Labour laws

Role of Work and Labour Laws

Work and Labour Laws

 Work is central to people’s wellbeing

 Providing income, access to amenities, leading a productive and healthy life
 Paves way for broader social and economic advancement
 All is intricately related to employment and as such on the labour laws

Purpose the Labour Law: Meeting Economic and Social Challenges

 Establishing a legal system that facilitates productive individual and collective
employment relationships, and therefore a productive economy
 Providing a framework within which employers, workers can interact with
regard to work-related issues  achieving harmonious industrial relations
 Giving clear and constant reminder and guarantee of fundamental principles
and rights at work and establishing the processes for implementation and
enforcement of such principles.
 Substantive Provisions of Labour Legislation

Freedom of Right to collective Collective settlement of Right to

Association bargaining disputes strike

Elimination of Elimination of discrimination in Elimination of child

forced labour employment and occupation labour

Existing Laws in India are categorized as laws relating to:

 Industrial Relations  Deprived and Disadvantaged
 Wages Sections of the Society
 Working Hours, Conditions of  Social Security
Services and Employment  Labour Welfare
 Equality and Empowerment of  Employment & Training
Women  Others

 Close to 45 labour legislations exists for 7% of the organized sector workers

 The majority i.e. 93% of the workers are unorganized and remains
unprotected and vulnerable as these laws may not be applicable
 What are labour laws?

• This is a varied body of law applied to

such matters as employment,
remuneration, conditions of work, trade
unions, and industrial relations.
• In its most comprehensive sense the term
includes social security and disability
insurance as well
 Labour Laws
• Body of laws, administrative rulings, and
precedents
• Which address the relationship between
and among employers, employees, and
labor organizations,
• Often dealing with issues of public law.
 Elements of labour law

• The basic subject matter of labour law can be

considered under nine broad heads:
• employment;
• individual employment relationships
• wages and remuneration;
• conditions of work
• health, safety, and welfare;
• social security;
• trade unions and industrial relations;
• the administration of labor law;
• and special provisions for particular occupational or
other groups.
 Employment Laws
Deal with
• Employment Contracts and
• Issues regarding Employment and
• Workplace Discrimination and
• Other Private Law Issues
 Labour Laws in India

Challenges with existing laws in India

 Most workers are daily wage earners or self employed, with no provision for
unemployment insurance

 Even when some protection or benefits exists for unorganized sector, it mostly
follows a fragmented approach

 Most labour enactments deal with

 Regulation of work and work conditions (with/without grievance mechanism)
 Providing benefits such as social security, maternity, old age, pension,
healthcare
 Enabling the workers to take benefits of the welfare schemes (social
assistance) implemented by the state

A comprehensive approach integrating all the above three elements into a

single piece of legislation is generally not seen.
 Employment Laws
“Employment Laws cover broader area
than labour laws in the sense that
• employment laws cover all the areas of
employer/employee relationship
• except the negotiation process
• covered by labour law and collective
bargaining
 The Roots of Employment Law
• The labour movement has contributed towards the
enactment of laws protecting labour rights in the 19th
and 20th centuries
• Labour legislation in India can be traced back to the
history of British colonialism
• The British enacted the Factories Act in 1883
• The first stipulation of eight hours of work, the abolition
of child labour, and the restriction of women in night
employment, and the introduction of overtime wages for
work beyond eight hours were introduced
 The Roots of Employment Law
• The earliest Indian statute to regulate the
relationship between employer and his
workmen was the Trade Dispute Act,
1929 (Act 7 of 1929)
• Industrial Disputes Act (the Act) brought
into force on 01.04.1947 repealing the
Trade Disputes Act 1929
• India provides for core labour standards of
ILO for welfare of workers
 Labour Legislation in India

• Labour Legislation refers to all laws of the

Government which have been enacted to
provide social and economic security to the
labour or workers.
• The evils of industrialization have led to the
labour legislation. Now the state has a direct
interest in the industrial peace and prosperity.
• These acts are aimed at reduction of production
losses due to industrial disputes and to ensure
timely payment of wages and other minimum
amenties of the workers.
Why should there be Employment
Regulation ?
– Employers abuse workers to extract the
maximum
– Employers discriminate against
• disadvantaged groups,
• underpay workers who are immobile or invest in
firm-specific capital,
• fire workers who then need to be supported by
the state,
• force employees to work more than they wish
under the threat of dismissal,
• fail to insure workers against the risk of death,
illness or disability,
 Need of labour Legislation

• The basic principle of industrial legislation

is to ensure social justice to the workers .
• The object of legislation is the equitable
distribution of profits and benefits accruing
from industry between industrialists and
workers and affording protection to the
workers against harmful affects to their
health safety and morality
• In a developing country like India, Labour
legislation becomes especially important
because of the following reasons :
• 1). Labour organizations are relatively weak and
in most of the cases, they depend merely on the
mercy of the employers.
• Individual worker is economically very weak and
is unable to bargain his terms with the
employers. Now the prior payment of wages lay
off, dismissal, retrenchments etc , are all
governed by legislation. The economic insecurity
of the workers is removed to a great extent.
• 2). In many organizations, workers may feel
occupational insecurity.
• The workers may not be given money in case of
accidents, death, occupational Act, Employees State
Insurance Ac, certain benefits have been statutarily
given to workers which the employees otherwise may
not get from their employers.
• 3.) In any factories, there important working conditions
on account of which the employees health and safety is
always in danger.
• The factories Act contains a number of provisions
relating to health safety and welfare of workers. Special
provisions have been made for the women.
• 4.) Labour legislation is also necessary from the view
point of law and order situation and national security of
the country. State plays a vital role in the continuing
production.
• It helps in the economic development of the country.
• The idea of Welfare State is embodied in the Directive
Principles of the constitution and for reason, various
labour laws have been enacted to protect the sections of
the society.
• 5.) Labour Legislation is one of the most progressive
and dynamic instruments for achieving socio-economic
progress
Objectives of Labour Legislation

• The main objectives for various labour laws are

as follows :
1. To protect the workers from profit seeking
exploiters.
2. To promote cordial industrial relations between
employers and employees.
3. To preserve the health safety and welfare of
workers.
4. To product the interests of women and children
working in the factories.
 Principles of Labour Legislation :

• There are four principles on which the

labour legislation is based viz,
• 1. Social Justice
• 2. Economic Justice
• 3. National economy
• 4. International conventions
 Social Justice:

• The concept of social justice refers to providing

justice to everyone in the society so that the
poor are not exploited by the rich.
• It is an in the interest of both employers and
employees that they should consider themselves
as two wheels of a cart and firmly believe that
one cannot exist without the other.
 National Economy :

• Labour legislation ensures industrial peace and helps in

the industrialization of the country.
• The Directive principles of the constitution contain the
idea of welfare state.
• It is a fundamental of a welfare state to look after the
interest of workers who are the weakest section of the
society and satisfy their physical needs with the increase
in productivity the benefits are shared with the workers,
resulting in their prosperity.
• Thus for the growth of economy and development of the
country, labour legislation acts as guiding principle.
 International Conventions
• International labour organizations aims at
securing the minimum standard of living
for the workers throughout the world.
• If any convention is passed by govt, it
becomes binding if it is ratified by any
country.
• Thus, labour legislation is guided by these
conventions.
 2 Major Divisions of Employment
Laws
• Factory
• Shops and Commercial
Establishments
 8 Categories of Labour &
Employment Laws
• Laws related to Industrial Relations
• Laws related to Wages
• Laws related to Specific Industries
• Laws related to Equality and Empowerment of Women
• Laws related to Deprived and Disadvantaged Sections
of the Society
• Laws related to Social Security
• Laws related to Employment & Training
• Others
ILO CORE LABOUR STANDARDS &
OECD GUIDELINES FOR MULTINATIONAL
COMPANIES

Brief overview of the International Labour Organisation (ILO) and of

the Organisation for Economic Cooperation and Development in
Europe (OECD)
----------------

The International Labour Organisation was created in

1919, as part of the Treaty of Versailles.

Trauma of the first world war. The preamble of the ILO

Constitution states that : « Universal and lasting peace can
be accomplished only if it is based on social justice ».
 The preamble of the Constitution of the ILO, recognises that:

1. “Where social injustice, hardship and privation exist

peace and harmony are imperiled”,
2. “The failure of any nation to adopt humane conditions of
labour is an obstacle in the way of other nations which
desire to improve the conditions in their own countries”.

 Therefore the ILO assigns itself the following objectives :

1. Strengthen tri-partism and social dialogue
2. Promote and realise standards and fundamental principles and
rights at work
3. Enhance the coverage and effectiveness of social protection for
all
 The ILO is the only tri-partite international organisation :
Employers, trade unions and governments are all represented.

 The three parties negotiate and draft international labour

conventions/standards. Convention will then be adopted by
the International Labour Conference (held every year in
June in Geneva, Switzerland). Once a convention is adopted, it will
become binding to a Member State if it is ratified by its national
Parliament.

 Basic trade union rights (freedom of association &

collective bargaining) are fundamental labour rights which are
embedded in ILO conventions.
 The Organisation for Economic Cooperation and
Development was created in 1948 after the second world
war.

 Its original mission was to administer the funds of the Marshall

Plan and only gathered European countries.

 Today it is a Forum of 30 countries « committed to democracy

and the market economy »,

 It provides statistic, economic and social data, analyses of

economic development and, act as a fierce advocate of free market
and free trade policies,

 The OECD does not produce legislation.

 International Labour Organisation

• Main aims:
– To remove injustice, hardship and privation of
large masses of toiling people all over the
world
– To improve their living and working conditions
and thus establish universal and lasting peace
based upon social justice
 Scope
• Unemployment
• General condition of employment
• Wages
• Hours of work
• Weekly rest periods
• Holidays
• Employment of children, young persons and women
• Industrial health ,safety and social security
• Industrial relation
 Principles of ILO
• Labour is not a commodity
• Freedom of expression and of association
are essential to continued progress
• Poverty anywhere constitutes a danger to
prosperity everywhere
• Promotion of common welfare
 ILO’s 8 Core Conventions on
Fundamental Human Rights
• C-29 Forced Labour Convention, 1930
• C-87 Freedom of Association and Protection of the
Right to Organise Convention, 1949
• C-98 Right to Organise and Collective Bargaining
Convention, 1949
• C-100 Equal Remuneration Convention, 1951
• C-105 Abolition of Forced Labour Convention, 1957
• C-111 Discrimination (Employment and Occupation)
Convention, 1958
• C-138 Minimum Age Convention, 1973
• C-182 Worst Forms of Child Labour Convention, 1999
 Introduction to the ILO Core Labour Standards and the OECD Guidelines
----------------

THE ILO CORE LABOUR STANDARDS

 The ILO Declaration on Fundamental Principles and Rights at Work

Adopted in 1998, the Declaration commits Member States to respect and promote
principles and rights in 4 categories, whether or not they have ratified the relevant
Conventions.
ILO CORE LABOUR STANDARDS

These 4 categories are:

1. freedom of association and the effective recognition of the right to

collective bargaining,
2. the elimination of forced or compulsory labour,
3. the abolition of child labour, and
4. the elimination of discrimination in respect of employment and
occupation.

(Convention 87 – Freedom of Association and Protection of the Right to Organise, Convention 98 - Right to Organise and
Collective Bargaining, Convention 29 – Forced Labour, Convention 105 - Abolition of Forced Labour, Convention 111 –
Discrimination (Employment and Opportunity), Convention 100 – Equal Remuneration, Convention 138 – Minimum Age,
Convention 182 – Worst Forms of Child Labour)

(These are universal rights, they apply to all people in all States - regardless of the level of
economic development)
The OECD Guidelines for Multinational Enterprises

 First adopted in 1976

 Revised and strengthened Guidelines adopted in 2000
 The Guidelines are not legally binding, but they are not optional for
companies
 Countries that have adopted the Guidelines should encourage the
enterprises operating in their territories to observe the Guidelines
wherever they operate’

The Guidelines are composed of 10 chapters containing principles by

which a company should abide in all its activities, wherever it
operates.
The OECD Guidelines for Multinational Enterprises

Four of these 10 chapters are of particular interest for trade unions as they
relate to economic and social matters.

Companies should :
 Contribute to sustainable economic, social and environmental progress,
respect human rights, build capacity with local communities, Support good
Corporate governance, promote awareness of company policies to employees
(Chapter 2, General policies)

 Ensure that timely, regular, reliable and relevant information is

Disclosed. Information should cover basic information, company activities,
structure, financial situation and performance, further information regarding,
for example, social and/or environmental reporting are also covered. (Chapter
3, Disclosure)
 ILO Initiatives in India
Launch of Campaign “Your work is important”
Aims to raise awareness about the rights of the domestic workers amongst the
public, household employers, youth, RWAs, and domestic workers themselves.
- Partnering with the Media - Street Plays in Delhi at Youth Hotspots

Working with the Trade Unions/Movements

To organize and unionize the domestic workers
To spread awareness for decent work for domestic workers
To train Domestic Worker Advocates

Knowledge Creation and Dissemination

One dedicated double issue of Labour File Journal on Domestic Workers
Research studies on of different issues related to domestic work in India

Technical Assistance To MOLE

Member of the “Task Force on Domestic Workers”.
Partnering in the Skill Development Initiative for Domestic Workers
 Labour legislation in India
• International uniformity.
– To this end, conventions are passed at the
conferences of ILO.
– As a member of ILO,adopting these
conventions would require appropriate
legislation to to be brought about.
– The influence of International Labour
conventions has been significant in shaping
the course of Labour legislation in India.
• The Constitution of India.
Justice -social economic & political.
 Labour legislation in India
Liberty – of thought, expression, belief, faith
worship.
Equality- of status & opportunity.
 Fraternity-assuring the dignity of individual , unity
& integration of the nation.
• Article 19.
Article 19 (1) (a)-freedom of speech and
expression.
Article 19 (1) (b)-right to assemble peacefully
without arms.
Article 19 (1) (c)-Right to form associations or
unions.
Indian Constitution and Labour Law
• Fundamental Rights
• Directive Principles of State Policy:
– State to secure a social order for the
promotion of welfare of the people
– Equal justice and free legal aid
– Right to work , to education and to public
assistance
– Provision for just and humane conditions of
work maternity relief
– Living wage for workers
– Participation of workers in management
– Promotion of education and economic interest
of weaker sections
– Raise the level of nutrition and the standard of
living and to improve public health
– Organisation of agriculture and animal
husbandry
• 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.
 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.
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.
 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.
• Article 42-provision of just and humane
conditions of work and maternity relief.
• Article 43-living wage for workers.

• Article 43 –A----participation of workers

in management of industries.
 Indian Economy
– Organized Sector – Lesser
Employees
– Unorganized Sector – More
Employees
 Categories of Employees
• Government employees – Governed by
Constitution of India
• PSU Employees – Own service
regulations based on Statutory Orders
• Private sector employees –
– Managerial Staff – managerial,
administrative & supervisory
– Workman
 Unorganized Sector

• Unorganised work force due to lack of a common

objective as a result of
– casual nature of employment,
– ignorance or illiteracy,
– superior strength of the employer singly or in combination etc.
• Examples
• Construction workers,
• Labour employed in cottage industry,
• Handloom/Powerloom workers,
• Sweepers and scavengers,
• Beedi and cigar workers etc.
 Fact File
“The National Commission on Rural
Labour (NCRL) had observed that there
was acute indebtness amongst the rural
and agricultural workers and mentioned
that 16.08 million rural households
including those of agricultural labourers
were indebted.”
 Women & Employment Laws
• All the major Central Labour Laws are
applicable to women workers
• Few Legislations
– The Maternity Benefit Act, 1961
– The Equal Remuneration Act, 1976 - no
discrimination is permissible in recruitment and service
conditions except where employment of women is
prohibited or restricted by the law
– Industrial Employment (Standing Orders) Act, 1946
– Implementation guidelines for employers empowering
women of their right to work
 Women & Employment Laws
• All the major Central Labour Laws are
applicable to women workers
• Few Legislations
– The Maternity Benefit Act, 1961
– The Equal Remuneration Act, 1976 - no
discrimination is permissible in recruitment and service
conditions except where employment of women is
prohibited or restricted by the law
– Industrial Employment (Standing Orders) Act, 1946
– Implementation guidelines for employers empowering
women of their right to work
 7 Key Existing and Future
challenges for Indian Employment
Laws
– Challenge of Globalisation
– Of Labour competitiveness vis a vis China
and other nations
– Of redeployment of surplus manpower from
agriculture and manufacturing to services
and trade;
– Of recognising labor as human capital rather
than as a cost;
– Of continuous employability of labour;
– Of enlarging and utilising effectively the
infrastructure for education and training; and
– Of absorption of new technologies by labour
 The Constraints
• Numerous Legislations Applicable
• Complex Set of Central and State
Legislations
• Hinders the growth of Manufacturing
Sector
• Focus is on Organized Sector with lesser
employees
• Organized sector governed by close 50
central and state legislations
• Protects employees who are ‘workmen’-
Recommendations for Employment
Law Reforms
• Protection to employees should not impede business or
the efficient allocation of capital.
• Nor should employees be protected to the extent that
the law effectively precludes disciplinary action where it
is warranted.
• Harmonising the various statutes which operate.
• Policy makers should move to a single window system
for obtaining licences and registrations and, ultimately,
work towards a single National Labour Code.
 The Constraints
• Different statutes define ‘workmen’
differently - an employee entitled to a
benefit under one statute may not always
be entitled to benefits under another.
• Outdated Trade Union Laws
• Dilatory methods of adjudication of
industrial disputes.
• Complex procedures are out of sync with
the essential pre-requisites for the
success
 The Constraints
• Unwieldy number of adjudicating
authorities —
• conciliation officers,
• conciliation boards,
• courts of inquiry,
• labour courts,
• industrial tribunals and
• the national industrial tribunal