Labour Laws: Missing in India?

The law about the labour and employment laws for the industrial sector comes from the industrial revolution when people became aware of their rights and felt a need to be more aware of how they should be treated; they started protesting for their rights hence Industrial laws were born.

India got its industrial revolution a little late, as compared to the western countries because of its complex relations with Britain which was ruling over India and using Indian people for further equipping their industrial revolution, Indian Industrial jurisprudence arose a bit late.

In India, the plantation industry in Assam was the first one to attract the legislation. Several new acts were passed from 1863 onwards for the regulation of recruitments. These legislations had more focus on the protection of interests of the employers rather than safeguarding the interest of the workers. 

Introduction

The history of Labour law in India is interwoven with the history of British colonialism. It was enacted by the British were primarily intended to protect the interest of British employers. The factories’ act was first introduced in 1883 because of the pressure brought on the British parliament by textile magnates. Thus India received 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.

Labour Law Includes-

  1. Industrial relations – certification of unions, labour management relations, collective bargaining, and unfair labour practices; 
  2. Workplace health and safety;
  3. Employment standards, including general holiday, annual leave, working hours, unfair dismissals, minimum wage, layoff procedures, and severance pay.

The government is focused on the promotion of welfare activities and providing social security to the labour force both in the organized and unorganized sectors. These objectives are sought to be achieved through the enactment and implementation of various labour laws, which regulate the terms and conditions of service and employment of workers. Indian labour laws are made to define clear cut relations between employees and employers. 

List of Major Labour Law Acts in India:

1Worker’s Compensation Act, 1923

2The Trade Unions Act, 1926

3. Payment of Wages Act, 1936 

4. Industrial Employment (Standing Orders) Act, 1946

5. Indian Industrial Disputes Act, 1947

6Minimum Wages Act, 1948

7Factories Act, 1948

8. Maternity Benefits Act, 1961

In general, The Ministry of Labour and Employment seeks to protect and safeguard the interests of workers and those who constitute the poor, deprived and disadvantaged sections of the society, in particular, with due regard to creating a healthy work environment for higher production and productivity, and developing and coordinating vocational skill training and employment services.

 

Shortcomings of Labour Laws in India

Labour laws are not at all implemented to the level they should be implemented. Especially in rural areas, these laws are not at all taken care of and there is no one to supervise if the law is being implemented at the ground level or not. Keeping it aside laws are even exploited in the urban areas that too to a great extent.

There are several problems in India about labour- employer relations, from long working hours to no payment of their wages, they are severely maltreated. They are treated like slaves and are suppressed by their rights in every possible sense.

It is important to control the rich population so that they don’t overpower or suppress the poor population. Labour laws are very crucial for a country like India wherein there is not just a huge population but a variety of economic standards as well. Working people in companies are mentally tortured by a heavy workload, overtime work hours, etc. for which they are not even paid.

One of the important conditions for the labour force of a country to turn into a productive force is that it requires proper and favorable working conditions. Since the underlying purpose of performing work and labour is to earn wages, hence it is better to ensure that labourers are given proper and sustainable wages. The strike of 74 shows us what happens when alienation sets in and labourers who are the drivers of economic development in a country revolt against the repressive working conditions.

Economic survey 2005-2006 gives an account of how there are loopholes in the Indian Labour Laws, and how there is a lack of implementation of Indian Laws when it comes to the ground reality.

Another criticism for the labour laws is the “report on 47th Indian Labour Law Conference”, which has many points that are not appropriate as it’s a narrow interpretation of what is required for the ground level implementation to be made effective. There needs to be a broad look for the outcomes of such reports which covers a multitude of things and not just a small amount of things.

It is high time that the informal sector of the country gets defined and protected by better and encompassing laws. This is due to the reason that it is the informal sector in India that has the highest concentration of productive labour which is yet to be utilized to be in an optimum way.

Suggestions

Proper laws would guarantee the welfare of workers while at the same time ensuring the accountability of the worker. Further, in the academic discourse, there is also a recognition that women tend to concentrate on the most precarious of livelihoods. Hence providing legal protection to the employees of this sector can be a step towards the protection of women who have the right to work outside of their homes and earn equal wages.

1. Codification and simplification of Labour Laws are suggested for creating an online single window system for making compliance as user friendly, simple, and for bringing transparency. Employers can seek registration, license, etc. online and can also file returns, etc. online.

2. The system of penalties under various Acts needs to introduce changes in these for better enforcement. Most of the labour laws have lost their efficacy because of very meager penalties. There is a viewpoint that penalties should be graded depending on the seriousness of the offence, the number of times the offense has been committed. Similar to the benefits, penalties too could be Indexed.

3. Sometimes conciliation is not the proper way to redress the grievances and revision of strike (Right to strike) should be incorporated in labour laws, though it may be the last resort.

4. Chapter V (b) of the Industrial Disputes Act, 1947 mentions the number of employees up to 100. In the era of computerization numbers of employees per unit are reducing so the law should apply to all without the restriction of numbers.

5. The implementation machinery for the labour laws, i.e. the Labour Department should be provided more teeth and it must have stringent penal powers for non-compliance of labour laws.

6. There is a need for focusing on the long term employer-employee relationship. Codifying the labour laws should focus on evolving an employment code to take care of all issues related to worker-employer relationships and the compensation part may be tailored in it.

7. Issues should be solved through goodwill and not with confrontation. There should be some method for resolving disputes and it should not always be through slogan shouting, strikes, etc

8. For Trade Union Law, there is a need to redefine the organizational requirement for the redressal issue of grievances of workers and trade Unions should not necessarily be flag bearers of political parties.

9. Alternate dispute redressal system should be incorporated in the law in addition to the system of collective bargaining.

10. Instead of handing over power to Labour Department, a separate independent judicial system for labour issues may be created.

11. Simplification and rationalization of labour laws will require examination of labour laws individually. In the process provisions which have outlived their existence may be deleted. If necessary, certain laws may be considered for being repealed. All Cess Act and Welfare Fund Acts can be clubbed into one Act.

12. At present different terminologies and definitions used in various labour laws create confusion and complications ineffective compliance and enforcement.

Conclusion

Laws are not at all implemented to the level they should be implemented and lack of awareness about labour rights, weak laws that promote violation of labour rights, unorganized sectors in labour as a class and lack of will on the part of the government, employers, trade unions and labourers – all of them are responsible for this situation. The policy of liberalization and globalization has worsened the situation in that labour has been reduced to a cheap commodity to be bought and sold in the market. In every civil society, the dignity of labour is of paramount importance. Unfortunately in India, workmen are denied this dignity. Even after more than half a century of independence, the position of labour as a class in India has not changed for the better. The gap between ‘haves’ and ‘have-nots’ has widened; the poor have become poorer; they are now at the mercy of those enjoying power and luxuries of life.

Q&A

Q.1 Brief about the History of Labour Laws in India.

The history of Labour law in India is interwoven with the history of British colonialism. It was enacted by the British were primarily intended to protect the interest of British employers. The factories’ act was first introduced in 1883 because of the pressure brought on the British parliament by textile magnates. Thus India received 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.

Q.2 Briefly Explain Labour Laws in India?

Labour law includes-

Industrial relations – certification of unions, labour management relations, collective bargaining, and unfair labour practices; Workplace health and safety; Employment standards, including general holiday, annual leave, working hours, unfair dismissals, minimum wage, layoff procedures, and severance pay.

Q.3 What are the Major Labour Laws in India?

List of major labour laws in India-

1Worker’s Compensation Act, 1923

2The Trade Unions Act, 1926

3. Payment of Wages Act, 1936 

4. Industrial Employment (Standing Orders) Act, 1946

5. Indian Industrial Disputes Act, 1947

6Minimum Wages Act, 1948

7Factories Act, 1948

8. Maternity Benefits Act, 1961

Q.4 Why is Labour Law not Implemented in India?

Labour laws are not at all implemented to the level they should be implemented. Especially in rural areas, these laws are not at all taken care of and there is no one to supervise if the law is being implemented at the ground level or not. Keeping it aside laws are even exploited in the urban areas that too to a great extent.

There are several problems in India about labour- employer relations, from long working hours to no payment of their wages, they are severely maltreated. They are treated like slaves and are suppressed by their rights in every possible sense.

Q.5 Suggestions to Improve Labour Laws.

Proper laws would guarantee the welfare of workers while at the same time ensuring the accountability of the worker. Further, in the academic discourse, there is also a recognition that women tend to concentrate on the most precarious of livelihoods. Hence providing legal protection to the employees of this sector can be a step towards the protection of women who have the right to work outside of their homes and earn equal wages.

References

  1. https://www.businesstoday.in/current/economy-politics/labour-law-reforms-india-contentious-issues-lok-sabha-trade-unions/story/363160.html
  2. https://www.livemint.com/news/india/why-labour-law-rejig-is-no-reform-11589300644620.html
  3. https://shodhganga.inflibnet.ac.in/bitstream/10603/81209/11/11_chapter%203.pdf
  4. https://blog.forumias.com/labour-reforms-in-india/

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