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EPFO STUDY MATERIAL

FOR EPFO APFC & EO/AO CLASSSROOM PROGRAM 2023

LABOUR LAWS LEVEL 1

YATHARTH IAS
WWW.YATHARTHIAS.COM
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Table of Contents
1.1 Introduction ......................................................................................................................... 3
Labour laws - meaning ........................................................................................................................ 3
Historical Background ......................................................................................................................... 4
1.2 Evolution of Labour Law in India .......................................................................................... 4
Labour Movement in India ......................................................................................................... 5
Features of the labour movements in this era: ................................................................................... 6
1.3 Purpose of Labour Legislation .............................................................................................. 6
1.4 Constitutional Provisions with regard to Labour Laws ......................................................... 7
1.5. Labour Law Working Hours ............................................................................................... 10
Overtime .......................................................................................................................................... 10
Women and Work Hours .................................................................................................................. 11
Workdays and Break Period ............................................................................................................. 11
Breaks ............................................................................................................................................... 11
Work hours of young workers .......................................................................................................... 12
1.6. Employment Equity Act ..................................................................................................... 12
1.7 Labour Relations Act .......................................................................................................... 13
1.8. Discrimination ................................................................................................................... 14
1.9. Maternity Leave ................................................................................................................ 16
1.10 Termination of Employment ............................................................................................. 18
1.11 Data Protection ................................................................................................................ 20
1.12 The New Labour Codes ..................................................................................................... 21
Why do we need all the 3 Codes? ..................................................................................................... 22
Industrial Relations Code, 2020................................................................................................ 22
Key Changes made in the new provisions ......................................................................................... 22
Code on Social Security, 2020 ................................................................................................... 24
Code on Occupational Safety, Health and Working Conditions, 2020 ...................................... 27
Key changes in new provisions ......................................................................................................... 27

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Criticism ............................................................................................................................................ 28
1.13. Ministry of Labour and Employment ............................................................................... 30
1. 14. International Labour Organization (ILO) ........................................................................ 31
International Labour Organization (ILO) Objective ........................................................................... 31
International Labour Conference: ..................................................................................................... 32
Governing Body: ............................................................................................................................... 32
International Labour Organization (ILO) Functions ........................................................................... 32
International Labour Organization – Core Conventions .................................................................... 34
International Labour Organization and India .................................................................................... 35

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1.1 Introduction
• Productivity in any organization is the outcome of the joint efforts of two distinct
elements namely technological and human resources. The factor of production other
than labor can be manipulated easily. However, the human aspect in the organization is
the most difficult to manipulate or manage in a proper perspective.
• The human elements are the causes and the result of the interaction, social issues,
duties, responsibilities, and other activities. The high rate of industrial growth, increased
pace of technological development and complex nature of the jobs made the workforce
of an organization the source of completive success.
• Hence, managing men has become a vital part of the present-day of management. Any
negligence of the human element leads to misunderstanding between the management
and workers. The results of which can be seen in the form of increased labor turnover,
absenteeism, indiscipline, the decline in the quality of work done, increased cost
production, and various problems in the market.
• Therefore, in this context, the concept of industrial relations receives widespread
attention all over the world.

Labour laws - meaning

• Labour law is the area of law which signifies the relationship between a worker, trade
union and government at large. It plays a major important role in protecting the rights
of labour, their union, their wages, and moreover building a link between government
and workers. It is a protective code for laborers, workers, and employees as well, to
make them aware of their rights and also, to establish a standard law regarding labour
work practice.
• Labour law is often incorrectly conflated with Employment law. However, Employment
law is the area of law that specifically deals with the relationship between an employer
and employee.
• Labour law is concerned with the establishment of a labour-relations framework that
provides peaceful industrial relations between labours and organized workers. It is
basically related to the matters of labour-relations, functions of a trade union, an
adequate environment of working, conditions under which labours are working, strikes
and security of the labour.
• While Employment law or Employment standards law is concerned with the regulation
in statute laws, conditions of the workplace, time of working, wages, and so on, both,
Labour law and Employment standard laws are commonly related to workers or
employees and their way of working.

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Historical Background

• Labour law arose parallel to the Industrial Revolution, as a result of conflict between
workers and trade union. The relationship between a worker and employer of a small-
scale production gradually changed to large scale factories.
• The growth of labour law is an outcome of a constant desire of the worker, to seek
better conditions of working to manage an adequate living and the employers need to
have a flexible, economic and productive workforce for better production and sales.
• The origin of Labour law can be traced back in time around 18th century, where Labour
relations had been mentioned in several places by European writers while giving
importance to their Guilds and Apprenticeship system, Asian scholars in the Laws of the
Hindus by Manu and then several other Latin American authors and writers across the
world.

1.2 Evolution of Labour Law in India

• The labour and employment law in India is also known as Industrial law. In India, the
history of labour law is interwoven with the history of British colonialism.
The industrial/labour-law enacted by the British was meant primarily to protect the
British employers’ interests. Considerations of the British political economy were of
course of paramount importance in defining some of these early laws.
• That’s how the Factories Act came. It is well known that Indian textile products offered
stiff competition on the export market to British textiles and, in order to make India
labour more expensive, the Factories Act was first enacted in 1883 due to pressure
brought on the British parliament from Manchester and Lancashire’s textile magnates.
Thus, India received the first stipulation of eight hours of work, the abolition of child
labour, and women’s restriction in night work, and the introduction of overtime wages
for work beyond eight hours. While the impact of this measure was clearly welfarist,
there was no doubt that the real motivation was protectionist.
• The Trade Dispute Act, 1929 (Act 7, 1929) was the earliest Indian statute to govern the
relationship between an employer and his workmen. Provisions have been made in this
Act to limit strike and lockout rights, but no mechanism has been provided to take care
of disputes.
• In the post-colonial era, the original colonial laws witnessed substantial changes when
independent India called for a direct relationship between labour and capital. The
content of this partnership was unanimously approved at a tripartite conference in

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December 1947 in which it was agreed that labour would be provided with a fair wage
and fair working conditions and that, in return, capital would receive the fullest
cooperation of labour for continuous production and higher productivity as part of the
national economic strategy development and that all concerned would observe a truce
period of three years free from strikes and lockouts.

Labour Movement in India

The growth of the trade union movement in India was an organic process. It started towards
the tail end of the nineteenth century and has had a parallel development to India’s
industrial development. The difficulties of the workers’ lives came into light during the
1850s. The labour movement in India can be categorized into two phases: the first phase
lasting from the 1850s -1918, and the second from 1918- till Independence.

• The origin of the labour movements in India can be traced back to the 1860s, however,
the first agitation occurred only in 1875.
• The actions of the working class in the earliest stage were sporadic and disorganized in
nature and hence were mostly futile.
• It was only from the second decade of the twentieth century in Bombay, that serious
attempts were made for the formation of associations that could lead an organized form
of protests.
• The second phase witnessed the sporadic protests obtain an organized form. During this
phase, Trade Unions were formed on modern lines.
• The first labour tumult occurred in Bombay, 1875 under the leadership of S.S
Bengalee. It concentrated on the plight of workers, especially women and children.
• This agitation led to the appointment of the first Factory Commission, 1875.
• The first Factories Act was passed in 1881 consequently.
• In 1890, M.N Lokhande established Bombay Mill Hands Association. This was the first
• The organized labour union in India.1920s was significant in this regard. Congress and
the Communists made serious attempts to mobilize and establish a connection with the
working class.
• The first attempt to form an all-India organization was also made in the 1920s.

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Features of the labour movements in this era:

• Leadership was exemplified by social reformers and not by the workers themselves.
• The movements in this era mainly concentrated on the welfare of workers rather than
asserting their rights.
• They were organized, but there was no pan India presence.
• A strong intellectual foundation or agenda was missing.
• Their demands revolved around issues like that of women and children workers.

1.3 Purpose of Labour Legislation

• Labour legislation that is adapted to the economic and social challenges of the modern
world of work fulfils three crucial roles:
§ It establishes a legal system that facilitates productive individual and collective
employment relationships and hence a productive economy.
§ By providing a framework within which employers, workers, and their
representatives can interact with work-related issues, it serves as an important
vehicle for achieving harmonious industrial relations based on workplace
democracy.
§ It provides a clear and consistent reminder and the guarantee of fundamental
principles and labour rights that have gained broad social recognition and
defines the mechanisms through which those principles and rights can be
implemented and enforced.
• But experience shows that labour laws can only effectively fulfil these functions if they
are responsive to the conditions on the labour market and the needs of the involved
parties. The most efficient way to ensure that these conditions and needs are
completely taken into consideration is when those concerned are closely involved in the
legislative formulation by processes of social 6 dialogue. The involvement of
stakeholders in this way is of great importance in the development of a broad base of
support for labour law and in facilitating its application within and beyond the formal
structured economic sectors.

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1.4 Constitutional Provisions with regard to Labour Laws

• Chapters III (Articles 16, 19, 23 & 24) and 7 Chapter IV (Articles 39, 41, 42, 43, 43A & 54)
of the Constitution of India have enshrined the relevance of the dignity of human labour
and the need to protect and safeguard the interests of labour as human beings by
keeping in line with the Fundamental Rights and Directive Principles of State Policy.
• Labour is a concurrent subject in the Indian Constitution that means that both the Union
and the state government are qualified to legislate and administer labour matters. The
Parliament has enacted the majority of important legislative acts.
• Concurrent List
§ Entry no. 55: Regulation of Labour and safety in mines and oil fields.
§ Entry no. 22: Trade union, industrial and labour disputes.
§ Entry no. 66: Industrial Disputes concerning union employees.
§ Entry no. 23: Social security and insurance, employment and unemployment.
§ Entry no. 65: union agencies and institutions for “Vocational Training”.
§ Entry no. 24: Welfare of about including conditions of work, provident funds,
employers invalidity, and old-age pension and maternity benefit.

Legislation can be categorized as follows:

• Labour laws enacted by the Central Government, where it is the sole responsibility of
the Central Government to implement them.
• Labour laws passed by the Central Government and implemented by both Central and
State governments.
• Labour regulations passed by the central government and implemented by the State
Governments of the country.
• Labour laws passed and implemented by the different State Governments which is
applicable to the respective States.

The Indian Constitution provides detailed provisions on citizens’ rights and also sets out the
Directive Principles of State Policy which set the aim to guide the State’s activities. These
Directive Principles stipulate:

• To protect the health and strength of men and women employees.

• That children’s tender age is not being abused.
• That citizens are not forced to enter avocations unfit for their age or strength by
economic necessity.
• Fair and humane working and maternity relief conditions are provided.

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• The Government shall take steps, through appropriate legislation or by any other
means, to secure employee participation in the management of undertakings,
establishments or other organizations involved in any industry.

Employment

• Employment is referred to as a state of having paid for work. Or in other words, it can
be termed as ‘a person who is hired for a wage or salary to work for an employer.
• Employment is one of the basic necessities of a person to earn money and make a living.
Hence, there is a whole different war for employment in the world.

Employment Act

• The Employment Act is enforced for several uniform purposes: it protects employee’s
rights and set forth the employer’s obligations and responsibilities. Hence, the
significance of this act is to regulate uniformity in all aspects of working and Labour
strategies in the country.
• Labour Law Basic Conditions of Employment Act
• The Basic Conditions of Employment Act (BCEA) is an act that is regulated by the
parliament and government for the protection of employees being exploited from their
employers. For the same, there are certain regulations that are to be followed by
employers.
• The act also prohibits the Employment of a person under the age of 15 years and puts
an obligation on the employer to verify the age of the worker or employee by
requesting a copy of the birth certificate.
• It includes matters relating to terms of employment, working hours, transport
allowances, bonuses, methods of wage payment, overtime, meal intervals, public
holidays, medical leaves, maternity leaves, terms of termination of employment, the
procedure for termination, etc.

The various labour legislations enacted by the Central Government

• Industrial Disputes Act, 1947

• Trade Unions Act, 1926
• Laws relating to Wages
• Minimum Wages Act, 1948
• Payment of Wages Act, 1936
• Payment of Bonus Act, 1965
• Laws relating to Social Security

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• Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

• Employees’ State Insurance Act, 1948
• Labour Welfare Fund Act (of respective States)
• Payment of Gratuity Act, 1972
• Employee’s Compensation Act, 1923
• Laws relating to Working Hours, Conditions of Services and Employment
• Factories Act, 1948
• Industrial Employment (Standing Orders) Act, 1946
• Shops and Commercial Establishments Act (of respective States)
• Contract Labour (Regulation and Abolition) Act, 1970
• Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)
Act, 1979
• Weekly Holiday Act, 1942
• National and Festival Holidays Act (of respective States) 1963
• The Plantation Labour Act, 1951
• The Mines Act, 1952
• The Dock Workers (Safety, Health & Welfare) Act, 1986
• Laws relating to Equality and Empowerment of Women
• Equal Remuneration Act, 1976
• Maternity Benefits Act, 1961
• Prohibitive Labour Laws
• Bonded Labour System (Abolition), Act, 1976
• Child Labour (Prohibition & Regulation) Act, 1986
• The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
• The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal) Act,
2013
• Laws relating to Employment and Training
• Apprentices Act, 1961
• Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

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1.5. Labour Law Working Hours

• As per Factories Act 1948, the number of hours of work for a person (who has attained
the age of 18years) shall not be more than 48hours a week and 9hours a day.
• The Minimum Wages Act, 1948 also specifies working hours a day shall not exceed from
9hours for an adult.

Overtime

• Factories Act, 1948

• Details on working hours, spread over, and overtime is set out in Sections 51, 54
to 56 & 59 of the Act:
• According to Sec. 59, where a worker works in a factory for more than 9 hours in
a day or more than 48 hours in a week, he/she shall be entitled to earn wages at
the rate of twice his/her ordinary rate of wages in respect of overtime work.
• Mines Act, 1952
• According to Sections 28 to 30 of the Act, no person working in a mine is allowed
or permitted to work in a mine for more than 10 hours in any day, including
overtime.
• Minimum Wages Act, 1948

• According to Sec. 33, overtime wages are to be paid at the rate of twice the
worker’s ordinary wage rates. This states that the employer could take up to 9
hours of actual work in a 12-hour shift on any day. But he must pay double the
rates for an hour or part of an hour of actual work in excess of nine hours or
more than 48 hours in any week.

• Section 14 of the Act specifies that any worker whose minimum wage rate is set
with wage periods of time, such as hour, day or week, and if a worker works
more than that number of hours, is deemed to be overtime. If the number of
hours that constitute a normal working day exceeds the specified limit, then the
employer will have to pay him at the overtime rate for every hour or part of an
hour for which he has worked in excess.

• Beedi and Cigar Workers (Conditions of Employment) Act, 1966

• According to Sections 17 & 18 of the Act related to working hours, it is specified
that working hours, including overtime work, should not exceed 10 hours per
day and 54 hours per week.
• Contract Labour (Regulation & Abolition) Act, 1970

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• Under Rule 79 of the Act, it is mandatory for each contractor to maintain a Form
XXIII Register of Overtime containing all information relating to the calculation of
overtime, hours of extra work, the name of the employee, etc.
• Building and Other Construction Workers (Regulation of Employment Service) Act, 1996
• According to Sections 28 & 29 of the Act, workers who work overtime will be
paid overtime wages at the rate of twice the ordinary wage rate.
• Working Journalist (Conditions of Service) and Miscellaneous Provisions Act, 1955
• According to Rule 10 of the Act, a working journalist who works in the day shift
for more than 6 hours on any day and more than 5 1/2 hours in night shift shall
be paid with rest hours equal to the hours he/she has worked overtime.
• Plantation Labour Act, 1951
• In accordance with section 19 of the Act, where an adult worker works in any
plantation on any day beyond the number of hours that constitute a normal
working day or for more than 48 hours in any week, he / she shall be entitled to
twice the rate of ordinary wages in respect of such overtime work. Provided no
such worker is permitted to work in any day for more than 9 hours and in any
week for more than 54 hours.

Women and Work Hours

• Section 66 of the Factories Act, 1948 places a limit on women’s employment from 7
p.m. to 6 a.m. However, the Chief Inspector is empowered to grant relief, but women
are not allowed to work from 10.00 pm to 5.00 am in that situation.

Workdays and Break Period

• Factories Act, 1948 stipulates that weekly holiday on the first day of the week, which is
Sunday or maybe any other day, as may be approved in writing by the Chief Inspector of
Factories, is necessary for a particular area.
• Section 52 provides for the substitution of a weekly holiday so that by meeting the
requirements of this section, workers may be allowed to work on the day of the weekly
holiday. The provision also states that compensatory holiday is allowed instead of an
unveiled weekly holiday.

Breaks

• In accordance with the provisions of the Factories Act, 1948, a rest period of at least half
an hour should be given in such a way that no working time exceeds 5-1/2 hours.
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• Under the Minimum Wages Act, an adult worker’s working day shall be calculated in
such a way that it shall not exceed 12 hours on any day, including the interval of rest.

Work hours of young workers

• According to the Factories Act, 1948, the young person is defined as “child” or
“adolescent” (a person who has reached the age of 15 but has not reached the age of
18). This states that child working hours are restricted to 4-1/2 hours per day. It also
stipulates that the spread-over should not exceed five hours. However, the provisions of
the Act states that female child workers are prohibited from working between 7.00 p.m.
to 8.00 am as per section 71.
• According to the Minimum Wages Act, 1948, the number of working hours for
adolescents is set by the medical practitioner as approved by the government, which
chooses to consider adolescents as adults or children. Nevertheless, the child should not
be allowed to work on any day for more than 4-1/2 hours.

1.6. Employment Equity Act

• The Employment Equity Act is an act laid down by the government to ensure “Equity at
the workplace” and to promote Equal opportunity and fair treatment in employment by
eliminating discrimination and unfair monopolies. Also, it looks forward to
implementing necessary measures to redress and resolve the disadvantages of
employment experienced by a delegated group and to ensure their equitable
representation in the workplace.
• The basic aim of the Act is to regulate uniformity within an organization or workplace
where people are delegated as per their skills and remuneration in a fair and non-
discriminatory manner. Furthermore, the act deals with the process of recruitments and
advancement within the business and manages it for its function.
• Employee Representation
• Employee Representation is referred to as the Right of employees to form a
union or choose an individual representative of their group, who can represent
them for the purpose of negotiating with the management in the matters of
wages, working hours, overtime, facilities, working conditions, and security.
• In the workplace, workers may be represented by trade unions or other representatives:
• On disciplinary and grievance matters

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• On works councils or other consultative bodies

• For the collective bargaining of terms and conditions
• For making workforce agreements
• On joint working groups.
• Trade Union
• Trade Union is defined as a union formed by the workers or employees to
represent a specific group of workers for the purpose of protection of their
common interests. They help workers in matters like Fair pay, good working
environment, working hours and benefits. Trade Unions are also called Labour
Unions.
• Labour Unions are formed to protect the interest of workers, financially and
otherwise. They bargain and negotiate form the employers on behalf of the
Employees for the welfare of the latter.
• Employee Representation on the Board of Directors
• Employee Representation on the board of directors refers to the Right of the
Employees to choose their representative for the purpose of representing them
before the employer.
• Work Council
• Work Council refers to an organization that represents the employees on a local
level. It also a bargaining tool for representation.
• Employee Board
• Employee board is the board of directors that governs over individual employees
based on their work, skills, and performance. It is a link between employer and
employee and also the government. Its function is to bridge the gap between
employer and employee and their dissatisfaction.

1.7 Labour Relations Act

• Labour Relations Act is an act that regulates Labour relations and collective bargaining in
private sectors. The main feature of this Act is to provide an outline of the labour
relations rights and responsibilities of employers, trade unions and employees.
• The Labour Relations Act confers several authorities to labour relations board such as:
to certify the unions for representing their employees, revocation of certification of the
union, and so on.

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Importance of Labour Relations in Human Resource Management

• Human Resource is termed as the individuals or the other workforce of an organization

that works for the management, recruitment, reward, on loading, training,
performance, motivation, and so on. The main function of the Human Resource
Management of an organization is of selecting, providing orientation, maintaining
proper relations with workers and trade unions, compensation, look over the safety,
security and working mechanics of the employees.
• Labour Relations play a very significant role in Human Resource Management. It
enhances the productivity of the organization over time just by in building good Labour
Relations. Since, good
• Labour relations provide better synchronization among workers or employees and
develop a better working environment, ensuring adequate facilities, security, health and
sanitation to the Labours which ultimately turns out into quality production and sale.

Purpose of Labour Relations

• The purpose of Labour Relations is to maintain healthy relations between the

employees, management and the employer in every aspect to promote the productivity
of an organization and develop its working. It also promotes marketing and globalization
at a certain level of work, which is beneficial for a company or organization.

1.8. Discrimination
• Discrimination among workers or employees is quite commonly encountered in the
workplace. Such discrimination can be based on skills, target, achievements, majority,
race and even between specific groups of the worker. Discrimination is one of the
biggest loopholes behind an average production or slow-growing organization. It can
turn out to be admissible unhealthy among the Labours to have poor relations which
affect their unity and integrity at the workplace.

On what grounds is discrimination prohibited?

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• The Indian Constitution grants Indian people several constitutional rights, such as the
right to equality, the State’s prohibition against discrimination on the grounds of
religion, ethnicity, caste, sex or place of birth, and allows the State to frame laws that
favour the underprivileged. Persons with Disabilities (Equal Opportunities, Protection of
Rights and Full Participation) Act,1995 forbids all forms of discrimination against persons
with disabilities during the recruitment, pay promotion, etc.
• The ER Act has been introduced to eradicate gender bias and ensure an equal salary to
men and women for the same work. Likewise, the Maternity Benefit Act of 1961 and the
Sexual Harassment of Women at Work (Prevention, Prohibition and Redressal) Act of
2013 protects the rights may include women workers in India.
• The applicability of these laws may differ between public and private entities. While
certain forms of discrimination in all sectors are universally illegal, certain types of caste-
based discrimination, ethnicity, and religion are still prevalent in private sectors.

What type of discrimination are unlawful and in what circumstances?

• The Indian Constitution prohibits discrimination on the grounds of religion, ethnicity,

caste, gender, and place of birth. Therefore, it is unlawful to contravene any clause of
the ER Act that leads to discrimination between men and women.
• Therefore, any discrimination that is not based on ability or merit and that is not
exercised to uplift any category or class but merely to inflict bias to one of the parties is
deemed to be unlawful.

Are there any defences to a discrimination claim?

• A claim of discrimination does not have standard defences.

• On the basis of facts and circumstances, however, a defence of disparity in the nature of
work, workplace, health and safety standards, and the need for affirmative action can
be regarded as legitimate grounds for defence.

How do employees enforce their discrimination rights? Can employees settle claims before or
after they are initiated?

• Employees may approach courts or tribunals on the basis of the nature of discrimination
and file lawsuits to enforce their rights of discrimination.
• In some situations, the concerned organization/workplace may have labour/HR policies
in place that allow these discriminated workers to contact a grievance redressal
committee or a helpline to address discrimination-related grievances.
• In most cases, the employer can settle disputes before or after a lawsuit has been filed.

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What remedies are available to employees in successful discrimination claims?

• An employee has access to the remedies depending on the nature of the claim and the
statute that gives the employees the right to claim. Most laws provide for pecuniary
fines and terms of imprisonment if any of its provisions are infringed. In cases where
discrimination has resulted in job termination, a successful claim of discrimination will
entitle the aggrieved person to restore his/her job.
• Do “atypical” workers (such as those working part-time, on a fixed-term contract or as a
temporary agency worker) have any additional protection?
• No, “atypical” employees are not given any additional protection. Such employees are
safeguarded by the same set of laws as any typical worker or employee in the
organization. Nevertheless, the organizational policies and regulations that apply to
such employees may vary.
• There are certain state-specific or region-specific laws covering even vulnerable
employees who do not fall into any of the categories of workers identified in question,
such as the Maharashtra Mathadi, Hamal, and Other Manual Workers (Employment and
Welfare Regulation) Act, 1969 or the Pimpri-Chinchwad District, Hamai, and Other
Manual Workers (Regulation of Employment and Welfare) Scheme, 1992.

1.9. Maternity Leave

• Maternity leaves are basically paid leave provided to women during pregnancy,
childbirth or even after childbirth for the protection of their interest in employment and
health at the same time. The concept of Maternity Leave has made to be mandatorily
applied to women employees in India.
• Maternity leaves are mainly governed by the Maternity Benefits Act, 1961 that applies
to all shops and establishments having 10 or more than 10 female workers.
• Under this Act, it is required to inform the women in writing and digitally about their
rights to avail such leaves during maternal phases, at their joining at the workplace.
• Recently, the Ministry of Labour and Employment revised the Maternity Benefit Act,
1961 (“Maternity Act”) to extend the length of paid maternity leave available for female
employees from 12 to 26 weeks. Any female employee who has been in the employer’s
employment for 80 days in the past 12 months is eligible to take the benefit. That
advantage can be used as soon as eight weeks before the expected date of delivery.

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Maternity leave has also been extended to adoptive mothers where every woman who
adopts a child has the right to a maternity leave of 12 weeks from the date of adoption.
• Maternity Leave can be taken by pregnant women and women at the phase of childbirth
or even pre and post phase to delivery. The only obligation for availing this benefit is to
work at least for the duration of 12 months prior to that.
• In accordance with the provisions of the Maternity Act, for the time of her actual
absence, a female employee is entitled to the average daily wage. If the nature of the
work is such that the employee may work from home, the employer may extend this
comfort to female employees on the basis of the mutual agreement between the
employer and the employee. Therefore, female employees are also entitled to a medical
bonus in case of prenatal or post-natal benefits that are not provided by the employer.
The Maternity Act bars the employer from (i) discharging or firing a female employee, or
(ii) changing the terms of employment to her disadvantage during the maternity leave
period.
• A female employee is entitled to two nursing breaks in a day after rejoining the job, an
addition to the rest period allowed by the employer during her daily work. The female
employee will earn this benefit until the baby reaches the age of 15 months. Apart from
this benefit, each establishment with 50 or more employees shall have a creche facility
either separately or together with common facilities within a prescribed distance. The
employer will allow the employee to visit the creche for four times a day, which will also
include the rest period. Every such establishment shall, at the time of the female
employee’s initial appointment, intimate in writing the benefits and facilities provided
by the employer in this regard.
• In Indian employment laws the concept of paternity leave does not exist. However, the
All India and Central Civil Rules, allow 15 days of paternity leave for central government
employees. Various corporate offices in India may extend paternity leave to their
employees in accordance with internal leave policies. The Paternity Benefit Bill, 2017,
presented to Parliament, pushes both the mother and the father for equal “parental”
benefits.
• Maternity benefits in the private sector are regulated by the Employees State Insurance
Act, 1948 and Maternity Benefits Act, 1961. Under which there are provisions for taking
maternity leave for the longest of 26 weeks, which are laid down for the protection of
working women and women workers who have more than two living children.
• Maternity leave for government employees consists of similar provisions to that of any
other female employees at the workplace. The government of India has regulated
several Acts for the protection and promotion of women at the workplace. The

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government has also enhanced the duration of paid maternity leave from 12 weeks to
26 weeks for up to two surviving children under the ESI Act, 1948.

1.10 Termination of Employment

• The termination of employment relates to the termination of a contract between an
employee and a corporation. An employee may be terminated from a job of his own
free will or by the employer’s decision. An employee who is not working actively due to
illness, absence leave or temporary layoff is still considered to be working unless the
relationship with the employer has been officially terminated with a termination notice.
There are mainly two types of job termination:
§ Voluntary Termination
§ Involuntary Termination
• Voluntary Termination
§ Employment can be terminated voluntarily by an employee. Generally, a worker
who takes a voluntary decision to terminate employment status with a company
does so if they find a better job with another company, retire from the
workplace, resign to start their own business, take a break from work, etc.
§ Constructive dismissal could also result in the voluntary termination of
employment. It indicates the employee left the company because there was no
other option for them. Under the employer, they could have worked under
considerable duress and unpleasant working conditions. Cited challenging
conditions include lower salary, harassment, a new workplace that is farther
than the employee can fairly drive to every day, extended working hours, etc.
The employee’s forced discharge by which an ultimatum is issued to them to
resign or be fired is also subject to constructive dismissal. In such situations, if
the employee could show that the conduct of the employer during the period
with the company are unlawful, they might be entitled to some form of
compensation and benefits.
§ An employee who leaves an employer on a voluntary basis may be required to
give the employer advance notice either verbally or in writing. In most industries,
two-week advance notice is generally required. In some situations, at the time of
termination notice is given to the employer or no notice is given at all, such as
when an employee leaves the job or does not return to work.
• Involuntary Termination

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§ Involuntary employment termination happens when an employer lays off,

dismisses or fires an employee A layoff or organization downsize is a decision
taken by a company to reduce its workforce to reduce its operating costs,
restructure its organization, or because the skill set of the employee is no longer
required. Normally, employees are laid off because of no fault of their own,
unlike fired employees.
§ Generally an employee is fired from a job due to unsatisfactory work
performance, poor behavior or attitude that does not suit the culture of the
corporation or unethical behavior that violates the policies of the company
Under At-Will employment laws accepted in some states an employee performs
poorly or may be dismissed without notice in violation of some form of the
company’s rules. In reality, the company does not have to give a reason for the
termination of the job of the employee.
§ While employment-at-will contracts do not allow an employer to alert or give an
excuse for termination, for certain reasons, an employer can not fire an
employee. For these purposes, an employee who refuses to work more than the
hours specified in the contract takes a leave of absence, report an incident or an
individual to the Department of Human Resources, or fire whistle blows to
industry regulators can not get fired for these reasons. An employer who
removes an employee for the exercise of their legal rights has done so unlawfully
and may be liable in court for wrongful termination.
§ There is also an illegal dismissal when an employee allows an employee to leave
for discriminatory reasons such as religion, race, age, gender, disability or
nationality. An employer found guilty of wrongful termination can compensate
and/or restore the wronged employee to the company.
§ In some cases, an employer could, without prejudice to dismiss an employee. It
suggests that the worker was let go for reasons other than negligence,
insubordination, or occupational harassment. The employee may be rehired in
the future for a similar job in such cases.
• Dismissal from Employment
§ Dismissal from employment can be termed as ‘being fired’ or ‘to let go’ from a
job against the consent or will of the employee.
§ Termination of Employment Reasons
§ Dismissal may be due to problems with the performance of the
employee, but it may also be due to factors beyond the control of the
employee, such as downsizing, restructuring of the company or
eliminating a position.

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§ Some common grounds for termination include poor performance or

negligence, problems of attendance, and insubordination or other
problems of conduct. Another common reason for a dismissal is
misconduct or termination due to cause. This is when employees are
dismissed in the workplace due to ethical issues like lying, falsifying data,
stealing, or other significant misconduct in the workplace.

1.11 Data Protection

• India has not yet enacted any specific legislation regarding the data protection of
employees working at different organizations or at the workplace. However, the
Indian legislature does amend the Information Technology Act, 2000 in which
under Section 43A and 72A, it provides for compensation improper disclosure of
personal information.
• The government of India has subsequently issued the Information Technology
(Reasonable Security Practices and Procedures and Sensitive Personal Data or
Information) Rules, 2011.
• Data Protection Meaning
• Data Protection refers to legal control over access and use of personal data of
any person. It is very much necessary to have a data protection system in order
to promote the safety and security of the person concerned and also, to prevent
identity theft and phishing scams. An assertion is made by the government of
India through passing a Data Protection Bill, 2018 in the parliament.
• Employee Privacy
• The Draft Personal Data Protection Bill, 2018 (the “PDP BILL”) was released on 27
July 2018 by the Ministry of Information Technology, Government of India, along
with a report from the Committee of Experts under Justice B.N. Srikrishna’s
chairmanship. Currently, the privacy of employees working in corporate
institutions is regulated by the Information Technology (Reasonable Security
Practices and Procedures and Sensitive Personal Data or Knowledge) Rules, 2011
(“SPDI Rules”), established under the Information Technology Act, 2000 (“IT
Act”), which has become progressively inadequate.
• The PDP Bill is a keystone development for the evolution of India’s protection
law development. The PDP Bill states that the right to privacy is a fundamental
right and the key to data sharing is the consent of individuals. Under the PDP
Act, an exemption has been provided to obtain consent from employees by the

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employer to process their information for certain employment-related matters

such as hiring, dismissal, performance evaluation, etc. Nevertheless, this ground
for the processing of personal data without the consent of the workers can only
be invoked if the processing of personal data on the basis of consent is not
sufficient in view of the employer-employee relationship and requires a
disproportionate effort on the part of the employer due to the nature of the
processing activities.

1.12 The New Labour Codes

• Article 246 of Constitution of India gives power to Parliament and State legislature to
legislate on any subject matter enumerated in Lists of Schedule VII of Constitution of
India.
• Schedule VII contains 3 lists namely, Union list, State list and Concurrent List. Labour is
the subject matter of Concurrent list, which means both Center and State has power to
make laws on matters related to labour. Due to which many labour laws was enacted,
according to the data, provided by the central government, currently, there are around
40 central statutes and 100 state statutes governing the various labour laws in India.
• Thus attempts had been made to simplify and codify all the laws into one uniform code
to ease trade and improve trade and commerce in nation. In 2002, Second National
Commission on Labour recommended to consolidate 29 labour laws and on its
recommendation Ministry of Labour and Employment in 2019 introduced 4 bills in Lok
Sabha. These Codes regulate:
• Wages,
• Industrial Relations,
• Social Security and
• Occupational Safety, Health and Working Conditions.
• Only Code on Wages, 2019 was able to pass while others were referred to standing
committee for further discussions. Standing Committee submitted its report on
19th September 2020 which replaced all the three bills into new ones and on
22th September 2020, Lok Sabha passed all the three new labour bills namely,

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• The Industrial Relations Code Bill, 2020;

• Code on Social Security Bill, 2020 and
• the Occupational Safety, Health and Working Conditions Code Bill, 2020.
• On 23rd September 2020 all the three bills were passed by Rajya Sabha, on
28th September,2020 bills got assented by President and on 29th September, 2020 it was
published in e- Gazette and became enactments. Let’s go through each Act now.

Why do we need all the 3 Codes?

• The codes were introduced to codify and simply various labour laws which was creating
a complex environment for employers as well as workers.
• These codes were introduced to safeguard the rights of employers and workers by
providing simplified labour reforms to facilitate ease of doing business and trade
• The codes also been made with an object not only to solve industrial dispute and bring
industrial peace and harmony but also to ensure social security to all types of workers
which were missed out on the previous labour laws.
• These codes also bring with them consolidated procedures and data collection such as
Single Registrations, Licenses, Consolidated Returns lessening the burdens of employers.
• Various Boards and Committees have been set up under the codes to supervise the
safety and welfare of workers.
• Stringent penalties with the comparatively high monetary amount and imprisonment
period have been made under the code for following the provisions strictly.

Industrial Relations Code, 2020

The Industrial Relations Code, 2020, is formed after amalgamating, repealing three central
enactments to simplify compliance burden to facilitate ease of doing business namely:

• The Trade Unions Act, 1926;

• The Industrial Employment (Standing Orders) Act, 1946;
• The Industrial Disputes Acts, 1947.

Key Changes made in the new provisions

Definitions:

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New definition of ‘employee’ and ‘fix term employment’ were added which are as
follows:

• Section 2(l) states the definition of Employee as “any person (other than an apprentice
engaged under the Apprentices Act, 1961) employed by an industrial establishment to do
any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial,
administrative, technical or clerical work for hire or reward, whether the terms of
employment be express or implied, and also includes a person declared to be an
employee by the appropriate Government, but does not include any member of the
Armed Forces of the Union;”
• Section 2(o) states the definition of Fixed Term Employment as “the engagement of a
worker on the basis of a written contract of employment for a fixed period:
Provided that—
(a) his hours of work, wages, allowances and other benefits shall not be less than that of
a permanent worker doing the same work or work of similar nature;
(b) he shall be eligible for all statutory benefits available to a permanent worker
proportionately according to the period of service rendered by him even if his period of
employment does not extend to the qualifying period of employment required in the
statute; and (c) he shall be eligible for gratuity if he renders service under the contract
for a period of one year;”

Strike definition has got some additions which are as follows:

• Before Under Section 2 (q) of Industrial Disputes Act, 1947 “strike” means a
cessation of work by a body of persons employed in any industry acting in
combination or a concerted refusal, or a refusal under a common understanding, of
any number of persons who are or have been so employed to continue to work or to
accept employment;
• But now in Industrial Relation code the definition of Strike has included “the
concerted casual leave on a given day by fifty per cent or more workers employed in
an industry”.

While ‘workman’ definition got replaced and renamed as ‘worker’

And now includes “working journalists as defined in clause (f) of section 2 of the Working
Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous 52 of
1961. Provisions Act, 1955 and sales promotion employees as defined in clause (d) of section
2 of the Sales Promotion Employees (Conditions of Service) Act, 1976”

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• Grievance Redressal: Before the code a workman can directly move to conciliation
officer under Section 9C of the Industrial Dispute Act, 1947 for any grievances but now it
is mandatory to approach the grievance redressal committee.

• Standing Order: Before the code standing order was applicable to 100 or more
workers as per the Industrial Establishment Standing Order Act, 1946 which is now
increased to 300 or more workers.

• Time limitation for disciplinary proceeding: Before the code there was no time
limitation for disciplinary proceeding against a workman now an inquiry along with its
investigation is introduced which needs to be completed within a time period of 90 days
from worker’s suspension.

• Trade Union: Before the code there was no recognition of negotiating union but now
the code has introduced ‘sole negotiating union’ in establishments to negotiate with the
employer, and mandate that every industrial establishment shall have one sole
negotiating union and where there are already a registered trade union it will be
recognised as negotiating union but if there are more than one registered trade union
then the trade union having more than 51% of workers will be recognised as sole
negotiating union.

• Industrial Tribunal: Before the code there was only 1 member to resolve the industrial
dispute but now the member has increased to 2 out of which one should be judicial
member and the other should be administrative member.

• Notice for Strike: Before the code the workers of public utility service were required to
give prior notice of 14 days before going on strike but now the code has mandated
workers of all establishments to give prior notice of 14 days before going on strike.

Code on Social Security, 2020

The code on Social Security was introduced to provide social security to all employees &
workers either in organized, unorganized, or any other sector by simplifying and consolidating
various enactments of labour laws such as:

• The Employees’ Compensation Act, 1923

• The Employees’ State Insurance Act, 1948
• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

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• The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

• The Maternity Benefit Act, 1961
• The Cine Workers Welfare Fund Act, 1961
• The Payment of Gratuity Act, 1972
• The Building and Other Construction Workers Welfare Cess Act, 1996
• The Unorganized Workers’ Social Security Act, 2008

Key changes made in the new provisions:

Definition: New definition of, ‘Fixed term employment’, ‘Home based worker’, ‘Self-employed
worker’, ‘Career Centre’, ‘Unorganised Workers’, ‘Gig Worker’ & ‘Platform Workers’ is
introduced which are as follows:

§ Section 2(9) states the definition of Career Centre as “any office (including
employment exchange, place or portal) established and maintained in the manner
prescribed by the Central Government for providing such career services (including
registration, collection and furnishing of information, either by the keeping of
registers or otherwise, manually, digitally, virtually or through any other mode) as
may be prescribed by the Central Government, which may, inter alia, relate generally
or specifically to— (i) persons who seek to employ employees; (ii) persons who seek
employment; (iii) occurrence of vacancies; and (iv) persons who seek vocational
guidance and career counselling or guidance to start self-employment;”
§ Section 2(34) states the definition of Fixed Term Employmentas “the engagement of
an employee on the basis of a written contract of employment for a fixed period:
§ Provided that— (a) his hours of work, wages, allowances and other benefits shall not
be less than that of a permanent employee doing the same work or work of a similar
nature; and (b) he shall be eligible for all benefits, under any law for the time being in
force, available to a permanent employee proportionately according to the period of
service rendered by him even if his period of employment does not extend to the
required qualifying period of employment;”
§ Section 2(35) states the definition of Gig Worker as “a person who performs work or
participates in a work arrangement and earns from such activities outside of
traditional employer-employee relationship;”
§ Section 2(36) states the definition of Home-Based Worker as “a person engaged in,
the production of goods or services for an employer in his home or other premises of
his choice other than the workplace of the employer, for remuneration, irrespective of
whether or not the employer provides the equipment, materials or other inputs;”

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§ Section 2(61) states the definition of Platform Workeras “a person engaged in or

undertaking platform work;”
§ Section 2(75) states the definition of Self-Employed Worker as “any person who is
not employed by an employer, but engages himself in any occupation in the
unorganised sector subject to a monthly earning of an amount as may be notified by
the Central Government or the State Government, as the case may be, from time to
time or holds cultivable land subject to such ceiling as may be notified by the State
Government;”
§ Section 2(86) states the definition of Unorganised Worker as “a home-based worker,
self-employed worker or a wage worker in the unorganised sector and includes a
worker in the organised sector who is not covered by the Industrial Disputes Act, 1947
or Chapters III to VII of this Code;”

• Registration: Before the code Registration was required by all establishments but now if
an establishment is registered under any existing Central Labour Laws, it is not required
to obtain registration under Section 3 of the Code of Social Security.

• Social Security Organization: Before the code there was no such organisation was made
but now several bodies are formed under Section 4 of the code for administering the
provident fund schemes, pension fund schemes and insurance schemes especially for gig
workers, platform workers and unorganized workers and other workers.

• Appellate Tribunal: Before the code no appeal by employer was entertained by the
Tribunal unless it has deposited a Demand Draft payable in the Fund and bearing 75% of
the amount due from him but now the deposit has reduced to 25%.

• Sickness Benefit: Before the code the workers was not entitled to any sickness benefits
but now the code provides extra expenditure as sickness benefit for insanitary working
conditions in the factory or in the accommodations due to the neglect of the owner.

• Determination of Wages: Before the code in case of any dispute or proceedings for
determination of dues from the employer no limitation period was fixed but now it is
fixed to five years.

• Payment of Gratuity: Before the code payment of gratuity term for a working journalist
was for 5 years but now it is reduced to 3 years.

• Welfare Scheme: Before the code welfare schemes were not framed for unorganized
workers, gig workers and platform workers but now welfare schemes for these workers at

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Central and State level on matters related to the protection of life, health, accident,
education, skill up gradation, provision of old age home are introduced.

Code on Occupational Safety, Health and Working Conditions, 2020

The Code subsumes 633 provisions of 13 major labour laws into one single Code with 143
provisions with an aim of providing health and safety to the workers employed in different
sectors such as industry, trade, business etc. it was focuses on worker’s safety engaged in
hazardous works. Certain classes of establishments such as mines, factories, dock workers,
construction workers are subject to different provisions for a license, safety regulations and
duties of employers. The laws that are subsumed are

• The Factories Act, 1948

• The Plantations Labour Act, 1951
• The Mines Act, 1952
• The Working Journalist and other News Paper Employees (Conditions of Service and
Miscellaneous Provision) Act, 1955
• The Working Journalist (Fixation of rates of wages) Act, 1958
• The Motor Transport Workers Act, 1961
• The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
• The Contract Labour (Regulation and Abolition) Act, 1970
• The Sales Promotion Employees (Conditions of Service) Act, 1976
• The Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979
• The Cine Workers and Cinema Theatre Workers Act, 1981
• The Dock Workers (Safety, Health and Welfare) Act, 1986
• The Building & Other Construction Workers (Regulation of Employment and Conditions
of Service) Act, 1996

Key changes in new provisions

• Definition:

Definition of employee and employer were introduced as before the code these
terminologies were different and inconsistent in various acts now due to a consolidated
act a single definition is adopted for various laws subsumed.
• While definition of establishment has widened the scope

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Before Various acts defined establishment differently but now not only establishment is
well defined for all the acts but it is now including factory, newspaper establishment and
plantation in which more than ten workers are employed.

• Registration:

Before the code registration was required separately under all the previous labour laws
but now establishment is required only one electronic registration.

• Returns:

Before the code establishments had to file various returns under different acts but now
only one consolidated return is required to be filed under the code.

• Occupational Safety and Health Advisory Board:

Central Government and State Government shall constitute a National Occupational

Safety and Health Advisory Board and State Occupational Safety and Health Advisory
Board respectively to discharge the functions and at the same time advise the
Government on the matters relating to standards, rules and regulation to be framed
under this Code.

• Weekly-off:

Code introduced the provision for weekly offs in a new manner now the workers cannot
be required to work for more than 6 days/week and will be entitled to one day off for
every 20 days of work & one day off every week.

• Threshold for Facility:

§ Canteen – Reduced from 250 workers to 100 workers

§ Crèche – Increased from 30 female workers to 50 female workers
§ Welfare Officer – Reduced from 500 workers in Factory to 250 workers in
Factory, Mine & Plantation
§ Safety Committee and Safety Officer – Reduced from 1000 workers to 500
workers in Factory, 250 workers in a building and other construction, 250
workers in a hazardous process and 100 workers in a mine.

Criticism

• The three labour codes are being criticized on various grounds such as:

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• It has very heavy delegated legislation, The Labour Codes delegate various essential
aspects of the laws which includes:

§ Increasing the threshold for lay-offs, retrenchment, and closure,

§ Setting thresholds for applicability of different social security schemes to
establishments,
§ Specifying safety standards and working conditions to be provided and
maintained by establishments, and
§ Deciding the norms for fixation of minimum wages.

• XLRI professor and labour economist KR Shyam Sundar, said that:

• “The increase in the threshold for standing orders from the existing 100 to 300 is
uncalled for and shows the government is very keen to give tremendous amounts of
flexibility to the employers in terms of hiring and firing…dismissal for alleged misconduct
and retrenchment for economic reasons will be completely possible for all the industrial
establishments employing less than 300 workers. This is complete demolition of
employment security”, which means, due to extend of scope of standing orders, the
employers who now have less than 300 employees are now more empowered and can
easily fire employees thus heading to place where employees are more unsecure.

• Previously a person employed in a public utility service cannot go on strike without

giving notice for a strike within six weeks before going on strike or within fourteen days
of giving such notice, which the new Industrial Relation Code, made this provision
applicable to all the establishments, which means employees of a non-public utility
service are also restricted to go on a strike before giving a prior notice, which of course
hamper their right to strike.

Conclusion

• The 3 labour codes where, need of the hour and much awaited labour codes because of
the complexities faced by various establishments due to the bulkiness of various
enactments made by far, which caused multiplicity of definitions, overlapping of
authorities, various compliances and thus, the codification and consolidation of such
laws has not only removed such lacunas but also let to expansion of the ambit and
applicability of the laws, ease of compliance etc.
• The codes have introduced various new provisions to ensure better regulations of
industries and also aim at ensuring ease of doing business at the same time the code
focuses on the social welfare and security of the workers as well. Various threshold

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limits has been reduced to increase the benefits given to the workers, and not only that
but the government has now focused on the workers of Unorganized sectors as well
including ‘Home based worker’, ‘Self-employed worker’, ‘Gig Worker’ & ‘Platform
Workers’ which were left out in previous labour laws.
• The codes will empower the relationship between the employers and the workers and
due to its Stringent penalties and imprisonment will be strictly adhered by both bring a
long-term positive impact on industries.

1.13. Ministry of Labour and Employment

• The Ministry of Labour & Employment is one of the oldest and most important
Ministries of the Government of India. It is responsible for enforcement of labour laws
in general and legislations related to a worker’s social security.
• The Ministry aims to create a healthy work environment for higher production and
productivity and to develop and coordinate vocational skill training and employment.
• However, Skill Development responsibilities, such as Industrial Training and
Apprenticeship responsibilities were transferred to the Ministry of Skill Development
and Entrepreneurship from 9 November 2014.
• The Ministry launched the National Career Service portal on 20 July 2015 to help bridge
the gap between job providers and job seekers.
• The Ministry of Labour and Employment seeks to protect and safeguard the interests of
workers in general and those who constitute the poor, deprived and disadvantaged
sections of the society, in particular, with due regard to creating a healthy work
environment for higher production and productivity, and developing and coordinating
vocational skill training and employment services.
• Government’s attention is also focused on the promotion of welfare activities and
providing social security to the labour force both in the organised and unorganised
sectors, in tandem with the process of liberalisation.
• These objectives are sought to be achieved through enactment and implementation of
various labour laws, which regulate the terms and conditions of service and
employment of workers.
• The following are the thrust areas of the Government concerning labour laws:
o Labour policy and legislation;
o Safety, health and welfare of labour;
o Social security of labour;
o Policy relating to special target groups such as women and child labour;

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o Industrial relations and enforcement of labour laws in the central sphere;

o Adjudication of industrial disputes through Central Government Industrial
Tribunals-cum-Labour Courts and National Industrial Tribunals;
o Workers’ education;
o Labour and employment statistics;
o Emigration of labour for employment abroad;
o Employment services and vocational training;
o Administration of central labour and employment services; and
o International cooperation in labour and employment matters.

1. 14. International Labour Organization (ILO)

The ILO was established as an agency for the League of Nations following World War I.

§ It was established by the Treaty of Versailles in 1919.

§ Its founders had made great strides in social thought and action before the
establishment of the organization itself.
§ It became the first specialised agency of the United Nations (UN) in the year 1946.
§ The ILO has played a significant role in promoting labour and human rights. It had
held a significant position during the Great Depression (1930s) for ensuring labour
rights.
§ It played a key role in the decolonization process and in the victory over apartheid in
South Africa.
§ The organization got the Nobel Peace Prize in 1969, for its efforts to improve peace
amongst the classes, and for promoting justice and fair work for the workers.

International Labour Organization (ILO) Objective

The ILO is the only tripartite U.N. agency. The ILO is a meeting point for governments, workers
and employers of ILO’s member States to set labour standards, improve upon policies and
create programs that promote decent work for people. The four strategic objectives at the
heart of the Decent Work agenda are:

§ To develop and effectuate standards, fundamental principles, and fundamental

rights at work.
§ To ensure that men and women have equal access to decent work while enhancing
opportunities for the same.
§ To magnify the coverage and effectiveness of social protection for everyone.
§ To strengthen Tripartism and social dialogue.

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International Labour Organization (ILO) – Structure

The basis of the ILO is the tripartite principle. The ILO comprises the International Labour
Conference, the Governing Body, and the International Labour Office.

International Labour Conference:

§ The progressive policies of the ILO are set by the International Labour Conference.
§ The Conference is an annual event, which happens in Geneva, Switzerland. The
conference brings together all the representatives of the ILO.
§ Function: It is a panel for the review of the important issues regarding labour.

Governing Body:

§ The Governing Body is the executive body of the International Labour Organization.
§ The governing body meets in Geneva. It meets three times annually.
§ The Office is the secretariat of the Organization.
§ It is composed of 56 titular members, and 66 deputy members.
§ Functions:
§ Makes decisions regarding the agenda and the policies of the International
Labour Conference.
§ It adopts the draft Programme and Budget of the Organization for
submission to the Conference.
§ Election of the Director-General.

International Labour Office:

§ It is the permanent secretariat of the International Labour Organization.

§ Functions: It decides the activities for ILO and is supervised by the Governing Body
and the Director-General.
§ The ILO member States hold periodically regional meetings to discuss the relevant
issues of the concerned regions.
§ Each of the ILO’s 183 Member States has the right to send four delegates to the
Conference: two from government and one each representing workers and
employers, each of whom may speak and vote independently.

International Labour Organization (ILO) Functions

• It adopts international labour standards. They are adopted in the form of conventions. It
also controls the implementation of its conventions.
• It aids the member states in resolving their social and labour problems.

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• It advocates and works for the protection of Human rights.

• It is responsible for the research and publication of information regarding social and
labour issues.
• The Trade Unions play a pivotal role in developing policies at the ILO, thus the Bureau
for Workers’ Activities at the secretariat is dedicated to strengthening independent and
democratic trade unions so they can better defend workers’ rights and interests.
• The ILO also assumes a supervisory role: it monitors the implementation of ILO
conventions ratified by member states.
• The implementation is done through the Committee of Experts, the International Labour
Conference’s Tripartite Committee and the member-states.
• Member states are obligated to send reports on the development of the
implementation of the conventions they have approved.

• Registration of complaints: The ILO registers complaints against entities that are
violating international rules.

• The ILO, however, does not impose any sanctions on the governments.

• Complaints can also be filed against member states for not complying with ILO
conventions that have been ratified.

• International Labour Standards: The ILO is also responsible for setting International
Labour Standards. The international labour conventions which are set by the ILO are
ratified by the member states. These are mostly non-binding in nature.

• But once a member state accepts conventions, it becomes legally binding. The
conventions are often used to bring national laws in alignment with international
standards.

• ILO Global Commission on the Future of Work: The formation of an ILO Global
Commission on the Future of Work marks the second stage in the ILO Future of Work
Initiative.

• The Commission outlines a vision for a human-centred agenda that is based on

investing in people’s capabilities, institutions of work and decent and sustainable
work.

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• It also describes the challenges caused by new technology, climate change and
demography and appeals for a collective global response to the disturbances
being caused in the world of work.

International Labour Organization – Mission

• The ILO’s mission is to promote decent work for all workers. This is accomplished by
promoting social dialogue, protection, and employment generation.

• The ILO provides technical support along with the support of development partners to
multiple countries in order to achieve this mission.

International Labour Organization – Declaration on Fundamental Principles and Rights at Work

The Declaration was adopted in 1998, and it mandates the member states to promote the
eight fundamental principles and rights. The Fundamental Principles and Rights are
categorized into four classes. They are:

• Freedom of Association and the Right to Collective Bargaining (Conventions 87 and

98)

• Elimination of forced or compulsory labour (Conventions No. 29 and No. 105)

• Abolition of child labour (Conventions No. 138 and No. 182)

• Elimination of discrimination in respect of employment and occupation (Conventions

No. 100 and No. 111).

• As part of the Follow-up to the Declaration, the ILO Director-General also submits a
Global Report on one of the four categories of fundamental principles and rights at
work to the tripartite International Labour Conference.

International Labour Organization – Core Conventions

The eight fundamental conventions form an indispensable part of the United Nations
Human Rights Framework, and their sanction is an important sign of member States’
commitment to human rights. Overall, 135 member States have ratified all eight
fundamental conventions.

• The eight-core conventions of the ILO are:

o Forced Labour Convention (No. 29)

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o Abolition of Forced Labour Convention (No.105)

o Equal Remuneration Convention (No.100)
o Discrimination (Employment Occupation) Convention (No.111)
o Minimum Age Convention (No.138)
o Worst forms of Child Labour Convention (No.182)
o Freedom of Association and Protection of Right to Organised Convention (No.87)
o Right to Organise and Collective Bargaining Convention (No.98)
§ The conventions are highly relevant due to the economic challenges faced by workers all
around the world.

International Labour Organization and India

India is a founding member of the ILO. It became a permanent member of the ILO Governing
Body in 1922. The first ILO Office in India was inaugurated in 1928.

• India has ratified six fundamental conventions.

• India has not ratified Freedom of Association and Protection of the Right to Organise
Convention, 1948 (No. 87) and Right to Organise and Collective Bargaining
Convention, 1949 (No. 98).

• As the two conventions involve the granting of certain rights that are prohibited under
the statutory rules for government employees.

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