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Evolution in Industrial Relations System

The History of Labour Laws in India dates back to Pre-Independence British Era as these Labour
and Industrial Laws were enacted by British Administration to protect interests of British Employers
and Industrialists.
The industrial development took place in the middle of the nineteenth century. After industrial
development, the first organization that came into being was that of the industrialists. The owners of
the industries formed an organization.
The Industrial Revolution, a historical phenomenon, completely transformed society from rural
and agricultural to industrial and consumerist.
Early labour laws were enacted to protect employers’ interests. It was governed by the
laissez-faire doctrine, which entails a policy of minimal government intervention in the economic
affairs of individuals and society. On the other hand, contemporary labour law aims to safeguard
employees from employer exploitation.
Also the fast changing technological development, industrial production techniques, and
ideological values have brought forth in the industrial world a unique type of employer-employee
relationship. For a proper understanding of industrial relations, it seems essential to have a historical
review of industrial relations in India.

STAGES OF LABOUR MOVEMENT IN INDIA

STAGE I : STAGE II STAGE III STAGE IV STAGE V

PRIOR TO BETWEEN THE DURING AND POST AT PRESENT
THE WORLD TWO WORLD AFTER THE INDEPENDENCE
WAR I WARS WORLD WAR (1947-2000S)
Pre-1918 Early trade II (1939- 45)
Phase union period
(1918- 1938)

STAGE I :
PRIOR TO THE WORLD WAR I
Pre-1918 Phase

The setting up of textiles and jute mills and laying of the railways since 1850 payed the way for that
emergence of industrial activity and, in turn, labour movement in India. Beginning with the Apprentice
Act of 1850, which allowed orphaned children to find work when they reached the age of 18, several
labour laws covering all aspects of industrial employment have been enacted. Some researchers have
traced the origin of labour movement in India dated back to 1860. However, most of the writers on the
subject trace the history of labour movement in India since 1875.

The first labour agitation, under the guidance and leadership of Mr. S. S. Bengalee, a social reformist
and philanthropist, started in Bombay in 1875 to protect against the appalling conditions of workers in
factories, especially those of women and children and appealed to the authorities to introduce legislation
for the amelioration of their working conditions.
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As a result, the first Factory Commission was appointed in Bombay in the year 1875 and the first
Factories Act was passed in 1881.
In 1881, Mr Narayan-Meghji Lokhande made renewed efforts for reform in the conditions of
Indian labour. Mr Lokhande a workman summoned a summit conference of workers engaged in mills
in Bombay Presidency. In this conference, the essential demands of labour were considered and a
number of resolutions were passed.

Mr. N. M. Lokhande may be said to be the founder of organised labour movement in India who founded
the first trade union in the country, namely, the Bombay Mill Hands Association (1890).
The major demand of this conference was that the workers should be granted a weekly holiday and
given half-an-hour rest every day. Besides, it was also insisted that workers suffering from
accidental injuries should be adequately compensated. The efforts of this conference bore some healthy
fruits. Some industrialists accepted some of the above demands.
As a consequence of success achieved by the conference, Mr Lokhande felt encouraged and he
established a trade union in Mumbai.
• He christened this organization Bombay Mill Hands Association 1890.
• He also helped in the publication of a labour magazine- “Deenbandhu”.
Thus, Mr Lokhande stood by the working class and did a great deal to improve their lot. But after the
death of Mr Lokhande, the momentum of the, work being done by him was lost. Afterwards railway
employees organized themselves into a union.

This was followed by a series of associations such as the Amalgamated Society of Railway Servants in
India (1897), The Printers’ Union of Calcutta (1905), The Madras and Calcutta Postal Union (1907), and
the Kamgar Hitwardhak Sabha (1910). All these unions aimed at promoting welfare facilities for workers
and spreading literacy among them.

The broad features of the labour movement during the pre-1918 phase may be subsumed as:

(i) The movement was led mostly by the social reformers and philanthropists and not by the workers.

(ii) There was, in fact, no trade union in existence in the true sense.

(iii) The labour movement was for the workers rather than by the workers.

(iv) The movement was confined to the revolt against the conditions of child labour and women workers
working in various industries under appalling conditions.

STAGE II
BETWEEN THE TWO WORLD WARS
Early trade union period (1918- 1938)

1918-1924 Phase:

The phase 1918-1924 is considered as the era of formation of modem trade unionism in the country.
The trade union movement got momentum just after the close of the World War I. The postwar
economic and political conditions contributed to the new awakening of class consciousness among the
workers. This led to the formation of trade unions in the truly modem sense of the term.

As a result, Ahmedabad Textile Labour Association (1917), led by Shrimati Ansuyaben Sarabhai; the
Madras Labour Union (1918), led by B. P. Wadia; Indian Seamen’s Union, Calcutta Clerk’s Union; and
All India Postal and RMS Association were formed.
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The various factors that influenced the growth of trade union movement in India during this
phase may be briefly catalogued as follows:

1. The wretched conditions of workers on account of spiralling prices of essential commodities during
the post-World-War I led workers to form trade unions to improve their bargaining power and, in
turn, living conditions.
2. The political scenario characterized by the home-rule movement and the martial law in Punjab made
the politicians to recognize the workers movement as an asset to their cause. At the same time,
workers also needed able guidance and leadership from the politicians to settle their grievances with
the employers.
3. The Russian Revolution also swayed the labour movement in India showing a new social order to
the common man in the country.
4. The setting up of the International Labour Organisation (ILO) in 1919 also gave a big fillip to the
labour movement in India. India becoming a founder-member of the ILO required deputing
delegates to the ILO. Mr. N. M. Joshi for the first time was deputed as the representative from India
to International Labour Conferences and Sessions. It ignited workers’ anxiety to organize. As a
result, the All India Trade Union Congress (AITUC) was formed in 1920. By 1924, the trade union
movement in India proliferated to the extent of 167 trade unions with a quarter million members.

This period in the history of trade union movement has been described as the Early Trade Union
Period.

1925-1934 Phase:

• With increasing hardships of workers, the signs of militant tendencies and revolutionary approach
in trade unionism got expression into violent strikes since 1924. The communists gained influence
in L trade union movement during this period. They split the Trade Union Congress twice with their
widening differences with the left-wing unionists.
• The moderate section under the leadership of Mr. N. M. Joshi and Mr. V. V. Giri seceded from the
Congress and set up a separate organization named the National Trade Unions Federation (NTUF).
• Another split in AITUC took place in 1931 at its Calcutta session when the extreme left wing under
the leadership of Messrs S. V. Deshpande and B T Randive broke away and formed a separate
organization, namely, the All India Red Trade Union Congress Two Years later, the National
Federation of Labour was formed to facilitate unity among all the left-wing organizations of labour.
As a result, the AITUF and NFL merged to form the National Trade Union Federation (NTUF).
• Another important feature of this period was the passing of two Acts, namely, the Trade Unions Act
1926 and the Trade Disputes Act, 1929 which also gave a fillip to the growth of trade unionism in
India. The former Act provided for voluntary registration and conferred certain rights and privileges
upon registered unions in return for obligations. The later Act provided for the settlement of trade
unions. This phase of the Indian labour movement may be described as The Period of Left Wing
Trade Unionism.

1935-1938 Phase:

The Indian National Congress was in power in seven provinces in 1937. This injected unity in trade
unions. As a result, the All India Red Trade Union Congress itself with the AITUC in 1935. After three
years in 1938, the National Trade Union Congress (NTUC) also affiliated with the AITUC. Other factors
that contributed to the revival of trade unions were increasing awakening among the workers to their
rights and change in the managerial attitude towards trade unions.
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In 1938, one of the most developments took place was the enactment of the Bombay Industrial Disputes
Act, 1938. An important provision of the Act, inter alia, to accord compulsory recognition of unions by
the employers gave a big fillip to the growth of trade unionism in India.

1939-1946 Phase:

Like World War I, the World War II also brought chaos in industrial front of the country. Mass
retrenchment witnessed during the post-World War II led to the problem of unemployment .This
compelled workers to join unions to secure their jobs. This resulted in big spurt in the membership of
registered trade unions from 667 in 1939-40 to 1087 in 1945-46.

Rift between the Communists and the Congress- Rift between the Communists and the Congress-
Indian Trade Union Labour Federation” came into existence led by M.N. Roy.

The year 1946 was also marked by two important enactments, namely, the Industrial Employment
(Standing Orders) Act, 1946 and the Bombay Industrial Relations Act, 1946. Both the Acts, through their
provisions, contributed to strengthen the trade unionism in the country.

STAGE III: DURING AND AFTER THE WORLD WAR II

The Second World War lowered standard of living for the workers further and this led to the
strengthening of the movement. The question of war effort created a rift between the Communists and
the Congress. This, coupled with other issues, led to further split in the movement.

• As a result of this rift, “Indian Trade Union Labour Federation” came into existence led by M.N.
Roy.
However, the movement as a whole got stronger due to the compounding issues. This included
mass entrenchment post-war and the massive price rise that accompanied it.
Legislations like Industrial Employment Act, 1946 and Bombay Industrial Relations Act,
1946 contributed to strengthening the trade union movement. In general, the movements got more
vocal and involved in the national movement.
The two parallel labour unions continued to function. The dissensions and conflicts among
communists and Congressmen persisted and ultimately due to the efforts of Gulzarilal Nanda and
Sardar Patel, Indian National Trade Union Congress (INTUC) was established 1947.
As the INTUC has the largest membership in the country it was declared the representative
union of Indian labour. Subsequently, Hind Mazdoor Sabha (HMS) was formed in 1948 under the banner
of Praja Socialist Party. Later on, it came under the influence of Socialists. This trade union of
Communists though did not escape the scourge of rifts and dissensions it split up into two groups in
1949. As a result of this split, a new trade union came into being and this was named United Trade
Union Congress. Professor K.T. Shah headed this trade union.
Bhartiya Mazdoor Sangh: In 1955, Jan Sangh also established a labor organization. The trade union
under the aegis of Rashtriya Swayamsevak Sangh (RSS) was known as “Bhartiya Mazdoor Sangh”.
Its headquarters was in Bhopal.
Among them INTUC and HMS were affiliated to the "Industrial Confederation of the Trade Union"
(ICFTU) which is one of the international labour organizations. AITUC was affiliated to the World
Federation of Trade Unions.

Stage IV- After Independence

Independence and partition of the country smashed the hope of the workers for getting higher
wages and better working conditions from the national Government. With a view to retaining the
amenities which they have earned earlier, a series of strikes swept the country.
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The number of strikes and man days lost were the highest ever recorded in the country. Various
political parties formed and kept control over various trade unions. In 1948, Praja Socialist party started
another trade union known as Hind Mazdoor Panchayat. Indian Federation of Labour and Hind
Mazdoor Panchayat were amalgamated and formed Hind Mazdoor Sabha (H.M.S) in 1948.

Factories Act, 1948

In India , the Government appointed the Rege 'Committee to investigate into the working conditions
of labour in a number of industries. The recommendations of this committee formed the basis for the

Factories Act of 1948.

The new Act which came into operation on April 1st, 1949 is in essence a product of history. It bears
traces of all the previous factories Acts in our country and of the convention laid down by the I.L.O,
Conferences year by year. It also bears the imprint of the pattern of factory legislation evolved in Great
Britain.
Planned economic development and emphasis on Trade union
The Planning Commission drafted its first five year plan, setting therein necessary targets of production
– industrial as well as agricultural – to be achieved during the next five years. For having industrial
advancement industrial Policy Resolution in 1948, was also prepared.
As the economic progress is bound up with the Industrial peace so for the successful
implementation of the plans, particularly in the economy organised for planned production and
distribution and aiming at the realisation of social justice and the welfare of the masses, the co-operation
from Trade Unions was considered absolutely essential at different stages of the execution of the plans.
Accordingly, it was realised that the question of maintenance of smooth industrial relations was
not a matter between employers and employees alone. But it was a vital concern of the community.
Therefore their relationship has to be of a partnership in this constructive endeavour. This was the
reason why it was provided in the first five year plan that the dignity of labour must be recognised so
that the workers who on account of hardships of illiteracy and ignorance and lack of opportunities have
not been able to play as effective a role in the working of industry as they should, could understand and
carry out their responsibility and could take an increasing share in the industry.
Accordingly the workers “right of association, organisation and collective bargaining was
accepted” and it was laid down in this plan that they (Trade unions) should be welcomed and helped to
function as part and parcel of the industrial system.

Code of Discipline of Industries of 1958

The code was approved by all central organisations of workers and employers in 16th Indian Labour
Conference at the initiative of the then Labour Minister, Shri G.L. Nanda.
The code reflects the policy of the government to build up an industrial democracy on voluntary basis
and is the sheet anchor of Mahatma Gandhi’s philosophy of industrial relations. It aims at preserving
industrial peace with the help of employers and employees. It represents a voluntary moral commitment
and is not a legal document.
The issue of discipline in industry was discussed in the Indian Labour Conference and the code of
discipline was framed and introduced by that tripartite body in 1958. Discipline in the relationship
between workers and employers can better be enforced if both the parties accept their responsibilities
and show a willingness to discharge them. In the absence of any statutory provision at the all-India level
for the recognition of trade union, the provision in this regard has been incorporated in the Code of
Discipline.

The main elements of the code are:

(i) The two parties agree to utilise the existing machinery for the settlement of industrial disputes.
(ii) The parties shall not resort to strikes and lock-outs without first exploring all avenues of settlement
(iii) The parties accept that the disputes not settled mutually shall be referred to voluntary arbitration.
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(iv) The code specifies the criteria for the recognition of trade union and creates an obligation on
employers to recognise the majority union in an establishment or industry.
(v) The two parties shall not resort to the unfair labour practices detailed out in the code.
(vi) Managements and trade unions agree to establish grievance procedure on a
(vii) mutually agreed basis.

First National Commission on Labour

First National Commission on Labour in 1966- was set up on 24 December 1966 under the
Chairmanship of Justice P.B. Gajendragadkar. The Commission submitted its report in August, 1969
after detailed examination of all aspects of labour problems, both in the organised and unorganised
sectors. The first National Commission on Labour recommended that works committee be set up in any
unit which has a recognised union. It also recommends growth of collective bargaining recognition of
union, prohibition and regulation of strikes & lockouts.

Stage V: Present
Second National Commission on Labour
Second National Commission on Labour was set up on 15 October 1999 under the chairmanship of
Ravindra Verma which submitted its report to the then Prime Minister Atal Bihari Vajpayee on 29 June
2002.

Need for Second National Commission on Labour

• During the period of three decades since setting up of the First National Commission on Labour,
there has been an increase in number of labour force etc. because of the pace of industrialisation
and urbanisation.
• After the implementation of new economic policy in 1991, changes have taken place in the economic
environment of the country which have in turn brought about radical changes in the domestic
industrial climate and labour market.
• Changes have occurred at the work places, changes in the industry and character of employment,
changes in hours of work and overall change in the scenario of industrial relations. These changes
have resulted in certain uncertainties in the labour market requiring a new look to the labour laws.

Historical Evolution of Labour Laws in India

Pre-Independence Era

1. Factories Act, 1881:

o Context:
▪ During the late 19th century, India was experiencing industrial growth, particularly
in textile mills and factories. The working conditions were harsh, with long hours,
low wages, and unsafe environments.
▪ Reports of exploitation, child labour, and poor working conditions prompted the
British administration to take legislative action.
o Formation:
▪ The Act was introduced in response to these reports and aimed to regulate the
conditions of work in factories. It established provisions for working hours,
sanitation, and the welfare of workers, including children.
▪ The Act was among the first attempts to address industrial working conditions in
India and set the stage for future labour legislation.
2. Mines Act, 1901:
o Context:
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The mining industry in India was crucial for economic development, but it faced
▪
significant safety issues. Accidents, health hazards, and exploitation of workers
were prevalent.
▪ The Act was part of a broader trend in the early 20th century where colonial
administrations were increasingly aware of the need to regulate industries for the
welfare of workers.
o Formation:
▪ The Mines Act of 1901 aimed to improve safety and health conditions in the
mining industry. It introduced regulations on working hours, safety measures, and
the employment of women and children in mines.

Role of Mahatma Gandhi and Freedom Fighters in Labour Laws' History

Mahatma Gandhi

Advocacy for Workers' Rights:

• Early Labour Struggles:

o Mahatma Gandhi’s involvement in labour issues began during his time in South Africa,
where he organized workers' strikes and advocated for the rights of Indian labourers
facing harsh conditions. His experiences in South Africa profoundly influenced his
approach to labour rights in India.
• Indian Textile Workers’ Strike (1918):
o In 1918, Gandhi played a pivotal role in the strike by textile workers in Ahmedabad. The
workers were demanding higher wages due to the rising cost of living. Gandhi’s
leadership and negotiation skills helped the workers secure a 22% wage increase, a
significant victory for labour rights.
o This strike demonstrated Gandhi's commitment to workers' rights and his ability to
mobilize and advocate for labour causes effectively.

Influence on Labour Movement:

• Labour Movements and Trade Unions:

o Gandhi’s philosophy of non-violent protest and his support for workers' rights had a
lasting impact on the Indian labour movement. He encouraged the formation of trade
unions and labour organizations to advocate for workers’ issues.
o His principles of satyagraha (non-violent resistance) influenced many labour leaders and
activists in India, fostering a culture of peaceful yet assertive advocacy for workers' rights.

Economic and Social Justice:

• Economic Ideas:
o Gandhi’s vision of economic justice included fair wages, better working conditions, and
the upliftment of the working class. His emphasis on moral and ethical practices in
economic activities influenced subsequent labour legislation.
o His ideas contributed to the broader discourse on social and economic justice, which laid
the foundation for post-independence labour reforms.

Jawaharlal Nehru

Support for Labour Reforms:

• Post-Independence Labour Policies:

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o As the first Prime Minister of India, Jawaharlal Nehru supported the development of
labour laws that aimed to improve workers' conditions and promote industrial peace.
o Nehru's government prioritized labour reforms as part of its broader economic policy,
introducing legislation such as the Industrial Disputes Act, 1947, to address labour
disputes and promote industrial harmony.

Economic Planning:

• Five-Year Plans:
o Nehru's emphasis on planned economic development included considerations for labour
welfare. His policies aimed to balance industrial growth with the protection of workers'
rights and the creation of a more equitable society.

Subhash Chandra Bose

Labour Rights and Independence Movement:

• Advocacy for Workers:

o Subhash Chandra Bose, a prominent leader of the Indian independence movement, was
also concerned with workers' rights. He believed that labour issues were integral to the
struggle for independence and social justice.
o Bose's focus on workers' rights complemented his broader vision of social and economic
reform in India.

Role in Trade Union Movement:

• Trade Union Support:

o Bose’s support for the trade union movement helped to elevate the significance of labour
issues in the broader independence struggle. He worked to strengthen labour
organizations and promote workers' rights as part of the fight for national freedom.

Dr. B.R. Ambedkar

Champion of Workers and Social Justice:

• Labour Rights Advocate:

o Dr. B.R. Ambedkar, a key figure in the drafting of the Indian Constitution, was also a
strong advocate for labour rights. His work emphasized the need for legal protections
for workers and the importance of addressing inequalities in the workplace.
o Ambedkar’s efforts contributed to the development of labour laws that aimed to protect
the rights of workers and promote social justice.

Constitutional Reforms:

• Impact on Legislation:
o Ambedkar’s influence extended to labour legislation through his role in shaping the
Constitution of India. His emphasis on social justice and equality informed the legal
framework for labour rights and welfare.

Influence of Freedom Fighters on Labour Legislation

• Social and Economic Justice:

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o The contributions of Gandhi, Nehru, Bose, and Ambedkar in advocating for workers'
rights and social justice played a crucial role in shaping India's labour laws. Their activism
and leadership laid the groundwork for labour reforms that aimed to improve working
conditions and promote fairness.
• Mobilization and Advocacy:
o The freedom fighters’ efforts in mobilizing workers and advocating for their rights
highlighted the need for comprehensive labour legislation. Their actions and ideologies
influenced the development of laws that addressed workers’ grievances and aimed to
create a more equitable work environment.
• Post-Independence Reforms:
o The principles and values championed by these leaders continued to influence labour
policies and reforms after India’s independence. Their legacy is reflected in the ongoing
efforts to improve labour conditions and ensure social justice through legislation.

Post-Independence Era

1. Industrial Disputes Act, 1947:

o Context:
▪ After India gained independence in 1947, the country faced significant industrial
unrest. Strikes, labour disputes, and conflicts between employers and employees
were common.
▪ The need for a structured mechanism to handle industrial disputes became
evident to maintain industrial peace and economic stability.
o Formation:
▪ The Industrial Disputes Act was enacted to provide a legal framework for
resolving disputes between employers and employees. It established Labour
Courts and Industrial Tribunals to adjudicate disputes and provided guidelines for
strikes and lockouts.
2. Minimum Wages Act, 1948:
o Context:
▪ Post-independence India was dealing with widespread poverty and inequality.
Many workers, particularly in informal sectors, were earning wages that were not
sufficient to meet their basic needs.
▪ The Act aimed to address this issue by setting a legal minimum wage to prevent
exploitation and ensure a basic standard of living for workers.
o Formation:
▪ Enacted in 1948, the Minimum Wages Act was designed to set minimum wage
standards across various industries and regions. It aimed to improve the economic
conditions of workers and reduce wage disparity.
3. Employees' Provident Funds and Miscellaneous Provisions Act, 1952:
o Context:
▪ As the Indian economy grew, there was an increasing need for social security
measures to provide financial stability to workers after retirement or in case of
emergencies.
▪ The existing provisions for employee welfare were fragmented and needed
consolidation.
o Formation:
▪ This Act was introduced to create a provident fund scheme for employees,
ensuring financial security after retirement. It also included provisions for family
pensions and insurance benefits.
4. Payment of Gratuity Act, 1972:
o Context:
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▪The need for a comprehensive scheme to provide financial benefits to employees

after long service was recognized. Prior to this Act, there were no standardized
provisions for gratuity payments.
o Formation:
▪ The Payment of Gratuity Act aimed to provide a lump sum payment to employees
upon retirement, resignation, or termination, based on their length of service. It
was designed to offer financial security to employees after their employment ends.
5. Employees' State Insurance Act, 1948:
o Context:
▪ The Act was introduced to address the lack of social security and health benefits
for industrial workers. The post-war period highlighted the need for
comprehensive health insurance and social security.
o Formation:
▪ The Employees' State Insurance Act established a scheme for medical benefits,
cash benefits in case of sickness, maternity benefits, and other social security
measures for workers.

Recent Developments

1. Code on Wages, 2019:

o Context:
▪ The existing wage-related laws were scattered and complex, creating difficulties
for compliance and enforcement. There was a need to streamline and simplify
wage regulations.
o Formation:
▪ The Code on Wages consolidates previous wage-related laws into a single code.
It aims to provide a uniform minimum wage structure, ensure timely payment, and
promote fair wage practices across industries.
2. Code on Industrial Relations, 2020:
o Context:
▪ Industrial relations were characterized by fragmented laws and complex dispute
resolution mechanisms. Reforms were needed to simplify and modernize
industrial relations.
o Formation:
▪ The Code on Industrial Relations combines and simplifies existing laws related to
trade unions, standing orders, and industrial disputes. It seeks to provide a more
streamlined and efficient framework for managing industrial relations and
resolving disputes.
3. Code on Social Security, 2020:
o Context:
▪ Social security coverage was limited and fragmented, particularly for workers in
the informal sector. There was a need to expand and unify social security
provisions.
o Formation:
▪ This Code consolidates various social security laws and extends benefits to a
broader range of workers, including those in the informal sector. It aims to provide
comprehensive social security coverage and improve worker welfare.
4. Code on Occupational Safety, Health and Working Conditions, 2020:
o Context:
▪ Workplace safety and health regulations were dispersed across multiple laws,
making compliance challenging. There was a need for a unified approach to
workplace safety.
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o Formation:
▪ The Code on Occupational Safety, Health and Working Conditions consolidates
existing laws related to workplace safety and health. It aims to improve safety
standards, reduce occupational hazards, and enhance worker protection.

2. Importance of Labour Laws

Protection of Workers' Rights:

• Wages and Employment Conditions: Labour laws ensure that workers receive fair wages
and work under safe and healthy conditions. They set minimum standards for pay, working
hours, and workplace safety.
• Dispute Resolution: Labour laws provide mechanisms for resolving disputes between
employers and employees, helping to maintain industrial harmony and prevent conflicts from
escalating.

Economic Stability:

• Regulation of Employment Relations: By regulating employment relations and resolving

disputes, labour laws contribute to a stable and predictable work environment. This stability is
crucial for economic growth and development.
• Productivity and Efficiency: Fair treatment of workers and the provision of safe working
conditions can lead to increased productivity and efficiency, benefiting both employers and the
economy.

Social Justice:

• Equity and Fairness: Labour laws promote social justice by addressing issues of inequality and
discrimination in the workplace. They provide protections for marginalized groups and ensure
that all workers are treated fairly.
• Protection of Vulnerable Groups: Specific provisions in labour laws protect vulnerable
groups, such as women, children, and workers in informal sectors, ensuring their rights and
welfare are safeguarded.

Improvement of Working Conditions:

• Health and Safety Regulations: Labour laws establish standards for workplace health and
safety, reducing the risk of accidents and injuries. This contributes to the overall well-being of
workers and enhances their quality of life.
• Work-Life Balance: Regulations on working hours and rest periods help maintain a balance
between work and personal life, contributing to better mental and physical health for workers.

5. Comparative Analysis

Comparison with International Labour Laws

1. United States:

• Worker Protection:
o Employment At-Will: In the US, employment is generally "at-will," which means
employers can terminate employees without cause, whereas in India, employment
termination is regulated more strictly with required procedures and justifications.
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oWage Regulations: The Fair Labour Standards Act (FLSA) establishes federal minimum
wage and overtime requirements in the US. In contrast, India’s Minimum Wages Act sets
minimum wage standards that vary by state.
• Dispute Resolution:
o Arbitration and Mediation: The US often uses arbitration and mediation for resolving
disputes, which are less formal and more flexible compared to India’s structured system
involving labour tribunals and courts.

2. European Union:

• Worker Protection:
o Stronger Protections: The EU provides extensive labour protections, including
stringent rules on working hours, paid leave, and job security, which are often more
comprehensive than those in India.
o Work-Life Balance: The EU emphasizes work-life balance through directives like paid
parental leave and annual leave. Indian laws offer fewer provisions in this area.
• Dispute Resolution:
o Labour Courts and Committees: The EU utilizes a combination of labour courts and
conciliatory committees, similar to India’s system but with a greater focus on mediation.

3. China:

• Worker Protection:
o Labour Contract Law: China's Labour Contract Law mandates written contracts and
protects against unjust dismissal, akin to India's Industrial Disputes Act.
o Wage Regulations: Minimum wage standards in China are set by local governments,
similar to India’s state-specific regulations.
• Dispute Resolution:
o Arbitration First: In China, arbitration is the mandatory first step in labour disputes
before proceeding to court, whereas India’s system allows for direct recourse to tribunals.

6. Case Studies

Significant Legal Cases:

1. Vishaka v. State of Rajasthan (1997):

• Issue: Sexual harassment at the workplace.

• Outcome: The Supreme Court of India established guidelines for preventing sexual harassment,
which led to the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and
Redressal) Act, 2013.

2. D.K. Yadav v. J.M.A. Industries Ltd. (1993):

• Issue: Termination of an employee without notice.

• Outcome: The Supreme Court underscored the importance of fair procedures and adherence
to principles of natural justice in termination cases.

3. Unni Krishnan, J.P. v. State of Andhra Pradesh (1993):

• Issue: Right to education and its impact on labour laws.

• Outcome: The Court established the right to education as a fundamental right, influencing
labour laws related to child labour and education
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History of May Day or Labour Day

• May 1 is a metonym for International Workers Day, a day of celebration of the working class.
Behind it lies a history dating back over one-and-a-half centuries.
• The roots of May 1 can be traced to the second part of the 19th century when there were
revolutions, and organisations behind which industrial workers rallied. Countries including
Germany, France, England, the US saw demand for reducing work time from 12-15 hours a day
to eight hours.
• The Communist Manifesto written by Karl Marx and Engels in 1848 had a great impact on
workers across various countries that were feeling the heat of industrialisation.
• Crop failure in the 1840s led to widespread anti-feudal upheavals called ‘The Revolutions of
1848’. As a result the International Workingmen’s Association, known as the First International,
was born in 1864 as an umbrella association for all socialist and communist organisations, at a
workers’ congregation in London.
• After the First International dissolved in 1876 over an ideological rift, the Second International
emerged in 1889 as a united outfit of socialist and labour parties. It was this organisation that
declared May 1 as International Workers’ Day and March 8 as International Women’s Day.
• Historically, an event is referred to as the origin of May 1 as Workers’ Day -- the Haymarket
Affair or the Haymarket massacre. When labourers assembled at the Haymarket Square in
Chicago on May 4, 1886 and took out a rally for eight-hour work day, a bombing attack was
mounted on them by some unknown forces. Police firing and loss of 11 lives were reported at
the rally that ended in riot.
• May Day in India
• As for May Day in India, the country witnessed the first celebration of Labour Day in 1923 in
what was then Madras. Led by Singaravelar, leader of the Labour Kisan Party of Hindustan, two
meetings were held, one at Triplicane Beach and one near the Madras High Court. It was at
these meetings that a resolution was passed urging the British government to declare May 1 as
Labour Day and also a government holiday. It was the first occasion in India on which the red
flag was used.