Labour Racketeering

Racketeering is a criminal activity that is done through an organization or group of persons for illegal means. The primary intention behind racketeering to obtaining money through illegal activity. Racketeering is popularly known as the organized crime associated with the mafia. Labor racketeering includes the supply of labor from one place to another place, use coercive force against labor, exploitation of labor, low wage rate, torture mentally, physically, and emotionally of labor, Not provide protection and welfare measure of labors during employment. Labor racketeering means to the infiltration, exploitation, and control of a union, employee benefit plan, employer entity, or workforce. Labor racketeering carried out through illegal, fraud, coercive, violent means for profit or personal benefits.


The term racketeering means organized crime, which is done by individuals or groups of people for illegal means. Racketeering is a type of crime that is committed through a person or organization involved in an illegal racket. Racketeering is a type of organized crime for an illegal purpose, where a criminal creates problems form another person through coercive means. Racketeering is committed at both the federal level and state level. Federal racketeering includes fraud offense, money laundering, various financial and economic fraud, gambling, bribery offenses, and sexual exploitation of women or children. State-level racketeering includes murder, kidnapping, gambling, robbery, extortion, threat, dealing with the obscene matter, and also involved in drug trafficking, prohibited chemical dealing in manufacture and distribution of a controlled. Racketeering is the way to engaging illegal business and acquired money through illegally derive income. Racketeering is known for associated crime in which gang leaders and groups of people, who own, direct, or controlled illegal activity such as fraud, money laundering, kidnapping, and gambling.

Who is Racketeer

A racket is the most organized and criminal activity for the purpose to adopt illegal ways to earn money. When any person and organization who engages in the racket is called a racketeer. A racketeer is a person who involves in gambling, fraudulent trade, and business dealing or we can say that in other words a person who earns money through illegal means.  

Labour Racketeering

Labor racketeering is an act done association or group of people for personal benefit through illegal, violent, and fraudulent means. Or in other words, we can say that labor racketeering is a type of crime, which includes torture on workers, the domination of labor, exploitation of labor, extortion of laborers by threatening unlawful strikes, and work stoppages. The purpose behind labor racketeering is an act carried out by an individual group of people with a primary intention of obtaining money through illegal activity.

How Labor Racketeering Violates Constitutional Rights

The constitution of India grants the most precious rights to citizens known as fundamental rights. The fundamental right is to talk about the protection of health, welfare of people and also protect discrimination against people.

The article of 21 constitutions stated that no person shall be deprived of his life and personal liberty except procedure established by law. Even the right to life is one of them.

Article 14 of the constitution stated that equality before the law and equal protection of laws within the territory of India. And also, the state must provide equal opportunity and equal protection of law to every person.

Article 15 of the constitution talks about no people discriminate based on religion, caste, sex, place of birth, race, or any of them.

Labor racketeering is violated all these above mention article right to life and personal liberty and violate the right to health, right to equality. Because the main purpose behind the labor racketeering to use force for illegal means and also exploitation of labor in the form of socially, mentally, physically, or emotionally.

Prevention for Labor Racketeering

From the beginning of the independence of India, no specific law regarding labor racketeering. Labor racketeering is still practicing in some rural areas and violates of right to life, equality, discrimination, or exploitation of laborers at a large level. Irrespective of many laws regarding welfare, health, and protection, exploitation for people.

The parliament must make law regarding labor racketeering and stop such types of cruelty, coercion, and exploitation on labors at a large level.

Various law regarding welfare and safety for labors

Law on compensation

The payment of wages act 1936: This act talks about the regulation of payment of wages to employers and also talks about payments of wages to the employer on time.

The minimum wages act 1948: This act talks about prescribed minimum rates for wages on a per-day basis for employers and also for the welfare and betterment of the employer.

The payment of Bonus Act 1965: This act talks about the payments of bonuses to certain establishments, employing 20 or more people based on profit, production, and productivity and. No person can take benefit for this act unless those who have not complete work 30 days. A person who can take benefit of a bonus minimum of 8.33% and a maximum of 20%.     

The equal remuneration act 1976: This act talks about equal remuneration for both men and women. And the purpose behind the equal remuneration act to protect discrimination based on sex.

Law on the working condition

The factories act in 1948: This act talks about the health, safety measure, and welfare of all workers, who are working in the factory.

Mines act 1952: This act talks about safety and betterment for the workers who working undermines. In India, mines are important sources of economic and various numbers of people working undermines for their livelihood.

Contract labor act 1970:  This act talks about to prevent exploitation of contract labor and also describes the better condition for workers.

Law on Social Security

Workmen’s compensation act 1923: This act talks about compensation for men labor when any injury, disease, damage arising during employment.

The employees state insurance act 1948: This act talks about certain benefits for the employees in case of, sickness, maternity, and injury during employment.

The employee’s provident fund act 1952: This act talks about the welfare of the employees. Employer deducted the employee share from the earning salary of the employee. The interest earned on this investment is additionally attributed in the pf account of the employees. All these pf amounts are given to the employees at the time of retirement of employees.

The maternity benefit act 1961: This act talks about the welfare of women employees and provides the maternity benefit for a certain period like before and after childbirth.

Miscellaneous Legislation for the Betterment of Labors/workers

The payment of gratuity act 1972: This act talks about payments of gratuity to employees working in railways, ports, factories and oilfields, plantations and mines, shops, or another establishment. The main purpose of enforcing this act to provide security to employees after retirement.

Workers act 1986: This act talks about the health safety and welfare of dock workers.

Bonded labor system abolition act 1976: This act talks about the abolition of the bonded labor system and also prevent economic and physical exploitation of the weaker section of society. This act is especially known for the biggest step towards stopping the exploitation of bonded laborers.

Interstate migrants work act 1979: this act talks about regulating the condition of services of the interstate condition of India. The main purpose of this act to protect and improve the condition of interstate workers in India.

The occupational safety, health, and working conditions codes, 2019: occupational safety, health, and working codification code repeals and replaces 13 labor law regarding health, safety, and working conditions. In this code, every employer shall ensure that the workplace is free from hazards that cause or likely to cause injury or occupational disease to the employer. According to occupational, safety, health, and working code, each employer is liable to comply with the occupational safety and health standard made under this code and also provide reasonably practicable, a working environment. And also, the establishment should be monitored to check the quality of the premises, cleanliness, disposal of wastes and effluents, ventilation and temperature, dust and fame, artificial humidification, overcrowding, lighting, clean drinking water, latrines, and urinals for all male-female and transgender employees. The way safety of the worker must be ensured by installing and maintaining the machinery, mechanism, transmission apparatus, tools, equipment, and machines in the best possible safety condition.

Some Judgment on Protection for Health, the welfare of workers

In this case D.S. Nakara v. Union of India[1], the court held that the main purpose of a socialist state to avoid inequality in income, status, and also standard of life. The main aim of the socialist state to provide a proper standard of life to the people.

In this case Maneka Gandhi v. Union of India[2], the court held that right to live is not only talks about physical existence but also it includes within its ambit the right to live with human dignity

In the case of Consumer Education and Research Centre v. Union of India[3], the court talks about the right to health and medical aid for workers while in service, and the court said that after the retirement of workers. It is a fundamental right of workers to live meaningful and purposeful with dignity.

In the case of the Occupational Health and Safety Association v. Union of India[4], the supreme court held that the state must protect unfortunate workers, who are working/ living an unhealthy environment.


In the end, I would like to say that the labor racketeering is an act done by the group of people, organization, earn money through illegal means. The main reason behind labor racketeering is the exploitation of workers and use force or coercive action against workers to earn money. In Labour racketeering, labor face problems related to exploitation, gambling, torture in the form of mental, physical, and emotional. From the beginning of the independence of India till death there no specific law for labor racketeering but the parliament of Indian time to time tried to make and amendment of the law in favor of protection, health, and welfare of the laborers.


  • Piyali Gosh and Shefali Nandan, Industrial relation and labor law, (McGraw Hill, 2015, 1st edn)
  • H. L. Kumar, Compliance under labor laws, (Universal law publication, 2017. 5th edn)
  • J. P. Sharma, simplified approach to labor law, (Bharat law house, 2018, 5th edn)
  • B. D. Singh, Industrial relation and labor law, (Excel book publisher, 2008, 1st edn)

  • [1] (1983) 1 SCC 305.
  • [2] AIR 1978 SC 597.
  • [3] AIR 1995 SC 923.
  • [4] (2014) 3 SCC 547.

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