History and Post

independence status
of Labour legislation
in India

History is IMPORTANT
Evolution of labour legislations in India:-
Industrialization
& British
colonialism
Complex
industrial
relations
Inadequate civil
laws
Protect &
safeguard labor
rights
Labour policy
Labour legislation
Industrial jurisprudence . (the philosophy of law)
Master and servant.
Laissez-faire.
Employers policy to hire & fire.
Industrial tribunals.
Tripartism.
Principles of social justice, social equity,
international uniformity and national
economy.
Various labour legislation in india.
Scope of Labour legislations:-
Generally, labour law covers;
Industrial relations - certifications of unions, labour-
management relations, collective bargaining and unfair labour
practices;

Workplace health and safety;

Employment standards, including general holidays, annual
leave, working hours, unfair dismissals, minimum wage, lay-
off procedures, and severance pay.
Labour legislation in India
The term labour legislation.

Relationship/regulatory Protective of weaker party/conveys
subordination/dependent employment
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.
Growth Of Labor Legislation in India :
Labor legislation grew with the growth of industry.
In the eighteenth century India was a great agricultural/
manufacturing country.
Asian and European markets were mainly fed by the
looms supplied by India. but British government in India as
a matter of policy discouraged Indian manufacturers in
order to encourage the rising manufacturers of England.
Their policy was to make Indian people grow only raw
materials.
The British oppression in India continued for some time,
which led to the growth of Indian nationalism. In twentieth
century, the national movement took a new turn and there
was a common demand for Indian goods.
A non- cooperation movement, which is known as
Swadeshi movement, was started , which urged upon
the people to use goods made in India and to boycott
foreign goods.
The non cooperation movement synchronized with
periods of economic crisis gave impetus(push) to
industrialization. The growth of Indian private sector
owes much to these popular movements. Indian
economists advocated that the trade and commerce
should be free and stressed on free trade of local
goods. An attempt was made to put forward a theory of
economic development and planning suited to
conditions of our country. After thirtieth century
planning was accepted by the national movement as its
economic ideology. Thus planned Industrialization
became our main goal.
Historical Background of Labour Policy & Labour Laws
The labour laws of independent India derive their origin,
inspiration and strength
The views expressed by important nationalist leaders
during the days of national freedom struggle,
The debates of the Constituent Assembly
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(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.
Influenced by important human rights conventions
and standards emerged from the United Nations. -----
right to work of ones choice, right against
discrimination, prohibition of child labour, just and
humane conditions of work, social security, protection
of wages, redressal of grievances, right to organize
and form trade unions, collective bargaining and
participation in management.
Influenced by the deliberations of the Indian Labour
Conference and the International Labour Conference.
Recommendations of the various National
Committees and Commissions
judicial pronouncements on labour laws which have
helped to arrive at a better interpretation of these
laws and at times given a new direction to their
implementation.
In India the plantation industry in Assam was the first to
attract the legislative. A number of acts were passed
from 1863 onwards to regulate the recruitments.
These legislations protected more interests of the
employers than safeguarding the interest of the
workers. The Factories Act, was passed in 1881 and
the Mines Act in1901.But the most important act that
was passed to protect the interest of the workers was
the Workmens Compensation Act, 1923.
Some of the other important social security legislations
are :
1. The Employees State insurance Act, 1948
2. The employees Provident Funds Act, 1952 and
3. The Maternity Benefit Act, 1961
Purpose of labour legislation
Labour legislation should adapt to the economic and social challenges
of the modern world of work and need to fulfil three crucial roles:
to establish a legal system that facilitates productive individual
and collective employment relationships, and therefore a
productive economy;
by providing a framework within which employers, workers and
their representatives can interact with regard to work-related issues,
to serve as an important vehicle for achieving
harmonious industrial relations based on
workplace democracy;
to provide a constant reminder and guarantee of
fundamental principles and rights at work which have
received broad social acceptance and establish the processes
through which it can be enforced.
Nature of Labor Legislation/
instrument to regulate relationship
Products of Industrial Revolution
Regards Individual as a worker
Deals with problems of Labor
It Is Role -Relation
Regulates Conditions of Labor
It is unique in its origin , humane in its purpose, pious in its theory & liberal in
interpretation.
I. Products of Industrial Revolution :
LL drastically influenced the old concept of laissez faire existed on
the basis of supply and demand & master servant, free to enter
any contract. The Labor Legislations are the products of
Industrial Revolution and they have come into being to take
care of errors created due to specific circumstances. They are
different from common legislations. Therefore they are
specific and not general in philosophy, concept and even in
practice.
II. Regards Individual as a worker :
employer always conscious of their strength had led to unequal
relationship. Law had to interfere to protect the interest of the
dependent section. Labor Legislation regards the individual as a
worker, whereas social legislation considers him a citizen.
Workers being the weaker class of the society, suffer at the hands of
the employers. Therefore, these set of legislations are aimed at
protecting and securing justice to them.

III. It is Role- Relation :
Individuals have different role to perform and different laws
are designed for regulating the different roles. It is the role
relation that determines whether a particular legislation
falls under the category of labor legislation, social
legislation or general legislation. All these legislations try to
meet the specific objectives that are:
To provide subsistence (maintenance).
To aim at abundance (plenty).
To encourage equality (fairness).
To maintain security (safety).
IV. Regulates Conditions of Labor:
Labor legislations are aimed at regulating conditions of
labor, hence they are required to be revised more frequently
as compared to general legislations. Unless labor legislation
are subjected to frequent revision and left to continue as
they are, they become obsolete and irrelevant.



V. Deals with Problems of Labor :
Labor Legislations seeks to deal with the problems
arising out of the occupational status of individuals.
Problems such as hours of work, wages, working
conditions, trade unionism, industrial relations are the
main subject matter of labor legislation. LLaw Grew with
the speed of industrialization.
Unique feature of LL.- unlike other L eg. Contract law, where
the court can decide in the light of the terms of the contract
but in the application of LL. Courts keep the spirit of law in
mind it can protect the weaker class by creating new
obligations even when not asked.
Procedural aspects do not hamper the court decision. It can
decide on any procedure to come to a just and fair conclusion
Need For Labor Legislation
Weak Labor Organizations
Occupational Insecurity
Hazardous Working Conditions
Law And Order
Achieving Socio Economic Progress
The Need of Labor Legislation becomes important
because of following reasons :
a) Weak Labor Organizations :
Individual worker is economically very weak and is
unable to bargain his terms with the employers. Even,
Labor organizations are relatively weak and in most
cases, they depend merely on the mercy employers.
Now as the payment of wages, lay off, dismissal,
retrenchments etc, are all governed by the
legislations, economic insecurity of workers is
removed to great extent.
b) Occupational Insecurity :
The workers in many organizations, did not get
the amount in case of accidents, deaths etc. As a
result, the workers faced occupational insecurity.
Now, benefits such as Occupational Act,
Employees State Insurance Act, etc have been
statutorily given to the employees.
c) Hazardous Working Conditions:
Workers health and safety is always in danger
due to harmful working condition in some
factories.The Factories Act, contains a numbere
of provisions relating to health, safety and
welfare of workers.
d) Law And Order :
Labor legislation is also necessary in order to
maintain law and order situation and national
security of the country. The idea of welfare state is
embodied in the directive principles of the
constitution and for that reason various labor laws
have been enacted to protect the sections of the
society.
e) Achieving Socio economic Progress :
Labor legislation is one of the most progressive and
dynamic instruments for achieving socio
economic progress.
Labour Policy of India
Labour policy in India has been evolving in response to specific needs
of the situation to suit requirements of planned economic
development and social justice and has two fold objectives,
namely maintaining industrial peace and promoting the welfare of
labour.
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 dept. and industries dept. to study changes in
laws and rules.
Objectives of Labor Legislation :
To protect the workers from profit seeking
exploiters.
To ensure that the service conditions should be
clearly spelt out by the employer to the
employee.
To improve and regulate the working conditions
of workers employed in different factories and
establishments.
To make statutory provision for the regular
trainings of a certain number of apprentices in
different trades.

To ensure that the employees are paid their wages
on fixed dates and there should be no deduction
made from the wages.

To promote industrial relations and industrial
peace between employers and employees.

To preserve the health, safety and welfare of
workers.
To protect the interests of women and children
working in the factories.
To maintain the dignity of employees in their
organizations.
28
Principles OF LABOUR LAWS
1. Social Justice
Labour Legislations contain the principles of social
justice, social equity, social security and national
economy. The essence of democracy is ensuring
social justice to all sections of the community .

a) Equal distribution of profits and other
industrial benefits between Owner and
Workers
b) Providing protection to Workers against
harmful effects to health, safety and
morality


29
Principles Of Labour Laws
2. Social Equity-(justice tempered by
ethics) labour laws must be dynamic;
government must modify the laws in line
with changing environment
3. International Uniformity
4. National economy
Principles of labour legislation
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.


34
MAIN POSTULATES(suggestions) OF
LABOUR POLICY
1. State Custodian of interest of
community, catalyst of change and
Welfare Programmes
2. Right of Workers to peaceful direct
action if justice is denied
3. Encouragement to mutual
settlement, Collective Bargaining and
Voluntary Arbitration



35
Main postulates of labour policy
4. State intervention in favour of
weaker party to ensure fair treatment
to all
5. Maintenance of industrial peace
primary objective
6. Evolving Employer and Employee
partnership to promote economic
needs of community
7. Ensuring - fair wage standards and
social security

36
Main postulates of labour policy
8. Co-operation for augmenting
production and increasing
productivity
9. Adequate enforcement of
legislation
10. Enhancing status of Workers in
industry
11. Tripartite consultation
Types Of Labor Legislations
Protective Labor Legislation
Regulative Labor Legislation
Social Security Legislations
Welfare Legislations
Classification of Labour Legislations in India:-
I) Protective Labor Legislations :
The legislations whose primary purpose is to
protect minimum labor standards and improve
working conditions are protective labor
legislations. Legislations laying down the
minimum labor standards in the areas of work,
safety, employment of children and women and
also the manner of wage payment come under
this category. The Indian labor laws under this
category are :
1) The Factories Act, 1948,
2) The Mines Act, 1952,
3) The Plantation Labor Act, 1951,
4) The Motor Transport Workers Act, 1961,

5) The Shops and Establishment Act passed by
various states,

6) The Payment of Wages Act, 1936,

7) The Minimum Wages Act, 1948,

8) The Child Labor (Prohibition and regulation)
Act, 1986 and

9) Contract Labor (Regulation and Abolition)
Act, 1970.


II )Regulative Legislations : Laws related to Working Hours,
Conditions of Service and Employment
The legislations whose primary purpose is to regulate the
relations between employers and employees and to
provide for methods and manners for settling industrial
disputes are Regulative Legislations. This laws also
regulate the relationships between workers and trade
unions, the rights and obligations of the organizations of
employers and workers, as well as their mutual
relationships. The laws under this category are as
follows :
1) The Trade Unions Act, 1926,
2) The Industrial Disputes Act, 1947, and
3) The Industrial Employment (Standing Orders) Act, 1946
III) Social Security Legislations :
The Legislations which intend to provide social security benefits to
the workmen during certain contingencies of life are Social
Security Legislations. Though this legislations may cover other
classes of citizens also, their primary goal has been to protect the
workers. The laws under this category are as follows:
1) The Workmen's Compensation Act, 1923,
2) The Employees State Insurance Act, 1948,
3) The Coal Mines Provident Fund and Miscellaneous Provisions
Act, 1948,
4) The Employees Provident Funds and Miscellaneous Provisions
Act, 1952
5) The Maternity Benefit Act, 1961, and
6) The Payment of Gratuity Act, 1972.
IV) Welfare Legislations:
The legislations which aim at promoting the general
welfare of the workers and improve their living
conditions are Welfare legislations. Such laws carry
the term Welfare in their titles and provide for the
funds which is spent on improving the general
welfare of workers including housing, medical,
educational and recreational facilities.
. The Laws under this category are as follows :
1) Mica Mines Labor Welfare Fund Act, 1946,
2) Iron Ore Mines, Manganese Ore Mines and Chrome
Ore Mines labor Welfare Fund Act, 1976 and
3) Beedi Workers Welfare Fund Act, 1976.

Labour is a concurrent subject in the Constitution of India
- both the Union and the state governments are
competent to legislate on labour matters and administer
the same. The bulk of important legislative acts have
been enacted by the Parliament.
The legislations can be categorized as follows:
1) Labour laws enacted by the Central Government,
where the Central Government has the sole responsibility
for enforcement.
2) Labour laws enacted by Central Government and
enforced both by Central and State Governments.
3) Labour laws enacted by Central Government and
enforced by the State Governments.
4) Labour laws enacted and enforced by the various State
Governments which apply to respective States.
(a) Labor laws enacted by the Central Government, where the Central
Government has the sole responsibility for enforcement
Sl. No.
Name of the Act
1. The Employees State Insurance Act, 1948
2. The Employees Provident Fund and Miscellaneous Provisions Act,1952
3. The Dock Workers (Safety, Health and Welfare) Act, 1986
4. The Mines Act, 1952
5. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines
Labor Welfare (Cess) Act, 1976
6. The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines
Labor Welfare Fund Act, 1976
7. The Mica Mines Labor Welfare Fund Act, 1946
8. The Beedi Workers Welfare Cess Act, 1976
9. The Limestone and Dolomite Mines Labor Welfare Fund Act, 1972
10. The Cine Workers Welfare (Cess) Act, 1981
11. The Beedi Workers Welfare Fund Act, 1976
12. The Cine Workers Welfare Fund Act, 1981
(b) Labor laws enacted by Central Government and enforced both by
Central and State Governments
Sl. No.

Name of the Act
13. The Child Labor (Prohibition and Regulation) Act, 1986.
14. The Building and Other Constructions Workers (Regulation of
Employment and Conditions of Service) Act, 1996.
15. The Contract Labor (Regulation and Abolition) Act, 1970.
16. The Equal Remuneration Act, 1976.
17. The Industrial Disputes Act, 1947.
18. The Industrial Employment (Standing Orders) Act, 1946.
19. The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979.
20. The Labor Laws (Exemption from Furnishing Returns and
Maintaining Registers by Certain Establishments) Act, 1988
21. The Maternity Benefit Act, 1961
22. The Minimum Wages Act, 1948
23. The Payment of Bonus Act, 1965
24. The Payment of Gratuity Act, 1972
25. The Payment of Wages Act, 1936
26. The Cine Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981
27. The Building and Other Construction Workers Cess Act, 1996
28. The Apprentices Act, 1961
(c) Labor laws enacted by Central Govt. and enforced by the State Govts.
Sl.
No.

Name of the Act
29. The Employers Liability Act, 1938
30. The Factories Act, 1948
31. The Motor Transport Workers Act, 1961
32. The Personal Injuries (Compensation Insurance) Act, 1963
33. The Personal Injuries (Emergency Provisions) Act, 1962
34. The Plantation Labor Act, 1951
35. The Sales Promotion Employees (Conditions of Service) Act, 1976
36. The Trade Unions Act, 1926
37. The Weekly Holidays Act, 1942
38. The Working Journalists and Other Newspapers Employees
(Conditions of Service) and Miscellaneous Provisions Act, 1955
39. The Workmens Compensation Act, 1923
40. The Employment Exchange (Compulsory Notification of Vacancies)
Act, 1959
41. The Children (Pledging of Labor) Act 1938
42. The Bonded Labor System (Abolition) Act, 1976
43. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
44.
The Unorganized Workers Social Security Act, 2008
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.
The Constitution of India.
Justice -social economic & political.
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 employee.
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
and is functional.

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 depends 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 vary 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)