Post independence status of Labour legislation in India

Unorganised workers Social Security act , 2008-a critical analysisThe bill was introduced in the parliament in September, 2007. The act applies to 93% of Indias population to introduce broad social security protection through various government schemes.The Bill has received approval of President of India in December 2008 and has become the act, but the act has not come into force as yet. Positive features of the act.A job of two dollars a day (a jump from Rs20/- to Rs 80/- and to Rs 135/- in states like Delhi, Haryana and Punjab).The scheme will be implemented in phased Manner of six crore unorganised workers and in turn their family members over a period of five years extending benefit to one crore 20 lakh workers per year .Clause 9 of the act provides for entitlement of all unorganised sector workers above 14 yearsof age to receive smart identity cards with biometric information.

History is IMPORTANT

Evolution of labour legislations in India:-Labour legislationIndustrial jurisprudence . (the philosophy of law)Master and servant.Laissez-faire.Employers policy to hire & fire.Industrial tribunals.Tripartism. Principles of social justice, social equity, international uniformity and national economy.Various labour legislation in india.Scope of Labour legislations:- Generally, labour law covers;Industrial relations - certifications 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, lay-off procedures, and severance pay.

Labour legislation in IndiaThe term labour legislation.Relationship/regulatoryProtective of weaker party/conveys subordination/dependent employmentThe need for labour legislation in India.

Necessary for health ,safety and welfare of the workers.

Necessary to protect workers against oppressive terms as individual worker is economically weak and has little bargaining power.

To encourage and facilitate the workers in the organisation.

To deal with industrial disputes.

To enforce social insurance and Labour welfare schemes in one.Growth Of Labor Legislation in India :Labor legislation grew with the growth of industry.In the eighteenth century India was a great agricultural/ manufacturing country. Asian and European markets were mainly fed by the looms supplied by India. but British government in India as a matter of policy discouraged Indian manufacturers in order to encourage the rising manufacturers of England. Their policy was to make Indian people grow only raw materials. The British oppression in India continued for some time, which led to the growth of Indian nationalism. In twentieth century, the national movement took a new turn and there was a common demand for Indian goods. A non- cooperation movement, which is known as Swadeshi movement, was started , which urged upon the people to use goods made in India and to boycott foreign goods. The non cooperation movement synchronized with periods of economic crisis gave impetus(push) to industrialization. The growth of Indian private sector owes much to these popular movements. Indian economists advocated that the trade and commerce should be free and stressed on free trade of local goods. An attempt was made to put forward a theory of economic development and planning suited to conditions of our country. After thirtieth century planning was accepted by the national movement as its economic ideology. Thus planned Industrialization became our main goal.Historical Background of Labour Policy & Labour Laws The labour laws of independent India derive their origin, inspiration and strengthThe views expressed by important nationalist leaders during the days of national freedom struggle,The debates of the Constituent Assembly The provisions of the Constitution and the International Conventions and Recommendations. The relevance of the dignity of human labour and the need for protecting and safeguarding the interest of labour as human beings(Articles 16, 19, 23 & 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India keeping in line with Fundamental Rights and Directive Principles of State Policy. Influenced by important human rights conventions and standards emerged from the United Nations. ----- right to work of ones choice, right against discrimination, prohibition of child labour, just and humane conditions of work, social security, protection of wages, redressal of grievances, right to organize and form trade unions, collective bargaining and participation in management. Influenced by the deliberations of the Indian Labour Conference and the International Labour Conference. Recommendations of the various National Committees and Commissions judicial pronouncements on labour laws which have helped to arrive at a better interpretation of these laws and at times given a new direction to their implementation. In India the plantation industry in Assam was the first to attract the legislative. A number of acts were passed from 1863 onwards to regulate the recruitments. These legislations protected more interests of the employers than safeguarding the interest of the workers. The Factories Act, was passed in 1881 and the Mines Act in1901.But the most important act that was passed to protect the interest of the workers was the Workmens Compensation Act, 1923. Some of the other important social security legislations are :The Employees State insurance Act, 1948The employees Provident Funds Act, 1952 andThe Maternity Benefit Act, 1961Purpose of labour legislationLabour legislation should adapt to the economic and social challenges of the modern world of work and need to fulfil three crucial roles: to establish a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy; by providing a framework within which employers, workers and their representatives can interact with regard to work-related issues, to serve as an important vehicle for achieving harmonious industrial relations based on workplace democracy; to provide a constant reminder and guarantee of fundamental principles and rights at work which have received broad social acceptance and establish the processes through which it can be enforced.Nature of Labor Legislation/instrument to regulate relationshipProducts of Industrial RevolutionRegards Individual as a worker Deals with problems of LaborIt Is Role -RelationRegulates Conditions of LaborIt is unique in its origin , humane in its purpose, pious in its theory & liberal in interpretation.Products of Industrial Revolution : LL drastically influenced the old concept of laissez faire existed on the basis of supply and demand & master servant, free to enter any contract. The Labor Legislations are the products of Industrial Revolution and they have come into being to take care of errors created due to specific circumstances. They are different from common legislations. Therefore they are specific and not general in philosophy, concept and even in practice.II. Regards Individual as a worker : employer always conscious of their strength had led to unequal relationship. Law had to interfere to protect the interest of the dependent section. Labor Legislation regards the individual as a worker, whereas social legislation considers him a citizen. Workers being the weaker class of the society, suffer at the hands of the employers. Therefore, these set of legislations are aimed at protecting and securing justice to them.

III. It is Role- Relation : Individuals have different role to perform and different laws are designed for regulating the different roles. It is the role relation that determines whether a particular legislation falls under the category of labor legislation, social legislation or general legislation. All these legislations try to meet the specific objectives that are:To provide subsistence (maintenance).To aim at abundance (plenty).To encourage equality (fairness).To maintain security (safety). IV. Regulates Conditions of Labor: Labor legislations are aimed at regulating conditions of labor, hence they are required to be revised more frequently as compared to general legislations. Unless labor legislation are subjected to frequent revision and left to continue as they are, they become obsolete and irrelevant.

V. Deals with Problems of Labor : Labor Legislations seeks to deal with the problems arising out of the occupational status of individuals. Problems such as hours of work, wages, working conditions, trade unionism, industrial relations are the main subject matter of labor legislation. LLaw Grew with the speed of industrialization.Unique feature of LL.- unlike other L eg. Contract law, where the court can decide in the light of the terms of the contract but in the application of LL. Courts keep the spirit of law in mind it can protect the weaker class by creating new obligations even when not asked. Procedural aspects do not hamper the court decision. It can decide on any procedure to come to a just and fair conclusionNeed For Labor LegislationWeak Labor OrganizationsOccupational InsecurityHazardous Working ConditionsLaw And OrderAchieving Socio Economic ProgressThe Need of Labor Legislation becomes important because of following reasons :Weak Labor Organizations : Individual worker is economically very weak and is unable to bargain his terms with the employers. Even, Labor organizations are relatively weak and in most cases, they depend merely on the mercy employers. Now as the payment of wages, lay off, dismissal, retrenchments etc, are all governed by the legislations, economic insecurity of workers is removed to great extent.Occupational Insecurity : The workers in many organizations, did not get the amount in case of accidents, deaths etc. As a result, the workers faced occupational insecurity. Now, benefits such as Occupational Act, Employees State Insurance Act, etc have been statutorily given to the employees.Hazardous Working Conditions: Workers health and safety is always in danger due to harmful working condition in some factories.The Factories Act, contains a numbere of provisions relating to health, safety and welfare of workers.Law And Order : Labor legislation is also necessary in order to maintain law and order situation and national security of the country. The idea of welfare state is embodied in the directive principles of the constitution and for that reason various labor laws have been enacted to protect the sections of the society.Achieving Socio economic Progress : Labor legislation is one of the most progressive and dynamic instruments for achieving socio economic progress.Labour Policy of IndiaLabour 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.Labour Policy Highlights 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. 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. Child labour act to be aggressively enforced. 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 dept. and industries dept. to study changes in laws and rules.Objectives of Labor Legislation :To protect the workers from profit seeking exploiters.To ensure that the service conditions should be clearly spelt out by the employer to the employee.To improve and regulate the working conditions of workers employed in different factories and establishments.To make statutory provision for the regular trainings of a certain number of apprentices in different trades.

To ensure that the employees are paid their wages on fixed dates and there should be no deduction made from the wages.

To promote industrial relations and industrial peace between employers and employees.

To preserve the health, safety and welfare of workers.To protect the interests of women and children working in the factories.To maintain the dignity of employees in their organizations.28Principles OF LABOUR LAWS1. Social Justice Labour Legislations contain the principles of social justice, social equity, social security and national economy. The essence of democracy is ensuring social justice to all sections of the community .

Equal distribution of profits and other industrial benefits between Owner and Workers Providing protection to Workers against harmful effects to health, safety and morality

2829Principles Of Labour Laws2. Social Equity-(justice tempered by ethics) labour laws must be dynamic; government must modify the laws in line with changing environment3. International Uniformity4. National economy 29Principles of labour legislationSocial justiceThis demands the protection of those who cannot protect themselves. In modern industrial set up, workers left to themselves, are unable to protect their interest.Therefore, the state has to intervene to help them by granting them freedom of association, the power of collective bargaining, and by providing for mediation or arbitration, in case of industrial conflict.

Labour legislation in IndiaSocial equity .Legislation based on this principle provides for achievement of definite standards.Standards in terms of living, position in society, etc of the working population.The standards for the working class can be achieved by bringing about changes in law of our land. Power to change the law is exercised by the government.Labour legislation in IndiaNational economy.Ensure normal growth of industry for the benefit of the nation as a whole.Satisfy the physical and intellectual needs of the citizens.Ensure the growth of industrial efficiency, such as to adjust the wage system, with a view to increase the productivity and prosperity of the workers.International uniformity.Since its inception, securing minimum standards (for the working population-worldwide) on a uniform basis in respect of all Labour matters has been the main objective of ILO.Labour legislation in IndiaInternational uniformity.To this end, conventions are passed at the conferences of ILO.As a member of ILO,adopting these conventions would require appropriate legislation to to be brought about. The influence of International Labour conventions has been significant in shaping the course of Labour legislation in India.

34MAIN POSTULATES(suggestions) OF LABOUR POLICY1. State Custodian of interest of community, catalyst of change and Welfare Programmes2. Right of Workers to peaceful direct action if justice is denied3. Encouragement to mutual settlement, Collective Bargaining and Voluntary Arbitration

3435Main postulates of labour policy4. State intervention in favour of weaker party to ensure fair treatment to all5. Maintenance of industrial peace primary objective 6. Evolving Employer and Employee partnership to promote economic needs of community7. Ensuring - fair wage standards and social security

3536Main postulates of labour policy8.Co-operation for augmenting production and increasing productivity9.Adequate enforcement of legislation10.Enhancing status of Workers in industry11.Tripartite consultation 36Types Of Labor LegislationsProtective Labor LegislationRegulative Labor LegislationSocial Security LegislationsWelfare LegislationsClassification of Labour Legislations in India:-I) Protective Labor Legislations :The legislations whose primary purpose is to protect minimum labor standards and improve working conditions are protective labor legislations. Legislations laying down the minimum labor 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 labor laws under this category are :The Factories Act, 1948,The Mines Act, 1952,The Plantation Labor Act, 1951,The Motor Transport Workers Act, 1961,

The Shops and Establishment Act passed by various states,

The Payment of Wages Act, 1936,

The Minimum Wages Act, 1948,

The Child Labor (Prohibition and regulation) Act, 1986 and

Contract Labor (Regulation and Abolition) Act, 1970.

II )Regulative Legislations : Laws related to Working Hours, Conditions of Service and Employment 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 :The Trade Unions Act, 1926,The Industrial Disputes Act, 1947, andThe Industrial Employment (Standing Orders) Act, 1946III) Social Security Legislations :The 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. The laws under this category are as follows:The Workmen's Compensation Act, 1923,The Employees State Insurance Act, 1948,The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948,The Employees Provident Funds and Miscellaneous Provisions Act, 1952The Maternity Benefit Act, 1961, andThe Payment of Gratuity Act, 1972.IV) 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 and 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 :Mica Mines Labor Welfare Fund Act, 1946,Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines labor Welfare Fund Act, 1976 andBeedi Workers Welfare Fund Act, 1976. Labour is a concurrent subject in the Constitution of India - both the Union and the state governments are competent to legislate on labour matters and administer the same. The bulk of important legislative acts have been enacted by the Parliament.The legislations can be categorized as follows:1) Labour laws enacted by the Central Government, where the Central Government has the sole responsibility for enforcement.2) Labour laws enacted by Central Government and enforced both by Central and State Governments.3) Labour laws enacted by Central Government and enforced by the State Governments.4) Labour laws enacted and enforced by the various State Governments which apply to respective States.(a) Labor laws enacted by the Central Government, where the CentralGovernment has the sole responsibility for enforcementSl. No. Name of the Act1.The Employees State Insurance Act, 19482.The Employees Provident Fund and Miscellaneous Provisions Act,19523.The Dock Workers (Safety, Health and Welfare) Act, 19864.The Mines Act, 19525.The Iron Ore Mines, Manganese Ore Mines and Chrome Ore MinesLabor Welfare (Cess) Act, 19766.The Iron Ore Mines, Manganese Ore Mines and Chrome Ore MinesLabor Welfare Fund Act, 19767.The Mica Mines Labor Welfare Fund Act, 19468.The Beedi Workers Welfare Cess Act, 19769.The Limestone and Dolomite Mines Labor Welfare Fund Act, 197210.The Cine Workers Welfare (Cess) Act, 198111.The Beedi Workers Welfare Fund Act, 197612.The Cine Workers Welfare Fund Act, 1981(b) Labor laws enacted by Central Government and enforced both byCentral and State GovernmentsSl. No.

Name of the Act13.The Child Labor (Prohibition and Regulation) Act, 1986.14.The Building and Other Constructions Workers (Regulation ofEmployment and Conditions of Service) Act, 1996.15.The Contract Labor (Regulation and Abolition) Act, 1970.16.The Equal Remuneration Act, 1976.17.The Industrial Disputes Act, 1947.18.The Industrial Employment (Standing Orders) Act, 1946.19.The Inter-State Migrant Workmen (Regulation of Employment andConditions of Service) Act, 1979.20.The Labor Laws (Exemption from Furnishing Returns andMaintaining Registers by Certain Establishments) Act, 198821.The Maternity Benefit Act, 196122.The Minimum Wages Act, 194823.The Payment of Bonus Act, 196524.The Payment of Gratuity Act, 197225.The Payment of Wages Act, 193626.The Cine Workers and Cinema Theatre Workers (Regulation ofEmployment) Act, 198127.The Building and Other Construction Workers Cess Act, 199628.The Apprentices Act, 1961(c) Labor laws enacted by Central Govt. and enforced by the State Govts.Sl. No.

Name of the Act29.The Employers Liability Act, 193830.The Factories Act, 194831.The Motor Transport Workers Act, 196132.The Personal Injuries (Compensation Insurance) Act, 196333.The Personal Injuries (Emergency Provisions) Act, 196234.The Plantation Labor Act, 195135.The Sales Promotion Employees (Conditions of Service) Act, 197636.The Trade Unions Act, 192637.The Weekly Holidays Act, 194238.The Working Journalists and Other Newspapers Employees(Conditions of Service) and Miscellaneous Provisions Act, 195539.The Workmens Compensation Act, 192340.The Employment Exchange (Compulsory Notification of Vacancies)Act, 195941.The Children (Pledging of Labor) Act 193842.The Bonded Labor System (Abolition) Act, 197643.The Beedi and Cigar Workers (Conditions of Employment) Act, 196644.The Unorganized Workers Social Security Act, 2008Labour legislation in IndiaLiberty of thought, expression, belief, faith &worship.Equality- of status & opportunity. Fraternity-assuring the dignity of individual , unity & integration of the nation.Article 19.Article 19 (1) (a)-freedom of speech and expression.Article 19 (1) (b)-right to assemble peacefully without arms. Article 19 (1) (c)-Right to form associations or unions.The Constitution of India.Justice -social economic & political.Labour legislation in IndiaInterpretation of article 19 (importance for Labour).

Directive principles of state policy.Article 38.Promote welfare of people by securing and protecting as effectively as it may a social order in which justice social, economic and political shall inform all institutions of the national life.Labour legislation in IndiaThe state shall in particular, strive to minimise the inequalities in status , facilities and opportunities, not only amongst the individuals but also amongst groups of people residing in different areas or engage in different vocations.-commentsArticle 39.Article 39 (a) -that the citizens, men and women equally have the right to an adequate means of livelihood.Article 39(b)-the ownership and control of material resources of the community are so distributed as best to sub serve the common good.Labour legislation in IndiaArticle 39 (c)-that the operation of economic system do not result in concentration of wealth and means of production to the common detriment.Article 39 (d)-that there is equal pay for equal work for both men and women.Article 39 (e)-that the health and strength of workers, that men and women and tender age of children are not abused and citizens are not forced by economic necessity to enter a vocation, unsuited for their age and strength.Labour legislation in IndiaArticle 39 (f)-that the children are given opportunities and facilities to develop in a healthy manner and in conditions of freedom and dignity, and that childhood and youth are protected against exploitation, and against moral and material abandonment.comments.Article 41- right to work, to education and to public assistance in certain cases. -comments.Labour legislation in IndiaArticle 42-provision of just and humane conditions of work and maternity relief.Article 43-living wage for workers. - comments.Article 43 A----participation of workers in management of industries. - Comments. Concept of organised and unorganised sectorsOrganised sector.

The unorganised sector.Small in employment, size and associated with low capital intensity and lower productivity. These are not constituted as a separate legal entities for which balance sheet of assets and liabilities may be available.It consists of casual and contributing family workers; self-employed persons in an organised sector and private household, who are not eligible for paid , sick or annual leave or for any Social Security benefits given to employee.Unorganised sector means a person who works for wages or income directly or through agencies or contractor. Eg. Rickshaw owner, trade, transport etc.Trade unionism and trade union act 1926Gives immunity to the trade unions against certain forms of civil and criminal action.Facilitated registration, internal democracy, a role for outsider and permission for raising a political fund subject to separate accounting requirement.The act facilitates unionisation both in the organised and unorganised sectors.

Concept of organised and unorganised sectorsWork status in India92% of the workforce are in unorganised /informal sector while only 8% vote in the formal sector/organised sector. 05,may 2005 -petition submitted to a committee of Lok Sabha demanded for the provision of social security along with guarantee and regulation of employment.The un-organised sector workers Social Security Bill has alsready received the approval of the President of India and is functional.

Wage determination in the unorganised sectorFor the unorganised sector, the most useful instrument is the minimum wages act 1948. the concept of security and employment started with the public sector undertakings.The labour laws for both public sector and private-sector industry are more or less the same, the difference lay in the implementation of the laws.

Private sector

Organised sector

Unorganised sector

Unorganised workers Social Security act , 2008-a critical analysisSocial security schemes under the act.The government will notify schemes related to life and disability cover, health, maternity benefit and old age protection .It has ten schemes in the schedule including:-Aam admi bima yojna.Rastria swasth bima yojna.Janshree bima yojna.Janani suraksha bima yojna.Old age pension and family benefit schemes for weavers, artisans & master-craftspersons.Unorganised workers Social Security act , 2008-a critical analysisNegative features of the act.The act does not provide any Social Security, except registration.The act does not provide any guarantee, other than formation of advisory board at central and state level , and making the various Labour ministers the chairperson of the same.This is the highest fraud on unorganised workers who constitute not only one third of our population but also two thirds of our national income.59Unorganised workers Social Security act , 2008-a critical analysisThe act neither provides regulation of the employment nor encompasses the agrarian labours nor extends to all unorganised workers nor binds any government to any commitment.It neither provides mechanism for implementation nor caters for any penalty for non implementation.It neither caters for corpus funds or makes a categorisation for generating of resources. The special problem of women unorganized workers do not figure in the Bill. The problems of security, sexual harassment, proper accommodation for migrant women workers, issues relating to nature of work and industrial safety, gender wage gap, non-payment of wages, childcare facilities at work spot etc., have been totally neglected.

Unorganised workers Social Security act , 2008-a critical analysisThe special problems of migrant workers, especially inter-State migrants, among unorganized workers, especially the problem of security, has been totally ignored by the Act.Not only there is no penalty against the defaulting employers, there would be no action against the bureaucrats who refuse to register any unorganized worker under any of the twin scheduled schemes.

Unorganised workers Social Security act , 2008-a critical analysisThe national and state boards for unorganized workers provided for in the Act are advisory bodies and like the National Labour Commission they are toothless bodies. While implementation is left to the district bureaucracy, there is no independent enforcement or watchdog/oversight body with representation from unions and there is not even appellate authority.Overall assessment of the actAn overall assessment of the positive and negative features of the Act, reveals that many positive features like Registration and issuance of Smart Cards for the Unorganized Workers have been included in the Act. It seems that this Legislation will be able to fill the void that has been there, ever since the Country gained Independence. 63GlobalisationThe industry was not prepared for the challenge posed by globalisation.Neither the employer nor the trade unions knew about the effects of globalisation.The government was in deep slumber and the country was taken by surprise.The Indian consumer was exposed to international goods at highly competitive prices.

Globalisation Impact of changed economic scenario on government functioning.The first 50 years of independence was pro-Labour thinking. present scenario.The employer /industrialists, have been vehemently pressing for labour reforms for making Indian industry competitive for attracting more of foreign direct investment.The existing laws slow down the growth and job creation.Structural Analysis of labour ReformsAny change or reform in labour law depends on for competitive forces as under:-Trade unionEmployerPolitical partiesGovernmentSocial Security. social security aspect were never adequately focused.Social Security like unemployment in insurance, skill retaining and retooling, multi skilling etc is presently missing and needs to be explicitly demonstrated.

66Social SecurityEmployee Provident fund scheme.

Employee state insurance scheme.

No built-in mechanisms to neutralise/compensate for adverse fallout of globalisation, like closures, retrenchments etc.

Social Security system in China.Structural Analysis of labour ReformsLack of harmonisation and interstate differences in Labour laws.While Labour law is a central subject, its implementation in different states is different.Labour market rigidity or flexibility also vary from state to state.Regulation of contract labour.The contract labour (prohibition and regulation) act 1970.Provides a mechanism for registration of contractors (if more than 20 workers are engaged)