"
Labour is not a community. Poverty anywhere constitutes danger to prosperity
everywhere "--
Declaration of Philadelphia
An organisation can work on the basis of two primary elements, i.e. human
resources and technology. It is very complicated to run an organisation and
manage its employees in a lawfully manner at the workplace. For this reason, we
need the labour laws those can manage the industrial relations between employees
and employers in an organise way. Labour laws are the branch of laws, precedents
and administrative rulings that address the statutory rights & restrictions of
employees and their organisations.
These laws also regulate the relationship between employers & employees in the
workplace. Besides, these laws deals with the issues of employee's safety and
heath, unfair labour practices, employment relations, collective bargaining,
registration of trade union, maternity leave, allocation surplus, customary or
interim bonus, fixation of wages & hours for a normal working day, night shifts,
overtime, claims, payment of gratuity, compulsory insurance, annual leave,
general holidays, strike, lock out, layoff procedures, retrenchment, penalties
and so on.
In India, the Union Government has conferred nearly 44 labour related acts, 29
of which have been amalgamate into 4 new labour codes i.e. the code on wages
2019, the industrial relation code 2020, the occupational Safety, health and
working conditions code 2020, the code on social security 2020. This paper tries
to elaborate the concept and origin of labour laws in India.
Concept and Origin of Labour Laws
The scope and purpose of labour laws have been enlarged over a period of time.
Early labour laws were made to safeguard and protect the interest of employers
governed by the laissez-faire declaration. It entails a guideline of minimum
government's interference in the economic affairs of people and society.
On the other side, present labour laws objective & goal to safeguard workman
from employer's exploitation. The circumstance and approach of labour laws
significantly changed and made the laws more progressive after coming the
Philadelphia Charter. The International Labour Organisation (ILO) adopted the
Philadelphia Declaration on 10th May 1944 to redefine the traditional objectives
of labour laws.
Evolution of Labour Legislation in India
In India, the one of first labour law is Apprentice Act 1850 which allows
orphaned children to find job after completing his 18 years of age. The modern
factory system was commenced during the establishment of Cotton Mills in 1851
and Jute Mill in West Bengal in 1855. A committee was established in 1875 to
inquire the circumstances of all factories and the main evolution of labour
legislation in India has been started during Lord Ripon's time as viceroy.
He enacted the first factories act 1881 based on the committee, it mainly
protects the employees & children who has completed the just 7 years age. In
1890, a recommendation was made by Lord Ripon and The Factory Commission was
passed in 1891. This act was fixed the everyday working time 9 hours for child
employees between 9 to 14 years of age and female workers have to do 11 hours of
work, employees will get 30 minutes break time for Tiffin and one day compulsory
rest in a week. This act was amended in 1911 and 1922.
According to Schedule 7 of the Indian Constitution, the labour is the part of
concurrent list which means the Union & State governments both can pass the
labour laws. However, the state governments shall not pass any labour laws which
violates the union laws.
Principles of Labour laws in India:
- Social Justice - The fundamental concept of social justice is to be treated equally to every person regardless of any discrimination on them.
- Social Equality - The fundamental concept of social equality is to preserve employee-friendly laws and it needs to be updated frequently because the situation doesn't always remain the same.
- Social Security - The fundamental concept of social security is referred to as an individual's overall security in his family, place of work, and society. To maintain a minimum living standard and it covers both basic requirements and unexpected life events.
- National Economy - According to this principle, the country's whole economic circumstance should be taken into account while enacting the labour laws because the condition of the national economy has a crucial impact on labour laws in any nation.
Factors Influencing Labour laws in India
In 1919, The International Labour Organisation (ILO) was established and It has
a significant impact on how labour laws evolved in all countries. The principle
of ILO confers that "labour is not a commodity" and the slogan that "poverty
anywhere is a threat to prosperity everywhere". This principle of ILO has
influenced the establishment of labour laws across the world.
In the time of colonial rule, labour laws in India were made under the pressure
of Lancashire and Birmingham manufacturers. They used to think that the labour,
which worked in mills and factories throughout the India, to be very poor
quality while comparing with their british counterparts. These labour laws were
helped to the Indian labour but they were more worried & concerned for
safeguarding the interests of British capitalists.
At the time, the British
Civil Servants used to carry the democratic & pragmatic tradition only for the
British. The Trade Union Act 1926, The Workmen's Compensation Act 1923, The
Payment of Wages Act 1936, and other Acts followed the British model.
Constitutional Provisions relating to Labour Laws in India
The nationalist leaders and freedom fighters supported, the industrial workers,
who worked hard to protective labour laws. The Preamble, Fundamental Rights,
DPSP of the Indian Constitution are all manifestation of promises made by the
national movement leaders regarding the establishment of a better and more
social order after the independence.
The constitution is the supreme law of a
nation and all laws are based on it. The constitution which has a significant
impact on all laws, specifically labour laws, ensures its citizens a 'socialist
pattern of society' and the formation of a 'Welfare State'. Indian labour laws
are mainly influenced by the Preamble, Fundamental Rights, DPSP and Judicial
Wisdom.
- Preamble - It is a very significant source of authority for the Parliament & State legislatures to consider before making any statutory laws. Preamble is the fundamental principle of the Indian Constitution. It confers 'Justice, social, economic and political; Liberty of thoughts, expression, belief, faith & worship; Equality of status and opportunity; Fraternity, unity and integrity of the nation'.
- Fundamental Rights
- Article 14 - This article states that "the state shall not deny to any person equality before the law or the equal protection of the laws within the territory of India". The positive concept is equal protection, it confers that to accomplish equality among all. Whereas, the negative concept is equality before law and it's strictly prohibited discrimination. But, in certain circumstances, the state has to confer special treatment like women, children, EWS, OBC etc.
- Article 16 - This article states that equal opportunity in matters of public employment. It means "no citizen shall be discriminated on ground only of religion, caste, race, sex, descent, residence, place of birth or any of them." This article also provides that the state can make any special provisions for the underprivileged classes.
- Article 19 - This article confers the bundle of rights like freedom of speech and expression, to assemble peaceably and without arms, to form associations or unions, to practice any profession or carry any occupation or trade and business etc. In accordance with labour laws, these constitutional rights play a significant role in empowering workers.
- Article 21 - This article confers the protection of life and personal liberty which means "no person shall be deprived of his life or personal liberty except according to the procedure established by law". This is a very significant and important fundamental right for a human being as well as in labour laws.
- Article 23 - This article states the prohibition of traffic in human beings and forced labour, and if anyone violates this provision, they will be punishable according to law. The Hon'ble Supreme Court laid down that the meaning of 'life' includes livelihood, and it has conferred in many cases that any employment below the minimum wage levels shall be illegal and amounts to slavery.
- Article 24 - This article confers that no child shall be employed below the age of 14 years in any mine or factory or engaged in any other hazardous employment.
- Directive Principles of State Policy - These principles are regarded as the soul of the Constitution as India is a welfare state. They provide guidance for the interpretation of fundamental rights of citizens as well as statutory rights. These are the fundamental principles for the governance of the country.
- Article 38 - This article states that the state shall strive to secure a social order for the promotion of the welfare of the people, ensuring justice—social, economic, and political. The state shall strive to minimize income inequalities and eliminate inequalities in status, facilities, and opportunities.
- Article 39 - This article confers that "everyone has a right to an adequate means of livelihood, control and ownership of the material resources of the community should be distributed in a way that promotes the welfare of all, equal pay for equal work for both women and men, and it's a constitutional goal to be accomplished".
- Article 42 - This article states that the state could make provisions relating to just and humane conditions of work and maternity relief.
- Article 43 - This article provides that the state can endeavour to ensure, by economic organisation or suitable legislation or in any other way, that all workers including those in agriculture and industry work in an environment that ensures a decent standard of life, a living wage, social and cultural opportunities, and full enjoyment of leisure.
- Seventh Schedule - This schedule deals with the division of powers between the central government and state governments. There are three kinds of lists mentioned in this schedule - Union List, State List, and Concurrent List. The Concurrent List covers most labour-related issues, and both the central and state governments have the power to make laws in this regard. It includes welfare of labour, provident funds, conditions of work, workman's compensation, maternity benefits, employer's liability, price control, factories, vocational and technical training of labour, invalidity and old age pensions etc.
Labour Laws in India
- Industrial Relations
- Industrial Disputes Act, 1947 - This act came into force on 1st April 1947
and it extends to the whole of india. This act applies to all industries whether
they can be controlled by private owner or government. It has been amended from
time to time. The main object of this act is to secure industrial peace by
settling and preventing industrial disputes between employees and employers,
relief to employees from lay off and retrenchment, prevention of illegal strikes
and lock-out, investigation and settlement, promotion of collective bargaining
and good relationship between workman & employer. According to this act, if
anyone do unfair labour practices he shall be liable to punish six months
imprisonment or fine Rs 1000/- or both.
- Indian Trade Union Act, 1926 - This act came into force on 1st June 1927
and it extends to the whole of india. According to L. J. Hanson, a trade union
essentially an organisation of the employees. Its actual function is to enable
the employees to act together, to stop brutally exploitation and force labour,
to protect on a large scale. As per this act, any seven or more members of trade
union can apply for its registration and atleast 10% or 100 members whichever is
less engaged or employed with the industry those are members of such trade union
from the date of application. At any time or after making application if some
members may disassociate not to effect unless their number is more than half.
The main object of trade union is to organise rights of employees, press their
demands collectively and if their demands are not accepted then they can go to
strike. The role of trade union is to negotiate pay and conditions, discuss
major changes, provide legal and financial advice to members, better working
conditions etc.
- Industrial Employment (Standing Order) Act,1946 - This act came into
force on 23rd April 1946 and it extends to the whole of india. It applies to
every industrial establishment wherein 100 or more employees are working on
any day of the preceding 12 months. The object of this act to sufficient
precision the conditions of employment under industrial establishment and it
includes conditions of discharge, disciplinary action, recruitment, holidays
of the employees etc. This rules enacted in this concern are known as
standing orders. However, this act not to apply to certain industrial
establishments i.e. The Fundamental and Supplementary Rules, The Civil
Services (Temporary Service) Rules, The Revised Leave Rules, The Indian
Railways Establishment Code, The Civil Service Regulations etc.
- Social Security Legislations
- Employees' Compensation Act,1923 - This act came into force on 1st
July 1924 and it extends to the whole of India. It is applicable to workmen
employed in factories, plantations, mines, transport establishments,
railways, construction works, circuses, ships and other hazardous
occupations as mentioned in Schedule II of this act. It is not applicable on
Armed Forces and workmen who are covered in Employees' State Insurance Act,
1948 and they are not eligible to get the compensation under this act. An
employer shall be liable to pay compensation to a workman if personal injury
is occurred to him by accident in the course of his employment and it is not
only mental or physical injury, it includes physiological and psychological
as well. Due to incapacity to work, nervous shock is happened, it is as much
as a personal injury as a broken limb.
- Employees' Provident Fund Act,1952 - This act came into force on
4th March 1952 and it extends to the whole of India. In earlier time, this
act only applied to industries engaged in manufacturing of cigarette,
electrical, cement, mechanical, paper and textile, iron and steel but now it
extends to over 150 industries and classes of establishments. It is a social
welfare legislation to confer for the institution of pension fund, provident
fund and deposit linked insurance fund for workmen employing in factories
and other establishment. The main object of this act is to confer social
security and timely monetary help to industrial workmen and their families
when they are in distress. This act confers three kinds of schemes for the
benefit of the workmen as follows to promote retirement savings, give post
retirement pension, relief to employee's family in case of sudden death.
- Employees' State Insurance Act,1948 - This is a landmark act in
the history of social security in India and it extends to the whole of
India. The object of this act is to introduce social insurance by conferring
for specific benefits to workmen in case of sickness, maternity, employment
injury, medical, funeral etc. These facilities are ensured by financial
contribution to the scheme both by workmen and employers. This act is not
applied as follows seasonal factories, military or air force, naval, mines,
factories controlled by government, railway etc. Section 84 of this act
confers the provision of punishment for false statement which may extend to
6 months imprisonment or fine not exceeding Rs 2000/- or both.
- Maternity Benefit Act,1961 - This act extends to the whole of
India and it applies on every factory, plantation, mine, shop wherein 10 or
more persons are working or were working in a year. The state government has
power to extend all or any provisions of this act after getting approval of
central government not less than 2 months' notice by notification in the
Official Gazette. This act is made for regulating the working women in
specific establishments for certain period before and after child-birth and
to confer for maternity benefit and other benefits. Every working women
shall be eligible to get maternity benefit from her employer at the rate of
the average daily wage and period of maternity leave is 26 weeks. If any
employer violates the provisions of this act or fails to pay the amount of
maternity benefit then he is liable to punishment which not be less than 3
months but may extend to 1 year and fine shall not be less than Rs 2000/- but may extend to Rs 5000/-.
- Legislation Affecting Conditions of Work
- Factories Act,1948 - This act came into force on 1st day of April
1949 and it extends to the whole of India including Jammu and Kashmir. The
main object of this act is to control and regulate the condition and
circumstance of work in manufacturing establishments. According to this act,
factory means 10 or more persons are working or were working with the aid of
power, or 20 or more persons are working or were working without the aid of
power on any day in proceeding 12 momths that is called factory.
Every employee has right to obtain information
regarding to employees' safety and health at workplace from the occupier,
employee has right to get trained within factory or sponsored him by the
occupier for training in an Institute or training centre duly approved by the
Chief Inspector. Section 7-A of this act, the general duties of the occupier is
to ensure the safety, health and welfare of all employees, so far as is
reasonable practical, while they are working in the workplace.
Chapter III of
this act confers the provisions to ensure the health of the employees are as
follows cleanliness, effective means of drainage, use of detergents,
disinfectants, painting, repainting and vanishing, disposal of wastes and
effluents, ventilation and temperature, dust and fume, artificial
humidification, overcrowding, drinking water, latrine and urinals, spittoons
etc.
Chapter IV of this act confers the provisions to ensure the safety of the
employees as follows examination of machinery in motion by a trained adult male
worker, fencing of machinery, prohibition of young employees to work on
dangerous machine, self-acting machine, hoists and lifts, restriction of work of
children and women near cotton-openers, pressure plant, floor and stairs or
means of access, protection of eyes, precautions in case of fire, maintenance of
building, safety officer etc.
Chapter V of this act confers the provisions to
ensure the welfare of the employees are as follows washing, storing and drying
clothing, sitting facilities, first-aid appliances, canteens, shelters, rest
rooms and lunch rooms, creches, welfare office for more than 500 employees are
working etc. There are provisions for the penalties to violate of this act as
follows Section 92 confers imprisonment up to two years, or a fine up to Rs 1
lakh, or both.
If the contravention continues after conviction, a further fine
of up to Rs 1,000/- per day. Section 94 provides imprisonment up to three years,
or a fine of not less than Rs 10,000/- but may extend up to Rs 2 lakhs. Section
95 says imprisonment up to six months, or a fine up to Rs 10,000/- or
both. Section 96 confers imprisonment of six months, or a fine up to Rs 10,000/-
or both and Section 96-A provides imprisonment up to seven years, or a fine up
to Rs 2,00,000/- or both.
- Law Relating to wages
- Minimum Wages Act,1948 - This act came into force on 15th March
1948. The Royal Commission has adopted this act in India. The main object
and aim of this act to prevent exploitation of un-organised labour, to fix the minimum wages by
appropriate government, payment of wages without any unauthorised deduction,
rate of minimum wages and proper implementation of this act, regulating hours of
work, payment of wages including overtime. This act mere apply on the mentioned
schedule 'Part I' and 'Part II' employments. First part employments are carpet
making, rice mill, shawl weaving, dal mill, any tobacco including bidi making,
any tea, coffee or rubber plantation, oil mill, any local authority,
construction or maintenance roads, stone breaking and stone crushing, public
motor transport, leather factory, all mines etc.
Second part employments are
agriculture, any form of farming, cultivation, dairy farming etc. According to
this act, wages mean remuneration and house rent allowance only and appropriate
government has power to determine or fix the minimum rate of wages specific in
'Part I' and 'Part II' employments. The minimum rates of wages can be fixed on
the basis of hour, day, month or other larger wage period. If any employer who
violates this act, he shall be punishable with imprisonment for a term which may
extend to six months or fine upto rs 500/- and both.
- Payment of Wages Act,1936 - This act came into force on 28th
March 1937 and it enacted on the recommendation of Whitley Committee. The
main object of this act to prevent unreasonable deduction, delay in paying
wages, to fix up the wage period. This act does not apply on any bonus,
house accommodation, supply of light and water, medical attendance, pension
or provident fund, any travelling
allowance, any gratuity payable etc.
According to this act, the responsibility
for payment of wages in factories the person who holds the post of manager, in
industrial or other establishment the person who holds the post of supervision,
upon railway the person nominated by the railway administration for the local
area concerned, in case of contractor the person who designated by such
contractor etc. According to section 4 of this act, a wage period shall not
exceed one month.
In railway, factory or industry less than 1000 persons are
employed then time of payments of wages shall be paid before expiring of 7 days
or more than 1000 persons are employed then it shall be paid within 10 days. In
case of termination of employee then it shall be paid within 2 days. The persons
are employed in dock, jetty or wharf then it shall be paid within 7 days.
- Payment of Bonus Act,1965 - This act came into force on 25th
September 1965. It extends to the whole of India. This act applies to every
factory, every other establishment where 20 or more persons are employed in
a year. The main objective of this act, to maintain harmony and peace
between employee and employer. It is a contribution which the employees have
made to the earning of profits by the industry and to fill up the space
between the living wages and the actual wages paid. Any person (other than
apprentice) wage not exceeding Rs
21000/- per month and If a person worked in the establishment for not less than
30 working days in a year, he shall be eligible for the bonus. According to
section 9 of this act, any person can be disqualified for bonus if he does
fraud, riotous and violent behavior, theft, misappropriation or sabotage of any
property.
According to section 10, a minimum bonus shall be 8.33% or Rs 100/-
but if any employee has not completed his 50 years of age then he gets Rs 60/-
instead of Rs 100/-. Section 12 provides when salary and wage exceeds Rs 7000/-
and wage ceiling is Rs 21,000/- then bonus will be calculated on Rs 7000/-. If
there is any contravene of the provision of this act or fail to comply the
direction under this act shall be punishable with imprisonment may extend 6
months or fine may extend Rs 1000/- or both.
- Payment of Gratuity Act, 1972 - This act came into force on 16th
September 1972 and it extends to the whole of India but it relates to
plantation or ports shall not extend to the Jammu and Kashmir. This act
largely based on West Bengal Employees' Payment of Compulsory Gratuity Act,
1971. It is a kind of retirement benefits like pension or provident fund and
a payment which is intended to assist a workman after his retirement.
This act confers a compulsory payment of gratuity from management of mines,
factory, ports, oilfields, plantation, shop, railway companies and other
establishment employing 10 or more persons. Section 4 of this act, gratuity
shall be payable if continuous service not less than 5 years except death or
disablement. The rate of gratuity shall pay to a workman at the rate of 15 days
wages in a year. The amount of gratuity payable to a workman shall not exceed Rs
20 Lakhs.
If any person makes a false statement or false representation for the purpose of
avoiding any payment shall be punishable with imprisonment 6 months or fine upto
Rs 10,000/- or both. If an employer intentionally violates this act, he shall be
punishable imprisonment at least 3 months not more than 1 year or fine upto Rs
10,000/- to 20,000/- or both.
Conclusion
The rights of the workers to be properly secured and for which there are a
number of codes already in our legal process which are to ensure the
constitutional rights so workers can enjoy. The labourers who are often less
educated and they are not well aware of these codifications. So they cannot
fight for the rights and it is the duty of labour unions to make them aware and
conscious about the existing norms.
The Hon'ble Supreme Court already upheld through various its judgements that the
fundamental rights of workers are to be secured to progress of the nation like
India. Therefore, Labour Department and Labour Ministry various agencies have to
come forward and the rights can enforce property to the uneducated strangers as
well. These laws shall assist to improve of doing business, creating jobs and
influencing the nation's future Industrial relations.
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