Historical Development of

labour laws
Four Phases
Hindu period
Muslim period
British Period
Independent India
• Early Industrial Period—
• 1854- Coal Mines
• Jute Mills in Surat
• Cotton Mills in Amedabad, Bombay
• Plantations workers exploitation
• (All of these provided employment- but long
hours, insanitary conditions , no rest , no
holidays)
• Tata Steel 1859-1932- opened plant at
jamshedpur-1,20,000 workers by 1945-high
pay .
• Factories Act Introduced-1883- eight hours of
work, overtime after 8 hrs, no child to be
employed, no woman to work at night.
• 1919- All labour legislations under the
government of India Act.
• After world war –I (1914 -1918) ---labour legislation took shape.
• Montague Chemford reforms – provided autonomy on provinces.
• 1923- workmen compensation Act passed.
• Trade Union Act 1926.
• Imperial government of Britain constituted – First Royal
Commission-1929-chairmanship whitley-to enquire and report on
then existing conditions of labour in Industries and plantations. –
Recommends-Social security schemes.welfare schemes –medical
facilities , workmen compensation etc.
• Legislative powers held jointly by central and provincial
governments.
• Government of India Act- 1935- few legislations passed.
• 1938- Bombay Industrial Disputes Act 1938
was first to provide for permanent
machinery- in form of Industrial Court for
settlement of disputes.
• Act replaced Bombay Industrial Relations Act
1946.
• -
• 1943- The Labour Investigation Committee-
Rege Committee- to examine existing labour
legislation and to make recommendation.
• In its Report- poor enforcement of labour
legislations.
• Slow implementation of recommendations.
• No proper standard of Inspection.
• Absence of social security legislation.
• 1944- B.P.Adarkar Committee- advocated health
insurance. The workmen State Insurance Bill 1946
introduced. Select committee made certain
modifications- bill passed –ESI Act -1948.
• Provided cash benefits in case of sickness,injury
and maternity.
• Bombay ID Act amended many times.
• Truce Resolution passed-t o maintain peace – no
strikes and lockouts. To solve disputes tripartite
and bipartite- ID Act 1947 –passed.
 Post Independence- Constitution of
India
• Concept of collective bargaining developed- The Minimum wage Act 1948-passed- three types of
wages- minimum, fair and living wage.
• Preamble -justice,social ,economic political objectives- to achieve –establishment of welfare state.
• Administration of labour laws- responsibility of both Union and State being on concurrent list.
• Adopted clauses of Philadelphia declaration- brought constitutional rights-Art-19right to freedom,
• Art 23-no forced labour-
• ,Art 24-prohibition of child labour,right against expolitation,
• Art 39-equal pay for equal work,
• Art 41-right to work, Art –
• 42-right to just and humane condition ,maternity relief.
• 43-living wage for workers,
• 43A-participation of workers in Management –State should take steps to find suitable legislation for
workers participation in management .
• Bijay Cotton Mills ltd vs State of Ajmer AIR,1955, SC, 33- SC empasized on Art-42- and 43 A.
 First National Commission on labour-
1966
• J.Gajendragadkar- chairman-
• To review changes in conditions of labour since independence and t report
on existing conditions.
• Review on existing legislative and and other provisions intended to
protect labour.
• To assess their working and advice on implementation of directive
principles of state policy.
• To advice on national objectives for achieving planned economic
development.
• To study the standard of living,health ,safety conditions,
welfare,housing,training,education , wage policy, bonus industrial
relations machiner ,and administration of labour laws –centre and in
States.
• Arrangements of social security
• Improving conditions of rural labour and unorganized labour.
 After NCL-1966
• 1991-Economic policy changed-liberalization,
globalization and foreign investments
encuraged, import restrictions removed,
customs tariff brought down, doors f indian
economy opened for competition.
• Indira Gandhi –Nationalized 14 banks.
• Morarjee Desai- brought changes in working
of public sector-MNC’S encouraged.
• Atal Bihari vajpayee-encouraged MNC’s.
 Second Labour Commission-1999
• Chairman-Dr.Ravindra Verma-Report-suggested-
• Methods,timings,and conditions of work in
industry, trade and services.
• Need for bringing existing laws in tune with
future labour market-
• Social Security legislations –to bring changes
• Suggested rationalization of existing laws in
organized sector and bring about umbrella
legislation for ensuring minimum protection for
unorganized workers.
• Indian economy turbulence- more closures.
• The closure of industrial units and bankruptcy are a
normal feature in the developed economies all over
the world.
• Developed economies with their well-established social
security systems, easily take care of workers displaced
by such closures.
• Developing economies-with their limited investible
resources and relatively limited alternative
employment opportunities, however, cannot, easily
afford.
• It lay down rules for closure, retrenchment and lay off.