Philosophy of Labour Laws

UNIT 1 PHILOSOPHY OF LABOUR LAWS

Objectives

After reading this unit, you should be able to:

• appreciate the role of labour laws
• know the constitutional directives and limitation of labour laws
• explain the concept of social justice in relation to labour laws
• appreciate the issues of locus stands, public interest litigation and enforcement
of labour laws
• describe the place of industrial adjudication and role of tribunal, under labour
legislation.
Structure
1.1 Introduction
1.2 Approach to Labour Law and Labour Relations
1.3 Basis of Labour Relations Law
1.4 Constitutional Directives and Limitations to Labour Law
1.4.1 Constitutional Directives to Labour Laws
1.4.2 Constitutional Limitations on Labour Laws
1.5 Social Justice and Labour Laws
1.6 Public Interest Litigation for Enforcement of Labour Law
1.7 Industrial Adjudication
1.8 The Concept and Philosophy of Labour Welfare
1.9 Effect of Socio-Economic Conditions of Labour Law
1.10 Summary
1.11 Further Readings
1.12 Self-Assessment Test

1.1 INTRODUCTION
In order to appreciate various labour legislation it is necessary to know the
philosophy of Labour Laws.

Over the years labour laws have undergone a change with regard to the object and
scope. Early labour legislation were enacted to safeguard the interest of employers. It
was governed by the doctrine of laissez faire. Modern labour legislation on the other
hand aims at protecting workers against exploitation by employers. The advent of
doctrine of welfare state is based on the notion of progressive social philosophy
which has rendered the old doctrine of laissez faire obsolete. The theory of "hire and
fire" as well as the theory of "supply and demand" which found free scope under the
old doctrine of laissez faire no longer holds good.

1.2 APPROACH TO LABOUR LAW AND LABOUR

RELATIONS
Labour law seeks to regulate the relations between an employer or a class of
employers and their employees. The access of this law is the widest, in that it touches
the lives of far more people, indeed millions of men & women as compared to any
other branch of law and this is the aspect which makes it the most fascinating of all
branches of law and the study of this subject is of enormous dimension and of ever
changing facets.

There has been a remarkable change in the approach to Labour law and industrial 5
Introduction to Labour Legislation
relations since the World War IL Philadelphia Charter adopted in 1944 provided that
"Labour is not a commodity" and that "poverty anywhere is a danger to prosperity
everywhere". W. Friedmann and others who have tried to analyse the essential
characteristics of the legal development in this branch of law consider 'social-duty'-
on-the part of employer as the main bed rock on which this law is built. This is
exemplified by the very approach of law makers to the construction of a wage packet
of the working man in the post-second World War period, wage fixation and
legislation relating to condition of work. The Indian Constitution lays down broad
guidelines to be followed by State.
The Supreme Court in D.N. Banerji v. P.R. Mukherjee, AIR 1953 SC 58 stated that
the law as developed after the second World War, particularly in a welfare State has
reversed the theories of Sir Henry Maine and now society progresses form contract to
status and the post war world has seen considerable legislation laying down
conditions of service and also ensuring by laws payment of minimum wages.

1.3 BASIS OF LABOUR RELATIONS LAW

Otto Kahn-Freund in his book on Labour and the Law makes the following points.
(i) The system of collective bargaining rests on a balance of the collective forces of
management and organised labour. The contribution which the courts have made
to the orderly development of collective labour relations has been infinitesimal.
Collective bargaining is a process by which the terms of employment and
conditions of service are determined by agreement between management and the
union. In effect, "It is a business deal (which) determines the price of labour
services and terms and conditions of labour's employment."
(ii) The Law governing labour relation is one of the central branches of the law on
which the very large majority of people earn their living. Nonetheless, law is a
secondary force in human relations and especially in labour relations.
(iii) Law is a technique for the regulation of social power. This is true of labour law
as it is of other aspects of any legal system. Labour Law also seeks to lay down
minimum standard of employment. It lays down norms by which basic
conditions of labour are fulfilled such as maximum working hours, minimum
safety conditions, minimum provisions for holidays and leave protection for
women and children from arduous labour, prohibition of children below certain
age from employment and provision for minimum standards of separation
benefits and certain provision for old age.
1.4 CONSTITUTIONAL DIRECTIVES AND
LIMITATIONS TO LABOUR LAW
1.4.1 Constitutional Directives to Labour Laws
The people of India resolved, on November 26, 1949, to constitute India into
a SOVEREIGN DEMOCRATIC REPUBLIC and secure to all its citizens.
JUSTICE, social, economic and political;
LIBERTY of thought, expression, belief, faith and worship;
EQUALITY of status and opportunity;
and to promote among them all
FRATERNITY assuring the dignity of the individual and the unity of the Nation;
They framed a Constitution which seeks to provide a frame work for the achievement
of these objectives. The Preamble has been amplified and elaborated in Part IV of the
Constitution, which deals with the Directive Principle of State Policy. The State has
been directed to promote the welfare of the people by securing and protecting as
effectively as i1 may, a social order in which justice, social economic and political,
shall inform all institutions of the national life. Further,' the State has been directed to
strive to secure, inter alia, (i) an adequate means of livelihood, (ii) the proper
distribution of ownership and control of the, material resources of the community so
6 that it may best subserve the common need, (iii) the prevention of the concentration
of wealth and means of production,
 Philosophy of Labour Laws
(iv) equal pay for equal work to men and women, (v) the health and strength of
workers, right to work, to education and to public assistance in cases of undeserved
want, just and humane conditions of work and for maternity relief, (viii) living wage
and decent standard of life to labourers (ix) higher level nutrition and standard of
living and improved public health. The Directive Principles spell out the socio-
economic objectives of the national policy to be realised by labour; legislation as well
as by other legislations. These are directives to the legislature, executive and the
judiciary, which are committed to make, interpret and enforce law.
1.4.2 Constitutional Limitations on Labour Laws
Although labour policy seeks to create high minimum standards of employment, the
choice of the legislature in seeking to achieve the objective are not unqualified.
Minimum standard legislation is subject to various limitations. To begin with, in
order to guarantee the fundamental rights, the Indian Constitution imposes certain
limitations on the legislations on the legislature and the executive. To the extent it is
inconsistent with or derogatory to a fundamental right, the legislation is void.
Fundamental rights are enforceable by the courts under Articles 32 and 226.
The fundamental rights are enumerated in Part-III of the Constitution. The whole
object of Part-III is to provide protection for the freedom and rights mentioned
therein against arbitrary action by the State. Of particular relevance is Article 14,
which provides that "the State shall not deny to any person equality before the law or
equal protection of the laws within the territory of India". In addition to this, Article
16 guarantees equality of opportunity in matters of public employment. Further,
Article 19 guarantees "the right to freedom of speech and expression, to assemble
peaceably and without arms, to form associations or unions, to practice any
profession, and to cant' on any occupation, trade or business." These constitutional
guarantees are of great practical significance in the area of labour law, including
minimum standard legislation. Equal ;protection constitutes a limitation on the
legislative power to select or decide Which business or industry must achieve
minimum standards. The right to carry on trade profession or business limits the
burden which the legislation may place on business in the interest of workers. The
freedom of speech, assembly, association and unionisation protect workers in their
efforts to achieve their objectives through self in organising, picketing or striking.
Article 21 provide protection of life and personal liberty. It provides that no person
shall be deprived of his life or personal liberty except according to procedure
established by law. Article 23 prohibits traffic in human beings and forced labour. It
says (i) Traffic in human beings and begar and other similar forms of forced labour
are prohibited and any contravention of this provision shall be an offence punishable
in accordance with law. Life, in Article 21, has been interpreted by the Supreme
Court as including livelihood and the Court has held in several cases that any
employment below minimum wage levels is impermissible as it accounts to slavery
as understood in Article 23. Holding a person in bondage is a Constitutional crime.
Article 24 places a ban on employment below the age of 14 in any factory or mine or
engaged in any other hazardous employment.
1.5 SOCIAL JUSTICE AND LABOUR LAWS
In the realm of labour laws there has been in reality continuous legislative activity by
the Supreme Court ever since the Constitution was promulgated. The Supreme Court
has performed a pioneering role in evolving first principles of industrial law which
are so sound that they are largely still followed today despite the dynamic nature of
industrial law.
The fundamental principle which was laid down by the Supreme Court in this respedt
was the principle of social Justice . In fact, other principles of labour law only flow
from this basic principle, and hence we may consider it at some length.
Social Justice connotes the balance of adjustments of the various interests concerned
in the social and economic structure of society. It aims at promoting harmony in
Industrial relations upon an ethical and economic basis, and its ultimate objective of
peace in Industry. Thus, social justice is an objective of peace in industry. Thus,
social justice is an application in the field of labour laws of the basic principle of 7
sociological jurisprudence of harmonising conflicting interests.
Introduction to Labour Legislation
Social Justice recognised that workers are in a weak bargaining position vis-a-vis the
employer, and it seeks to remedy this situation. In J.K. Cotton Spinning &Weaving
Mills v. Labour Appellate Tribunal, AIR 1964 SC 737 the Supreme Court observed.
"The development of industrial law during the last decade and several decisions of
this court in dealing with industrial matters have emphasised the relevance, validity
and significance of the doctrine of social, justice. The concept of social justice is not
narrow or one-sided or pedantic. Its sweep is comprehensive. It is founded on the
basic ideal of socio-economic equality and its aim is to assist the removal of socio-
economic disparities. Nevertheless in dealing with industrial matters it does not adopt
a doctrinaire approach and refuses to yield blindly to abstract notions, but adopts a
realistic and pragmatic approach. It therefore endeavours to resolve the competing
claims of employees by finding a solution which is just and fair to both parties with
the object of establishing harmony between labour and capital, and good relationship.
The ultimate object of industrial adjudication is to help the growth and progress of
the national economy, and it is with that ultimate object in view that industrial
disputes are settled by industrial adjudication.
Social justice is not based on contract. .In fact it is an abridgement of the freedom of
contract. The days of hire and fire are gone and the Industrial Court have power to
intervence if it is demonstrated that the contract of empolyment needs to be revised in
the interests of social Justice. In fact the Industrial Courts enjoy immense wide
powers which no civil court possesses, namely, to create new contracts, modify
existing contracts,-and confer new rights and privileges."
However the principle of social justice does not permit the Industrial Courts to act as
despots and do anything they please. The Industrial Court must follow Industrial law
and decide the dispute on settled principles. The Supreme Court has struck a note of
caution that the need of the hour is more production, consequently the Tribunal
should not be unduly generous in the matter of granting leave. Similarly, an Industrial
Court cannot grant housing accommodation to the workers for this would impose too
heavy a burden on the employer. In Patna Electric Supply v. Workers Union, AIR
1959 SC 1036 the Supreme Court observed:
Social Security for the weaker sections is of utmost importance. But then we cannot
forget the limitations under which we are living . While we should not forget our
social goals, our purpose may be defeated if we do not approach our problems in a
pragmatic way.
Thus, social justice requires the Industrial Courts to strike a balance between the
conflicting claims of employer and worker. While the employer has a fundamental
right to run his business, his right has to be adjusted with the employees right to
social justice. The former pertains to the realm of fundamental rights in our
Constitution, the latter to the realm of the Directive Principles. The Ultimate aim is to
have peace in industry so that production may increase and the national economy
may grow.

1.6 PUBLIC INTEREST LITIGATION FOR

ENFORCEMENT OF LABOUR LAW
The Supreme Court in S.P.Gupta v. Union of India, popularly known as the
Transfer of Judges case AIR 1982 SC 149 formulated the principle of public interest
litigation in the following words:
Where a legal wrong or a legal injury is caused to a person or to a
determinate class of persons by reason of violation of any constitutional or
legal right or any burden is imposed in contravention of any constitutional or
legal provision or without authority of law or any such legal wrong or legal
injury or illegal burden is threatened and such person or determinate class of
persons is by reason of poverty, helplessness or disability or economically
disadvantaged position, unable to approach the Court for relief, any member
of the public can maintain an application for an appropriate direction or writ
or order.
In People's Union for Democratic Rights v Union of India (1982) 2 L.L.J 454 popularly
8 known as Asiad case the Court found the view, which held that public interest litigation
 Labour Laws, Industrial
UNIT 2 LABOUR LAWS, INDUSTRIAL Relations & Human
Resource Development
RELATIONS & HUMAN RESOURCE
DEVELOPMENT
Objectives

This unit will address the following objectives:

• Industrial Relation, Labour Laws and Humanesource Development are closely
linked
• Strategic IR does not only deal with workers' problems through labour laws, but
also establishes links with HRD to have lasting solutions
• Healthy IR and HRM may require legal support which may help develop
healthier organisational culture in men-management
• Strategic IR & HRM also may require elimination of some of legal provisions
which are putting obstacles in way of positive organisation culture
• The functions of labour laws should be facilitating and enabling than negating
and reacting.
Structure

2.1 Introduction

2.2 Conceptual Basis

2.3 HRD Implications for Strategic Industrial Relations Management

2.4 Labour Laws Orientation

2.5 Conclusion

2.1 INTRODUCTION
The basis of changing the practice of industrial relations management from a reactive
to a strategic mode could revolve around the following concepts and propositions
1. The concept of alienation is the key to the analysis of condition of wage labour
given the reality of contradiction-ridden organisational and societal totalities.
(Hymen, R: Industrial Relations, a Marxist Introduction, London, Macmillan,
1977: pp 4-7).
2. The concept of alienation is also the key to a better understanding of the
interface between human resources development and industrial relations.
3. Any consideration of change from reactivity to strategic proactivity, in the
process of considering the effect of the concept of human resources development
on industrial relations should, therefore, be founded on the evolution of
strategies oriented to the disalienation of direct producers.

2.2 CONCEPTUAL BASIS

The notion of toality refers to the axiom that any issue, any problem, any practice,
any subsystem should be seen in perspective. A blinkered approach could not only
distort but could even distract the attention from the core of the problem. The concept
of totality has two dimensions a static dimension and a dynamic dimension. For
instance, the static dimension of any given society would be the definition of that
society at a particular moment of history. The dynamic dimension would be the 13
stages of the evolution of that
Introduction to Labour Legislation
society upto the moment of the present analysis. The totality of the static dimension
of society would include the techno-economic, politico-legal, socio-cultural
structures and processes. The dynamic aspect of any society would focus on the
mode of production, relations of production and relations in production. Hence, an
analysis of any aspect of society should be sensitive not only to its present mode but
should also be sensitive to how the present mode has evolved. Any discussion of
strategic industrial relations management should take into account the mode of
production and the relations of production as well as the techno-economic, politico-
legal and socio-cultural structures and processes given the dominant mode of
production.

The "totality" referred to above is not by any means a harmonious configuration of

parts. There are inherent contradictions in the totality given the relations of
production of a given mode of production. A sensitivity to the structural
contradictions of the totality is essential to any analysis of human resources
management. The structural contradictions flow from the struggle between those who
own and/or control production and those who sell their labour for wages.. The forms
of these struggles will vary depending on the mode of production and the relations of
production;, labour management relations and human resources development are
conceptualised and operationalised within the framework of a contradiction-ridden
totality both at the societal level as well as at the organisational level.

The worker experiences the work organisation as alienating. The politico-economic

structure of the work organisation, the drive towards profit generation, the hierarchy
of control, division of labour, the dehumanising structure of work processes,
exploitative management practices and procedures, the manipulation of worker
behaviour in organisations and other factors combine to form the basis of the worker
experience of alienation.

The alienation of the worker consists in a complex of factors :

1. That work is external to the worker. It does not flow from his own creativity,
from his own volition, from his own aspirations. The politico-economic
structure of the work environment divests the worker of his power to control the
modalities of his working life.
2. Working is forced on the worker because of the urgent need for satisfying his
various survival needs. Work itself is not the satisfaction of a need but merely a
means.
3. As a worker, he surrenders his freedom to the organisation and to impersonal
market forces in return for wages. His condition amounts to wage slavery.
4. The alienated worker, therefore, has no control over what work he has to do,
what his work is going to produce and also over the structure and process
enveloping his working life. He, on the contrary, through his work, creates
power structures and processes which in turn contribute relentlessly to his own
oppression and exploitation.

2.3 HRD : IMPLICATIONS FOR STRATEGIC

INDUSTRIAL RELATIONS MANAGEMENT
The picture which emerges from the discussion of the conceptual framework earlier
is one of the alienated labour given a contradiction-ridden totality. It is within this
perspective that the implications of the HRD concept for industrial relations will be
discussed. In order to facilitate this process, the following questions need to be
addressed:
• What are the HRD instruments, processes and outcomes?
• What is the most important dimension of the HRD concept?

14 • What is the profile of industrial relations in the Indian context?

• What are the likely implications of the HRD concept for industrial relations?
A schematic presentation of what HRD means developed by Rao, T.V. (1986), given below: Labour Laws, Industrial
Relations & Human
Resource Development

The scheme is self-explanatory and demonstrates clearly the shift in focus which has
taken place along with the change from the term "Personnel Function" to the term
"HRD Function". While the term personnel function has somehow or the other been
associated with perspective, critical-evaluative, punitive connotations, the term HRD
function vibrates with images of a positive, dynamic development-oriented approach.

The central theme in the HRD approach is the development of, the individual. The
emphasis has shifted from "maximisation of performance" and "compensation",
towards "employee potential awareness creation" and employee potential realisation",
The focus is now on enhancing employee involvement in interrialising organisational
objectives ,through vibrant HRD efforts in order to release the springs of dynamism
and creativity of 15
Introduction to Labour Legislation
individuals. The HRD approach holds the view point that the personnel function has
reduced human resources in organisation to mere objects while the HRD approach
views the people in organisations as the subjects of the organisation's history and
destiny. The employees are no longer cogs in the organisational wheel but the active
agents shaping not only their own futures but also the future of the organisation. The
HRD approach therefore, postulates a proactive rather than a reactive approach, as
visionary stance rather than a firefighting orientation, a developmental strategy rather
than a constructive strategy.
The discussion of the conceptual basis for considering the modalities of shifting from
a reactive mode to a proactive mode, however, has tried to demonstrate that the
contradiction-ridden totality of society forms the framework for the alienated
condition of the working classes. Workers experience powerlessness, self-
estrangement, cultural estrangement, meaninglessness, and normlessness given the
politico-economic profile of the prevalent mode of production as well as the relations
of production.
Anyone familiar with life in organisations knows that the HRD approach appears to
pull in one direction while the reality of industrial relations appear to pull in an
opposite direction. Rules, regulations, enforcement, grievances, discipline,
transgressions, enquiries, sanctions, unions, more unions, disputes, negotiations,
litigation appeals, banners, slogans, go-slows, gheraos, strikes,.lockouts, mandays
loss, wages loss, production loss, damage, violence, intimidation terror, despondency,
despair, death - such are the stuff industrial relations realities are made of :
The HRD approach makes many assumptions which further appears to increase the
distance between the HRD orientation from the realities of industrial relations:
1. The employee is an individual employee, isolated, insulated, from other
organisational and extra-organisation forces.
2. The individual employee is amenable to 'developmental' overtures.
3. The organisation can establish a direct relationship and rapport with the
individual employee who is generally satisfied with the organisation.
4. The organisation is the sole custodian of the individual's growth and
development.
5. The organisation is capable of magnanimity and impartiality in transcending
social, cultural, economic inequalities, so much a reality in the Indian
organisational context in its dealings with employees..
6. The organisational - individual relationship is homogeneous, harmonious, stable,
cohesive, vibrant.
It must be recalled here that the conceptual basis evolved earlier, yielded the picture
of an alienated labour given a contradiction-ridden totality:- A perusal of the history
of industrial relations in India, an analysis of the legal foundations of industrial
relations and an appraisal of the empirical realities of industrial relations yields a
certain profile of industrial relations, which calls into question many of the
assumptions made by the HRD approach.

The industrial relations system has given employers the following rights:
1. The right to hire employees
2. The right to frame the terms of contract with employees
3. The right to enforce discipline at the work place
4. The right to form trade unions
5. The right to layoff, to retrench and to dismiss workers
6. The right to lockout employees as well as to close down operations
Employees have been given the following rights:
• The right to form and register a trade union
16 • The right to activate the machinery to resolve dispute
• The right to strike to redress grievances
 Labour – Laws – Concepts,
Origin, Objectives and
UNIT 3 LABOUR LAWS - CONCEPT, Classification

ORIGIN, OBJECTIVES AND

CLASSIFICATION
Objectives

After studying this chapter, you should be able to :

• have a clear concept of labour legislations
• know the origin and factors responsible for the growth of labour legislations
• understand the basic objectives of labour legislations
• comprehend the categorisation of different labour legislation
Structure

3.1 The Concept of Labour Legislations

3.1.1 General Introduction
3.1.2 Industrial Revolution and the need for Labour Legislations
3.1.3 The Main Ingredients of Labour Legislations
3.1.4 Principles of Social Justice, Social Equality, Social Security, National
Economy and Labour Legislations
3.2 Origin of Labour Legislations
3.2.1 Introduction
3.2.2 Factors Influencing Labour Legislations
3.3 Objectives of the Labour Legislations

3.3.1 Different Objectives

3.4 The Classification of Labour Legislations

3.4.1 The Regulative Labour Legislations
3.4.2 The Protective Labour Legislations
3.4.3 Wage-Related Labour Legislations
3.4.4 Social Security Labour Legislations
3.4.5 Welfare Labour Legislations
3.4.6 Miscellaneous
3.4.7 General
3.5 Conclusion

3.1 THE CONCEPT OF LABOUR LEGISLATIONS

3.1.1 General Introduction
Law comes into existence to cater to the growing needs of society, which may be
caused by technological, economic, political, social changes. Law is a dynamic
concept. Law is like a citadel which requires regular repairs, revamping and
replacement. "Life and Laws have moved together in history and it must do in
future". It is in this perspective that the
Labour Legislations have to be studied.
3.1.2 Industrial Revolution and the need for Labour Legislations
Society evolves institutions to abhor vacuum created by changes. Industrial
Revolution is a epoch-making event, which completely changes the lifestyles of
society from agricultural and pastoral to industrial and materialistic one. The
industrial society brought about, in its wake, excessive exploitation of the working
classes by the employer who took advantage of the individual dispensability of the
worker and wanted maximum profit on his investment. The golden rule of capitalism
that "Risk and Right" go together provided them with prerogatives to "hire and fire".
The other legal concepts which were then
21
Introduction to Labour Legislation
available were those of Master and Servant and carrot and stick etc. The principle of
common law was in operation. The law of contract used to govern the relation
between worker and the employer in which individual contact was struck, the terns of
contract were usually verbal and mostly used in cases of breaches, leading to
prosecution and imprisonment of workers. Labour and Migration Act was another
legislation which gave rise to the "Indentured labour system". Anti-Combination
legislations were in vague treating 'combination' of workers as act of criminal
conspiracy. Longer hours of work, abysmally low wages, no safety and welfare
provisions, and no insurance - the exploitation at large. State was adopting the policy
of Laissez-faire (let not interfere) and employers abused workers, taking advantage of
the situation.
Every society on its onwards march revises, reviews, refurbishes and reinvents its
legal concept and civilised ways of living. The changes brought about by the
industrial revolution created some gaps and it became the responsibility of the society
to fill-up those gaps. Society went for certain social devices to take care of the gaps,
which are known as labour legislation.
The labour legislations are the products of Industrial Revolution and they have come
into being to take care of the aberrations created by it. They are different from
common legislations, because they come to alleviate special disorders created by
specific circumstances. Therefore, they are specific and not general in orientation,
philosophy and concept.
3.1.3 The Main Ingredients of Labour Legislations
Labour legislation regards individuals as workers ,whereas the general legislation
regards him a citizen. The principles governing labour legislations are more
influenced by the postulates of social justice than general justice. Workers are the
weaker class of industrial society and have suffered long at the hands of employers.
Therefore, these sets of legislations go out of way in protecting workers and securing
justice to them. The influences of 'discriminative justice' and ' distibutive justice' can
be clearly seen over them. All the labour legislations are heavily skewed towards
labour and they are specifically designed like that.
Labour legislation seeks to deal with problems arising out of occupational status of
the individual. Consequently, such problems as hours of work, wages, working
conditions, trade unions, industrial disputes etc. come to be the main, subject matter
of labour legislations. Thus, the behaviour of the individual or his groups is the
function of labour legislation as of any other legislation. But under labour legislation,
the individual is affected in the capacity of a worker or an employer. Therefore, the
persons who are neither the employers nor the workers are least affected directly by
labour legislation. To make the point clear, a few example are necessary. A
legislation regarding working conditions such as the factory legislation or laws
regarding payment of wages or compensation for work injury or employment of
women or children impinge upon the individuals as workers and the employers. Orr
the contrary, a law regarding ownership of property or a law relating to the marriage
or sales tax affects him as a citizen.
Individuals have different roles 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 labour legislation, social legislation
or general legislation. All these legislations try to meet the specific objectives of their
respective target groups- that is (a) to provide subsistence, (b) to aim at abundance,
(c) to encourage equality, and (d) to maintain security.
As labour legislations are to regulate the conditions of labour, in the industrial milieu,
it is required to be adjusted as per the changing requirements of industry. This has to
be done more frequently than the general legislation where changes are not that swift.
Unless ' labour legislations are subjected to frequent revision and not left to continue
as they are, they become obsolete and irrelevant. The Indian Labour Legislations are
the best example. Most of them have become outdated as the required revisions have
22 not been affected and gaps have been created between the expectation of industrial
so( ..:! the institution of labour legislation.
 Labour – Laws – Concepts,
3.1.4 Principles of Social Justice, Social Equality, Social Security, National Origin, Objectives and
Economy and Labour Legislations Classification

Labour Legislations contain the principles of social justice, social equity, social
security and national economy in their concept.
Social justice implies two things. First, equitable distribution of profits and other
benefits of industry between owner and workers. Second, providing protection to
workers against harmful effect to their health, safety and morality.
Social equality provides the flexibility in labour legislations to adjust to the' need of
the industrial society.
Social security envisages collective action against social risks which constitute the
crux of the labour legislation.
National Economy provides the standards to be set for the labour legislations.
Human Rights principles and human dignity postulates provide the broader base for
the concept of labour legislations.
Thus, these principles are the fundamentals for understanding the concept of Labour
jurisprudence.

3.2 ORIGIN OF LABOUR LEGISLATIONS

3.2.1 Introduction
The origin of labour legislation is the history of continuous and relentless struggle for
emancipation of working class from cloches of aggressive capitalism. The struggle
was between two unequals. The contract between capital and labour could never be
struck on equitable terms. The social scientists interpreted this struggle in different
ways. The point, however, was to change it. The change contemplated was one of
transforming a slave into partner and thereby bridle the power of capital to impose its
own terms on the workmen.
Various factors helped this process to take place. The struggle was not easy.
Numerous forces, directly and indirectly, hastened the pace facilitating the passing of
labour friendly legislation.
3.2.2 Factors Influencing Labour Legislations
Early Exploitative Industrial Society
The origin of labour legislation lies in the excesses of the early industrialism that
followed Industrial Revolution. The early phase of industrialisation in the capitalist
countries of the world was an era of unbridled individualism, freedom of contract and
the laissez-faire, and was characterised by excessive hours of work, employment of
young children under very unhygienic and unhealthy conditions, payment of low-
wages and other excesses. Naturally, such excesses could not have continued for long
without protest and without demand for reforms. The early Factories Acts flowed
from these excesses and manifested the desire of the community in general to protect
its weaker section against exploitation. The workers had very little legal protection
available. Therefore, it can be safely said that the labour legislations are the natural
children of industrial revolution.
Impact of Contemporary Events
a) Along with Industrial Revolution, Revolutionary thinking of Rousseau, J.S.Mill,
the French Revolution, Hegel, Marx & Engels and Russian Revolution greatly
influenced the thought processes and hastened the pace of labour jurisprudence.
b) The world wars made it possible for the labourers to realise their importance that
unless they produce, it will be difficult for warring nations to win. Therefore,
they must stake their claims for better quality of work life.
c) The revolution in science, technology, the communication and
telecommunication also helped in bringing the world, closer. It became easier for
the working classes of 23
Introduction to Labour Legislation
the underdeveloped world to know the better conditions of service of their
counterparts in the developed world.
The Growth of Trade Unionism
The Trade Union movement, which itself springs from industrial revolution has been
another factor which has quickened the growth of labour legislations. On the one
hand, their demands for protection of the interests of the working class led to
legislations in the field of wages, hours of work, women's compensation, social
security and other areas; on the other hand, their growth necessitated legislations for
the regulation of industrial disputes, their prevention and settlement and trade union
rights and privileges. Trade unions have been as much conditioned by labour
legislations as they have conditioned them.
Growth of Political Freedom and Extension of Franchise
Gradual extension and adoption of universal adult suffrage placed in the hands of the
working class, a powerful instrument to influence the cause of state policy. Their
representatives started espousing the cause of labour and getting progressive
legislations passed. The workers used their political powers for betterment and
amelioration of their lots.
Rise of socialist and other revolutionary ideas
In his analysis of capitalism, Marx showed that the exploitation of labour was
inherent in the capitalist economic system. Therefore, he advocated the overthrow of
capitalist system. The echo of the slogan, "the workers of the world unite, you have
nothing to lose but your chains", reverberating throughout the capitalist world, sent a
shudder among the conservative and capitalist circles to which amoliorative and
protective labour legislations came as safe alternatives. They readily grasped labour
legislations as antidote to the spread' of revolutionary ideas. The Fabian Society of
England, the establishment of socialist and communist parties in many countries and
first and second internationals strengthened the trend for progressive labour
legislations.
The Growth of Humanitarian Ideas and the Concept of Social Welfare and
Social Justice
The humanitarian ideas and role of humanitarians, the philanthropic and social
reformers influenced the shape of labour legislation. Early Factories Acts were made
possible because of the efforts of the humanitarians like Hume, Place, Shaftesbury
and others.
Researches in Social Sciences like Sociology, Psychology and Anthropology
exploded the myth of the natural elite and gave a powerful push to the movement of
social reforms, social change, social justice and labour legislations.
Establishment of I.L.O.
The establishment of the I.L.O in 1919 has been a very potent factor in conditioning
the course of labour legislation all over the world. The acceptance of the principle
that "labour is not a commodity" and the slogan that "Poverty anywhere constitutes a
danger to prosperity everywhere", have influenced the course of labour legislations in
all the countries. The ILO, through persistent investigation of workers' living
conditions has continuously established the need for ameliorative labour legislation.
It has initiated proposals for labour legislations, subjected them to elaborate
discussions and reviews and has adopted Conventions and Recommendations. The
ILO by trying to establish uniform labour standards in so far as the diverse conditions
and uneven economic developments of the world permit, has done a singular service
in the field of labour legislation.
ILO, through Conventions and Recommendations, have undertaken the task of
creating - international minimum standards of labour which constitute the
International Labour Code. They cover a wide range of subjects including wages,
hours of work, annual holidays with pay, minimum age of employment, medical
examination, maternity protection, industrial health, safety and welfare, social
security, freedom of association, right to organise and bargain collectively,
employment conditions of seamen and unemployment.
The ILO standards have influenced Indian Labour Legislations to a great extent. ILO
24 standards have formed the sheet-anchor of Indian Labour Legislations, especially after
 ILO – International Labour
Organisation and Indian Labour
UNIT 4 ILO - INTERNATIONAL LABOUR Legislations

ORGANISATION AND INDIAN

LABOUR LEGISLATIONS
Objectives

After studying this unit, you will be able to :

• know about ILO and its functioning
• know about its objectives
• Understand its main functions i.e. formulation, adoption and supervision of
International Standards
Structure
4.1 The International Labour Organisation
4.1.1 An Introduction to ILO
4.1.2 The Objectives of the ILO
4.1.3 The Structure of the ILO
4.1.4 The Finance of the ILO
4.2 International Labour Standards
4.2.1 Conventions and Recommendations
4.2.2 International Labour Code
4.2.3 Ratification Procedures
4.3 International Labour Standards and their Influence on Indian Labour
Legislations
4.3.1 Details of Influences
4.3.2 Industrial Relations
4.4 Conclusion
4.1 THE INTERNATIONAL LABOUR ORGANISATION
4.1.1 An Introduction to ILO
The International Labour Organisation one of the principal international
organisations established under the treaty of Versailles was created in 1919. Since
then, it has been working ceaselessly for the establishment of universal peace through
social justice. In 1969, it was awarded Nobel Peace Prize for its contributions in this
area. In accomplishing this task, the ILO has mainly worked on the setting of
International standards for national application, backed by technical corporation and
education.
There were 45 states who were members of ILO in 1919. India was one of the
founder members. By now, the ILO membership has risen to 174.
4.1.2 The Objectives of the ILO
The objectives of the ILO are enunciated in the preamble to its constitution
supplemented by Article 427 of the Peace Treaty of Versailles, 1919 as well as by the
Philadelphia Declaration of 1944. The ideology of the ILO is defined by these three
instruments in the following terms.
Whereas universal and lasting peace can be established only if it is based upon social
justice.
And whereas conditions of labour exist involving such injustice, hardship and
privation to large numbers of people as to produce unrest so great that the peace and
harmony of the world are imperilled.
Whereas also 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... 29
Introduction to Labour Legislation
Thus, the ILO has been "attempting to promote world-wide respect for the freedom
and dignity of the working men and to create the conditions in which that freedom
and dignity can be more fully and effectively enjoyed."

During the Second World War, in April 1944, a conference was convened at
Philadelphia. As a result of these deliberations, the aims of the ILO were redefined.
This was termed the Declaration of Philadelphia which was later incorporated into
ILO's constitution. This conference reaffirmed the principles of ILO, namely, that
(a) Labour is not a commodity,
(b) freedom of expression and of association are essential to sustained progress,
(c) poverty anywhere constitutes a danger to prosperity everywhere,
(d) The war against want requires to be carried on with unrelenting vigour within
each nation, and by continuous and concerted international effort in which the
representatives of workers and employers enjoying equal status with those of
governments, join with them in free discussion and democratic decision with a
view to the promotion of the common welfare.
The Declaration of Philadelphia set forth 10 objectives which the ILO was to further
and promote among the nations of the world. The theme underlying these objectives
is social justice. The objectives are as follows:
(a) Full employment and the raising of standards of living,
(b) the employment of workers in the occupation in which they can have the
satisfaction of giving the fullest measure of their skill, and make their
contribution to the common well being,
(c) the provision, as a means to the attainment of this end, and under adequate
guarantees for all concerned, of facilities for training and the transfer of labour
including migration for employment and settlement,
(d) policies in regard to wages and earning, bonus and other conditions of work
calculated to ensure a just share of the fruits of progress to all, and a minimum
living wage to all employed and in need of protection,
(e) the effective recognition of the right of collective bargaining, the cooperation of
management and labour in the continuous improvement of productive' efficiency
and the collaboration of workers and employers in social and economic
measures,
(f) the extension of social security measures to provide a basic income to all in need
of such protection and comprehensive medical care,
(g) adequate protection for the life and health of workers in all occupations,
(h) provision for child welfare and maternity protection,
(i) the provision of adequate nutrition, housing and facilities for creation and
culture,
(j) the assurance of equality of educational and vocational opportunity.
4.1.3 The Structure of the ILO

The ILO is organised around 3 sub-systems:

(1). An International Labour Conference
(2). A Governing Body and
(3). An International Labour Office
The conference is the supreme policy making and legislative body. The Governing
body is the executive council and the International Labour Office is the secretariat,
operational headquarters and information centre.
The International Labour Conference
It is the policy making body of the ILO. The Conference comprises 3 groups
representing governments, employers and workers in the ratio of 2:1:1. The sessions
30 of the ILO are held at least once a year and all delegates may be accompanied by
advisors, not exceeding two for each item on the agenda.
 ILO – International Labour
The government delegates to the ILC are mostly ministers, diplomats or officials Organisation and Indian Labour
subject to government instructions. Under the Constituion of the ILO, employers' and Legislations
workers delegates are nominated by the governments in agreement with the relevant
industrial organisations.
Structure of the ILO
International Labour Conference
Which examines social problems and adopts
conventions and recommendations for
ratification by governments
Electoral colleges of the conference
Elect the
Governing Body
Representative of Ratio
Government 2
employers 1
Workers 1
International Labour Office
Research
Investigation
Technical cooperation
Publications
International Centre International
for Advanced Technical Institute
and Vocational Training Labour Studies
Turin Geneva
The Governing,Body

This is one of the principal bodies of the ILO. It is a non-political, non-legislative,

tripartite body. It carries out the decisions of the Conference with the help of the
International Labour Office. It consists of 56 members of which 28 represent
governments, 14 employers and 14 workers. Of the 28 member government
contingent, 10 are appointed by the members of the States of Chief Industrial
Importance and the balance are delegates of other governments. The criteria laid
down for the selection of members of Chief Industrial Importance is the strength of
its total industrial population. India is one of the ten States of Chief Industrial
Importance. The period of office of this body is 3 years. It meets several times a year
to take decisions on the programmes of the ILO. The functions of this body are given
below:

Functions of International Labour Conference and Governing Body of the ILC

ILC Governing Body
1. Formulates International Labour 1. Coordinates work of the
Standards organisation
2. Fixes the amount of contributions by 2. Draws up an agenda for each
the member states session and subject to the decision
of the International Labour
Conference, decides what subject
should be included in the agenda of
the International Labour Conference
3. Decides the expenditure budget 3. Appoints the Director General of
estimates prepared by the Director the Office
General and submitted to the
Governing body
4. Makes amendments to the 4. Scrutinises the budget
consititution subject to subsequent
ratification of the amendments by the
2/3 member 31
Introduction to Labour Legislation
States including 5 of the 10 states of
industrial importance
5. Considers the report of the Director 5.It follows up the implementation by
General member states of the conventions and
recommendations adopted by the
conference
6. It appoints committees to deal with 6. It fixes the dates, duration and agenda
different matters during each session of the Regional Conference
7. It is empowered to regulate its own 7. It has the power to seek advisory
procedures opinions from the International Court of
Justice with the consent of the
International Labour Conference
8. Selects ones in 3 years members of
the Governing Body
9. Elects its Presidents
10. Seek advisory opinion from the
International Courts of Justice
11. Confirm the powers, functions and
procedures of Regional Conferences

The International Labour Office

This is the third major body in the ILO system. It functions as the Secretariat of the
ILO in Geneva. The Director General of the ILO is the Chief Executive of this office.
The Director General is appointed by the Governing Body and he also acts as the
Secretary General of the Conference. The staff bf this office is appointed by the
Director General. He is assisted by two deputy director generals, six assistant director
generals, one director of the International Institute for Labour Studies, one director of
the International Centre of Advanced Technical and Vocational Training, advisors,
chiefs of divisions, and other staff drawn from 100 nations.

The constitution of ILO describes the main functions of this office. They are:
1. To prepare documents on the items of the agenda of the Conference.
2. To assist governments in framing legislation on the basis of the decisions of the ILC.
3. To carry out its function in connection with the observance of the conventions.
4. To bring out publications dealing with industrial labour problems of international
interest.
5. To collect and distribute information of international labour and social problems.
4.1.4 The Finance of the ILO

The ILC fixes the budget on the recommendations of the Governing Body and
member states make contributions accordingly. Contributions are fixed on an ad hoc
basis from year to year.

4.2 INTERNATIONAL LABOUR STANDARDS

The International Labour Standards, the quintessence of world wide experience in the
progress towards higher social and economic objectives continue to be the principal
means at the disposal of the ILO to achieve social justice throughout the world. The
International Labour Conference, the legislative wing of the ILO provides a forum
for discussion and deliberation of international labour problems and this formulates
the standards in form of conventions and recommendations. The conventions and
recommendations are collectively known as the international labour code.

The need for standard setting activities, in overall ILO plans and programme, is the
most important one. In the In-depth Review of International Labour Standards, (Feb,
32 1976), it element in the development of
Introduction to Labour Legislation

UNIT 5 INDIAN CONSTITUTION AND

LABOUR LEGISLATIONS
Structure
5.1 Indian Constitution and Labour Legislations
5.1.1 Introduction
5.2 Preamble of Indian Constitution and Labour Legislations
5.3 Fundamental Rights and Labour Legislations
5.4 Directive Principles of State Policy and Labour Legislations
5.5 Judicial Wisdom of the Courts and Labour Legislations
5.6 Conclusion

5.1 INDIAN CONSTITUTION AND LABOUR

LEGISLATIONS
5.1.1 Introduction
To be called civilised, a society has to concede to its working class the right to live
with dignity and security as human beings. This thinking fords expression in the
Universal Declaration of Human Rights, the preambles of League of Nations and
United Nations, Organisation. The aspiration of the working class finds expressions,
at national level, in the Constitution of the nation.

After India became independent, it adopted a Constitution on the 26 Apr 1949. Indian
Constitution is a unique basic national document. Besides providing basic principles
for governance, it presents the aspirations of the Weaker Section of Society, specially
the working classes. It is also a strange phenomenon of history that national freedom-
struggle and struggle of working class emancipation coincided and our leaders fought
for both- the betterment of worker's lots and India's freedom. During this period, they
made some promises and pledges to the working classes, which were to be redeemed
after independence. The redemption of all those promises and pledges get expression
in our Constitution.

Constitution is the supreme law of a nation and all legislations draw their inspiration
from it. Constitution is a document of social revolution casting an obligation on every
instrumentality including the judiciary to transform the status quo ante into a new
human order in which justice, social, economic and political will inform all
institutions of national life and there should be equality of status and opportunity to
all. The trinity of Indian Constitution, the Preamble, the Fundamental Rights and the
Directive Principles of State Policy, embody the fundamental principles, which
provide guide to all legislations, including the labour legislations. This constitutional
trinity assures its citizens to provide "Socialistic Pattern of Society" and create
"Welfare State" and all legislations, specially the Labour legislations, are deeply
influenced by them.

5.2 PREAMBLE OF INDIAN CONSTITUTION AND

LABOUR LEGISLATIONS
The importance and utility of the Preamble has been pointed out in several decisions
of our Supreme Court. Though, by itself, it is not enforceable by the court of law, the
preamble states the objectives which the Constitution seeks to establish and promote.

The Preamble to our Constitution serves two purposes.

(1). It indicates the source from which it derives its authority

36 (2). It starts the objectives which it seeks to establish and promote.
 Indian Constitution and
The preamble states to secure to all its citizens: Labour Legislations
• Justice, Social, Economic and Political
• Liberty of thought, expression, belief, faith and worship
• Equality of status and of opportunity
• Fraternity, assuring the dignity of the individual and unity and intergrity of
nation
These principles enshrined in Preamble of our constitution provide the bedrock for
framing all labour and social. legislation and their progressive and creative
interpretation in favour of working classes. These principles run through our labour
legislations like invisible golden threads and provide them strength and stamina to
meet the aspirations of working classes; whether it is protective legislations, social
security legislations, welfare legislations or even industrial relations legislations, they
all heavily lean towards working classes due to the philosophy provided in the
preamble.

5.3 FUNDAMENTAL RIGHTS AND LABOUR

LEGISLATINS
Part III (Article 14 to 35) deal with Fundamental Rights. They can be grouped
together under as
(1). The Right to Equality (Article 14 to 18)
(2). The Right to Freedom (Article 19 to 22)
(3). The Right against Exploitation (Article 23 to 24)
(4). The Right to Freedom of Religion (Article 25 to 30)
(5). Cultural and Educational Rights (Articles 29-30)
(6). The Right to Constitutional Remedies (Articles 32 to 35)
Since the Fundamental Rights have been guaranteed to protect the public from
repressive state actions, judicial decisions tend to expand the scope of word 'State' as
defined by Article 12 of the Constitution. A liberal interpretation is made of the
words "other authorities" so as to include any instrumentality or agency of the
Government whether an individual or a corporation like Life Insurance Corporation
(Som Prakash Rakhi vs. Union of India-SC 1981) or society like the Indian
Statistical Institute registered under the Societies Registration Act, 1960,or a
company like Steel Authority of India. All have to fulfil the tests laid down by the
court in their dealings with their employees (Ajay Hasia vs.Kahlid Mujid-SC 1981).
Fundamental Rights are subject to reasonable restrictions. Therefore, Article 14,
dealing with the right to equality and equal protection of law is subject to reasonable
classification as absolute equality is impossibility. In Charanjit Lal Choudhary vs.
Union of India-SC 1951, it is observed "The guarantee... forbids class Iegislation but
does not forbid classification which rests upon reasonable grounds of distinction".
Classification can be on the basis of age, sex (provisions under Factories Act,1948,
Sections 26,27 etc. for children and women), nature of trade profession or occupation
framing rules for recruitment or promotions of public servants to secure efficiency
(Gangaram vs. Union of India-SC. 1970), fixing of different minimum wages for
different industries (Chandra Boarding vs. State of Mysore-SC. 1970). To be valid,
the classification must be operational and not arbitrary. In the case, Bharatiya Dak
Tar Mazdoor Munch vs. Union .of India, SC 1987, it was held that Classification
of employees of P&T deptt. into regular employees and casual employees for the
purpose of paying the latter less than minimum payable to regular employees is not
tenable and violative of Article 14 and 16 of Constitution. It also amounts to
exploitation of labour and is opposed to clause (2) of Article 38 which provides that
the State in particular strive, to"minimise inequality in income".
Article 16 (1) and (2) of the Constitution guarantees equality of opportunity to all the
citizens in matter of appointment to any office or any other employment under the
State. Clauses (3), (4) &(5) lay down, by way exceptions, reasonable classification 37
and provisions for backwards and for religious institutions.
Introduction to Labour Legislation
Article 19 in its various sub clauses provides, inter alia, freedom of association;
freedom to carry on trade or business and freedom of speech, which are relevant to
labour legislation.
Article 21 proclaims that "no person shall be deprived of his life or personal liberty
except according to procedures established by law". With passage of time, and
compelling social needs, however, the courts have given a very liberal and wide
interpretation of the terms "life" or "Personal Liberty". In Bandhua Mukti Morcha
vs. union of India-SC 1984, it was held that Article 21 assures a citizen the right to
live with human dignity free from exploitation. The Govt. is bound to ensure
observance of social welfare and labour laws enacted to secure for workmen a life
compatible with human dignity. Again in Ogla Tellis12-Dec-06 vs. Bombay
Municipal Corporations - S.C. 1985, this was affirmed.
Article 23 and 24 guarantee the right against exploitation. Clause(1) of Article 23,
prohibits traffic in human beings; and any form of forced labour and makes them
punishable offence. In People's Union for Democratic Rights vs. Union of India
Sc. 1983, it was held that labour or services for a remuneration less than a minimum
wages amounts to "forced labour". In this case, a letter written to Justice Bhagwati
regarding the working conditions of construction workers engaged in building
structures connected with Asian Games was entertained as Writ Petition, setting aside
the technicalities of locus - standi and other procedures. The court held that when
judicial redressal is sought for legal injury suffered by a person or persons who by
reason of poverty, disability or socially or economically disadvantaged position are
unable to approach the court and the attention of the court is drawn to such legal
injury by a member of public, even by a letter, the same will be entertained by the
court as a writ petition to bring justice within the reach of the poor masses.
In Bandhua Mukti Morcha vs. Union of India (SC 1984) S.C. held that
Government was bound to ensure observance of social welfare and labour laws
enacted to secure to workmen a life of basic human dignity. So also, Neerja
Choudhary vs. State of MP SC - 1984, held that wherever it is found that any
workman is forced to provide labour for no remuneration or nominal remuneration,
the presumption would be that he is a bonded labour, unless the employer or the state
government proves otherwise. Similarly, the Court said that the plainest requirement
of Article 21 and 23 is that bonded labour not only be identified and redressed but
also suitably rehabilitated.
Article 24 of the Constituion prohibits the employment of children below the age of
14 years in factories, mines or any other hazardous work. The idea is to protect the
health and well being of children. However, the article does not prohibit the
employment of children in easy and less strenuous work.
Articles 32 to 35 guarantee the right to constitutional remedies, as right without a
remedy is a meaningless formality. It is the remedy which makes the right real. In
view of this, the S.C. has evolved the innovative strategy by encouraging Public
Interest Litigation aimed at providing easy access to justice to the poor and weaker
sections of Indian Society (generally labourers) and giving a powerful tool to public
sprited individuals and social action groups to combat exploitation and injustice. In
the cases like People's Union for Democratic Rights, Bandhua Mukti Morcha etc., the
S.C. departed from traditional principles of locus standi to entertain even the letter by
a member of public as writ petition to give relief to poor and illiterate workmen.
5.4 DIRECTIVE PRINCIPLES AND STATE POLICY
AND LABOUR LEGISLATIONS
Articles 36 to 51 form Part IV of the Constitution and they deal with the goal of
economic democracy the socio-political content of political freedom and the concept
of Welfare State. Though earlier decisions of the Supreme Court paid scant attention
to the Directives on the ground that they are not enforceable in law courts, Iater
decisions, specially from Keshavanand Bharati case, onwards, the following
propositions have come before the courts for consideration.
(1). There is no disharmony between Directive Principles and Fundamental Rights.
38 They supplement each other.
Introduction to Labour Legislation

UNIT 6 LABOUR POLICY, EMERGING

ISSUES AND FUTURE TRENDS
Objectives

After studying this unit, one will be able to

(a) understand various factors responsible for formation of Labour Policy,
(b) know the influences of Indian Constitution ILO and various conferences,
committees and plans on Labour Policy,
(c) scan through different stages of Indian Labour Policy.
(d) appreciate future guide lines for Labour Policy.
Structure
6.1 Introduction to Indian Labour Policy
6.1.1 Factors Responsible for Labour Policy
6.1.2 The Main Postulates of Labour Policy
6.2 An overview of Labour Policy/Practices
6.2.1 Colonial Period upto 1950
6.2.2 Post Independence Period 1947-2000
6.2.3 Period of Structural Adjustments 1991-onwards
6.3 Emerging Issues
6.4 Future Guidelines (Trends) for Labour Policy
6.4.1 Paradigm Shift in Fundamentals
6.4.2 Align Labour Policy with Economic Policy
6.4.3 Competitive Labour Policy at State Level
6.4.4 Labour Law Reforms
6.5 Harmonious Understanding between Legislative, Judiciary and Executives
6.6 Conclusion

6.1 INTRODUCTION TO INDIAN LABOUR POLICY

Labour Policy means setting trends, evolving course of actions, following principles
and practices to govern labour matters. The National Commission on. Labour (1969)
observed "the concern of the state in labour matters emanates as much from its
obligation to safeguard the interests of workers and employers as to ensure the
community the availability of their joint products/service at a reasonable price. The
extent of its involvement is determined by the level of social and economic
advancement, while the mode of intervention gets pattemised in conformity with the
political system obtaining in the country and social and cultural traditions of its
people".
The Labour Policy and the role of state in a democratic country will be different from
that with different philosophy for the governance of the people. In a democratic set-
up, the emphasis will be on human freedoms and human rights, and policies reflect,
broadly, the choice and the will of the people:
Labour Policies are also influenced by the stages of development of an economy and
industrialisation strategies. Policies regarding job and job security etc. are influenced
by economic health, employment unemployment situation,etc. The extent of state
intervention also differ from state to state. In USA state merely lays the ground rule
and procedures and an independent agency such as National Labour Relations Board
administers the relations. But in a state like India, state intervention takes place not
only in the event of disputes but even when there is apprehension of it.
42 In India, the labour policies and practices are influenced by a variety of
considerations,
 Labour Policy, Emerging
based on social economic and political patterns that emerged at the time of independence. Issues and Future Trends
a) concern for planned development and rapid economic growth as envisaged in
the successive five year plans
b) requirements of welfare state as envisaged in our constitution, specially the
directive principles of state policies (Art.39,41,43 43A etc.)
c) the socio-economic imbalances in the society, the depressed conditions of the
working class as observed by the Royal Commission on Labour and the Labour
Investigation Committee.
d) the imbalance in and between unions and employers and weaknesses of both the
partners, leading to preference for adjudication, despite obvious merit of free
Collective Bargaining.
e) the role of state as a major employer, with public sector being projected "to
achieve the commanding heights of the economy as per the Industrial Policy
Resolutions". However, the New Economic Policy seems to alter this position.
6.1.1 Factors Responsible for Labour Policy

The Labour Policy of our country is influenced by-

a) Constitution of India
b) The instruments of ILO
c) The policies announced in successive five years plans
d) The report and recommendations of various major commissions like Royal
Commission on Labour, the National Commission on Labour and Tripartite
Committees like- Indian Labour Conference and Standing Labour Committee
Indian Constitution and Labour Policies

Constitution of India is the supreme law of the land and fountain head of all labour
policies. The trinity of Constitution- the Preamble, the Fundamental Rights and the
Directive Principles of State Policies, provide the base and inspiration for enunciation
of labour policies by the Government. The Preamble provide the philosophies and
principles, the Fundamental Rights postulate the human rights and human dignity and
Directive Principles the progressive and on-going ways for Labour Policy
formulation.
Keeping the diversities and pluralistic structure of Labour problems, our Constitution
keeps labour in the concurrent list i.e. both Central Government and the State
Government have powers to legislate and regulate labour problems.
The ILO and its Instruments
Right from its very inception in 1919, the ILO through its Conventions and
Recommendations, has been defining and redefining the international labour
standards and impressing on the member states the need to ratify them,
Out of over 180 Conventions, India has adopted 36.

Some of the subjects covered by international labour code are the following
a) Freedom of association
b) Prohibition of forced labour
c) Equality of opportunity and treatment
d) Employment and human resources
e) Social Policy/Labour Administration
f) Industrial relations
g) Weekly rest and paid leave
h) Occupational safety and health
i) Social security
j) Employment of women
43
Introduction to Labour Legislation
k) Employment of children and young persons
l) Migrant workers
m) Hours of work
All these have influence on formulation of Labour Policy in India
Five Year Plans and Labour policy
Labour investigation Committee, 1946 and Royal Commission on Labour 1931 and
their recommendations guided the labour policy in immediate post-independent
period.
1. Revise the existing labour legislations to meet the changing needs of the time
2. Abolish/regulate Contract Labour
3. Evolve fair, terms and deal for all workers
4. Fix wages for sweated industries
5. Health Insurance Programme
6. Network of Employment Exchanges
National Commission on Labour and the Successive Five Year Plans have
contributed some thing or the other for the formulation of labour policies at national
level.
Tripartite Labour Bodies and Labour Policy
Indian Labour Conference and Standing Labour Committee were formed (1942) with
a view to provide necessary platform for evolving national labour policy on
consensus basis. They have done valuable service over the years. But because of the
adamant attitude of Government not to accept even the unanimous recommendations,
these bodies have not been successful in their mission fully.
6.1.2 The Main Postulates of Labour Policy
The main elements of our labour policy have been as follows:
1. Emergence of state as the most prominent player as the custodian of the interests
of the working community, as also the catalyst of change and welfare
programmes
2. Recognition of right of direct action, if justice is denied to the working class
3. Encouragement of mutual settlement, collective bargaining and voluntary
arbitration
4. Intervention by the state in favour of the weaker party to ensure fair treatment
and all concerned
5. Primacy to maintenance of industrial peace
6. Involving partnership between the employer and the employee in a constructive
endeavour to promote the satisfaction of economic needs of the community in
the best possible manner
7. Ensuring fair standards and provisions of social security
8. Cooperation for augmenting "production" and increasing "Productivity"
9. Adequate enforcement of Legislations
10. Enhancing the interests of workers in industry
11. Tripartite consultations

6.2 AN OVERVIEW OF LABOUR POLICY/PRACTICES

In order to understand Labour Policy, one has to have an overview of labour policies/
practices. It can be divided into three periods - (1) Colonial Period upto 1950 (2) Post
Colonial Period 1950-1990 (3) Period of Structural Adjustment - Emerging HR/IR
Requirements and need for change.

6.2.1 Colonial Period Upto 1950

Our colonial masters devised Labour Policy keeping two broad economic factors in
44 view : (1) to protect the interests of British Enterprises in India (ii) to ensure
uninterrupted supply
 Labour Policy, Emerging
of goods and services to enable them to manage wars, which they encountered in the Issues and Future Trends
first half of the 20th Century. They were aware that they have to leave India one day
and therefore, they wanted to drain out wealth from India to England and for that
they wanted to contain labour by adhoc, negative and reactive measures. No
systematic and planned effort was made to evolve a development oriented labour
policy, ensuring the growth of a healthy IR system.
During Colonial period policy of government for IR was one of laissez-faire and
selective interventions at most (NLC 1969). There were hardly any law to protect the
interests of workers except the employers and workmen (Disputes) Act which was
used mostly to settle wage disputes. The Britishers were compelled to enact Indian
Trade Union Act 1926, Trade Disputes Act 1929, Bombay Industrial Relations
Act,1938; recommendations of Royal Commission on Labour 1931 led to the
Payment of Wages Act 1936 and amendments to Factory Legislations. But during
World War II, their concern for IR became quite evident when they used Defence of
India Rule 81A for Compulsory Arbitration and established Tripartite Forums (ILC
and SLC:) to deal with IR problems.
6.2.2 Post Independence Period 1947-2000
Even after independence, the Labour Policy continued to be influenced by colonial
mind set and our legislature could not muster courage to make fundamental departure
Psychological hang-over of the past continued to be reflected in our Labour Policy in
independent India.
During the freedom struggle, our leaders made promises and pledges to the working
classes. Our leaders displayed varied ideological commitment - the communist
ideology, the fabian socialist ideology and the liberal democratic idealogies have
deep influence on our Labour Policy.
We have three main sources of legislations which form the core of labour policies.
They are central legislations (67) the state legislations (157) and the judge made
laws.
The Indian Labour Conference and Standing Labour Committee provided the forums
for discussion among the different stakeholders to evolve Labour Policy based on
consensus.
(i) Despite all these, Labour Policy in India remained consistently inconsistent. Shri
V.V. Giri wanted to bring the policy of one union in one industry and
strengthening the institution of collective- bargaining, failing which going for
Compulsory Arbitration. But that could not materialise.
(ii) In 1957-58, emphasis shifted from legalistic approach to voluntarism. Several
voluntary arrangements gained currency - Code of Discipline (1958), Model
Grievance Procedure (1958), Code of Conduct(1958), Verification of Trade
Union Membership (1958), Voluntary Arbitration (1959), Code of Efficiency
and Welfare (1959), Industrial Truce Revolution (1962).
(iii) India had to face three wars between 1962-1972 and therefore wanted better
discipline in all spheres of life, including labour management. From 1968 till
early years of eightees, the labour market was marked by violence, gheraoes and
militancy. Emergency in June 75, established National Apex Body in place of
ILC. After emergency, Janta Govt. rehabilitated ILC, and workers participation
in management gained currency. Labour militancy also revived. Government
went for ESMA (Essential Services Maintenance Act) for meeting the situation
of industrial strife. During this period unsuccessful attempts were made to
reform labour legislations and to adopt a policy of workers participation
As a result of these adhoc and fragmented approach in Labour Policy, we have got a
totally protected and sheltered labour management relations.
- Thus, our labour policy has not come up to our expectations and it lacks direction and
sense of proportion. Labour being an important component of production, the poor
labour policy gets reflected in our productivity and other economic parameters.
- When India became independent, it was one of the major economic powers. But in
1990, it is at the bottom of other industrialising countries. It got itself marginalised.
India's share in the world exports declined from 1.4% in 1953 to 0.5% in 1990, its
share in import also declined from 1.3% to 0.7% during the corresponding period. 45