STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

CHANGE IN LABOUR RELATIONS POLICY

LABOUR LAW- I
PROJECT TOPIC:

State of Social Security in the Era of

Technological Change and Change in Labour
Relations Policy

UNDER THE ABLE GUIDANCE OF

MR. H. N TIWARI

Submitted by- Roll No. 01

Semester- IX
Section- A
BA.LL.B (HONS.)

FACULTY OF LAW,
UNIVERSITY OF ALLAHABAD

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

CHANGE IN LABOUR RELATIONS POLICY

CONTENTS

Serial Number

Topic

Page Number

Acknowledgement

03

Introduction

04

Historical Background of Labour Policy & Labour Law

s

04

Constitutional Framework

05

Labour laws in India

06

Labour policy in India

07

Labour Reforms in India

08

Social Security

11

Initiatives Proposed by State Governments to

Rationalize Labour Laws to promote social Security

12

10

Amendments in the Workmens Compensation Act

13

11

Proposed Amendments to the Minimum Wages Act

14

12

Current Labour Laws Amendments for social security

15

13

Other major Labour Acts which are under various stages 16

of consideration for amendments

14

Conclusion

17

15

Bibliography

18

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

CHANGE IN LABOUR RELATIONS POLICY

ACKNOWLEDGEMENT
I would like to express my deepest gratitude towards my teacher Prof. H. N Tiwari for his
invaluable knowledge and teaching abilities that have helped me to grasp this subject in a better
way. I would also like to thank him for giving me the opportunity to work on the topic of State
of Social Security in the Era of Technological Change and Change in Labour Relations
Policy, which has been an important aspect of the current evolving era of Labour Legislations in
the society.
I would also like to thank my family and friends without whose support this project was not
possible.
I would like to apologize for the mistakes that I may have committed while making this project.
I hope that I will be able to come up to the expectations of my parents and teachers and always
remain in their good books.
Thanking you,
Yours sincerely,
Aainy Aaquib Furrukh,
Semester IX,
Section A,
Roll Number- 01,
BA.LLB (Hons.),
Faculty of Law,
University of Allahabad.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

CHANGE IN LABOUR RELATIONS POLICY

INTRODUCTION
Labour law also known as employment law is the body of laws, administrative rulings, and
precedents which address the legal rights of, and restrictions on, working people and their
organizations. As such, it mediates many aspects of the relationship between trade unions,
employers and employees. In other words, Labour law defines the rights and obligations as
workers, union members and employers in the workplace. Generally, labour law covers:

Industrial relations certification of unions, labour-management relations,

collectivebargaining and unfair labour practices;

Workplace health and safety;

Employment standards, including general holidays, annual leave, working hours, unfair

Dismissals, minimum wage, layoff procedures and severance pay.

There are two broad categories of labour law:

Collective labour law relates to the tripartite relationship between employee, employer
and union. individual labour law concerns

Employees' rights at work and through the contract for work.

HISTORICAL BACKGROUND OF LABOUR POLICY & LABOUR LAWS

Indias Labour Policy is mainly based on Labour Laws. The labour laws of independent India
derive their origin, inspiration and strength partly from the views expressed by important
nationalist leaders during the days of national freedom struggle, partly from the debates of the
Constituent Assembly and partly from 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 has been enshrined in
Chapter-III (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. The Labour Laws were also influenced by important human rights and the conventions
and standards that have emerged from the United Nations. These include right to work of ones
choice, right against discrimination, prohibition of child labour, just and humane conditions of
work, social security, protection of wages, redress of grievances, right to organize and form trade
unions, collective bargaining and participation in management. Our labour laws have also been
significantly influenced by the deliberations of the various Sessions of the Indian Labour
Conference and the International Labour Conference. Labour legislations have also been shaped
and influenced by the recommendations of the various National Committees and Commissions
such as First National Commission on Labour (1969) under the Chairmanship of Justice
Gajendragadkar, National Commission on Rural Labour (1991), Second National Commission
on Labour (2002) under the Chairmanship of Shri Ravindra Varma etc. and judicial
pronouncements on labour related matters specifically pertaining to minimum wages, bonded
labour, child labour, contract labour etc.
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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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CONSTITUTIONAL FRAMEWORK
Under the Constitution of India, labour is a subject in the concurrent list where both the Central
and State Governments are competent to enact legislations. As a result , a large number of
labour laws have been enacted catering to different aspects of labour namely, occupational
health, safety, employment, training of apprentices, fixation, review and revision of minimum
wages, mode of payment of wages, payment of compensation to workmen who suffer injuries as
a result of accidents or causing death or disablement, bonded labour, contract labour, women
labour and child labour, resolution and adjudication of industrial disputes, provision of social
security such as provident fund, employees state insurance, gratuity, provision for payment of
bonus, regulating the working conditions of certain specific categories of workmen such as
plantation labour, beedi workers etc.
Besides, both Central and State Governments have formulated Rules to facilitate implementation
of these laws.
The Ministry of Labour & Employment is mandated to create a work environment conducive to
achieving a high rate of economic growth with due regard to protecting and safeguarding the
interests of the working class in general and those of the vulnerable sections of the society in
particular. The Ministry has been performing its assigned duties through the above stated
legislations with the help and cooperation of State Governments.3.4. It needs to be stated that in
a dynamic context, laws need to be reviewed from time to time. Hence, review / updation of
labour laws is a continuous process in order to bring them in tune with the emerging needs of the
economy such as attaining higher levels of productivity & competitiveness, increasing
employment opportunities, attaining more investment both domestic and foreign etc.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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LABOUR LAWS IN INDIA

The law relating to labour and employment in India is primarily known under the broad category
of "Industrial Law". The prevailing social and economic conditions have been largely influential
in shaping the Indian labour legislation, which regulate various aspects of work such as the
number of hours of work, wages, social security and facilities provided.
Workmen's Compensation Act of 1923

The Workmen's Compensation Act compensates a workman for any injury suffered
during the course of his employment or to his dependents in the case of his death. The
Act provides for the rate at which compensation shall be paid to an employee. This is one
of many social security laws in India.

Trade Unions Act of 1926

This Act enacted the rules and protections granted to Trade Unions in India. This law was
amended in 2001.

Payment of Wages Act of 1936

The Payment of Wages Act regulates by when wages shall be distributed to employees by
the employers. The law also provides the tax withholdings the employer must deduct and
pay to the central or state government before distributing the wages

Workmen's Compensation Act of 1923[

The Workmen's Compensation Act compensates a workman for any injury suffered
during the course of his employment or to his dependents in the case of his death. The
Act provides for the rate at which compensation shall be paid to an employee. This is one
of many social security laws in India.

Minimum Wages Act of 1948

The Minimum Wages Act prescribes minimum wages in all enterprises, and in some
cases those working at home per the schedule of the Act. Central and State Governments
can and do revise minimum wages at their discretion.

Industries (Regulation and Development) Act of 1951

This law declared numerous key manufacturing industries under its so-called First
Schedule. It placed many industries under common central government regulations in
addition to whatever laws state government enact. It also reserved over 600 products that
can only be manufactured in small scale enterprises, thereby regulating who can enter in
these businesses, and above all placing a limit on the number of employees per company
for the listed products.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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LABOUR POLICY IN INDIA

Indian policy in India has been evolving response to specific needs of the situation to suit
requirements of planned economic development & social justice , Labour policies are devised
to maintain economic development ,social justice, industrial harmony and welfare to labour in
the country.
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 department and industries department to study changes in laws and
rules.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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LABOUR REFORMS IN INDIA

"Labour reforms in India, in the context of economic liberalization and globalization, are much
desired, but also feared and misinterpreted. The issue has been a touchy one ever since the
liberalization era began in the early 1990s. The Common Minimum Programme (CMP) of the
United Progressive Alliance (UPA) promises to carry out much awaited labour reforms in the
Indian economy. The CMP has clearly indicated the need to streamline labour laws and enact
Employment Guarantee Act. However, implementing these reforms would require much
imagination and political will. The previous government had also proposed certain labour
reforms but could not muster the courage to carry them out.
The need to enact labour reforms to compete with other countries arises because of the following
reasons:

Despite the advantage of cheap labour, the Indian textile industry's productivity is low
compared to China and other major exporting countries because other exporting countries
have set up giant manufacturing capacities which bring improved productivity while in
India, exporters farm out their manufacturing to smaller units which results in low
productivity and quality.

Recent trend in garments is for 'smart clothes', which require better equipment and skills
as otherwise the Indian exporter will lose out on competitiveness.

The ID Act states that if a company employs more than 100 workers, the company cannot
close shop without the permission of the government. Further appointment of contract
labour, which is crucial to the garment industry, is not permitted.

An analysis of India's labour laws such as the ID Act has indicated that such legislation,
enacted to protect worker interests, actually leaves them worse off. Over the years, the
statutory protections of the ID Act neither protected employment in the organized sector,
which employs more than 100 workers, nor did it adequately address their compensation
issues in establishments that turn sick.

This is evidenced in the cases of textile mills of Mumbai and Ahmedabad where workers
have been denied their terminal benefits as the companies continue to languish as sick
units.

An analysis of India's labour laws such as the ID Act has indicated that such legislation,
enacted to protect worker interests, actually leaves them worse off. Over the years, the
statutory protections of the ID Act neither protected employment in the organized sector,
which employs more than 100 workers, nor did it adequately address their compensation
issues in establishments that turn sick.

This is evidenced in the cases of textile mills of Mumbai and Ahmedabad where workers
have been denied their terminal benefits as the companies continue to languish as sick
units.
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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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India's share of the global garment business is 2.75 per cent and under the new trade
regime it has the capability to capture 6 per cent of the business by the year 2010. To
achieve that, additional capacities need to be built up. The money for additional
capacities can come from the Indian public through the IPO route or through FDIs.

The catch however, is that neither the Indian entrepreneurs nor the foreign ones are
particularly keen to set up plant and machinery in India owing to the archaic labour laws
existing here.

The ID Act makes provisions for the investigation and settlement of industrial disputes.
When any employer discharges, dismisses, retrenches or otherwise terminates the
services of a workman without complying with the conditions of retrenchment provided
in the ID Act, the dispute or difference that can arise as a result between the workman and
the employer is deemed to be an industrial dispute.

Some reforms have been initiated in the past five years but the Industrial Disputes (ID)
Act, 1947, which is the major bone of contention, has been left untouched.

A commission, called the Second National Commission on Labour (SNCL) was set up to
look into the various aspects of labour laws and also the impact of globalization on
labour.

SNCL's recommendations were submitted about a year ago. The report accepted
globalization and liberalization processes as something that couldn't be wished away. It
recommended the unification of all existing legislation, including the Industrial Disputes
Act and the Trade Unions Act.

SNCL has recommended that the management's demand on closure, lay-off, etc. whittling
the number to 300, as an unfettered option. On contract labour, the tenor of the report is
ambiguous, seeking to create distinction between core and non-core activities. The report
recommends disallowing of contract labour in core activities except to meet sporadic
demands. However, neither core nor non - core activities have been defined.

The SNCL further recommended that if employees make an application for closure,
permission will be deemed to be granted if that approval has not been granted within 60
days.

If India wishes to shine better, it has to boost the marketability of its human resources.
India's labour laws have to work towards `drawing in' human resources
entrepreneurial talent and employees into the market so that natural resources and
savings will follow.

When natural resources and savings follow human resources into the market, the nation's
marketable and measurable output rises. If labour laws work towards `keeping out'
human resources from the market, natural resources and savings too will stay outside the
market. The nation's non-marketable and unaccountable output may rise, if at all.
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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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The reform of the economy began 12 years ago, but significant labour reforms have yet to
be initiated. Policy-makers and lawmakers have to enunciate new policies that would
allow India's human resources to play the leadership role in growing the economy. It is
time for change. India needs an `economic approach' to labour laws because human effort
is the principal determinant of economic well being.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

CHANGE IN LABOUR RELATIONS POLICY

SOCIAL SECUIRITY
India has a very basic social security system catering to a fairly small percentage of the countrys
workforce. Traditionally, Indians relied on their extended families for support in the event of
illness or other misfortunes. However, due to migration, urbanization and higher social mobility,
family bonds are less tight and family units much smaller than they used to be. So far, neither the
state nor private insurance companies have quite stepped up to fill this gap. There are two major
social security plans in India, the Employees Provident Fund Organization and the Employees
State Insurance Corporation (ESIC). The EPFO runs a so-called provident fund, a pension
scheme, and an insurance scheme. All of these are supposed to grant EPFO members and their
families benefits for old age, disability, and survivors in case the primary breadwinner dies.
Key Areas of Social Security in India:
Social security systems are a critical part of the public policy of any country and its development
agenda. Policies are crucially linked with the countrys economic growth and human
development. It is not just the welfarism of a nation being displayed by its social security
system; it is also a performance and governance index of the state as a whole and of
its mechanisms and ability to delivery wellbeing to the poor, the marginalized, and the
vulnerable.
The Indian Minister of Finance P. Chidambaran recently admitted that the performance of the
United Progressive Alliance government was below expectation on two fronts. One was its
inability thus far in pushing ahead with further reforms in financial services, especially in
banking, pension, and insurance. The other was the failure to improve the delivery mechanism
for the social security programs. for the setback in social security programs, he blamed the
rigidity of the bureaucracy, which still remained a hurdle in achieving inclusive growth.
The debate in India is heated, rightly so, but also extremely fragmented, and the core issues
of any comprehensive discussion about social security or the establishment of a social (and
ecological)economy seem to be understood only in a few academic pockets. The main
shortcoming is still the predominant influence of the welfare state concept, by which the state,
the benevolent patron, grants social assistance to its clients. Given the fragmentation and the
societal factions on top, the typical problems of defunct social security systems prevail:
Corruption in complex programs resulting in payment for access or entitlements;
creaming of the poor excluding beneficiaries, combined with low credibility of programs or
service providers;
Poor transparency, little marketing effort, and resulting high information deficits;
Exclusion of rural areas because of their poor accessibility (difficult road connectivity as well
as low penetration of monetary systems and few pay points).

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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INITIATIVES PROPOSED BY STATE GOVERNMENTS TO

RATIONALIZE LABOUR LAWS TO PROMOTE SOCIAL SECUIRTY
The State Governments of Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh and
Maharashtra have proposed to seek relaxation in some provisions of the Central Laws through
State Governments so as to facilitate setting up of Special Economic Zones and Special Enclaves
in their respective States. These proposals broadly relate to regulating the working hours,
empowering the Development Commissioner to fix for minimum wages, making provisions for
allowing the women workers to work in night shift etc.
The views of the Central Government on these bills are generally based on the following
principles:
a) The provisions framed for ensuring safety and health aspects of the workers need not be
relaxed;
(b) The provisions of the Central Acts, which are mostly implemented by the Central machinery,
need not be relaxed by the State Governments;
(c) The provisions in the State Bill should not be in contravention of theprovisions in the Central
Bill, presently under consideration, on the same subject, such as provisions for employment of
women in night shift under the Factories Act, 1948;
(d) The principles enshrined in the National Common Minimum Programme with regard to hire
and fire and the amendment of labour laws through consensus
should be scrupulously observed; and
(e) The powers and functions of the State Government, where there is no
provision to further delegate such powers and functions, should not be allowed to be delegated
further.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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AMENDMENTS IN THE WORKMENS COMPENSATION ACT

Labour Law India: Amendments in the Workmen's Compensation Act in India
Workmen's compensation Act has been amended on 9th January 2010.
Given below are the synopses of the changes.
(1) THE WORKMEN'S COMPENSATION (AMENDMENT) ACT, 2009 is now renamed as
THE EMPLOYEE'S COMPENSATION (AMENDMENT) ACT, 2009 and wherever "workman"
or "workmen" is mentioned in the entire Act the same needs to be read as "Employee"
(2) The compensation payable on death from the injury, is (i) minimum of Rs.80000 is increased
to Rs.120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor.
(3) The compensation payable on Permanent Total Disablement from the injury, is (i) minimum
of Rs.90000 is increased to Rs.140000 or (ii) 60% of the monthly wages of deceased multiplied
by the relevant factor.
(4) Definition of wages remains unaltered.
(5) For the purpose of claims settlement actual monthly wages have to be calculated without
ceiling of Rs.4000/- which will lead to multifold increase in claim outgo. The maximum amount
of claim compensation payable was Rs. 4.56 lakh in the case of death and Rs. 5.48 lakh in the
case of permanent total disablement. *(Refer to table and calculation below).
With the ceiling of Rs.4000/- being removed, the claims outgo will increase.
(6) Definition of workmen replaced by "Definition of Employee"- also now includes CLERICAL
employees.
* Maximum claim outgo in case of death when ceiling of Rs.4000 was there is calculated as
below:
50% of 4000* 228.54 (if age of employee was 16 years from table below) = Rs.4.56 lakhs

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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PROPOSED AMENDMENTS TO THE MINIMUM WAGES ACT

The Minimum Wages Act does not specify a minimum wage for everyone. Instead, it
notified wages in an industry-wise schedule. Most industries therefore, are not covered by
the Act.

The governments proposal for a national minimum wage was a trick. Firstly, the
national minimum wage will be the lowest wage of the unskilled worker and will be
specified at an appalling starvation-level. Secondly, a national minimum wage would
lead to a move to reduce the minimum wage even in states such as Kerala where the
minimum wage is higher. He said that even though the proposal does not directly state
that the wages in the schedules will be reduced to the national minimum wage, the
implication is exactly that. The gains of the workers in getting minimum wages at
particular levels in particular states must not be reduced, but that seems to be the
tendency. He suggested that there be a residual minimum wage instead. A residual
clause will say that any worker working in an industry not specified in the schedule will
have a minimum wage. Once you do that, then everybody gets covered, those in the
schedule, those not in the schedule, everyone will have a minimum wage.

The actual shortcoming of Indias minimum wages law is that millions of workers who
are not in traditional factories including domestic workers, are not included under the
law. Further, the law contains no deterrent. No person, no employer has ever gone to jail
for failure to pay minimum wages in this country.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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CURRENT LABOUR LAWS AMENDMENTS FOR SOCIAL SECURITY

The below-listed are the major Labour Laws Amendments in the last few years:
1. Amendment made in Payment of Wages Act, 1936 enhancing ceiling of workers from
Rs.1,600/- to Rs.6,500/- per month and subsequently to Rs.10,000/- per month
2. Amendment made Payment of Bonus Act, 1965, wherein the calculation ceiling and
eligibility limit under the Act has been enhanced from Rs.2,500/- to Rs.3,500/- and from
Rs.3,500/- to Rs.10,000/- per month respectively.
3. The Apprentices Act, 1961 has been amended to provide reservation for other backward
classes. The Maternity Benefit Act, 1961 has been amended to enhance the medical bonus
from Rs.250/-to Rs.1000/- and also empowering the Central Government to further
increase it to maximum of Rs.20,000/- through Gazette Notification.
4. The Workmens Compensation Act has been amended to make it gender neutral and it is
now called the Employees Compensation Act, 1923. Besides this, the Compensation in
case of death, disablement and funeral expense paid under the Act have also been
enhanced. The Plantation Labour Act, 1951 has been amended to provide safety and
occupational health care to plantation workers.
5. Employees State Insurance Act, 1948 has been amended to improve the quality of
delivery of benefits under the scheme and also to enable ESI infrastructure to be used to
provide health care to workers of the unorganized sector.
6. Industrial Disputes Act, 1947 has been amended to amplify the term appropriate
Government defined under section 2(a) of the Act. The wage ceiling for coverage under
the Act has been enhanced from Rs.1600/- to Rs.10,000/- per month to cover workmen
working in supervising capacity. The amended provisions also provide direct access for
the workman to the Labour Court or Tribunal.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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OTHER MAJOR LABOUR ACTS WHICH ARE UNDER VARIOUS

STAGES OF CONSIDERATION FOR AMENDMENTS
(i) The Building and Other Construction Workers (Regulation of Employment & Conditions of
Services) Act, 1996
(ii) The Factories Act 1948,
(iii) The Minimum wages Act 1948,
(iv) The Employees Provident Fund and Miscellaneous Provisions Act 1952,
(v) The Apprentice Act 1961
(vi) The Contract Labour (Regulation and Abolition) Act 1970
(vii) The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.
The Government has also introduced Bills in Parliament for Amendment in the following Labour
Acts: (i) The Mines Act, 1952.
(ii) The Labour Laws (Exemption from Furnishing Returns and Maintaining Registers by Certain
Establishments) Act, 1988.
(iii) The Inter-State Migrant Workmen (Regulations of Employment and Conditions of Service)
Act, 1979.
(iv) The Child Labour (Prohibition & Regulation) Act, 1986.
It was also highlighted that other major Labour Acts which are under various stages of
consideration for amendments are: (i) The Building and Other Construction Workers (Regulation of Employment
Services) Act, 1996

Conditions of

(ii) The Factories Act 1948,

(iii) The Minimum wages Act 1948,
(iv) The Employees Provident Fund and Miscellaneous Provisions Act 1952,
(v) The Apprentice Act 1961
(vi) The Contract Labour (Regulation and Abolition) Act 1970
(vii) The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.

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STATE OF SOCIAL SECURITY IN THE ERA OF TECHNOLOGICAL CHANGE AND

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CONCLUSION
The following recommendations need to be done with the system to regulate effective social
security in the labour relations policy:
(i)

(ii)

(iii)
(iv)

(v)

(vi)

(vii)

(viii)

(ix)

As mandated in the National Common Minimum Programme, the amendments in the

labour laws need to be based on a consensus, taking into account the interests of
stakeholders. This applies to any suggested amendment in respect of the Industrial
Disputes Act, 1947 and the Contract Labour (Regulation and Abolition) Act, 1970 as
well.
In case any sectorspecific relaxations in labour laws is sought, the administrative
Ministries/ Departments should first formulate them, discuss with all stake holders
including Central Trade Unions and refer them for the consideration of Ministry of
Labour & Employment only after a consensus is reached.
The unorganized sector workers need social security cover, preferably through
legislation. Especially the interests of the agricultural workers need to be protected.
Since inspections are becoming complaint driven, the problems of inspector raj may
not be as formidable as it is made out to be. The system of inspections cannot be
eliminated, as it would compromise with the interests of workers, especially those
who are vulnerable. Hence it would be more pragmatic to promote transparency by
resorting to self-certification system and placing employee-related information
obtained through this method.
The recommendation of the Second National Commission on Labour, ILO
Conventions, tripartite for a like Indian Labour Conference & Industrial Committees
and bipartite bodies like Ramanujam Committee should be taken into account whole
formulating amendment proposals of various labour laws.
Proposals pending consideration for a long time like the Workers Participation in
Management Bill, 1990 amendment to the Payment of Bonus Act, 1965 and the
Minimum Wages Act, 1948 etc. should be expedited.
The possibility of expanding the scope of the Employees State Insurance Act, 1948
and the Employees Provident Fund and Miscellaneous Provisions Act, 1952 to cover
even certain segments of unorganized sector workers may be considered.
Judiciary is overburdened and valuable time of inspectors is wasted in visiting courts.
The possibility of giving power of Executive Magistrate to Officers of the Labour
Department to dispose of cases relating to minor offences may be explored.
More emphasis is to be placed on building up of an effective labour eco-system.
While labour laws should be respected, what cannot be enforced should not be
legislated. It makes effective implementation of labour laws feasible while making
the environment conducive to job creation and friendly to small scale and
unorganized sector enterprises.

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BIBLIOGRAPHY
The following materials from various sources have helped me in completing this project

Flexibility, Employment and Labour Market Reforms in India- Alakh N Sharma.

Social Security of Labour in New Industrial Towns- G Vijay.

Defragmenting Global Disintegration of Value Creation and Labour Relations- S Mini.

Social security: Issues, challenges and prospects- ILO, Geneva.

Social Security Legislation in IndiaIII,

The Employees' State Insurance Scheme- Manorama G Savur.

www.legalservices.com

Labour and Industrial Laws- S.N. Misra.

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