QUADRANT-I

Module 22: Labour Legislations : Introduction

1. Lesson Objectives

2. Introduction

3. Principles of Labour Legislation

3.1. Principle of Protection

3.2. Principles of Social Justice

3.3. Principles of Regulation

3.4. Principles of Welfare

3.5. Principle of Social Security

3.6. Principles of Economic Development

3.7. Principles of International Obligation

4. Factors Influencing Labour Legislation

4.1. Early Exploitative Industrial Society

4.2. Impact of Contemporary Events

4.3. The Growth of Trade Unionism

4.4. Political Freedom End of Colonial Rule and Extension of Adult Franchise

4.5. Rise of Socialist and Other Revolutionary Ideas

4.6. The Growth of Humanitarian Ideas and The Concept of Social Welfare and Social

Justice

4.7. Establishment of I.L.O.

4.8. Influence of Colonial Rule

4.9. The Struggle for National Emancipation and Adoption of Indian Constitution

4.10. Approach to Labour Law And Labour Relations

PRINCIPLES OF MODERN LABOUR LEGISLATION

1. Lesson Objectives

Upon completion of the lesson the students should be able to understand:

To understand the various principles of labour legislation.

To know the various factors influencing labour legislations.

2. Introduction

In the British colonial rule in India, a few labour laws such as the Tea District Emigrant Labour

Act, 1832 and Workmen Breach of Contract Act, 2859 were enacted to serve the interests of the

employers and were repressive in character. Similarly, the Assam Labour Emigration Acts 1863-1901

declared desertion of tea gardens in Assam without staying for the prescribed period and without

permission, a punishable offence. Examples of repressive labour laws are available in other countries as

well. For example, as early as 1351, the Statute of Labourers in England prescribed the maximum wage-

rates for various categories of

agricultural labourers, and

demanding more than the maximum

was declared a punishable offence. In

order to counter the formation and

growth of workers’ combination,

Combination Acts 1799, 1800 of

England “declared illegal any

combination for any of the purpose

for which most combinations of

workmen existed; and any workman

entering such a combination became

thereby liable to imprisonment”.

Among the purpose specified were

included: those of obtaining an

advance of wages, lessening hours of

work, preventing or hindering any person or persons from employing whomsoever he, she or they thought

proper to employ in his or their business; and controlling any person or persons carrying on any

manufacture, trade or business in the conduct or management thereof. Similar laws were enacted in

France and a few other European and Latin American countries. However, with the growth of democratic

ideas and principles, socialist and collectivist ideas, advent of welfare state, rise of trade unions,

emancipation of countries from colonial rule and a host of other forces, repressive labour laws came to be

repealed sooner or later, and we hardly get their examples in the modern industrial societies. In almost all

the countries of the world, labour laws increasingly became progressive in character and have been

enacted with certain objectives and on the consideration of certain principles, which are generally

reflected in the objects and reasons of the relevant bills.

3. Principles of Labour Legislations

The principles of labour legislations have been categorized differently by different scholars. For

example, Frank Tillyward, while examining

experiments in industrial legislation in Great Britain,

highlighted ‘protective’ and ‘regulative’ aspects of

such legislation.

In 1937, R.K. Das mentioned four major

principles of labour legislation

(1) Social Justice, includes: abolition off servitude, freedom of association, collective bargaining

and industrial conciliation.

(2) Social Welfare covers: development of childhood, opportunity of education, conservation of

womanhood and improvement of environment.

(3) National Economy is concerned with development of industry, control of working conditions,

regulation of wage payment and social insurance.

(4) International Solidarity has been explained in terms of the compliance of the provisions of

Conventions and Recommendations adopted by ILO.

Although the broad principles enunciated by R.K. Das reflect the considerations behind

enactment of number of labour laws, not all the specific principles covered are commensurate with the

broad groups under which they are placed. Besides, certain principles such as ‘social welfare’,

‘opportunity of education’, ‘conservation of womanhood’ and ‘development of industry’ have broader

implications rather than confined only to labour legislation.

On the basis of a study of the objectives behind the enactment of labour laws in a global

perspective, certain generalizations may be drawn in respect of the principles. These principles of labour

legislation may be classified and explained as follows:

2.1. Principle of Protection

The principle of protection suggests enactment of labour

legislation to protect those workers who are to protect their

interests on their own and also workers, in particular industries

against the hazards of industrial process. It is well known that the

early phases of industrialization witnessed hazardous and

strenuous physical working conditions, excessively long hours of

work, employment of children of tender ages and women on

dangerous operations and during night, pitifully low wages,

malpractices relating to mode and manner of wage payment and

similar other conditions, unbridled competition in the economic

and industrial fields and operation of the doctrine of laissez faire

resulted in a callous disregard of human elements in industry. The

workers lacking organized strength, were not in a position to raise

an effective voice against their hardships and sufferings. Flowever, a few philanthropists, social reformers

and even a few enlightened employers raised voice against the pitiable conditions of workers, particularly

children and women, and demanded enactment of laws to mitigate their hardships. It was under these

conditions, that the first factory legislation in the world in the form of Health and Morals of Apprentices

Act, was enacted in England in 1802.

As industrialization spread, a large number of factories with varying processes and products came

to be set up. These created new hazards for the workers in addition to the earlier ones. Besides the

establishment of factories, mining and other industries also came to be developed, bringing with them

similar problems and conditions. Some of the areas where legislative protection in factories and other

industrial establishments was needed included: health hazards, unsanitary and strenuous physical working

conditions, long hours of work, low wages, malpractices relating to mode and manner of wage-payment,

insufficient leave and holidays, exploitation of children of tender ages and women, and others. As said

earlier, the first measure was initiated in England in 1802 in the form of Health and Morals of

Apprentices Act. Subsequently, a series of Factories Acts with improved coverage and standards came to

be enacted ni almost all industrialized countries of the world. Similar laws were enacted for other

industries such as mines, transport, plantations, shops and establishments, and so forth. The minimum

wage and payment of wages legislations also seek to protect workers in matters concerning wages.

Examples of protective labour laws in India are: Factories Act 1948; Mines Act, 1952; Plantation

Labour Act, 1951; Child Labour (Prohibition and Regulation) Act, 1986; Beedi and Cigar Workers,

(Conditions of Employment) Act, 1966; Contract Labour (Regulation and Abolition) Act, 1970; Payment

of Wages Act, 1936 and Minimum Wages Act, 1948. Some of the important subjects covered in these

laws include: fixation of maximum hours of work, provision of weekly rest and holidays, protection of

health, prescription of safety measures, fixation of minimum age of employment, prohibition of night

work of women and children, regulation of underground work, fixation of minimum rates of wages and

protection of malpractices relating to mode and manner of wage-payment. Similar laws have been enacted

in almost all the countries of the world.

2.2. Principles of Social Justice

The principles of social justice implies

establishment of equality in social relationships. It aims

at removing discrimination suffered by particular groups

of labour. History is replete with examples where certain

groups of society or labour have been subjected to

various sorts of disabilities as compared to other groups

or workers in general. The disabilities and discrimination

suffered by slaves, serfs, indentured and migrant labour,

bonded labour, and others, is well-known.

Discrimination against women workers when compared

to their men counterpart, in matters relating to wages and

other terms and conditions of employment, have continued till date. The preamble to the constitution of

ILO recognizes that “universal and lasting peace can be established only if it is based upon social justice”

and its Philadelphia Charter of 1944 asserts, “All human beings, irrespective of race, creed of sex, have

the right to purpose both their material well-being and their spiritual development in conditions of

freedom and dignity, of economic security and equal opportunity.” Similarly, the Indian Constitution has

prohibited discrimination on the basis of caste, race, sex and religion. The Constitution also abolishes

‘untouchability’ in any form and prohibits beggars and forced labour. The Directive Principles of State

Policy also direct the state to strive to promote the welfare of the people by securing and protecting a

social order in which justice – social, economic and political, shall inform all institutions of the national

life.

Example of labour laws enacted keeping in view the principles of social justice are: Indian

Slavery Act, 1843; Equal Remuneration Act, 1976; Bonded Labour System (Abolition) Act, 1976 and

Contract Labour (Regulations and Abolition) Act, 1970.

2.3. Principles of Regulation

The Principle of regulation generally seeks to regulate

the relationship between the employers and their

association, on the one hand, and workers and their

organization, on the other. As the relationships between

the two groups have repercussions on the society, the

adverse consequences of collusion or combination

between them. Thus, the principle of regulation seeks to

regulate the balance of power in the relationships of the

two dominant groups in industrial relations. When the

employers were the stronger side, laws were enacted to

confer upon workers’ organizations, new rights and

privileges. On the other hand, when the workers’

organizations started misusing their strength, laws were enacted to curb their undesirable activities.

Similarly, when industrial actions – strikes, lock-outs – started causing hardships to consumers and

society at large, the state had to intervene and enact always to provide for machineries for the settlement

of industrial disputes. As industrial relations became complex, more and more areas of such relationships

had to be brought under the coverage of law. Some of the specific areas in which state regulation through

legislative measures have become necessary include: workers’ right to organize, registration of trade

unions and rights of registered trade unions, recognition of representative unions, collective bargaining,

settlement of industrial disputes, conciliation, adjudication and arbitration machineries, redressal of

grievances and grievance procedure, industrial actions such as strikes, lock-outs, picketing, unfair labour

practices, workers’ participation in management and tripartite bodies.

Examples of laws enacted on this principle are: Trade Unions Act, 1926; Industrial Disputes Act,

1947 and Industrial Employment (Standing Orders) Act, 1946 in India; Industrial Courts Act, 1919;

Industrial Relations Act, 1971 and Trade Union and Labour Relations (Consolidation) Act, 1992 of Great

Britain; and National Labour Relations Act, 1935 (Wagner Act) and Labour Management Relations Act,

1947 (Taft-Hartley) Act of USA. Similar regulative labour laws have been enacted in many other

countries of the world.

2.4. Principles of Welfare

Although the protective and social security laws have the effect of

promoting labour welfare, special labour welfare or labour welfare fund

laws have also been enacted, with a view to providing certain welfare

amenities to the workers, and often to their family members also. Some of

the protective labour laws such as the Factories Act, Mines Acts and

Plantation Labour Acts, also contain separate ‘welfare’ provisions. The

main purpose behind the enactment of labour laws on this principle is to

ensure the provision of certain basic amenities to workers at their place of

work and also, to improve the living conditions of workers and their

family members. Although an element of humanitarianism is involved in

this principle, it has wider implications for promoting labour efficiency,

establishment of industrial peace and ensuring a stable and satisfied work-

force.

Examples of laws enacted with this principle in view are: Mica Mines Labour Welfare Funds Act,

1946; Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund Act, 1976;

Beedi Workers Welfare Fund Act, 1976; Dock Workers (Safety, Fleath and Welfare) Act, 1986; State

Labour Welfare Fund Acts and welfare provisions under the Factories Act, 1948; Mines Act, 1952 and

Plantation Labour Act, 1951.

2.5. Principle of Social Security

Generally speaking, the principles of social security may be considered to be a part of the

principle of welfare, but in view of its special connotation, it is desirable to keep it under a separate

category. In industrial societies, income insecurity resulting from various contingencies of life such as

disablement, old age and death and others, has become a serious problem. Lord William Beveridge, the

pioneer in initiating a comprehensive social security plan mentioned five giants in the path of social

progress namely, ‘want’, ‘sickness’, ‘ignorance’, ‘squalor’ and ‘idleness’. The problem has become more

acute in view of phenomenal growth of the permanent class of wage-earners. During such contingencies,

the income of the earners either stops altogether or is reduced substantially or becomes intermittent

causing hardships not only to the earners, but also to their family members. One of the outstanding

measures to mitigate the hardship is to make available social security benefits under the coverage of

legislation. Social security legislation may be kept under two broad categories – social insurance

legislation and social assistance legislation. In social insurance, benefits are generally made available to

insured persons, under the condition of having paid the required contributions and fulfilling certain

eligibility conditions. The fund for social insurance schemes usually comes from contributions of the

beneficiaries and their employers, often supplemented by state

grants. Under social insurance, the beneficiaries receive benefits as

a matter of right. The benefits are not linked to the economic needs

of financial conditions fo the beneficiaries who receive these at the

rates and in the forms, established by law. In social assistance also,

the beneficiaries receive benefits as a matter of right, but they do

not have to make any contributions. The finance is made available

by the state or a source specified by the state. Social assistance

benefits are generally paid to persons of insufficient means and on

consideration of their minimum needs. In the beginning, social

security laws mainly covered industrial workers but subsequently,

other categories of workers, self-employed persons and people at

large, also came under its coverage.

Examples of social security laws include: (i) in India – Workmen’s

Compensation Act, 1923; Maternity Benefit Act, 1961; Employees’

State Insurance Act, 1948; Coal Mines Provident Fund and

Miscellaneous Provisions Act, 1948; Employees’ Provident Funds

and Miscellaneous Provisions Act, 1952, (ii) in Great Britain – National Insurance Acts; National

Insurance (Industrial Injuries) Act; National Health Insurance Act; Social Security Act; Social Security

Pension Act; and National Assistance Act; (iii) in USA – Old – Age, Survivors, Disability and Health

Insurance Act (OASDHI).

2.6. Principles of Economic Development

Labour laws have also been enacted keeping in view the need for economic and industrial development of

particular countries. Improvement of physical working

conditions, establishment of industrial peace, provision of

machineries for settlement of industrial disputes,

formation of forums of workers’ participation in

management, prohibition of labour practices, restrictions

on strikes and lock-outs, provision of social security

benefits and welfare facilities, certification of collective

agreements and regulation of hours of work have direct or indirect bearing on the pace and extent of

economic development. These areas are covered under different pieces of labour laws.

2.7. Principles of International Obligation

This principles postulates enactment of labour laws with a view to giving effect to the provisions of

resolutions, adopted by international organizations like ILO, UN and other similar bodies. In general, the

countries ratifying the resolutions or agreements are under obligation to enforce them. One of the

instruments of doing so is the enactment of laws. In regard to labour legislation, the impact of ILO is of

particular significance. The resolutions of ILO generally take the form of Conventions and

Recommendations. The Conventions are obligation-creating instruments. The member states ratifying

them are under the obligations of implementing their provisions by enacting labour laws or through

collective agreements or other effective measures. In practice, the implementation of the provisions of the

Conventions is mostly done by enacting new labour laws or amending the existing ones. The

Recommendations, on the other hand, are not obligation-creating instruments. They are sent to the

member states with a request to consider them while enacting labour laws or taking decisions in regard to

matters covered under them.

Conventions and Recommendations have covered wide range

of subjects concerning labour, for example, working

conditions including hours of work, weekly rest, and

holidays, wages, labour administration, employment of

children and young persons including minimum age of

employment, medical examination, night work, employment

of women including maternity protection, night work and

employment in unhealthy processes and equal pay, health,

safety and welfare, social security, industrial relations

including right to organize collective bargaining and

conciliation, and employment and unemployment. By July

2002, India had ratified 39 out of 184 Conventions adopted

by ILO Provisions of which most of the ratified Conventions

have been incorporated in the labour laws of the country. Provisions of quite a number of

Recommendations have, also, been embodied in labour law.

4. FACTORS INFLUENCING LABOUR LEGISLATIONS

3.1. Early Exploitative Industrial Society

The origin of labour legislation lies in the excesses of the early industrialism that followed Industrial

Revolution. The early phase of industrialization in the capital countries of the world was an era of

unbridled individualism, freedom of contract and the laissez-faire, and was characterized by excessive

hours of work, employment of young children under very unhygienic and unhealthy conditions, payment

of low-wages and other excesses. The conditions of life and labour in the early periods of industrialization

in India were extremely rigorous – hours of work were excessive, and the industrial labour drawn from

the rural areas was severely exploited. The British colonial rule in this country was primarily interested in

protecting the interests of the British capital invested in the Indian industries and not so much in

protecting workers.

It is well known that the early factory and labour legislation in India resulted from the need for

protecting the interests of the foreign industrialists and investors. In the tea plantations of Assam and

Bengal, where life and work became extremely intolerable, workers started deserting their place of work

for their village homes.

The earliest piece of labour legislation, the Tea District Emigrant Labour Act, 1832 and

Workmen’s Breach of Contract Act, 1859 were designed more for the purpose of ensuring a steady

supply of labour to the tea gardens in Assam, than for protecting the interests of the labourers. The latter

Act made the desertion of the tea gardens by the labourers, a criminal offence. This was despite that fact

that the conditions of life and work in the tea gardens were extremely difficult and strenuous. Similarly,

the first Factory Act of 1881 resulted from the complaints of the Lancashire textile magnates, against

competition by the cotton textiles produced in the Indian Mills because the labour employed by them was

extremely cheap. The main idea behind this legislation was to increase the cost of production of Indian

textiles by reducing the hours of work and improving other working conditions. Nobody denies the

benefits, which this legislation conferred on the Indian textile workers, but they were incidental to the

main purpose of this legislation - the protection of the interests of the Lancashire industrialists.

The second influence of colonial rule on Indian labour legislation, has grown out of the fact that

the early administrators and the civil servants in India were drawn from England. They bought with them

the pragmatism of the British Society and were steeped in the English tradition. The result has been that

the course and pattern of Indian labour legislation has closely followed that of England, though with a big

time lag. Starting in the form of a trickle, rooted in an experimental approach, labour legislation in both

the countries, gradually became a strong movement. The cotton textile industry was the first to come

under the purview of the Factories Acts in both the countries, though their scope at the early stages was

very restricted. Similarly, other pieces of labour legislations enacted during the period such as the various

amendments to the Factories Act, the Workmen Compensation Act, 1923, the Indian Mines Act, 1923,

the Indian Trade Unions Act, 1926, the Payment of Wages Act, 1936, the Employment of Children Act,

1938, among others, have followed the British pattern.

Naturally, such excesses could not have continued for long without protest and without demand for

reforms. Therefore, it can be safely said that the labour legislations are the natural children of industrial

revolution.

3.2. Impact of Contemporary Events

a. Along with Industrial Revolution, revolutionary thinking of Rousseau, J.S. Mill, the French

Revolution, Hegel. Marx & Engels and Russian Revolution greatly influenced the thought

processes and hastened the pace of labour jurisprudence.

b. The world wars made it possible for the labourers to realize their importance that unless they

produce, it will be difficult for warring nations to win. Therefore, they must stake their claims for

better quality of work life.

c. The revolution in science, technology, the communication and telecommunication also helped in

bringing the world closer. It became easier for the working classes of the underdeveloped world

to know the better conditions of service of their counterparts in the developed world.

3.3. The Growth of Trade Unionism

The Trade Union movement, which itself springs from industrial revolution has been another

factor which has quickened

the growth of labour

legislations. On the one

hand, their demands for

protection of the interests of

the working class led to

legislations in the field of

wages, hours of work,

womens’ compensation,

social security and other

areas; on the other hand,

their growth necessitated

legislations for the

regulation of industrial

disputes, their prevention

and settlement and trade

union rights and privileges. Trade unions have been as much conditioned by labour legislations as they

have conditioned them.

3.4. Political Freedom End of Colonial Rule and Extension of Adult Franchise

Gradual extension and adoption of universal adult suffrage placed in the hands of the working

class, a powerful instrument to influence the cause of state policy. Their representatives started espousing

the cause of labour and getting progressive legislations passed. The workers used their political powers

for betterment and amelioration of their lots.

3.5. Rise of Socialist and Other Revolutionary Ideas

In his analysis of capitalism, Marx showed that the exploitation of labour was inherent in the

capitalist economic system. Therefore, he advocated the overthrow of capitalist system.

The echo of the slogan, “the workers of the world unite, you have nothing to lose but your

chains”, reverberating throughout the capitalist world, sent a shudder among the conservative and

capitalist circles to which ameliorative and protective labour legislations came as safe alternatives. They

readily grasped labour legislations as antidote to the spread of revolutionary ideas. The Fabian Society of

Englant, the establishment of socialist and communist parties in many countries and first and second

international strengthened the trend for progressive labour legislations.

3.6. The Growth of Humanitarian Ideas and The Concept of Social Welfare and Social Justice

The humanitarian ideas and role of humanitarians, the philanthropic and social reformers

influenced the shape of labour legislation. Early Factories Acts were made possible because of the efforts

of the humanitarians like Flume, Place, Shaftesbury and others.

Researches in Social Sciences like Sociology, Psychology and Anthropology exploded the myth

of the natural elite and gave a powerful push to the movement of social reforms, social change, social

justice and labour legislations.

3.7. Establishment of I.L.O.

ILO, through Conventions and Recommendations, has undertaken the task of creating

international minimum standards of labour, which constitute the International Labour Code. They cover a

wide range of subjects including wages, hours of work, annual holidays with pay, minimum age of

employment, medical examination, maternity protection, industrial health, safety and welfare, social

security, freedom of association, right to organize and bargain collectively, employment conditions of

seamen and employment.

The ILO standards have influenced Indian Labour Legislations to a great extent. ILO standards

have formed the sheet-anchor of Indian Labour Legislations, especially after 1946 when Indian National

Government assured office. The Directive Principles of State Policy in Articles 39, 41, 42, 43 and 43 A of

the constitution, lay down policy objectives in the field of labour having close resemblance and influence

to the ILO Constitution and the Philadelphia Charter of 1944. Thus, the ILO both directly and indirectly

has had a great influence on the Indian Labour Scene and Labour Legislation.

3.8. Influence of Colonial Rule

Most of the early labour legislation came into being because of the pressure from the

manufacturers of Lancashire and Birmingham; because labour employed in factories and mills in India

were proving very cheap in comparison to their British counterparts. No doubt, these legislations were

beneficial to Indian labour but this benefit was incidental to the main purpose i.e. the protection of the

interests of British Capitalists.

The British Civil Servants carried with them the British tradition of democracy and pragmatism.

The Workman Compensation Act, 1923, the Indian Trade Union Act, 1926, the Payment of Wages Act,

1936 etc. followed British pattern.

3.9. The Struggle for National Emancipation and Adoption of Indian Constitution

The Industrial Workers got support from the freedom struggle and nationalist leaders who made

tireless efforts to get protective labour legislations enacted. The Indian Trade Unions Act, the

appointment of Royal Commission on Labour etc. was because of pressure from freedom struggle.

The leaders of the national movement had promised the establishment of a better and just social

order after independence; which was ultimately embodied in the Preamble, Fundamental Rights and

Directive Principles of State Policy of the Indian Constitution. Repressive Labour Laws were replaced by

Progressive Labour Laws.

3.10. Approach to Labour Law And Labour Relations

Labour law seeks to regulate the relations between an employer or a class of employers and their

employees. There has been a remarkable change in the approach to Labour Law and industrial relations

since the World War II. Philadelphia Charter adopted in 1944 provided that “Labour is not a commodity”

and that “poverty anywhere is a danger to prosperity everywhere”. W. Friedman and others who have

tried to analyse the essential characteristics of the legal development in this branch of law consider ‘social

duty’ on the part of employer as the main bedrock on which this law is built.

4. SUMMARY

The principles of labour legislations have been categorized differently by different scholars. For example,

Frank Tillyward, while examining experiments in industrial legislation in Great Britain, highlighted

‘protective’ and ‘regulative’ aspects of such legislation. In 1937, R.K. Das mentioned four major

principles of labour legislation: Social Justice, Social Welfare, National Economy and International

Solidarity. The principles on the basis of wide debates and discussion has been classified as: Principle of

Welfare, Principle of Protection, Principle of Regulation, Principle of Social Justice, Principle of Social

Security, Principle of Economic Development, Principle of International Obligation. Labour Legislations

are also influenced by many factors which had led to their modifications, amendments, deletions etc. such

as Approach to Labour Law and Labour Relations , The Struggle for National Emancipation and

Adoption of Indian Constitution , Influence of Colonial Rule, Establishment of I.L.O. , The Growth of

Humanitarian Ideas and The Concept of Social Welfare and Social Justice ,Rise of Socialist and Other

Revolutionary Ideas ,Political Freedom End of Colonial Rule and Extension Of Adult Franchise ,The

Growth of Trade Unionism ,Impact of Contemporary Events , Early Exploitative Industrial Society.