revision and fixation of minimum wages done by the State Government. Decide whether the said notification is within the intra vires of Minimum

According to Section 3(1)(b) of the Minimum Wages Act, 1948 the appropriate Government shall review the minimum rates of wages so fixed and revise the minimum rates, if necessary, at such intervals not exceeding five years. This means that minimum wages can be revised earlier than five years also. In the given case the revision has been made after three years of previous revision. Thus, this is an intra vires of the Minimum Wages Act, 1948, as the maximum time period for review of wages is 5 years. Section 3(1)(a) the Minimum Wages Act, 1948 lays down that the appropriate Government shall fix the minimum rates of wages, payable to employees employed in an employment specified in Part I or Part II of the Schedule, and in an employment added to either part by notification under Section 27. Notwithstanding with the provisions of Section 3(1)(a), the appropriate Government may not fix minimum rates of wages in respect of any scheduled employment in which less than 1000 employees in the whole State are engaged. But when it comes to its knowledge after a finding that this number of employees has increased to 1,000 or more in such employment, it shall fix minimum wage rate. In the given situation, there are not more than 950 people in the employment in the entire state. Thus, it is an ultra vires of the Minimum Wages Act, 1948. As per Section 9 of the Minimum Wages Act, 1948, each of the committees, sub-committees and the Advisory Board shall consist of persons to be nominated by the appropriate Government representing employers and employees in the scheduled employments, who shall be equal in number, and independent persons not exceeding one-third of its total number of members; one of such independent persons shall be appointed the Chairman by the appropriate Government. In the given case, no representative from the Solutia company's employee was taken which was ultra vires of the Minimum Wages Act, 1948. It is an intra vires of the Minimum Wages Act, 1948, as while fixing or revising the minimum wages the profit factor is irrelevant, it is based on the cost of living. [Section 4 of the Minimum Wages Act, 1948] It is ultra vires of the Minimum Wages Act, 1948 as the state government cannot fix dearness allowance in excess of the amount required to neutralize the effect of inflation.