LABOUR LAWS
Labour law is the body of laws, administrative rulings, and
precedents which address the legal rights of, and restrictions
on, working people and their organizations.
As such, it mediates many aspects of the relationship
between trade unions, employers and employees. In other
words, Labour law defines the rights and obligations as
workers, union members and employers in the workplace.
Generally, labour law covers:
Industrial relations – certification of unions, labour-
management relations, collective bargaining and unfair labour
practices;
Workplace health and safety;
Employment standards, including general holidays, annual
leave, working hours, unfair dismissals, minimum wage, layoff
procedures and severance pay
There are two broad categories of
labour law.
First, collective labour law relates to
the tripartite relationship between
employee, employer and union.
Second, individual labour law
concerns employees' rights at work
and through the contract for work
Elements of labour law
The basic subject matter of labour law can be considered under
nine broad heads:
• employment;
• individual employment relationships
• wages and remuneration;
• conditions of work
• health, safety, and welfare;
• social security;
• trade unions and industrial relations and the administration of
labor law;
•and special provisions for particular occupational or other groups
Objectives of labour law
to improve the industrial relations and to minimize the
industrial disputes.
To protect the workers from exploitation by the
employers.
To help workers in getting fair wages.
To resolve the conflict between employer and employee.
To ensure the Health and safety of the workers.
To maintain equal opportunity in employment.
To grant freedom to the workers to form the trade
unions.
To promote the industrial peace by providing an
elaborate machinery for the prevention and settlement of
industrial disputes
Histor
yIndustrial legislation finds its origin from the industrial jurisprudence,
which is a development of the 20th century world.
The evolution of Industrial Jurisprudence in India can be traced back
to the period of post Independence. Before the Independence, the
industrial jurisprudence existed in a primary state.
The paramount concern of the Pre-independence industrial
jurisprudence was the improvement of the working condition of the
workers at the factories.
Before Independence, India was not only a great agricultural
country, but also a manufacturing country. But the British
Government, as a matter of their policies always tended to
discourage the Indian industries.
This led to a widespread nationalism in India, which laid emphasis on
the boycott of the foreign goods. Further a non-cooperation
movement saw its birth that is also called swadeshi movement
which emphasized on the use of indigenous goods and boycott of
the foreign goods
Industrial revolution was the emanating factor behind
the growth of the industrial jurisprudence. Industrial
revolution brought with it the most inhumane aspect of
the human life.
It saw the exploitation of a man by a man. The
maximization of profit, even at the cost of the life of the
labourers, was paramount goal of the employer.
‘Freedom of contract’ was the evident result of the
laissez faire. The employer was free to fire the
employee, at his arbitrariness. Thus the employees were
always at the loss.
to protect the interest of the employees, the legislature
and courts, in India took a giant step to give birth to the
industrial jurisprudence in India former through the
enactments and the latter through the judgments.
Doctrine of Laissez- faire
Laissez- faire was prevalent in ancient India.
Laissez-faire is an economic theory that became popular in the
18th century. The driving principle behind laissez-faire, a French
term that translates as "leave alone" (literally, "let you do"), is that
the less the government is involved in the economy, the better off
business will be.
It was the policy of a government to leave trade unions and
employers free to collectively bargain with one another, with
limited government intervention and oversight.
Under this theory the employer was the dominating party.
He used to dictate the terms of contract as per his own wish and
will.
The right “to hire and fire” was practiced in those days.
The condition of the workers was pathetic, unimaginable.
The workers were being exploited by the employer.
Striking or being active member of the trade union was punishable.
Gradually workers united together to eradicate this
Laissez-faire system.
Laissez-faire system is now replaced by Social Welfare
State.
The State began to take the responsibility in the well-
being of the workers.
Agitation by the workers compelled the existing
government to protect and uphold the rights of the
workers.
Labour policy is required to maintain for maintaining the
industrial peace and welfare of the workers. Labour
Policy Highlights: Recognition of the State as the
custodian of the interests of the workers.
Encouragement for mutual settlement, collective
bargaining. Ensuring fair wage standards and
provisions of social security. Adequate enforcement of
legislation. To provide medical facilities for workers etc.
After independence the national government paid a vital role to
improve the conditions of the workers.
The prosperity of the country depends upon the development
and growth of the industry.
Social justice and Social security has to be restored to the
labourer.
Our Constitution of India guarantees social justice to the people
of India.
Relevant Articles:
Art. 14 Equality before Law
Art. 16 Equality of Opportunity
Art. 19 (1) (c) Right to form Associations and Trade Unions
Art. 21 Right to livelihood under Right to life.
Art. 23 Prohibits traffic in human beings and forced labour.
Art. 24 Prohibits child labour below the age of 14 years.
Art. 39(d) ensures equal pay for equal work.
Art. 41 Right to work, to education and to public assistance in certain cases
Art. 42 Provision for just and humane conditions of work and maternity relief
Art. 43 Living wage, etc., for workers
Art. 43-A Participation of workers in management of industries
Art. 47 Duty of the State to raise the level of nutrition and the standard of
living and to improve public health
Classification of labour laws
It can be categorized into four:
1. Protective Labour Legislations
2. Regulative Legislations
3. Social Security Legislations
4. Welfare Legislations:
Protective Labour Legislations:-
The legislations whose primary purpose is to protect minimum
labour standards and improve working conditions are protective
labour legislations. Legislations laying down the minimum labour
standards in the areas of work, safety, employment of children and
women and also the manner of wage payment come under this
category.
The Indian labour laws under this category are:
I. The Factories Act, 1948,
II. The Mines Act, 1952,
III. The Plantation Labour Act, 1951,
IV. The Payment of Wages Act, 1936,
V. The Minimum Wages Act, 1948,
VI. The Child Labour (Prohibition and regulation) Act, 1986 and
VII. Contract Labour (Regulation and Abolition) Act, 1970.
2. Regulative Legislations:-
The legislations whose primary purpose is to regulate
the relations between employers and employees and to
provide for methods and manners for settling industrial
disputes are Regulative Legislations.
This laws also regulate the relationships between
workers and trade unions, the rights and obligations of
the organizations of employers and workers, as well as
their mutual relationships.
The laws under this category are as follows:
1. The Trade Unions Act, 1926,
2. The Industrial Disputes Act, 1947,
3. The Industrial Employment (Standing Orders) Act, 1946
Social Security Legislations which intend to provide
social security benefits to the workmen during certain
contingencies of life are Social Security Legislations.
Though this legislations may cover other classes of
citizens also, their primary goal has been to protect the
workers.
under this category are as follows:
1. The Workmen's Compensation Act, 1923,
2. The Employees State Insurance Act, 1948,
3. The Employees Provident Funds and Miscellaneous
Provisions Act, 1952
4. The Maternity Benefit Act, 1961, and 5. The Payment of
Gratuity Act, 1972.
Welfare Legislations :-
The legislations which aim at promoting the general
welfare of the workers and improve their living conditions
are Welfare legislations. Such laws carry the term
“Welfare” in their titles. All of these laws provide for the
funds which is spent on improving the general welfare of
workers including housing, medical, educational and
recreational facilities.
The Laws under this category are as follows :
1. Mines Labour Welfare Fund Act, 1946,
2. Beedi Workers Welfare Fund Act, 1976.
Labour Policy of India
Labour policy in India has been evolving in response to
specific needs of the situation to suit requirements of
planned economic development and social justice and
has two fold objectives, namely maintaining industrial
peace and promoting the welfare of labour.
The term ‘labour’ means productive work especially
physical work done for wages. Labour law also known as
employment law is the body of laws, administrative
rulings, and precedents which address the legal rights of,
and restrictions on, working people and their
organizations.
After independence it was largely felt that the labour -
policy must emphasize upon self-reliance on the part of
the workers. Since independence till 1954, the period
When V.V. Giri was the Labor Minister, all official
pronouncements emphasized that labour should become
self-reliant. An equally forceful view had been to prefer
reliance upon the Government. This cross-current of
approach to the labour policy gave place to a new
approach known as "Tripartism". Thus 'Tripartism'
became the central themes in the so-called "Nanda-
period" That began in 1957. During this period the
Government paid reliance on three party approach,
namely the trade union representing the workers, the
employers, and the Government. In this kind of
approach the representatives do not decide anything
but their ,role is mainly advisory.
They meet together, discuss the points in dispute and
strive to reach a consensus and if they agree they make
recommendations. Out of the three, the role of the
Government is more important. Annual Labour
Conferences and the permanent standing Labour
Committees served as the chief instrument of
Tripartism. These conferences advocated, amongst
many things; workers‘ participation in management,
workers' education, works committees, and minimum
wage legislations. At the sixteenth conference held in
1958 a momentous advancement was made by
adopting a Code of Discipline in industry. The Code
pledged the parties to avoid strikes and lock-outs
without notice, and to eschew unilateral actions, and to
rely on settlement of disputes by discussion by
voluntary arbitration or by adopting to such measures
as the law may provide It also pledged them to avoid
coercion and victimization, to avoid partial strikes and
Labour Policy in India
Creative measures to attract public and private investment.
Creating new jobs
New Social security schemes for workers in the unorganized sector.
Social security cards for workers. Unified and beneficial management
of funds of Welfare Boards.
Reprioritization of allocation of funds to benefit vulnerable workers.
Model employee-employer relationships. Long term settlements based
on productivity.
Vital industries and establishments declared as `public utilities`.
Special conciliation mechanism for projects with investments of Rs.150
crores or more.
Industrial Relations committees in more sectors.
Labour Law reforms in tune with the times. Empowered body of experts
to suggest required changes.
Modern medical facilities for workers.
Rehabilitation packages for displaced workers.
Restructuring in functioning of employment exchanges. Computerization
and updating of data base. Revamping of curriculum and course content
in industrial training.
Joint cell of labour department and industries department to study
changes in laws and rules.
Statutory amendments for expediting and streamlining the mechanism of
Labour Judiciary.
Amendments to Industrial Disputes Act in tune with the times.
Efficient functioning of Labour Department.
More labour sectors under Minimum Wages Act.
