Post independence

status of Labour
legislation in India
 Labour legislation
• Industrial jurisprudence .
Master and servant.
Laissez-faire.
Employer’s policy to hire & fire.
Industrial tribunals.
• Tripartism.
• Principles of social justice, social equity,
international uniformity and national economy.
• Various labour legislation in india.
 Labour legislation in India
• The term ‘ labour legislation. ‘

• The 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.

 Labour legislation in India
•Objectives.

Preservation of health, safety and welfare of
workers.

Maintenance of good relations between employers
and employees.
• Principles of labour legislation.

Social justice.

The essence of democracy is ensuring social justice to all
sections of the community .
 Labour legislation in India
Social justice
This 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 India
• Social 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 India
• National 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 India
• International 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.
• The Constitution of India.
Justice -social economic & political.
 Labour legislation in India
Liberty – 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.
 Labour legislation in India
• Interpretation 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 India
The 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.
-comments
 Article 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 India
Article 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 India
Article 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 India
• Article 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
sectors
•Organised 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 employer.
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 1926
• Gives 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
sectors
• Work status in India
92% 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.
 Wage determination in the
unorganised sector
• For 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
 Globalisation
• The 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
Reforms
• Any change or reform in labour law will depend on for
competitive forces as under:-
Trade union
Employer
Political parties
Government
• Social 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.
 Social Security
 Employee 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
Reforms
• Lack 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 very 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)
 Regulation of contract
labour.
• The contract labour (prohibition and regulation) act 1970.
 Appointment of a tripartite advisory board.
• Supreme Court ruling of 1960 and 1972.
• Notification of year 1976.
• Anamoly in 1970 act.
• Growing agitation for abolition of employment of
contract labour.
 Opinion of union leaders.

 the law may forbid retrenchments or closure, but in practice,

employers simply stop paying salaries or running Mills.
 Regulation of contract
labour.
 employment security only in theory .

Owners prevented from downsizing, see no point in putting

more money or effort to revamp. Instead they strip the
assets of their ailing companies.

Greater use of casual and contract workers, and the growing

realisation of Labour reflected through employers preference
to outsource drivers, gardeners, Canteen staff, etc.
Industrial development act
(I D ACT), 1947
• Deals with core Labour issues like investigation and
settlements of industrial disputes, regulation of
strikes, lockouts, layoffs, retrenchment and other
related matters.

• As per chapter VB of the act, it is compulsory for any

industrial establishment, employing more than
hundred workers to seek permission before resorting
to layoff, retrenchments & closure.
Industrial development act
(I D ACT), 1947
• Employers want that the limit of application of
chapter VB should be raised to 1000. Thus, the
industry will have global competence. They
will be less legal battles.

• Conclusion.