Labour – Laws – Concepts,

Origin, Objectives and

UNIT 3 LABOUR LAWS - CONCEPT, Classification

ORIGIN, OBJECTIVES AND

CLASSIFICATION
Objectives

After studying this chapter, you should be able to :

• have a clear concept of labour legislations
• know the origin and factors responsible for the growth of labour legislations
• understand the basic objectives of labour legislations
• comprehend the categorisation of different labour legislation
Structure

3.1 The Concept of Labour Legislations

3.1.1 General Introduction
3.1.2 Industrial Revolution and the need for Labour Legislations
3.1.3 The Main Ingredients of Labour Legislations
3.1.4 Principles of Social Justice, Social Equality, Social Security, National
Economy and Labour Legislations
3.2 Origin of Labour Legislations
3.2.1 Introduction
3.2.2 Factors Influencing Labour Legislations
3.3 Objectives of the Labour Legislations

3.3.1 Different Objectives

3.4 The Classification of Labour Legislations

3.4.1 The Regulative Labour Legislations
3.4.2 The Protective Labour Legislations
3.4.3 Wage-Related Labour Legislations
3.4.4 Social Security Labour Legislations
3.4.5 Welfare Labour Legislations
3.4.6 Miscellaneous
3.4.7 General
3.5 Conclusion

3.1 THE CONCEPT OF LABOUR LEGISLATIONS

3.1.1 General Introduction
Law comes into existence to cater to the growing needs of society, which may be
caused by technological, economic, political, social changes. Law is a dynamic
concept. Law is like a citadel which requires regular repairs, revamping and
replacement. "Life and Laws have moved together in history and it must do in
future". It is in this perspective that the
Labour Legislations have to be studied.
3.1.2 Industrial Revolution and the need for Labour Legislations
Society evolves institutions to abhor vacuum created by changes. Industrial
Revolution is a epoch-making event, which completely changes the lifestyles of
society from agricultural and pastoral to industrial and materialistic one. The
industrial society brought about, in its wake, excessive exploitation of the working
classes by the employer who took advantage of the individual dispensability of the
worker and wanted maximum profit on his investment. The golden rule of capitalism
that "Risk and Right" go together provided them with prerogatives to "hire and fire".
The other legal concepts which were then
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Introduction to Labour Legislation
available were those of Master and Servant and carrot and stick etc. The principle of
common law was in operation. The law of contract used to govern the relation
between worker and the employer in which individual contact was struck, the terns of
contract were usually verbal and mostly used in cases of breaches, leading to
prosecution and imprisonment of workers. Labour and Migration Act was another
legislation which gave rise to the "Indentured labour system". Anti-Combination
legislations were in vague treating 'combination' of workers as act of criminal
conspiracy. Longer hours of work, abysmally low wages, no safety and welfare
provisions, and no insurance - the exploitation at large. State was adopting the policy
of Laissez-faire (let not interfere) and employers abused workers, taking advantage of
the situation.
Every society on its onwards march revises, reviews, refurbishes and reinvents its
legal concept and civilised ways of living. The changes brought about by the
industrial revolution created some gaps and it became the responsibility of the society
to fill-up those gaps. Society went for certain social devices to take care of the gaps,
which are known as labour legislation.
The labour legislations are the products of Industrial Revolution and they have come
into being to take care of the aberrations created by it. They are different from
common legislations, because they come to alleviate special disorders created by
specific circumstances. Therefore, they are specific and not general in orientation,
philosophy and concept.
3.1.3 The Main Ingredients of Labour Legislations
Labour legislation regards individuals as workers ,whereas the general legislation
regards him a citizen. The principles governing labour legislations are more
influenced by the postulates of social justice than general justice. Workers are the
weaker class of industrial society and have suffered long at the hands of employers.
Therefore, these sets of legislations go out of way in protecting workers and securing
justice to them. The influences of 'discriminative justice' and ' distibutive justice' can
be clearly seen over them. All the labour legislations are heavily skewed towards
labour and they are specifically designed like that.
Labour legislation seeks to deal with problems arising out of occupational status of
the individual. Consequently, such problems as hours of work, wages, working
conditions, trade unions, industrial disputes etc. come to be the main, subject matter
of labour legislations. Thus, the behaviour of the individual or his groups is the
function of labour legislation as of any other legislation. But under labour legislation,
the individual is affected in the capacity of a worker or an employer. Therefore, the
persons who are neither the employers nor the workers are least affected directly by
labour legislation. To make the point clear, a few example are necessary. A
legislation regarding working conditions such as the factory legislation or laws
regarding payment of wages or compensation for work injury or employment of
women or children impinge upon the individuals as workers and the employers. Orr
the contrary, a law regarding ownership of property or a law relating to the marriage
or sales tax affects him as a citizen.
Individuals have different roles to perform and different laws are designed for
regulating the different roles. It is the role-relation that determines whether a
particular legislation falls under the category of labour legislation, social legislation
or general legislation. All these legislations try to meet the specific objectives of their
respective target groups- that is (a) to provide subsistence, (b) to aim at abundance,
(c) to encourage equality, and (d) to maintain security.
As labour legislations are to regulate the conditions of labour, in the industrial milieu,
it is required to be adjusted as per the changing requirements of industry. This has to
be done more frequently than the general legislation where changes are not that swift.
Unless ' labour legislations are subjected to frequent revision and not left to continue
as they are, they become obsolete and irrelevant. The Indian Labour Legislations are
the best example. Most of them have become outdated as the required revisions have
22 not been affected and gaps have been created between the expectation of industrial
so( ..:! the institution of labour legislation.
 Labour – Laws – Concepts,
3.1.4 Principles of Social Justice, Social Equality, Social Security, National Origin, Objectives and
Economy and Labour Legislations Classification

Labour Legislations contain the principles of social justice, social equity, social
security and national economy in their concept.
Social justice implies two things. First, equitable distribution of profits and other
benefits of industry between owner and workers. Second, providing protection to
workers against harmful effect to their health, safety and morality.
Social equality provides the flexibility in labour legislations to adjust to the' need of
the industrial society.
Social security envisages collective action against social risks which constitute the
crux of the labour legislation.
National Economy provides the standards to be set for the labour legislations.
Human Rights principles and human dignity postulates provide the broader base for
the concept of labour legislations.
Thus, these principles are the fundamentals for understanding the concept of Labour
jurisprudence.

3.2 ORIGIN OF LABOUR LEGISLATIONS

3.2.1 Introduction
The origin of labour legislation is the history of continuous and relentless struggle for
emancipation of working class from cloches of aggressive capitalism. The struggle
was between two unequals. The contract between capital and labour could never be
struck on equitable terms. The social scientists interpreted this struggle in different
ways. The point, however, was to change it. The change contemplated was one of
transforming a slave into partner and thereby bridle the power of capital to impose its
own terms on the workmen.
Various factors helped this process to take place. The struggle was not easy.
Numerous forces, directly and indirectly, hastened the pace facilitating the passing of
labour friendly legislation.
3.2.2 Factors Influencing Labour Legislations
Early Exploitative Industrial Society
The origin of labour legislation lies in the excesses of the early industrialism that
followed Industrial Revolution. The early phase of industrialisation in the capitalist
countries of the world was an era of unbridled individualism, freedom of contract and
the laissez-faire, and was characterised by excessive hours of work, employment of
young children under very unhygienic and unhealthy conditions, payment of low-
wages and other excesses. Naturally, such excesses could not have continued for long
without protest and without demand for reforms. The early Factories Acts flowed
from these excesses and manifested the desire of the community in general to protect
its weaker section against exploitation. The workers had very little legal protection
available. Therefore, it can be safely said that the labour legislations are the natural
children of industrial revolution.
Impact of Contemporary Events
a) Along with Industrial Revolution, Revolutionary thinking of Rousseau, J.S.Mill,
the French Revolution, Hegel, Marx & Engels and Russian Revolution greatly
influenced the thought processes and hastened the pace of labour jurisprudence.
b) The world wars made it possible for the labourers to realise their importance that
unless they produce, it will be difficult for warring nations to win. Therefore,
they must stake their claims for better quality of work life.
c) The revolution in science, technology, the communication and
telecommunication also helped in bringing the world, closer. It became easier for
the working classes of 23
Introduction to Labour Legislation
the underdeveloped world to know the better conditions of service of their
counterparts in the developed world.
The Growth of Trade Unionism
The Trade Union movement, which itself springs from industrial revolution has been
another factor which has quickened the growth of labour legislations. On the one
hand, their demands for protection of the interests of the working class led to
legislations in the field of wages, hours of work, women's compensation, social
security and other areas; on the other hand, their growth necessitated legislations for
the regulation of industrial disputes, their prevention and settlement and trade union
rights and privileges. Trade unions have been as much conditioned by labour
legislations as they have conditioned them.
Growth of Political Freedom and Extension of Franchise
Gradual extension and adoption of universal adult suffrage placed in the hands of the
working class, a powerful instrument to influence the cause of state policy. Their
representatives started espousing the cause of labour and getting progressive
legislations passed. The workers used their political powers for betterment and
amelioration of their lots.
Rise of socialist and other revolutionary ideas
In his analysis of capitalism, Marx showed that the exploitation of labour was
inherent in the capitalist economic system. Therefore, he advocated the overthrow of
capitalist system. The echo of the slogan, "the workers of the world unite, you have
nothing to lose but your chains", reverberating throughout the capitalist world, sent a
shudder among the conservative and capitalist circles to which amoliorative and
protective labour legislations came as safe alternatives. They readily grasped labour
legislations as antidote to the spread' of revolutionary ideas. The Fabian Society of
England, the establishment of socialist and communist parties in many countries and
first and second internationals strengthened the trend for progressive labour
legislations.
The Growth of Humanitarian Ideas and the Concept of Social Welfare and
Social Justice
The humanitarian ideas and role of humanitarians, the philanthropic and social
reformers influenced the shape of labour legislation. Early Factories Acts were made
possible because of the efforts of the humanitarians like Hume, Place, Shaftesbury
and others.
Researches in Social Sciences like Sociology, Psychology and Anthropology
exploded the myth of the natural elite and gave a powerful push to the movement of
social reforms, social change, social justice and labour legislations.
Establishment of I.L.O.
The establishment of the I.L.O in 1919 has been a very potent factor in conditioning
the course of labour legislation all over the world. The acceptance of the principle
that "labour is not a commodity" and the slogan that "Poverty anywhere constitutes a
danger to prosperity everywhere", have influenced the course of labour legislations in
all the countries. The ILO, through persistent investigation of workers' living
conditions has continuously established the need for ameliorative labour legislation.
It has initiated proposals for labour legislations, subjected them to elaborate
discussions and reviews and has adopted Conventions and Recommendations. The
ILO by trying to establish uniform labour standards in so far as the diverse conditions
and uneven economic developments of the world permit, has done a singular service
in the field of labour legislation.
ILO, through Conventions and Recommendations, have undertaken the task of
creating - international minimum standards of labour which constitute the
International Labour Code. They cover a wide range of subjects including wages,
hours of work, annual holidays with pay, minimum age of employment, medical
examination, maternity protection, industrial health, safety and welfare, social
security, freedom of association, right to organise and bargain collectively,
employment conditions of seamen and unemployment.
The ILO standards have influenced Indian Labour Legislations to a great extent. ILO
24 standards have formed the sheet-anchor of Indian Labour Legislations, especially after
 Labour – Laws – Concepts,
1946 when Indian National Government assured office. The Directive Principles of Origin, Objectives and
State Policy in Articles 39, 41, 42„43 and 43A of the constitution, lay down policy Classification
objectives in the field of labour having close resemblance and influence to the ILO
Constitution and the Philadelphia Charter of 1944. Thus, the ILO both directly and
indirectly has had a great influence on the Indian Labour Scene and Labour
Legislation.
Factors Specific to India
The factors discussed above are the general factors influencing the shape of labour
legislation. There are specific factors, peculiar to India which have influenced labour
legislations.
a) Influence of colonial rule
Most of the early labour legislation came into being because of the pressure from the
manufacturers of Lancashire and Birmingham; because labour employed in factories
and mills in India were proving very cheap in comparison to their British counterpart.
No doubt, these legislations were beneficial to Indian labour but this benefit was
incidental to the main purpose i.e. the protection of the interests of British Capitalists.
The British Civil Servants carried with them the British tradition of democracy and
pragmatism. The Workman Compensation Act, 1923, the Indian Trade Unions Act,
1926, the Payment of Wages Act, 1936 etc. followed British pattern
b) The struggle for national emancipation and adoption of Indian Constitution
The Industrial Workers got support from the freedom struggle and nationalist leaders
who made tireless efforts to get protective labour legislations enacted. The Indian
Trade Unions Act, the appointment of Royal Commission on Labour etc. were
because of pressure from freedom struggle.
The leaders of the national movement had promised the establishment of a better and
just social order after independence; which was ultimately embodied in the Preamble,
Fundamental Rights and Directive Principles of State Policy of the Indian
Constitution.
We have plethora of labour legislations immediately after independence -
• The Factories Act, 1948
• The E.S.I. Act, 1948
• The Minimum Wages Act, 1948
• Mines Act, 1952
• Employees P.F.& Miscellaneous Provisions Act, 1952
• Plantation Labour Act, 1951
• Payment of Bonus Act, 1965

3.3 OBJECTIVES OF THE LABOUR LEGISLATIONS

3.3.1 Different Objectives

Labour legislation in India has sought to achieve the following objectives:

(1) Establishment of justice- Social, Political and Economic
(2) Provision of opportunities to all workers, irrespective of caste, creed, religion,
beliefs, for the development of their personality.
(3) Protection of weaker section in the community.
(4) Maintenance of Industrial Peace.
(5) Creation of conditons for economic growth.
(6) Protection and improvement of labour standards.
(7) Protect workers from exploitation:
(8) Guarantee right of workmen to combine and form association or unions.
(9) Ensure right of workmen to bargain collectively for the betterment of their
service conditons. 25
Introduction to Labour Legislation
(10) Make state interfere as protector of social well being than to remain an onlooker.
(11) Ensure human rights and human dignity.
Proper regulation of employee-employer relationship is a condition precedent for
planned, progressive and purposeful development of any society. The objectives of
labour legislation is a developing concept and require ceaseless efforts to achieve
them on continuous basis.

In its landmark judgement in Hindustan Antibiotics v. The Workmen (A.I.R.

1967, S.C. 948; (1967) 1, Lab.L.J.114) the Supreme Court of India made a significant
observation. The object of the Industrial law, said the Court, was to bring in
improvements in the service conditions of industrial labour by providing them the
normal amenities of life which would lead to industrial peace. This would accelerate
the productive activities of the nation, bringing prosperity to all and further
improving the conditions of labour.

3.4 THE CLASSIFICATION OF LABOUR

LEGISLATIONS
On the basis of specific objectives which it has sought to achieve, the labour
legislations can be classified into following categories-
(1) Regulative
(2) Protective
(3) Wage-Related
(4) Social Security
(5) Welfare both inside and outside the workplace
3.4.1 The Regulative Labour Legislations

The main objective of the regulative legislations is to regulate the relations between
employees and employers and to provide for methods and manners of settling
industrial disputes. Such laws also regulate the relationship between the workers and
their trade unions, the rights and obligations of the organisations of employers and
workers as well as their mutual relationships.
• The Trade Unions Act, 1926
• The Industrial Disputes Act,1947
• Industiral Relations Legislations enacted by states of Maharashtra, MP, Gujarat,
UP etc.
• Industrial Employment (Standing Orders) Act, 1946.
3.4.2 The Protective Labour Legislations

Under this category come those legislations whose primary purpose is to protect
labour standards and improve the working conditions. Laws laying down the
minimum labour standards in the areas of hours of work, supply, employment of
children and women etc. in the factories, mines, plantations, transport, shops and
other establishments are included in this category. Some of these are the following :
• Factories Act,1948
• The Mines Act,1952
• The Plantations Labour Act,1951
• The Motor Transport Workers Act,1961
• The Shops and Establishments Acts
• Beedi and Cigar Workers Act 1966
3.4.3 Wage-Related Labour Legislations
26 Legislations laying down the methods and manner of wage payment as well as the
minimum wages come under this category:
 Labour – Laws – Concepts,
• The Payment of Wages Act,1936 Origin, Objectives and
• The Minimum Wages Act, 1948 Classification

• The Payment of Bonus Act, 1965

• The Equal Remuneration Act, 1976
3.4.4 Social Security Labour Legislations
They cover those legislations which intend to provide to the workmen social security
benefits under certain contingencies of life and work.
• The Workmen's Compensation Act, 1923
• The Employees' State Insurance Act, 1948
• The Coal Mines PF Act, 1948.
• The Employees PF and Miscellaneous Provisions Act, 1952
• The Maternity Benefit Act, 1961
• Payment of Gratuity Act, 1972
Chapter V A of the Industrial Disputes Act 1947 is also, in a manner of speaking, of
the character of social security in so far as its provides for payment or lay-off,
retrenchment and closure compensation.

3.4.5 Welfare Labour Legislations

Legislations coming under this category aim at promoting the general welfare of the
workers and improve their living conditions. Though, in a sense all labotar-laws can
be said to be promoting the welfare of the workers and improving their living_
conditions and though many of the protective labour laws also contain chapters on
labour welfare, the laws coming under this category have the specific aim of
providing for the improvements in living conditions of workers. They also carry the
term "Welfare" in their titles.
• Limestone and Dolomite Mines Labour Welfare Fund Act, 1972.
• The Mica Mines Welfare Fund Act, 1946
• The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour
Welfare Fund Act, 1976
• The Cine Workers Welfare Fund Act, 1981.
• In addition, some state governments have also enacted legislations for welfare
funds.
• Beedi Workers Welfare Fund Act, 1976
3.4.6 Miscellaneous

Besides the above there are other kinds of labour laws which are very important.
Some of these are :

• The Contract Labour (Regulation & Abolition) Act, 1970

• Child Labour (Prohibition and Regulation) Act 1986
• Building and other construction workers (Regulation of Employment and
Conditions of Service) Act 1996
• Apprentices Act 1961
• Emigration Act, 1983
• Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
• Inter State Migrant Workmen (Regulation of Employment and Condition of
Service) Act, 1979
• Sales Promotion Employees (Condition of Service) Act 1976
• Working Journalists and other Newspapers Employees (Condition of Service
and Miscellaneous Provision) Act, 1955. 27
Introduction to Labour Legislation
3.4.7 General

An important feature of almost all labour laws is the existence of employer-employee

nexus. Besides, each labour law has its provisions in terms of coverage, based mainly
on the number of employees, salary levels and so on. The definition of expressions
used in different labour laws are not necessarily uniform. All these have resulted in
considerable amount of litigation leading to a vast amount of industrial jurisprudence.

Another important point to note is that while all the labour laws, excepting Shops and
Establishment Acts, are enacted by Parliament, quite a few of them are implemented
both by the Central Government and the State Governments (including Union
Territories) the jurisdiction being determined by the definition of the term
'appropriate government' in the relevant statute It is also relevant to point out that
some of the Parliamentary laws are implemented exclusively by the State
Governments, as for example Trade Unions Act 1926, Workmen's compensation Act
1923. Plantation Labour Act 1951, Working Journalists Act 1955, Factories Act 1948
and so on.

3.5 CONCLUSION
The evolution of labour jurisprudence is the culmination of the incessant struggle
waged by the workers', all over the world for just and better conditions of work as
well as security of their jub. Labour legislations have now acquired the status of a
separate branch of jurisprudence because of its special features and changing juristic
ideas. Therefore, an idea about its concept, origin, development, objectives and
classification etc. will be of immense help to comprehend its principles.

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