IMPLEMENTATION OF LABOUR LAWS AND POLICIES

PRESENTED BY: GARIMA SINGH GURTEZ SINGH SIMRANJEET KAUR VIRPAL KAUR

LAWS and POLICIES

An instrument to control, restrain and guide the

behavior and courses of action of individuals and their groups living in a society. Has a dual role that of an anchor providing stability as well as of accommodating changes. Policy is a principle or rule to guide decisions and achieve rational outcome(s). While law can compel or prohibit behaviors ,policy merely guides actions toward those that are most likely to achieve a desired outcome.

Principles of Laws & Policies

R.K. Das in 1937 mentioned four major principles of

labour legislation: Social justice Social welfare National economy International solidarity

Principle of Protection
To protect the interests of the workers

Particularly against the hazards of industrial process

Some of the areas include: Health hazards

Low wages
Malpractices Working hours

e.g. Factories act 1948, Mines act 1952

Principle of Social Justice

Establishment of equality in social relationships

Aims at removing discrimination

As per Indian Constitution, no discrimination on the basis of caste, race, sex and religion. It also abolishes Untouchability. e.g. Indian Slavery Act 1843, Equal Remuneration Act 1976.

Principle of Regulation
Seeks to regulate the relationships between the

employees and their associations on one hand, and workers and their organisations on the other. Seeks to balance of power in relationships Some areas include settlement of disputes, right to organise, collective bargaining etc. e. g. Industrial Disputes Act 1947, Industrial Courts Act 1919.

Principle of Welfare
To ensure the provision of certain basic amenities to

workers at their workplace To improve the living conditions of workers Promotes labour efficiency, establishment of industrial peace, and ensuring a stable and satisfied work-place. e. g. Mines act 1952, Plantation labour act 1951.

Principle of Social Security

Can be kept under 2 broad categories:

Depending on the contributions made by the beneficiaries Social insurance Social assistance e. g. Workmens Compensation Act 1923, Maternity Benefit Act 1961.

Principle of Economic Development

Depends upon the need for economic and industrial

development of the countries. These could be: Improvement of physical working conditions Prohibition of unfair labour practices Restrictions on strikes and lockouts etc.. These are covered under different pieces of labour laws

Principle of International Obligation

To give effect to the provisions of resolutions,

adopted by international organisations like ILO, UN. These resolutions are in the form of Conventions Recommendations
These include a wide variety of subjects like working hours, wages, minimum age of employment etc.

State labour law

Almost all labour laws is the existence of employer-

employee nexus. Based mainly on the number of employees, salary level etc. All the labour laws are enacted by parliament , quite few of them are implemented by both centraland state govt. Some of the parliament laws are implemented exclusively by the state govt. e.g trade unions act, 1926,workmens compensation act 1923,factories act 1948 ..

Indian constitution & labour legislations

To be called civilized, a society has to concede to its working class the right to live with dignity and security as human beings. This thinking find expression in the universal declaration of human rights, the preamble of league of the nations and united nations organisation. The aspiration of the working class finds expressions, at the national level, in the contitution of the nation.

Preamble of Indian constitution & labour legislations

Serves two purpose :

It indicate the source from which it drives its authority 2. It starts the objectives which it seeks to establish and promote. The preamble States to secure all its citizen: Justice ,social ,economic and political Liberty of thoughts ,expression ,belief ,faith & worship Equality of status and of opportunity Fraternity , assuring the dignity of the individual and unity and integrity of nation.
1.

Fundamental rights & labour legislation

Right to equality

Right to freedom
Right againt exploitation Right to freedom of religion

Culture & education right

Right to the constitutional remedies

Fundamental rights are subjected to reasonable restrictions.

ILO & its influence on labour legislation

The ILO (International Labor Organization) was set

up in the year 1919, with an aim to improve the conditions of labors around the world. ILO through its conventions and recommendations helps nations to draw their own set of labor laws for the better treatment of the working class, and the preservation of their rights. The ILO instruments have provided guidelines and useful framework for the evolution of legislative and administrative measures for the protection and advancement of the interest of labor.

The ILO has four strategic objectives

Promote and realize standards and fundamental

principles and rights at work Create greater opportunities for women and men to decent employment and income Enhance the coverage and effectiveness of social protection for all Strengthen tripartism and social dialogue

The Declaration of Philadelphia recognizes the "solemn obligation" of the ILO to further among nations of the world programs that will achieve the following:
full employment and the raising of standards of living;

employment of workers in the occupations for which they

are best suited and where they can make their greatest contribution to the common well-being; facilities for training and the transfer of labor, including migration for employment and settlement; policies in regard to wages and earnings, hours, and other conditions of work calculated to ensure a just share of the fruits of progress to all and a minimum living wage to all employed and in need of such protection;

 effective recognition of the right of collective bargaining, the

cooperation of management and labor in the continuous improvement of productive efficiency, and the collaboration of workers and employers in the preparation and application of social and economic measures; extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care; adequate protection for the life and health of workers in all occupations; child welfare and maternity protection; adequate nutrition, housing, and facilities for recreation and culture; and assurance of equality of educational and vocational opportunity. Since 1994 the ILO has been involved in a process of modernizing and strengthening its labor standards system

Who Can Implement Laws

Article 246 (4) of Constitution of India empowers both Centre

and State to make any law on labour. Most of the Labour Laws are enacted by the Parliament of India but they are implemented by State Governments through their administrative machinery. Any organization which is under control of Centre Government as Railways, Defence, Industries, Mines, Banks, etc. are regulated under different labour laws by Central Government Labour Department and State Government Labour Department has no authority on them. In some Labour Laws (Example: payment of Gratuity Act) where the organization on which the law is applicable is situated in more than one State, that law is implemented by Central Government Labour Department.

Ministries involved in Implementation Of labour law

HISTORY
1854 Public Works Department created. 1905 Labour and some other subjects transferred to new

department, the Department of Commerce and Industry. 1919 International Labour Organisation (ILO) established. 1921 Separate Department of Industries created on the recommendation of the Board. 1947 Department redesignated as Ministry of Labour under the charge of a Minister of Cabinet Rank.

Contd.
1957 Nomenclature changed to Ministry of Labour and

Employment. 1973 Department of Rehabilitation separated and Ministry renamed as Ministry of Labour. 1979 Work relating to Coal Mines Welfare Fund and Coal Mines Provident Fund transferred to Department of Coal. 1984 Labour Welfare Division shifted to Jaisalmer House, Mansingh Road, New Delhi. 1985 Nomenclature once again changed to Ministry of Labour. 1986 Administration of Cine Workers Welfare Fund Cess Act, 1981 transferred from Ministry of Information and Broadcasting to Ministry of Labour.

ADMINISTRATIVE STRUCTURE
The Ministry is under the charge of a Cabinet Minister who is assisted by a Minister of State. The administrative head of the Ministry is Secretary to the Government of India who is assisted by various Bureau Heads.

NUMBER OF EMPLOYEES
Number of sanctioned posts in Ministry (including attached and subordinate offices) Officers : 2,696 Staff : 8,699

WORKING HOURS
9 AM to 5.30 PM for main Ministry and 9.30 AM to 6.00 PM for attached and subordinate offices with half hour break from 1.00 PM to 1.30 PM, on same pattern as for other Ministries/Departments of Government of India.

Subjects allotted to the Ministry

Labour Policy (including wage policy) and legislation. Safety, Health and Welfare of Labour. Social Security of Labour. Policy relating to special target groups such as Child and Women Labour. Industrial Relations and enforcement of Labour Laws in the Central sphere.

Subjects allotted to the Ministry

Adjudication of Industrial Disputes through Central Government Industrial Tribunals-cum-Labour Courts and National Industrial Tribunals. Workers Education. Labour and Employment Statistics. Emigration of Labour for Employment Abroad. Employment Services and Vocational Training. Administration of Central Labour & Employment Services. International Co-operation in Labour and Employment matters.

FUNCTIONS
AUTONOMOUS BODIES
Employees State Insurance Corporation

(ESIC)

Responsible for: 1. Implementation of Employees State Insurance Act, 1948, which provides for medical care and treatment to insured persons and their families. 2. Providing assistance in terms of benefits during sickness and maternity, compensation for employment injury, pensions for dependants on the death of workers due to employment injury, etc. to employees covered under the ESIC Act.

FUNCTIONS
Employees Provident Fund

Organisation (EPFO)

Responsible for: 1. Administration of Employees Provident Funds and Miscellaneous Provisions Act, 1952. 2. Implementation of the schemes of Provident Fund, Family Pension and Deposit Linked Insurance for the benefit of the workers covered under the scheme. 3. Administration of Employees Pension Scheme, 1995 which has come into existence on 16.11.95.

FUNCTIONS
V.V. Giri National Labour

Institute (VVGNLI)

Responsible for: 1. Research, training and education on various aspects of labour both in the organised and unorganised sectors. 2. The mandates include: Undertaking and assisting in organising training and education programmes, seminars and workshops; Undertaking, aiding, promoting and coordinating research on its own or in collaboration with other agencies both at national and international level;

FUNCTIONS

l Analysing specific problems that are encountered in the planning and implementation of labour and allied programmes and to suggest remedial measures; l Establishing and maintaining library and information services and collaborate with other institutions and agencies in India and abroad which have similar objectives.

Central Board for Workers Education

(CBWE)

Responsible for: 1. Training of workers in techniques of trade unionism 2. Bringing about consciousness among workers about their rights, duties and responsibilities 3. Conducting programmes for rural workers education and functional adult education

FUNCTIONS
ADJUDICATING BODIES
Central Government Industrial Tribunals-

cum-Labour Courts (CGITs)

Responsible for: 1. Adjudication of the industrial disputes in organisations for which the Central Government is the appropriate Government. 2. Seventeen Industrial Tribunal-cum-Labour Courts have been set up under the provisions of the Industrial Disputes Act, 1947.

Board of Arbitration
Responsible for: 1. Compulsory arbitration of disputes between the Government employees and the Government on pay and allowances, weekly hours of work and leave of a class or grade of employees.

FUNCTIONS
ATTACHED OFFICIES Directorate General of Employment & Training (DGE&T)
Responsible for: 1. Laying down the policies, standards, norms and guidelines. 2. Co-ordinating employment services.

Office of the Chief Labour Commissioner

(Central)

1. 2. 3. 4. 5.

Responsible for: Prevention, investigation and settlement of industrial disputes in the Central sphere. Enforcement of awards and settlements. Implementation of labour laws in industries and establishments. Verification of membership of Unions affiliated to the Central Organisations of Workers. Fixation and revision of minimum wages.

FUNCTIONS
Directorate General of Factory Advice Service and

Labour Institutes (DGFASLI)

1. 2. 3. 4.

5. 6.

Responsible for: Safety, health and welfare of workers in factories and docks Coordinating implementation of the Factories Act, 1948. Administration of the Dock Workers (Safety, Health and Welfare) Act, 1986 Undertaking research in industrial safety, occupational health, industrial hygiene, industrial psychology and industrial physiology Providing training, mainly in the field of industrial safety and health. Regular in-service training of Factory Inspectors

FUNCTIONS
Labour Bureau

Responsible for:
Collection, compilation, analysis and publication of statistical data on labour related aspects. 2. Compilation and publication of the Consumer Price Index Numbers for industrial and agricultural workers. 3. Rendering necessary assistance to the State Governments in conducting training programmes in Labour Statistics at State/District/Unit levels
1.

FUNCTIONS
SUBORDINATE OFFICES
Directorate General of Mines Safety

(DGMS) Responsible for : 1. Enforcement of the provisions of the Mines Act, 1952 and the Rules and Regulations framed under the Act and, 2. The provisions of the Indian Electricity Act, 1910, as applicable to mines and oil fields.

Key Concerns In Labour Policy

Job protection & employment creation.

Upholding labour std. & enforcing labour law.

Extending legal protection to the unorganised

sector. Trade union recognition. Vocational training & skills development. Improvement in living standards, linking wages to productivity. Social security benefits. Industrial sickness & attendant problems.

Paradigm shift in labour policy environment

Labour policy should focus on facilitation, pro-action

& creation of harmonious environment. It should focus on development of skills & attitudes. It should strengthen information sharing, consultation, communication. Labour market is characterised by dualism so state should increase the scope of policies. State should focus on sound labour-management relationship.

ALIGN LABOUR POLICY WITH ECONOMIC POLICY

In todays world the policies of protection, self reliance, and

import subsistence are giving way to policies of export orientation and competition with a view to integrating the national economy with the global economy and to boost foreign investment and exports. To catch up with other industrialized countries, India needs to attract capital, cut costs and enhance competitiveness. In the sphere of labor this means a new alignment between industrialization policies and IR policies.

Therefore, labor policy should stress, from workers and unions point of view, on:
1. 2. 3. 4. 5. 6.

7.

The observance of minimum number of core labor standards. Free trade unions and collective bargaining. Workplace institutions capable of internalizing enforcement of labor standards/government regulations Investment in education and training Bringing the entire labor force under the purview of minimal but effective regulatory norms. Proactive labor market policies that provide building skills/competencies and reduce the existing mismatch between acquired and required skills. A culture of non interference by one party in the affairs of the other

COMPETITIVE LABOR POLICIES AT THE STATE LEVEL

State governments may consider the pros and cons of competitive labor policies with a view to inducing investment and encouraging job creation. Presently, states can make a difference in areas like trade union registration, recognition, minimum wage laws, defining or redefining limits or granting exemptions concerning the applicability of certain legislations, etc.

ISSUES IN INDUSTRIAL RELATIONS IMPLICATIONS OF CENTRE-STATE RELATIONS

1.

2.

Some state governments want to adopt competitive labor policies on some aspects like trade union recognition, discretionary powers concerning administrative sanctions for lay-off, closure and retrenchment, minimum wages and contract labor. This creates problems in ensuring a social floor in terms of minimum labor standards across states. The central government is responsible for the proper running of enterprises. State governments are mainly concerned with employment and labor relations issues. In the absence of balanced concern of both, multi-plant public sector enterprises owned and managed by central governments have become victims of political differences between the ruling party at the Centre and the states in which the plant is located.

Contd..
3. In recent years, the left parties adopted a divergent strategy of opposing, say, disinvestment of certain public enterprises at the national level, but encouraging the same in the states ruled by them. This created road blocks for the central government in affecting disinvestment, encouraging the role of private sector and FDI.

LABOR LAW REFORM

The government of India has appointed the Second National Commission on Labor(1999) to address the issue of aligning labor policy and labor laws with the contemporary concerns of product markets. The major thrust of changes in labor laws, from employers point of view should be along the following lines: Have fewer laws but ensure better enforcement. Multiple definitions should be eliminated across different legislations.

Contd..
Almost all Political parties and many unions favor

the secret ballot, but they have led to antiestablishment vote and destabilized recognized unions, causing strife in industrial relations. The provisions of Industrial disputes Act should be reviewed while preparing the Labor Code. Industrial Relations machinery should be made independent as recommended by the National Commission on labor.