Introduction

We are living in a dynamic, ever-changing world. This world has always

been regulated by some laws and rules, and as the needs of society grow
due to technological, economic, and social changes, it calls for immediate
action for the formation of new laws. Every sector needs some laws to
work which must be removed and formed according to the new society.
“Life and Laws have moved together in history, and they must do so in
future.” Law is like a citadel which requires regular repairs, revamping
and replacement. A plethora of labour laws were introduced for the
betterment of the livelihood of the workmen.

Labour law plays an important role in governing the between the

workman and the employers. It was implemented in the Indian legal
system to protect the interests of the employees and safeguard them
from being exploited by employers. The rights of the employees, their
wages, holidays, demands, unions, and many more are governed by the
labour laws of India. It plays a crucial role in building a connection
between the workmen and the government.

What is labour legislation

‘Labour legislation’ is a body of law formed for the working class of people
to provide them with legal rights, and also restrict them with rules and
regulations. It defines the rights and obligations of the working class.
Labour law covers several areas-

• Certification of Labour Unions – The Labour Union is issued

with a formal document which ensures them the right to
represent on behalf of all the labourers. This Union acts as an
exclusive bargaining agent.
• Collective Bargaining – The workers through their unions put
demands before their employers, like the terms of their
employment, payment, leave, health and safety policies and the
number of working hours.
• Labour-Management Relations – The head of any working
organisation has to resolve conflict among his labourers because
any misunderstanding between his employees will create a
downfall in his work progress.
• Workplace health and safety – It ensures that the employees
are getting a safe environment to work in and are not physically
or mentally abused by the work culture because a better
environment will only make them work with all their might.
 • Employment standards – These include annual holidays,
working hours, unfair means of dismissal of labourers, and
compensation provided to the labourers who got terminated or
have left the job.

Emergence, evolution, and development of

labour law in India

Emergence of labour legislation

The emergence of labour laws has its roots in the 18th and 19th
centuries. The labour law emerged as a result of the industrial revolution
that took place in those centuries. The Industrial Revolution changed the
rural culture to industrial culture which led to various developments. It
was due to the increasing capitalisation of the market. At that time, a lot
of problems took place between the labour class and the employers. To
safeguard the interests and the demands of the labour class, labour laws
were enacted in various countries which gave certain rights to the
workers working in an establishment. It protected the workers from being
exploited by the rich people of industrial society.

The labour laws were first enacted by the Western Countries. England was
the first country where workers were exploited by rich upper-class
employers. This was due to uncontrolled and unregulated capitalisation.
The laissez-faire system was also one of the reasons that took place due
to industrialisation. The labour laws were enacted in 1802 to prevent child
labour, to limit working hours, and to abolish night shifts in England when
the UK Parliament passed bills relating to labour legislation. After
England, many other countries also started enacting laws regarding
labour classes. Various laws regarding health, safety, welfare, and
working hours were passed by those countries. France was one of the
countries where labour laws were enacted after the French Revolution,
which took place in 1841. Germany, Japan, and the United States of
America also introduced labour laws after World War I in 1935.

Evolution of labour legislation

The evolution of labour laws started with the establishment of
the International Labour Organization (ILO) in 1919. It was due to the
implementation of the Treaty of Versailles whose objective is to make
various policies, and programmes relating to their works and its
standards. 187 countries of the World are members of this organisation
whose Constitution was drafted by the Labour Commission. It led to the
formation of an executive body which was known as a tripartite
organization that included representatives from three bodies, i.e., the
employers, the workers, and the government. Certain issues relating to
the labourers were looked into by ILO. Laws regarding working hours,
night shifts, minimum age, unemployment, and maternity protection were
being laid down by it to safeguard the rights of labourers. It became a
specialized agency of the UN which was supervised by a committee of
experts.

India, also, had labour laws before independence. Some of the laws
regarding labour classes were The Indian Slavery Act, 1843, The Indian
Trade Unions Act 1926, and The Societies Registration Act, 1860. These
laws were repealed after India became independent. The Industrial
Disputes Act, 1947, was enacted in 1947 which replaced all the previous
Acts. Various rights of the workers were introduced to the Indian
Constitution for protection from any kind of exploitation. Some rights
relating to the labourers that were incorporated in the Constitution are
equal work equal pay, abolition of child labour, abolition of bonded labour,
decent living wages, maternity benefits, and right to work, just and
human working conditions. These are the rights of the workers that are
being safeguarded by the Indian Constitution working in an
establishment. In the 20th century, these laws were codified and
implemented by the Indian Parliament. With the changing times, labour
laws started evolving over some time.

Development of labour legislation

The roots of labour legislation lie in the relentless struggle faced by the
workers at their master’s work. There was inequality between two classes
of people. The contract between labour and capital could never be struck
on equitable terms. Such practices required a change, and this need
became the basis for the formation of labour laws.

The Industrial Revolution was an epoch-making event. It transformed the

agricultural-based society into an industrial and materialistic one. It gave
a great opportunity to the masters to get the best work from their
workers. They exploited them excessively for larger profits and greater
outcomes.

At that time the laws were of no relief for the workers. Most of the
contracts were made verbally and in case of breach, the workers were
severely punished and imprisoned. Exploitation was at a large scale long
hours of duty, extremely low wages, ill-treatment, and no safety or
welfare provisions. The State never interfered in these matters, so the
employers took the most advantage of it and exploited the workers
vigorously.

The Industrial Revolution indeed made a great shift in society but it

created political and economic gaps, and it became the responsibility of
the society to fill those gaps. It took the help of social devices to take
care of the gaps which resulted in the formation of labour laws. Labour
legislation could be called the natural children of the Industrial Revolution.

The labour legislation is the product of the Industrial Revolution. It was

made to stabilise the abnormality caused due to some circumstances.
Unlike other laws, it was made to rectify specific labour conditions,
therefore they are specific and not general in orientation, philosophy and
concept.

In India, the Constitution is the basic framework of all the laws which
includes labour laws too. The labour laws fall under the concurrent list
which means both the Centre as well as the State can make laws
regarding the working class but the State has to keep in mind that the
laws made by them must not have any conflict of interest with the Central
laws. The Apprentice Act of 1850, was enacted before independence
which stated that orphans are allowed to find jobs after reaching 18 years
of age. The labour laws were enacted at a time when the workers
demanded better wages and a proper working environment. The new laws
that were implemented by the Indian Parliament fixed the working hours
to eight hours with a mandatory break after four or five hours of work,
restricted the employers from giving night shifts to women workers, made
the employers pay extra wages to the workers for overtime, and
abolished child labours. The Trade Unions Act of 1929, and the Factories
Act of 1948, were enacted to safeguard all the rights of the workers
working in an establishment. A decent salary with a proper working
environment was allotted to the employees to improve the productivity of
the goods. These Acts were enacted to solve the issues between the
employers and the employees, and also to protect the interests of both
parties.

Objectives of labour legislation

The main objective of labour legislation is to establish a cordial and
peaceful relationship between employers and employees. It aims to
maintain harmony between the labour organizations and the public, which
would help in improving the working conditions and its environment.
Some of the important objectives of labour laws are as follows-
 • Establishment of all kinds of justice for the working people –
social, economic, and political.
• The availability of equal opportunities to all workers, irrespective
of caste, creed, religion and beliefs for their overall personality
development.
• Protection of weaker sections of workers who are not financially
well off to protect themselves.
• Maintenance of industrial peace.
• Protection and improvement of living standards of the labourers.
• Protection of workers from all sorts of exploitation – mentally or
physically and creating a better working environment.
• Grant rights to workmen to unite and form their unions so that
they could bargain collectively with their owners for the
betterment of their livelihood.
• Keep checks on the government about their active participation
in the working areas for social well-being.
• Ensures human rights and human dignity.

Principles of labour legislation

There are various principles of labour legislation-

• Principle of Social Justice – It ensures social equality for

people and ensures that opportunities aren’t denied to them
based on religion, caste or any other prejudicial grounds. No
matter whichever place they come from they must be provided
with equal opportunities to work. Their social status should not
be considered a ground for anything and they should be treated
in a well-mannered way. The profits earned by a company must
be distributed on fair grounds between the workers and the
owner.
• Social Equity – It mentions that the maintenance of labour is
based on the social equity of labour. As the time and
circumstances keep changing it demands new laws and rules to
suit workers’ needs accordingly. This intervention of the
government in bringing new Acts and amendments according to
the situation prevailing is based upon social equity. ‘Equity’
means to be fair and impartial. Social equity means to form equal
working standards for the people with the help of provisions and
obligations to do so. Laws should be flexible enough to meet the
demands of the industrial society.
 • International Uniformity – The International Labour
Organisation (ILO) plays an important role by creating
agreements with different countries and providing its
recommendations on general conditions of employment, wages,
hours of work, the health of the labourers and women etc.
• National Economy – While forming any labour law it is crucial
to assess the general economic condition of the country under
consideration because the national economy directly affects
labour legislation.
• Social Security – It mentions that the state must protect every
citizen who contributes their efforts towards the promotion of the
country and for the welfare of the state. This would make the
workers more hard-working and efficient and increase our
industrial power and potential.

Factors influencing labour legislation

Labour laws were imposed by governments in the earlier times also. It is
considered as a set of compliances that set the tone for regulating the
employer-employee relationship and the treatment of the labour force in
the workplace. Various factors that influence the implementation of labour
laws are as follows-

• Impact of contemporary events

1. Along with the Industrial Revolution, the revolutionary
thinking of people like Rousseau, J.S Mill, Hegel, Marx
and Engels impacted labour jurisprudence. The French
and the Russian Revolution greatly influenced the
thought process of the public and set the pace of labour
jurisprudence.
2. The World Wars also made the labourers realise their
core importance, that unless they sweat, it would be
hard for the nation to fight and win the rough battles,
therefore the masters need to provide a quality of life to
their workers.
3. The development in the field of science, technology,
communication and telecommunication brought the
people of different parts of the world closer. This made
the people who lived in underdeveloped countries aware
of the treatment given to workers in the different parts
which created an urge in them to fight for their well-
deserved rights.
• Gradually, the labourers got the right to vote in political elections
for their representative who would in turn support their demands
 and work for the legislation to get passed, this is how the
workers used their political powers for the betterment of their
lives.
• Karl Marx, in his analysis of capitalism, mentioned that the
exploitation of the workers was inherent in the capitalist
economic system. Therefore, he advocated the overthrow of the
capitalist system. There were echoes of slogans like “the workers
of the world unite, you have nothing to lose but your chains,”
which created fear in the capitalist world and they were left with
no choice rather to agree to protective labour legislation. There
was the formation of communist and socialist parties which
strengthened the trend for progressive labour legislation.
• Philanthropists, humanitarians like Hume, Place, and
Shaftesbury, and other social reformers influenced the shape of
labour legislation.
• The establishment of the International Labour Organisation (ILO)
was a very potent force in the formation of labour laws 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 legislation in all the countries.
1. It has initiated proposals for labour legislation, had
elaborate discussions about it and adopted Conventions
and Recommendations.
2. ILO has tried very much to form uniform labour
standards despite diverse and uneven economic
conditions in different parts of the world. It has done a
singular service in the field of labour legislation.

Factors specific to India

• Early labour legislation came into being because of the pressure
from the manufacturers of Lancashire and Birmingham, because
the labour employed in factories and mills in India was paid much
less in comparison to their British counterparts.
• The workers got immense support from the freedom fighters and
nationalist leaders who made tireless efforts to get protective
labour legislation enacted. Many laws were formed because of the
pressure from the freedom struggle.
• The leaders of the National Movement promised to enact better
labour laws and provide equal justice to everyone after
independence, which was even included in the Preamble,
Fundamental Rights and Directive Principles of State Policy of the
 Indian Constitution. The leaders made sure that the workers
would no longer be treated as a commodity.

Classification of labour legislation

Several statutes regarding labour laws have been introduced by the
Indian Parliament. It has been classified into four categories, which are as
follows-

• The first one is the central legislation that is given in the Fifth
Schedule of the Constitution, which is based on Industrial
Relations.
• The second one is the Industrial Employment (Standing Orders)
Acts of the States and Union Territories.
• The third one is the Factories Act, 1948, or the Shops &
Establishments Act, which is legislated as per the provisions of
different States.
• The fourth one is based on labour and social laws of India like
the Payment of Gratuity Act, 1972, the Maternity Benefit Act,
1961, and many more.

Requirement of labour legislation

Different labour Acts have been enacted in India to ensure that people in
different professions or jobs, whether in public or private sectors, should
get equal rights and decent earnings for their livelihood. Their basic rights
must be protected and they should be provided with an environment,
which is safe and healthy for work. It makes sure that any issues between
the employer and the employees which are related to employment
disputes are tried by a statutory body which has the prior recognition of
the State. It determines that no employment is done by unfair means and
prohibits exploitation or subjugation of one individual to another. These
labour laws, therefore, safeguard the people from being exploited or
oppressed by their employers. If such an incident occurs, then they have
the right to ask for relief. They can go to the court and file a suit and seek
justice.

Purpose of Labour Laws in India

The main purpose of labour laws that are enacted by the Indian
Parliament is to solve disputes between employers and employees and to
maintain a harmonious relationship between the parties. It is made in
such a way as to align with current social and economic challenges. The
important purposes of labour legislation are as follows-
 • It helps people get jobs conveniently by creating a legal arena.
• It helps both the employees and the employees to discuss their
problems regarding the work and solve them peacefully.
• It helps in creating clean and healthy environmental conditions
for the employees, which in turn increases productivity.
• It mentions certain grounds and restrictions beyond which tell
them what they should do and also abstain from doing certain
things.
• It specifies the rights and responsibilities of both the employers
and the employees.

Elements of Labour Law

• In our country, general legislation considers individuals as
citizens but labour legislation considers them as workers. For a
very long time, the labourers have faced unjust situations. To
safeguard their interests and demands labour legislation is
entirely bent towards them, it doesn’t think of general justice it
thinks of social justice. It is completely designed for the
labourers.
• Labour legislation is focused on the problems that arise in the
work environment of the workmen which include the number of
hours of working, wages provided, industrial disputes, and
working conditions of the people. Labour legislation is mainly
targeted toward workers and employers; others are least affected
by labour legislation.
For example- laws based on wages, compensation for injury or women’s
employment affect an individual as a worker whereas laws based on
marriages, property, and sales tax affect an individual as a citizen.
Different roles of people lead to the formation of different laws, it is ‘role-
relation’ that determines whether particular legislation falls under labour
legislation, social legislation or general legislation.

• Labour legislation aims at the equality and security of the

labourers. They work in creating a better living environment for
them, and also in promoting the work culture so that profit is
earned in abundance which would be beneficial for them also.
• Unlike other general legislation, labour legislations need frequent
revisions and improvements, otherwise, it would hold no
importance and would become outdated. The absence of frequent
revisions would create a gap with current industrial requirements.
Impact of constitutional provisions on
Labour Laws
The Indian Constitution plays an important role in the formation of labour
laws. Some of the Constitutional provisions have a huge impact on
legislating labour laws. The provisions that play a significant role in
safeguarding the interests of the people are as follows-

• The fundamental rights of the Constitution, such as

Article 14, Article 16, Article 19, Article 21, and many others,
protect the rights and interests of the labour classes. It also
states various ways of safeguarding them.
• The directive principles of the Constitution also help in keeping a
harmonious relationship between employers and employees. It
tries to maintain the socio-economic situation of the people.
• The provision of Article 39 clearly states that the labour power of
men, women, or children must not be overused by employers.
• The provisions of Article 41 state that all citizens have the right
to work.
• The provisions of Article 42 state that women must be granted
maternity leave. It deals with the upliftment of the working
conditions and states that a suitable environment should be
provided to the employees.
• Article 43 of the Indian Constitution states that proper working
conditions and living wages must be provided to the labourers.
The Government of India with the help of the Supreme Court makes
various labour-friendly laws and also safeguards them.

Constitutional background concerning

Labour Laws
India is a quasi-federal nation which is a Union of States. The Indian
Constitution guarantees certain powers to the Centre as well as States
and Union Territories. So Article 246 of the Constitution gives power to
both the Central Government and State Government to make laws and
implement them accordingly. Three lists are present in the Seventh
Schedule of the Constitution, which are as follows-

• List I – Union List – It contains items regarding which only the

Centre can make laws.
 • List II – State List – It contains items regarding which only the
State can make laws.
• List III – Concurrent List – It contains items regarding which both
the Centre and the State can make laws and exercise power.
The laws relating to labour legislation are present in the Concurrent List.
The Entries provided in List III of the Seventh Schedule of the
Constitution are as follows-

• Entry No. 22 – Subjects relating to industrial and labour disputes,

and trade unions are mentioned in this Entry.
• Entry No. 23 – Subjects regarding employment and
unemployment of the employees, and social security and social
insurance are mentioned in this Entry.
• Entry No. 24 – Subjects relating to the welfare of labour including
workmen’s compensation, employers’ liability, provident funds,
conditions of work, invalidity and old age pensions and maternity
benefits are mentioned in this Entry.
• Entry No. 36 – It deals with the laws in connection with the
factories.
All of these laws are stated in the Concurrent List except the one related
to the Union Employees of the Industrial Disputes Act, 1947, which is
given in List I – Union List. Therefore, it can be seen that both the Central
Government and the State Government are empowered to make laws in
connection with labour matters. The Indian Parliament has enacted and
passed the labour laws throughout the Indian Territories. So it is uniform
for all the States. Some of the States have modified a few laws according
to their convenience to suit their needs. Several Acts such as
the Apprentices Act, Factories Act, Employees’ State Insurance Act of
1948, and those relating to bonuses, gratuities, provident funds, and
others are uniform all over the country.

Labour laws in India

Labour laws play a significant role in safeguarding the interests of the
labourers and keeping a harmonious relationship between employers,
employees, and the government in India. It is also considered as
employment law that protects the workers from being exploited by the
employers. It made employees aware of their rights and stated their
responsibilities. Labour laws ensure proper relationship between employer
and employee, prevent conflicts, maintain industrial peace, lay down rules
relating to disciplinary action against indiscipline, and many more.

Apprentices Act, 1961

The main aim of the Apprentices Act of 1961, is to provide practical
training to skilled workers under the supervision of their instructors. It
promotes new skilled manpower. It is also for engineers and diploma
holders.

Obligations of the employer

• If the employer himself is not qualified in his work field he must
ensure that the apprentice gets a well-qualified trainer for his
learning experience.
• The employer must provide adequate instructional staff who
would give him both practical and theoretical knowledge to learn
about the work.
• The employer could only hire apprentices in prescribed ratios in
his different work fields.
• Employers will pay prescribed stipends to the apprentices.
• The employer will make proper arrangements for the practical
training of the apprentice.

Obligations of the apprentice

• To learn his work skills diligently and become skilled in his work
before the expiry of the training period.
• To attend all his practical and theoretical classes regularly.
• To abide by all the rules given by his seniors or the employer
during his training period.
• To follow all the obligations prescribed in his contract of
apprenticeship.

Factories Act, 1948

The main aim of this Act is to formulate safety measures and promote the
health and welfare of the workers working at the factories. It also keeps a
check on the hazardous growth of the factories by overall checking before
the establishment of any factory.

Applicability of the Act

• It applies to the whole of India including Jammu and Kashmir.
 • It applies to all manufacturing units that fall under the definition
of ‘factory”.
• It applies to all the factories that use power or employ 10 or
more workers, and if not using power, employ 20 or more
workers on any day of the year.
The Act consists of 120 sections and 3 schedules:

Schedule 1 talks about the list of industries that undertake hazardous

processes within them.

Schedule 2 talks about the permissible level of certain chemical

substances that could be emitted in the work environment.

Schedule 3 talks about the diseases caused due to the effects of work in
the industries.

Provisions of the Act

• The environment in the factories should be kept clean. There
should be a proper arrangement for the disposal of waste and
ventilation.
• Reasonable temperature should be maintained for the comfort of
the workers.
• Dust and fumes emitting devices should be checked at regular
intervals and should not emit above permissible limits.
• Overcrowding should be avoided, and an ample number of
latrines, urinals and spittoons should be available.
• Workers should be provided with proper lighting and clean
drinking water.
• Adequate arrangement for washing, sitting, and storing clothes
when not worn during working hours. Workers should be
provided with resting areas during breaks, and first aid boxes
should be available and maintained.
• In the case of large factories, an ambulance room should be
present if 500 or more workers are employed, and a canteen if
250 or more workers are employed. The workspace should be
well-lit and ventilated.
• Safety tools for protection of the eyes from dust, gas and fumes
should be provided. The workers should also not misuse any
appliances and adequate firefighting equipment should be
available.
 • No worker is obliged to work for more than 48 hours a week. A
weekly holiday is compulsory.
• If a worker works for more than 9 hours then he should be paid
double the wages. A worker cannot work in two factories, there is
a restriction on double employment.
• For women earlier night shifts were not available but later this
act was amended to allow night shifts for women workers from
7.00 pm and 6 am.

Workmen’s Compensation Act, 1923

The main aim of the Workmen’s Compensation Act, 1923, is to provide
workmen or their families some relief in case of an accident that may
occur during their employment and cause death or disablement of
workmen.

Employer’s liability for compensation

• If the worker gets injured during his employment which may
cause death, permanent total disability, permanent partial
disability or temporary disability
• If the worker gets any disease which occurred due to his
occupation.
The employer is liable to pay compensation to the employees as a
‘disablement benefit’ only when they are injured during employment.

Employees who are protected under this Act

The following workers will be protected under this Act-

• Employees of railways who are not permanent and come under

sub-divisional, district or administrative offices.
• Crew members of aircraft along with their captains.
• Workers who work abroad as per Schedule II of the Workmen
Compensation Act, 1923.
• Persons who work in construction sites, docks, mines, factories,
and other places as specified in the Schedule II.
• Persons who are associated with works relating to vehicles, like
drivers, mechanics, helpers, and so on.
Amount of compensation needed to be paid
Section 4 of the Workmen’s Compensation Act, 1923, states the amount
of compensation that the employees will receive, which is as follows-

• Temporary disabilities: The employee who suffers temporary

disablement will get a compensation of up to 25% of the
employee’s monthly wages.
• Permanent partial disabilities: The employee who suffers
permanent partial disabilities will get that amount of
compensation, which is stated in Part II Schedule I of the Act.
• Permanent total disabilities: The employee who suffers
permanent total disabilities will get a compensation of 60% of
his/her monthly wage or Rs.1,20,000, whichever is higher.
• Death: In case an employee dies due to an accident during
employment, his family members will get a compensation, which
will be 50% of the deceased’s monthly wages or Rs.1,20,000,
whichever is higher.

Trade Unions Act, 1926

This Act was formulated to make the registration of trade unions lawful so
that they can initiate collective bargaining. The Act applies to the whole of
India and applies to all kinds of associations of workers, and employers.

A trade union is a group formation between workmen and employers

between workmen and workmen or between employers and employers
who work to regularise and improve labour management relations.

Features of registered Trade Union

Section 13 of the Trade Unions Act, 1923, states the following features-

• It has a common seal.

• It has a perpetual succession.
• It can sue others and can be used by others.
• It can own a property in its own name. The property can be both
movable and immovable.
Child Labour (Prohibition And Regulation) Act,
1986
This Child Labour (Prohibition And Regulation) Act, 1986, was formulated
to prohibit children below fourteen years of age into factories, mines or
any hazardous workstations.

Provisions of the Act

• No child should be pushed to work for an excessive number of
hours. He shall work for a fixed period each day which shall not
be more than 3 hours and it should also be made sure that he
has taken proper rest.
• Children should be made to work in safer environments.
• Children should be provided with a weekly holiday.
• They should not be made to work in construction areas of
railways, slaughterhouses, automobile workshops, mines, plastic
units and fibreglass workshops, beedi-making, and several others
which are mentioned in part A of the Schedule.
• Ban on employment of children as domestic servants at hotels,
restaurants, resorts, spas, motels, and tea shops.
• A toll free number- 1098 is available for children in distress and
to help them with any sort of problem they might be facing.

Maternity Benefit Act, 1961

This Act ensures that no woman should worry about their rights, income
and job while they are looking after their child and spending quality time
with them.

• A woman must have been working in an establishment for about

80 days in the past 12 months to ask for maternity benefits.
• Under Section 11A, a creche facility must be present in
establishments with more than 50 employees.
• Women are allowed to visit the creche four times a day which
also includes an interval for them to rest.
• The creches should be within 500m of the workplace.
 • Creches are mandatory for firms, companies and consultant
companies.
This Act provided gratuity to workers engaged in mines, factories,
oilfields, plantations and other establishments. ‘Gratuity’ is payment for
long service, as a statutory retiral benefit. If an employee has given his
contribution to his service for 5 years or more , then he is entitled to
receive gratuity irrespective of his wage. Gratuity is given in the following
cases:

• On his superannuation
• On his resignation or retirement
• The maximum amount of gratuity provided could be Rs.
20,00,000.
• In case of death or disablement due to an accident or disease,
the employer will have to pay the amount to his nominee or his
legal heir.
• An eligible employee must apply for his gratuity before 30 days
from his payable date.
• An employer cannot reject an application for gratuity even if it is
submitted after 30 days for a valid reason.
• If an employee feels that he has received less amount of gratuity
than he deserved then he can file a complaint case.

Minimum Wages Act, 1948

The main aim of the Minimum Wages Act, 1948, is to fix minimum rates
of wages in certain occupations. The provision of minimum rate of wages
is prescribed by the Government which means the owner must pay his
workers’ wages as fixed by the Government.

• Wages should be paid in cash.

• For fixation of wages, that occupation must be mentioned in the
schedule originally or should get added to the schedule.
• Every employer should maintain a register of wages at the
workplace specifying the minimum rate of wages payable, the
number of days overworked by the worker, the gross wages, and
the date of the payment.

Objectives of this Act

The following are the objectives of the Minimum Wages Act-

• An establishment must fix the ordinary working days along with

following details-
o The number of working hours of the employees must be
fixed by the employers as per the provisions of this Act
and it must have at least one break.
o The employers must provide the employees with one
three-day weekend out of a full week for rest.
• When an employee in a particular establishment is working in two
or more booked occupations, his pay will be based on the amount
of time he spends on each of the projects and a certain rate of
pay for all work completed.
• An establishment is required to maintain all the documents and
records of all the employees’ work, pay, and receipts.
• In an establishment, legislators with the proper qualifications will
assign and define the task of reviewing and selecting the
examiners for the corresponding.

Employees State Insurance Act, 1948

This Act was formulated to ensure that employees get various health
benefits at the time of their illness, injury, and maternity. They will get
medical benefits, maternity relief, compensation to the family members in
case of the death of employees, and various other health benefits. The
employees who are working in an establishment, industries, or factories
will get the benefits of this Act. This Act was formulated to ensure that
the employees and their family members do not suffer at the time of the
workers’ illnesses or deaths. It is a self-financing health insurance scheme
which is made from the wages of the employees and contributions of the
employers.

Features of this Act

Employees State Insurance Act plays an important role in looking after
the welfare of the workers in following ways-

• Staff members can be recruited and gratuity and other benefits

can be provided to them under this Act.
• Funds can be taken from the Central Government for providing
benefits and facilities to workers.
 • Social security officers can be recruited by this Act.
• A particular amount of money can be collected from the
employees’ compensation for regulating its functioning and
providing facilities to other employees.
• The Director General can change the implementation strategies in
accordance with the requirements.
• Budget of all the expenditures is maintained for keeping a proper
record as it is done to provide compensation and other benefits
to the employees.

Benefits provided under this Act

Employees State Insurance Act, 1948, provides various benefits and
facilities to employees. Some of them are as follows-

• Medical benefits: If an employee is unable to work during the

period of his treatment, his salary does not get deducted. In case
of severe medical illness of his family members, the employee is
provided with a certain percentage of compensation.
• Maternity benefits: A woman employee, who is pregnant, gets
a benefit of extra leave before and after their delivery, which is
known as maternity leave. She will get full salary at the time of
her maternity leave.
• Insurance benefits: Insurance benefits are provided to all the
employees working in private as well as government sectors.
• Disablement benefits: The disabled employees are provided
with extra benefits like reservation of those individuals of various
categories.
• Unemployment benefits: These benefits are provided to those
individuals who are unemployed but are capable enough to
perform jobs. Loans are also given at a low rate of interest for
startups.

Payment of Bonus Act, 1965

The objective of the Payment of Bonus Act, 1965, is to grant payment of
bonuses to the employees of an establishment based on production,
productivity, gain, or profit. It states the minimum bonus that is to be
paid to the workers and the eligibility for receiving the bonus. It also
states the grounds for the disqualification for bonus, calculation of bonus,
and maximum and minimum bonus payable to the employees working
there.

Payment of Gratuity Act, 1972

The Payment of Gratuity Act, 1972, was formulated to grant payment of
gratuity as a reward for statutory retirement benefits or for servicing in
an establishment for a long period. Employees who are working in
factories, mines, railways, oilfields, ports, plantations, shops, or any other
establishments shall receive gratuity payments irrespective of their
wages. It has to fulfil the condition that the employee must have
completed 5 years of work or more in that establishment at the time of
the termination of his services.

Plantation Labour Act, 1951

The main purpose of the Plantation Labour Act, 1951, is to fix the time
limitation of work for the workers. It is introduced to look into the welfare
of the plantation workers, and to regulate the conditions of work. Section
19 of this Act states that if on any day an employee works more hours
than normal days in a plantation, or more than 48 hours in a week, then
the worker should be paid double the rate of his ordinary wage for
overtime. It was also stated that no worker should be permitted to work
more than 9 hours a day and more than 54 hours in a week. Therefore,
this Act specifies the period of work.

Benefits provided to Women and Night shifts

This Act does not permit women and children to work in the plantation
between 7 p.m. to 6 a.m. except with permission of the State
Government. Women working as nurses and midwives are exempted from
this provision provided under Section 25 of the Plantation Act.

It also provides maternity benefits and sickness relief in the form of an

allowance after a certified medical report is issued by a certified medical
practitioner. This benefit is given at a particular rate and time as
prescribed by the State Government. This Act also contains a provision for
providing crèche facilities in plantations under Section 12 of this Act.

Employees’ Provident Funds and Miscellaneous

Provisions Act, 1952
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952,
was enacted to institute provident funds for employees. It also includes
pension funds and deposit-linked insurance funds for the workers who are
working in an establishment. These funds are made by the contributions
of both the employers and the employees. This fund is very beneficial for
the employees as it gives a lumpsum amount with interest on the total
amount that is paid to the employees at the time of their retirement.

Types of scheme under this Act

The three types of schemes under this Act are as follows-

• Employees’ Provident Fund Scheme, 1952: This scheme was

introduced to provide a post retirement benefit to the employees.
It is provided to a particular class of employees of an
establishment or their legal heirs, if an employee dies under an
establishment to which this Act applies.
• Employees’ Pension Scheme, 1995: This scheme was
introduced to provide a retiring pension, superannuation pension,
or permanent total disablement pension to the employees of an
establishment. Other pensions, like widow or widower’s pension,
orphan pension, or children pension are also granted under this
Act.
• Employees’ Deposit- linked Insurance Scheme,
1976: This scheme provides insurance benefits to the employees
of an establishment or a class of establishments if an employee
dies while he is in service.

Mines Act, 1952

The Mines Act of 1952 was introduced to provide proper maintenance of
the health, safety and welfare of the mine workers. This Act is applicable
to the following employees-

• Working in boreholes, oil wells, and borings.

• Working under the ground or opencast areas.
• Work that is carried out in or adjacent to the mines.
• Working in workshops and stores in the precincts of the mine.
• Working in transformers, power stations, or substations that
supply electricity to the mines.
Provisions regarding leave with wages and overtime
• Annual leave with wages: Section 52 states that a person who
has completed one year of his service in an establishment must
be allowed leave with wages. It’s calculation is done based on the
rate of one day for every 15 days of work performed by him.
• Payment in advance in certain cases: Section 54 states that
when a person working in a mine is granted leave for not less
than four days, he is entitled to get their wages for the time he
worked there before the leave begins.
It states the maximum time a worker is permitted to work in a mine.
Section 28 states that no workers should be allowed to work more than 6
days in a week in mines. Employees working in a mine must not work
more than 48 hours in a week. It says that an employee should not be
allowed to work in a mine for more than 10 hours on any day inclusive of
overtime.

Workmen’s inspector and safety committee

Chapter VI-B deals with workmen’s inspector and safety committee.

• It states that where 500 employees or more are employed in a

mine, three persons who are suitable to be workmen’s inspectors
must be appointed by consulting the registered Trade union.
• It states that the duties of the workmen’s inspector will be to
inspect all roadways, inclines, equipment, and workplaces.
• It states that a safety committee must be made where more than
100 employees are employed. The constitution of this safety
committee will be the responsibility of the owner, agent or
manager.

Working Journalist (Conditions of Service) and

Miscellaneous Provisions Act, 1955
This Act was formulated to ensure proper working hours, adequate
wages, breaks, and leaves. It states that if any journalist is working more
than 6 hours in daytime and more than 5.30 hours in a night shift on any
particular day, then that person should be paid compensation with rest
hours equal to hours for which he/she has worked overtime.

Important provisions of this Act

 • It states that the journalists are permitted earned leave on full
wages for medical grounds on providing the medical certificate.
• Wages are fixed by the Central Government and are revised
timely at proper intervals. The government also have the power
to make recommendations regarding wage board.
• A wage board is also constituted that includes three persons
representing the employers, three persons representing the
journalists, and four independent persons who will be the judges
of the High Court or Supreme Court.
• The wage board has the power to make recommendations
regarding fixed or revised rates of wages of journalists or
employers of an establishment.
• The interim rates of wages of these journalists are fixed by the
Central Government by the notification of the official gazette.
• It also deals with provisions regarding the maintenance of muster
rolls, records, and registers of the journalists working in an
establishment.

Beedi and Cigar Workers (Conditions of

Employment) Act, 1966
Beedi and Cigar Workers (Conditions of Employment) Act, 1966, was
enacted to provide for the welfare of the employees and to regulate their
working conditions. It restricts the daily working hours to a maximum of
10 hours a day inclusive of overtime and a maximum of 54 hours a week.

Provisions of this Act

• The premises of an establishment must be kept clean and free of
odours that can emanate from open drains, privies, or any other
kind of nuisance. It should maintain a specific standard of
cleanliness by whitewashing, four-colour washing varnishing, or
painting.
• The premises of an establishment must be well ventilated. There
must be a proper lighting system with a specific temperature that
is required for preventing illness and injury to the health of the
employees.
• The employers of an establishment must take all the necessary
precautions to keep away from the premises, such as dust, fume,
 or other impurity that are likely to be detrimental or offensive to
employees’ health if those are inhaled by them.

Building and Other Construction Workers

(Regulation of Employment Service) Act, 1996
This Act was formulated for regulating the working conditions of the
employees who work in buildings and other construction services. It also
provides measures for the health, safety, and welfare of these workers. It
also states that the workers who work overtime should be compensated
by paying wages at a rate twice the ordinary rate of wages.

Provisions of this Act

• Section 4 deals with the constitution of the State Advisory
Committee. The ‘State Building and Other Construction Workers’
Advisory Committee is formed by the State Government, which
consists of a chairperson, two members of the State Legislative
Assembly, the chief-inspector, one member nominated by the
Central Government, and seven to eleven members nominated
by the State Government.
• Section 45 states that the employers must pay compensation to
the employees, if they fail to comply with the provision of this
section.

Contract Labour (Regulation & Abolition) Act,

1970
The Contract Labour (Regulation & Abolition) Act, 1970, was formulated
to prevent the employment of contract labour in some specific
circumstances and for regulating their working conditions. It keeps a
check on the working time of the workers. It makes it mandatory for all
contractors to make a Register of Overtime in Form XXIII and maintain it
properly and regularly that it will include every detail and information
relating to the name of the employee, overtime calculation, hours of extra
work, and others.
Provisions of this Act
• Central Advisory Board: Section 3 of this Act deals with the
composition of the Central Advisory Board that consists of a
Chairman, the Chief Labour Commissioner, and eleven to
seventeen members who are nominated by the Central
Government. It also states that the number of members who are
nominated for representing the employees must always be more
than the number of members representing the employers.
• State Advisory Board: Section 4 of this Act deals with the
composition of the State Advisory Board that consists of a
Chairman, the Labour Commissioner of that state, nine to eleven
members who are nominated by the State Government, and
other members who are appointed by the State Government to
act in their absence. It also states that the number of members
who are nominated for representing the employees must always
be more than the number of members representing the
employers. It is the duty of the Central and State Advisory
Boards to carry out all the necessary responsibilities.

Labour reform issues

Various issues that lead to the enactment of labour laws in India. These
Acts deal with these issues and give a solution for a particular situation.
The following are the issues regarding which labour laws were made-

• Anti-discrimination measures: Employees must not be

discriminated against based on race, religion, gender, sexual
orientation, or disability. So various legislations are made to
prevent any of these kinds of discriminatory practices. Various
laws prohibit the interests of various communities like socially
and economically backward classes and castes, women, and
persons with disabilities.
• Working hours: A specific time limit is fixed regarding the
working hours of the employees. An employee must not work
more than 9 hours in a day and 48 hours in a week. If the
employee works more than the hours specified, then he should
be paid for overtime at a rate that is twice the amount of
ordinary wages.
• Health and Safety Measures: The provisions of the Factories
Act of 1948, state that workers should work in a healthy and
clean environment. Various health and safety measures have
been specified in the Acts which states that the workplace, tools,
materials and equipment used by them must be kept clean and in
a proper condition. These articles should be maintained properly
 and arrangements must be made to rectify risks involved in the
use, handling, storage and transport of substances.
• Payment of remuneration during sickness: The employees
also get sick pay in some specific jobs. If an employee falls sick,
he needs to inform the employer about his illness. There are
certain provisions regarding earned leave, sick leave, and casual
leave.
• Contracts of Employment: Sometimes an employee is not
employed directly but he is employed through a contractor by
making a ‘contractual employment’. Both the employer and the
employee are bound by the employment contract. It is legally
binding on them and safeguards the interests of both the parties.
• Information and data protection policies: The data relating
to the personal information of both the employers and the
employees are protected under the Digital Personal Data
Protection Act, 2023. The personnel records of both the parties
are protected both by computerised and non-computerised
systems and no outsider can get any access to the information.

Rights and responsibilities of employers and

employees
An employment agreement is made between the employers and the
employees beforehand which covers various rights and responsibilities of
the employees such as having fixed working hours, working in a healthy
and clean environment, getting holidays, and likewise. The employees
must do their work efficiently, which will increase the productivity of the
goods.

Employers
The various rights and responsibilities of the employers are as follows-

• It is the responsibility of the employers to provide a proper

working environment for the employees and they have the right
to take any decision regarding the management and business
operation. They also must pay at least the minimum wage to the
employees on time and provide them with other benefits related
to employment that they are entitled to.
• It is the responsibility of the employers to follow all the rules and
guidelines of the labour laws. They must carry out their business
as per the provisions. The provisions include those relating to
 working hours, health and safety of the workers, payment of
wages, and likewise.
• It is the right of the employers to take action against any
employee if he does not follow any of the conditions related to
their employment agreement and can also terminate them from
their services.

Employees
The various rights and responsibilities of the employees are as follows-

• It is the responsibility of the employees to perform their duties to

the best of their abilities by following the rules and guidelines of
their employment agreement. They must abide by the regulations
and policies of the business and should also respect the rights of
their fellow employees.
• It is the responsibility of the employees to work efficiently so that
it increases the productivity of the goods.
• It is the right of the employees to receive minimum wages and
other benefits related to their employment. They must be treated
respectfully and fairly without any kind of unnecessary
harassment or discrimination.

Recent amendments to Labour laws in

India

Codes On Wages, 2019

The Code on Wages was passed in the year 2019. Its main aim was to
amend and make the previous laws related to wages stronger. It replaced
laws like the Minimum Wages Act of 1948, the Equal Remuneration Act of
1976, the Payment of Wages Act of 1936 and the Payment of Bonus Act
of 1965.

Issues of this Act

• The State government usually fixes minimum wages above the
binding floor price, rather than fixing a binding floor wage, the
Government should fix a binding minimum wage rate so that
there is no dual wage rate.
• The Code states any dispute arising will be looked over by a
Gazetted Officer. The concern was how an officer who does not
have much legal knowledge would get to hear complicated
questions of law.
• Earlier by the order of a Judicial Magistrate, a person below the
rank of secretary was not allowed to impose a penalty. This
provision violates Article 50 of the Constitution which demands a
separation of the judiciary from the executive.
• Section 56 of the Code provides ease for the employer in the
case when his employee has committed any offence. The
employer would not be held liable for such an offence of his
employee if he proves that he had taken all care of his work with
diligence and that the offence happened without his consent,
knowledge or will to get involved in any sort of illegal acts.
• The definitions of employer, employee, establishment, wages,
and workmen are kept more or less the same and these
definitions will apply to all provisions of Codes on Wages, 2019.
• The definition of ‘establishment’ was amended and the new one
includes any industry, trade, business, manufacture or
occupation that is carried on and the Government establishment
also falls under it. The definition of ‘establishment’ is widened by
stating that if in any place even one employee or worker is
employed, it will be considered an establishment.
• The concept of ‘scheduled employment’ was removed and the
provisions of minimum wages applied to all employers and
employees.
• The term ‘wages’ includes salary, allowance or any other
monetary component but not bonuses and travelling allowances.
• ‘Floor wage’ has to be fixed by the Central Government by taking
into consideration the living conditions of the workers and the
geographical location. The minimum wage must always be above
the ‘floor wage’.
• The Government must review the ‘minimum wage’ at least every
5 years and no one must employ a worker below the minimum
wage.
• The working hours of the workers must be fixed by the State or
Central Government. If an employee works overtime, he will be
entitled to overtime compensation that should be at least twice
the normal wage.
• This Code also introduced payment of wages to the workers in
various forms like current coins, currency, cheques or through
online or electronic mode in the bank account.
 • The wages of the employees of an establishment are fixed by the
employer as either daily, weekly, fortnightly, or monthly.
Employees who get a fixed monthly payment are entitled to get
an annual bonus. The employers are also allowed to deduct
wages on certain grounds as specified in the provisions of labour
laws.
• Employers who do not follow any of the provisions or do not pay
the minimum wage to the employees are entitled to be punished
as specified in the Code. An employer contravening any such
provisions will be punished with a maximum of three-month
imprisonment along with a fine of one lakh rupees.

Industrial Relations Code, 2020

The Code on Industrial Relations was passed in the year 2020. The main
objective of this Code is to reduce the conflicts between employers and
employees and deal with provisions for the investigation and settlement
of Industrial Disputes. It consolidated Acts like the Trade Unions Act,
1926, the Industrial Employment (Standing Orders) Act, 1946, and the
Industrial Disputes Act, 1947.

Issues related to this Act

• The Industrial Employment (Standing Orders) Act of 1946, was
enacted to make it compulsory for employers to define the
conditions of employment of industrial establishments with 100
or more workers and for submitting draft standing orders to the
Certifying Authority for its certification. It states the rules of
conduct for the workers working in an establishment that should
be informed to them.
o This new Code on Industrial Relations increased the
minimum number of workers in an establishment from
100 to 300. This, in turn, would lead to an increase in
employment opportunities and make it easier and more
flexible to hire more people.
o The government made it mandatory to obtain prior
permission for retrenching the employees from
employment. It mandated approval of the government
before lay-off or closure of an establishment which has
more than 300 workers.
• This new Code also introduced new conditions for a legal strike.
Some of the conditions for conducting it are as follows-
 o The employees needed to give a 60-day notice before
going on strike.
o The strike was prohibited by the employees during the
pendency of a suit before a Tribunal or a National
Industrial Tribunal.
o Strike was also prohibited before the expiration of 60
days after the completion of the tribunal’s proceedings.
• Code on Industrial Relations was also enacted to set up a re-
skilling fund to train all the retrenched employees that must be
contributed by the employers, of an amount equal to 15 days last
drawn by the worker.

Code on Social Security, 2020

The Code on Social Security deals with the social conditions of the
workers. Some of the important provisions are as follows-

• The definition of ‘employees’ was widened in this Code by

including some terms like inter-state migrant workers,
construction workers, film industry workers, and platform
workers.
• This Code also reduced the gratuity period of journalists from 5
years to 3 years.
• It suggested that social security funds for unorganized workers,
gig workers, and platform workers should be made for the
welfare of the workers.
• This Code introduced a new provision that tells the Central
Government to reduce or defer the contribution of the employers
or employees towards the PF or ESI for up to 3 months in case of
a natural disaster, pandemic, or epidemic.
• It also stated the provisions for registration and cancellation of
registration of an establishment as per the rules notified by the
Central Government.
• This Code also played an important role in establishing the
National Social Security Board, which recommends the Central
Government for the formulation of schemes for the various
sections like gig, unorganised, and platform workers.
Code on Occupational Safety, Health and
Working Conditions, 2020
The Code on Occupational Safety, Health and Working Conditions was
implemented for proper health conditions and safety of workers working
in an establishment. A few Acts that have been consolidated by this Code
are the Mines Act, 1952, Factories Act, 1948, Building and Other
Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996, and the Contract Labour (Regulation and Abolition)
Act, 1970. Some of the important provisions relating to this Code are as
follows-

• The definition of ‘factory’ was modified and it states that a place

where a minimum of 20 workers work for a process with power
and 40 workers for a process without power is considered a
factory.
• The manpower limit of those industries dealing with hazardous
items has been increased from 20 workers to 50 or more
workers. This provision of the Code is mandatory for employers
(contractors) to recruit a minimum of 50 workers
• The period of work was also limited to eight hours.
• It also states that women must be employed in all kinds of
establishments. In case of a night which is between 7 PM and 6
AM, the consent of the woman needs to be taken and her safety
should be the employer’s responsibility.
• Issuing an appointment letter by the employer was made
compulsory in this Code.
• Free health checkups of the employees to identify diseases at an
early stage and give proper treatment must be provided to them
by the employers.
• This Code also introduced provisions that provide various benefits
to inter-state migrant workers.
• A provision for instituting a National and State Occupational
Safety and Health Advisory Board was also provided in the Code.
• A Journey Allowance was also proposed in this Code. It means an
amount that needs to be paid by the employer to the employees
for the journey from their native state to their place of
employment.
Invisible labour
When someone works with all their might and completes their everyday
work but is unpaid and unrecognised, then it is called Invisible Labour.
Jobs like household work, childcare, and looking after the elder members
of a family are unpaid and are a form of Invisible Labour. Women form
the biggest part about 90 percent of this Invisible Labour. It goes
unnoticed and unrecognised due to which no regulations are present for
such kinds of works. No new laws talk about this zone, which has the
most tedious work profile, with no weekend offs, no limited working
hours, and no vacations. The worst part is that it owns no recognition and
does not get any thankful chores.

Post Labour Codes

In the pre-Labour Codes, determining whether an employee falls within
the meaning of the expression ‘workman’ or not will depend on that
particular case. The Supreme Court of India would determine it after
hearing the case. In the post-labour Codes, IT employees were
considered a ‘workman’ under the ambit of the IT Act by the High Court of
Karnataka. The Government of Tamil Nadu also had a similar view and
through a circular declared that employees in the IT sector would be
subject to the provisions of the Industrial Disputes Act, 1948.

Pradhan Mantri Shram Yogi Maandhan Scheme

The Pradhan Mantri Shram Yogi Maandhan Scheme was introduced by the
Indian government recently. Two provisions were introduced under this
scheme, which are as follows-

• The first scheme was made for providing social security to the
employees of unorganised sectors, by awarding them with a
monthly pension of about ₹3,000 after retirement. This scheme
is known as Minimum Assured Pension. It was launched to
protect the interests of the workers and to look after their
welfare. Hence, it would motivate the workers to work without
any tension of money after they terminate employment, which
will in turn increase productivity and create a conducive
environment for businesses to thrive.
• The second scheme that was made to ensure old age protection
for Unorganised Workers is known as family Pension, where the
spouse of the subscriber gets 50% of the pension received by the
beneficiary as family pension. Only the spouse of the pensioner
 can get protection under this scheme. In case the subscriber dies
before attaining the age of 60 years, the spouse will be entitled
to join and the scheme and continue it further by contributing
regularly or exiting it in accordance with the said provisions of
the scheme.

Important case laws concerning labour

legislation
In the case of Indian Hume Pipe Co. Ltd. v. Their Workmen AIR 1960 SC
251, the Court stated that ‘Gratuity’ should be considered as an amount
paid as an embracement towards the employer. It should not be
connected to any contract or given as a consideration or compensation
that is paid in unusual circumstances. It should be paid to praise the
worker for being a part of the trade of his owner for such a long time. One
gives all his hard work and efforts towards his master for which he should
be respected at the end for his loyalty to the service. Whenever a worker
spends a long span in a work field he expects appreciation from his
employer and gracious financial assistance to cope with the post-retiral
difficulties.

In the case of Bombay Gas Public Ltd. Co. v. Papa Akbar and Anr., 1990,
Gratuity is provided at the termination of service. The employer had to
provide gratuity to his workers even though his company suffered a loss
because the workers went on strike. The workers cannot be denied the
gratuity they deserve.

In the case of Amita v. Union of India (2005), the Supreme Court

observed that the expression ‘matters relating to employment or
appointment’ deals with all employment-related matters that are both
before and after the employment. It would include everything incidental
to the employment and related to the terms and conditions of an
employment agreement.

In the case of The Commissioner of Income Tax and Anr. v. Texas

Instruments India Pvt. Ltd. (2021), the Karnataka High Court held that
the term ‘workman’ also includes employees of the IT sector for
computing tax exemptions as per Section 80(JJAA) of the Income Tax Act,
1961.

In the case of Bangalore Water Supply and Sewerage Board v. A. Rajappa

and Ors. (1978), the definition of ‘industries’ has been broadened by the
Supreme Court. It was observed that to prove whether an establishment
is an ‘industry’ or not, a triple test must be done-
 • Activity should be carried out systematically in an establishment
without any profit motive;
• Systematic Activity that is performed in an establishment must
be the result of cooperation between the employers and the
employees.
• The activity must be related to the production of goods and
services to fulfil the needs of the people. Organisations with
philanthropic components must be strongly connected to the
business world.
In the case of Indian Tourism Development Corporation Ltd. v. Fayaz
Ahmad Sheikh (2023), the employer while retrenching the employees
from their services did not follow the provisions of Section 25F of the
Industrial Disputes Act, 1947. So when the respondents were retrenched
due to the closure of the establishment, they filed a suit before the
Conciliation Officer (Deputy Labour Commissioner), Kashmir Division. The
Jammu and Kashmir and Ladakh High Court found that the employees
were not paid retrenchment compensation during retrenchment as per the
provisions of Section 25F of the Industrial Disputes Act, 1947, but later.
The High Court, therefore, opined that an establishment is bound to follow
the provisions of a statute. It was the employer’s duty to pay the
retrenchment amount to retrenched employees. The Court stated a
principle which says that if a person performs an act under any statute
without following the conditions prescribed, he will not be entitled to
receive any benefits of that Act. The Court made this principle applicable
in this instant case.

In the case of Creative Garments Ltd v. Kashiram Verma (2023), the

Supreme Court noticed that the permanent addresses of the employees
were not mentioned in such cases where the labour dispute suits are
submitted by the Unions of an establishment. The Apex Court stated that
the employees whose permanent addresses are given will be provided
with effective relief and the establishment must take suitable measures to
ensure that the permanent addresses of all the employees are mentioned
in the pleadings. It was held that when the worker approached the court
for relief under the Industrial Disputes Act, 1947, the Payment of Wages
Act, 1936, the Workmen Compensation Act, 1923, or any other Labour
Act, their complete address must be mentioned in the suit. The address of
the representative may be given if he appears in place of the worker.

The Supreme Court concluded the judgement by stating the following

factors-

• The parties must furnish their permanent addresses in the

pleadings.
 • Where the representative of the party appears in the Court, the
permanent addresses of the employees must be provided.
• Permanent address is a necessary information that is required to
be provided to the Court for the employees services.
• Merely filing a suit through the Labour Unions or other authorised
representatives will not be sufficient.
• Service of notice of employees will be sent to their permanent
addresses.

Significant points regarding the Industrial

Relations Code
• Retrenchment: The Labour Laws before the introduction of
Labour Codes stated that if any establishment hires 100 or more
employees, it will need the prior permission of the Government
before lay-offs, retrenchments, or closure. The Industrial
Relations Codes raised the number of employees from 100 to
300, and the Government can further raise the number by
issuing notifications.
• Contract labour: The use of contract labour has been increased
due to economic considerations. Contract labour was not
protected under old labour laws. The Industrial Relations Code
introduced a new form of short-term labour – fixed-term
employment.
• Trade Unions: The laws before the introduction of the Industrial
Relations Code had no criteria for recognition of ‘trade unions’.
This new Code made a provision that recognises ‘trade unions’.
• Updated provisions: The enactment of the code on Social
Security introduced provisions for ‘gig’ and ‘platform’ workers.
Conclusion
The evolution of labour jurisprudence is the outcome of the relentless
struggle done by workers all over the world for their well-deserved rights
as well as lives. They fought for their security and the betterment of their
livelihood. Labour legislation is dynamic and it holds a special place in the
law society. It has special features that are inclined towards the workers.
No other legislation had such a history for which all the workers around
the world united to fight, it was indeed a historic journey to comprehend
from the stepping blocks to the top of the mountain of ‘Labour
Jurisprudence’.

With the changing times, these labour laws will be developed further in
the future. The people would benefit more from these labour laws. It
would help them to work with dignity and self-respect in their workplace
without being disrespected unnecessarily by the employers. The modern
labour laws are enacted to protect the interests of both the employers as
well as employees. These laws set a standard for both the employers and
the employees. Therefore, no employees face any kind of discrimination.
All employees are treated fairly and given the proper wages and benefits.
It guarantees a safe, fair, and equitable working place free from
harassment and exploitation.