Tanuja Industries employed 200 workers in its establishment. Due to poor performance in one section of the establishment, workers employed therein were paid with reduced wages which were below the minimum wages. Whether

According to Section 12 of Minimum Wages Act, 1948, the employer shall pay to every employee engaged in a scheduled employment under him wages at a rate not less than the minimum rate of wages fixed by such notification for that class of employees in that employment without any deductions except as may be authorised within such time and subject to such conditions as may be prescribed. Therefore, it is binding obligation of every employer to pay the minimum of wages fixed under the Act from time to time. It must be paid without any deduction. In case of poor performance of workers, the employer may pay the reduced wages but it should not be below the minimum wages. Reducing the payment of minimum wages on the ground of less output or poor performance is illegal as was held in Bandhua Mukti Morcha Vs Union of India (1984 35 CC161) . Instead, the employer may take disciplinary action against the workman.