CHAPTER 1
INTRODUCTION
For the efficient
functioning of a working unit an amicable environment, cooperation between the
workers and the employers, reasonable remuneration and proper working condition
are the prerequisites. From the laissez faire to the ‘welfare state’, the
socio-economic conditions have faced drastic changes, not only in India but
also across the world.
The
industrial position that prevailed in the pre-independence era of India does
not remain pristine. The industrial revolution in India brought with it certain
inhumane as well as unjust aspects of the colonial era. To cope with these
problems, and provide social security industrial legislations were enacted in
India. To keep pace with the changing socio-economic conditions in India, the
Legislature as well as the Courts had to check the unfavourable growth of the
industrial legislations.
Industrial
legislation finds its origin from the industrial jurisprudence, which is a
development of the 20th century world. In India, industrial jurisprudence
prevailed before the Independence, but it was in the rudimentary form.
Industrial revolution was the emanating factor behind the growth of the
industrial jurisprudence. Industrial revolution brought with it the most
inhumane aspect of the human life. It saw the exploitation of a man by a man.
The maximization of profit, even at the cost of the life of the labourers, was
paramount goal of the employer. ‘Freedom of contract’ was the evident result of
the laissez faire. The employer was free to fire the employee, at his
arbitrariness.
Thus the
employees were always at the loss.
To protect the interest of the employees, the legislature and courts, in India took a giant step to give birth to the industrial jurisprudence in India- former trough the enactments and the latter through the judgments. The scope of industrial jurisprudence not only covers the protection of interests of the employees but it also aims at securing a cordial relationship between the employers and employees in a working unit.
To protect the interest of the employees, the legislature and courts, in India took a giant step to give birth to the industrial jurisprudence in India- former trough the enactments and the latter through the judgments. The scope of industrial jurisprudence not only covers the protection of interests of the employees but it also aims at securing a cordial relationship between the employers and employees in a working unit.
1.1 Concept
Of Social Security
The International Labour Organisation (ILO) defines Social Security as
"the security that society furnishes through appropriate organization
against certain risks to which its members are perennially exposed. These risks
are essentially contingencies against which an individual of small means cannot
effectively provide by his own ability or foresight alone or even in private
combination with his fellows. The mechanics of social security therefore
consists in counteracting the blind injustice of nature and economic activities
by rational planned justice with a touch of benevolence to temper it.”
Modernization and urbanization have resulted in radical socio-economic
changes and give rise to new conflicts and tensions consequent upon the erosion
of age old family and fraternal security. The transition from agricultural
economy to an industrial economy brought in special accompanied problems that
called for social security.
CHAPTER 2
EVIL IMPACT OF INDUSTRIAL
REVOLUTION ON SOCIAL SECURITY SYSTEM IN INDIA
As per
the economic policy of the British government, they never wanted to make India
an industrial base, rather they wanted to make India a supplier of raw
materials for their industries. Instead of promoting industries in India, they
continued to de-industrialise and ruralise the Indian economy.
Further with the advent of industrial revolution in England, the British government revved up its efforts to further exploit the Indian economy. As a result, in 1947, when the British left, India represented a ruined economy, a sick society and the present danger of the evil effects of neo-colonialism. However, the evil impact of industrial revolution can be classified into Social Evils and Economic Evils, which are discussed as below:
Further with the advent of industrial revolution in England, the British government revved up its efforts to further exploit the Indian economy. As a result, in 1947, when the British left, India represented a ruined economy, a sick society and the present danger of the evil effects of neo-colonialism. However, the evil impact of industrial revolution can be classified into Social Evils and Economic Evils, which are discussed as below:
2.1.
Economic Evils: The
artisans lost the psychological satisfaction that they derived in producing
goods themselves. In the industries, they had to produce only a part of the
finished goods. The labourers were underpaid. They could just earn from
hand to mouth. The wages were sufficient to provide them with the daily bread,
but at the cost of other necessities of their life. The term of employment was
not secure. The employers were free to exercise their arbitrariness in sacking
the labourers. The factory workers had to suffer from the periodic unemployment
and under-employment.
2.2.
Social
Evils: The overcrowded cities,
due to the large-scale immigration of the village population in the cities led
to the industrial slums and acute housing problems. It had its adverse impact
on the health of the workers and also led to the sanitation problems in the
cities. The working condition in the factories was hazardous. Moreover, the
long hours of duty, with no rest and no facility of recreation marred the
welfare of the workers. The machines were taken care of by the factory owners,
with little regard for the safety of the workers. Workers were exposed to
serious accidents caused by the improperly managed machines in the factory.
These accidents were not taken seriously by the factory owner. The victims of
such accidents did not have any right to compensation.
Due to the inadequate wages, the wives and children of the workers were
exposed to the exploitation by the factory owners. They were employed at low
wages without regard to their physical conditions.
CHAPTER 3
LABOUR
PROBLEMS IN INDIA
The
factory owners paid their sole attention towards the maintenance of the
machines irrespective of the health and working conditions of the workers. The
employers neglected the conditions of the workers as the manual labour was
abundantly available to them. The workers were underpaid. They could not raise
their voice. They were illiterate and poor, so were ignorant of their rights.
Taking the advantage of this situation, the employers dictated their own terms.
The government also did not interfere in the matter as it was deemed to be a freedom of contract. The situation worsened further. The government could not just see it as a neutral player and it had to interfere. Moreover, some of the philanthropic agencies like the Servants of India Society and Social Service League raised voice against these problems. Later some industrial social workers also raised voice against these problems. Initially, they lacked in the resources and bargaining power but they were successful in mobilising the public voice against these problems.
The government also did not interfere in the matter as it was deemed to be a freedom of contract. The situation worsened further. The government could not just see it as a neutral player and it had to interfere. Moreover, some of the philanthropic agencies like the Servants of India Society and Social Service League raised voice against these problems. Later some industrial social workers also raised voice against these problems. Initially, they lacked in the resources and bargaining power but they were successful in mobilising the public voice against these problems.
Later,
the factory owners also realised the seriousness of the problem and also that a
contended worker will add to the productivity of the factory.
Later the
Government also, could not confine itself to a neutral spectator. The
Government also realised that it was in the interest of the national economy as
well as the labourers that constitute a bulk of population in India. Thus the
drive for the welfare of the labourers and for the protection of the Indian
economy compelled the Government to intervene in the situation.
CHAPTER 4
EVOLUTION
OF INDUSTRIAL JURISPRUDENCE TOWORDS SOCIAL SECURITY AND CHANGE IN LABOUR
RELATION POLICY IN INDIA
The
evolution of Industrial Jurisprudence in India can be traced back to the period
of post Independence. Before the Independence, the industrial jurisprudence
existed in a rudimentary form. The paramount concern of the Pre-independence
industrial jurisprudence was the amelioration of the working condition of the
workers at the factories. There was hardly any deal with the social justice to
the working class. It was only after the commencement of our Constitution, that
the adequate provisions for the social justice to the workers were inserted.
Before the Independence, India was not only a great agricultural country, but also a manufacturing country. But the British Government, as a matter of their policies always tended to discourage the Indian industries. This led to a widespread nationalism in India, which laid emphasis on the boycott of the foreign goods. Further a Non-Cooperation Movement saw its birth that is also called Swadeshi movement, which emphasized on the use of indigenous goods and boycott of the foreign goods.
Before the Independence, India was not only a great agricultural country, but also a manufacturing country. But the British Government, as a matter of their policies always tended to discourage the Indian industries. This led to a widespread nationalism in India, which laid emphasis on the boycott of the foreign goods. Further a Non-Cooperation Movement saw its birth that is also called Swadeshi movement, which emphasized on the use of indigenous goods and boycott of the foreign goods.
The aspect of industrialization in India was
based on the program of planning, which was accepted after thirties.
It is important to take into consideration
that the plantation industry of Assam was the first to attract the industrial
legislation. The situation there was that the employers exercised hard
practices against the employees. The employees were not allowed to leave the
tea gardens. A number of Acts were passed from 1863 onward, but they only
protected the interests of the employers. Some other Acts were also passed to
regulate the condition. But the Workmen’s Compensation Act, 1923 was the
landmark Act.
4.1. INDIAN CONSTITUTION AND SOCIAL JUSTICE
Industrial Jurisprudence was not in a much developed form before the commencement of the Constitution of India. Before the Independence, the paramount concern of the Government was to ameliorate the condition of the factory workers. It was after the commencement of the Constitution that the paramount concern of the Government shifted towards the social justice for the labourers, who constituted the bulk of the population.
Bhagwati J., in a landmark case opined that;
“concept of justice does not
emanate from the fanciful notions of any particular adjudication but must be
founded on a more solid foundation.
And Justice Gajendra gadkar
also opined that;
“the concept of social and economic justice is a living concept of
revolutionary import; it gives sustenance to the rule of law and meaning and
significance to the idea of welfare state”.
The Indian Constitution also enshrines the idea of social justice as one of the objectives of the State. Some of those provisions are as follows:
1. The State
shall strive to promote the welfare of the people by securing
and protecting as effectively as it may a social order in which justice, social,
economic and political.
2. The State
shall, in particular, strive to minimize the inequalities in income,
and endeavor to eliminate inequalities in status, facilities and
opportunities, not only amongst individuals but also amongst groups of people
residing in different areas or engaged in different vocations
3. The State
shall, in particular, direct its policy towards securing
a)
that the citizen, men and women
equally, have the right to
an adequate means of livelihood;
b)
that the ownership and control of the material
resources of the community are so distributed as best to sub
serve the common good;
c)
that the operation of the economic system does
not result in the concentration of wealth and means of production to the
common detriment;
d)
that there is equal pay for equal work for both
men and women;
e)
that the health and strength of workers, men and women, and
the tender age of children are not abused and that citizens are not
forced by economic necessity to enter avocations
unsuited to their age or strength;
f)
that children are given opportunities and facilities to
develop in a healthy manner and in conditions of freedom and dignity and that
childhood and youth are protected against exploitation and against moral and
material abandonment
4.2 SOME IMPORTANT LABOUR
ENACTMENTS IN INDIA
The
following few legislative measures have been adopted by the Government of India
to promote social security schemes for industrial workers.
a)
The
Indian Factories Act of 1948 provides for the health, safety and welfare of the
workers.
b)
The
payment of wages Act, 1936, regulates the k\timely payment of wages without any
unauthorized deductions by the employers.
The Minimum Wages Act, 1948, ensures the fixation and revision of minimum rates of wages in respect of certain scheduled industries involving hard labour.
The Minimum Wages Act, 1948, ensures the fixation and revision of minimum rates of wages in respect of certain scheduled industries involving hard labour.
c)
The
Industrial Disputes Act, 1947, provides for the investigation, and settlement
of industrial disputes by mediation, conciliation, adjudication and
arbitration. There is scope for payment of compensation in cases of lay-off and
retrenchment.
d)
The
Industrial Employment (Standing Orders) Act, 1946, requires employers in
Industrial establishments to define precisely the conditions of employment
under them and make them known to their workmen. These rules, once
certified, are binging on the parties for a minimum period of six months.
e)
The
Indian Trade Unions Act, 1926, recognizes the right of workers to organise into
trade unions, when registered, have certain rights and obligations and function
as autonomous bodies.
f)
Workmen’s
Compensation Act, 1923: The Workmen’s Compensation Act was passed in March
1923, and was put into effect on 1st July 1924. This Act followed the British
model, but was adapted to suit Indian conditions. Was-time injuries were also
covered by the Act. The 1962 Amendment raised the wage limit covered under the
Act to Rs.500 per month. It also amended the clauses bearing on industrial
diseases, and revised the rates of compensation. With effect from 1st October
1975, the wage limit coverage under this Act has been raised from Rs.500 to
Rs.1000 per month.
g)
Employees’
State Insurance Act, 1948: Two conventions on health of workers in industry,
commerce and agriculture were adopted in 1927 by International Labor
Conference. The question about health insurance was also discussed by the Royal
Commission on Labor, and a tentative scheme of health insurance was proposed in
its comprehensive report in 1931. Its recommendations on the adoption of a
health insurance scheme were not accepted by the Government of India because of
financial difficulties. All these built up a lot of pressure on the government.
The one-man committee of Professor B.P. Adarkar, set up in March 1943, submitted its report on a scheme of health insurance for industrial workers in August 1944. It recommended a compulsory and contributory health insurance scheme for workers in perennial factories in three groups of industries, namely textiles, engineering and minerals and metals. Bearing all these modifications and recommendations in mind, the Government of India passed the Employee’s State Insurance Act in April 1943, which provides cash benefit in contingencies of sickness, maternity and employment injury, but did not provide security in such contingencies as unemployment and old age. The dependents of workers who died as a result of any employment injury were paid compensation in the form of a pension.
The E.S.I. Scheme stated with coverage of about 1.20 lakh industrial workers in Kanpur and Delhi on 24th February 1952. It has continued to progress over all these years. By the end of March 1976, there were 388 centers covering nearly 22 million beneficiaries under this scheme. The total number of employees and insured persons under the scheme at the end of 1995-96 was respectively 66.13 and 73.03 lakh insured persons.
The ESI Scheme offer both direct and indirect medical care. The direct method is called the “Service System” by which the ESI Corporation provides medical care, either through its own Employees’ State Insurance Hospital or through reservation of beds in State Government hospitals. The indirect method is known as the “Panel System”, under which medical care is provided through private doctors selected by the State Government with the approval of the ESI Corporation.
The benefits provided by the Act are:
The one-man committee of Professor B.P. Adarkar, set up in March 1943, submitted its report on a scheme of health insurance for industrial workers in August 1944. It recommended a compulsory and contributory health insurance scheme for workers in perennial factories in three groups of industries, namely textiles, engineering and minerals and metals. Bearing all these modifications and recommendations in mind, the Government of India passed the Employee’s State Insurance Act in April 1943, which provides cash benefit in contingencies of sickness, maternity and employment injury, but did not provide security in such contingencies as unemployment and old age. The dependents of workers who died as a result of any employment injury were paid compensation in the form of a pension.
The E.S.I. Scheme stated with coverage of about 1.20 lakh industrial workers in Kanpur and Delhi on 24th February 1952. It has continued to progress over all these years. By the end of March 1976, there were 388 centers covering nearly 22 million beneficiaries under this scheme. The total number of employees and insured persons under the scheme at the end of 1995-96 was respectively 66.13 and 73.03 lakh insured persons.
The ESI Scheme offer both direct and indirect medical care. The direct method is called the “Service System” by which the ESI Corporation provides medical care, either through its own Employees’ State Insurance Hospital or through reservation of beds in State Government hospitals. The indirect method is known as the “Panel System”, under which medical care is provided through private doctors selected by the State Government with the approval of the ESI Corporation.
The benefits provided by the Act are:
·
Sickness
Benefits;
·
Maternity Benefits;
·
Disablement Benefit
·
Dependents’ Benefit;
·
Funeral Benefit; and
·
Medical
Benefit.
All workers, earning less
than Rs.3000 per month and employed in power-run factories employing 20 or more
persons are covered by this scheme. However, it does not cover workers employed
by seasonal factories. An insured person under ESI Scheme is not eligible for
similar benefits under the Workmen’s Compensation Act and State Acts relating
to maternity benefits.
CHAPTER 5
IMPACT OF ILO ON INDIAN LABOUR
LAWS
(A Step Towards
Social Security To Labours)
The International Labor Organization (ILO) was set up, with
an aim to develop the conditions of labours and to provide the social security
not only in India but around the world, in the year 1919. India was the
instituting member of ILO which now expanded its primary membership to 145
countries. Indian Labor Organization through its resolutions and
recommendations supports countries to lure their own set of labor legislations for
the well conduct of the labor class, and the preservation of their rights. The
primary objective of action in the ILO is the creation of the International Labor Standards in the
form of Resolutions and Recommendations. Countrywide policies, procedure and
help in developing actions.
The basic
principles of labour policy of the I.L.O.:-
1.
Labour is not a commodity.
2.
Freedom of expression and of association is essential to
continued progress.
3.
Poverty anywhere constitutes a danger to prosperity
everywhere.
etc.
Labor Law controls matters, such as, remuneration, labor
employment, and conditions of employment, trade unions, industrial and labor
management relations. They also include social legislations regulating such
characteristics as reimbursement for accident triggered to a worker at work
place, maternity benefits fixation of minimum wages, and distribution of the
company’s profit of the organization’s workers, etc. Most of these acts
regulate rights and the responsibilities of employee.
The Indian Labour Organization tools have provided
procedures and useful framework for the development of legislative and
administrative procedures for the protection and progression in the interest of
labor. To that point the impact of ILO Resolutions as a regular for reference
for both labor legislation and practices in India, rather than legally binding
norm, has been substantial. Ratification of a Resolution enforces legally
binding responsibilities on the nation concerned and, consequently, India has
been very careful in ratifying Resolutions. It has always been in the exercise
in India that we ratify a Resolution when we are entirely satisfied that these
laws and practices are in conformity with the appropriate ILO Resolution. It is
now measured that a better course of action is to proceed with India have so
far ratified 39 Conventions of the ILO,
which is much better than the position obtaining in many other countries. Even
where for special reasons, India may not be in a position to ratify a
Convention, India has generally voted in favor of the Conventions reserving its
position as far as its future ratification is concerned
Major impact of ILO on Labor legislations in India With the
evolution and expansion of small plants, factories and industries in the Indian
subcontinent starting in the mid of the
nineteenth century, new possibilities for employment were generated, resulting
in a ongoing migration of the labor from poor rural areas to factories and
mills located basically in urban areas.
During time, in the lack of any control on organization’s
labor by the state, the employers were very less concerned for the need of
their workers; wages were very low, very long working hours, and unsatisfactory
the employees’ employment conditions. The situation led to the depiction of a
large number of labor legislations beginning since the year of 1881.
a)
These labor legislations includes,
b)
The Factories Act 1881,
c)
Workmen’s Compensation Act -1923,
d)
Mines Act 1923,
e)
Trade Unions Act-1926,
f)
Trade Disputes Act -1929,
g)
Payment of Wages Act -1936,
h)
Employment of children act- 1938 and
i)
Maternity Benefit Act in 1939.
The ILO guidelines provided basic principles on which most
of labor legislations were drawn. By observation on various amendments and
enactments in labor laws it can be easily seen that the ILO have a countless
impact on the Indian Labor Laws. A large number of laws were passed to
incorporate the guidelines of the resolutions of the ILO.
All these revised and ratified
legislations create provisions for the common welfare and protection of
importance of the Indian labors. The constructive effect of ILO is seen in form
of appreciation of many new kinds of rights that were previously not available
for the Indian labor class, but were made available after creation of ILO.
CHAPTER 6
RECENT
TRENDS IN LABOUR LAW
The
experience in India during the last 50 years has been that the Supreme Court of
India, various High Courts, Industrial Tribunals and Labour Court have enriched
the country with a variety of precedents of labour demands by their sweat and
toil and missionary research from almost a barren and fallow field of labour
jurisprudence. They have handed down to the world community jurisprudence, as
living as dynamic, as valid as sound, which has redeemed the lost faith of
industrial masses in law and justice. Their contribution to the development of
labour law and redemption of social values of law and justice, is unparallel in
the world history of jurisprudence, far exceeding the contribution made by
Equity in England. Adjudication of industrial demands being a complicated task,
the Tribunals have to go into the merits of each issue which necessarily means
examination, analysis and appreciation of the labour economics, the
sociological approach and the relevant technical aspects of every issue. The
demands concerning labour problems have often been subjected to expert studies
and researches by high powered bodies of International Labour Organization,
Indian Labour Conference, Labour Investigation Committees, Wage Boards, Pay
Commissions and various Government bodies, etc.
In fact, these Reports and Recommendations have often been adopted by the Supreme Court, High Courts and Industrial Tribunals as guidelines. According to Section 10 of the Industrial Disputes Act 1947, the appropriate government is empowered to refer a dispute to the Tribunal. This power of the appropriate government is independent of the fact whether conciliation proceedings have been held or not. However, in practice, a dispute is referred to the Tribunal/ Labour Court for adjudication by the appropriate government after considering the failure of conciliation report received from the conciliation officer.
6.1. CONSOLIDATION, SIMPLIFICATION AND RATIONALIZATION OF LABOUR LAWS
In fact, these Reports and Recommendations have often been adopted by the Supreme Court, High Courts and Industrial Tribunals as guidelines. According to Section 10 of the Industrial Disputes Act 1947, the appropriate government is empowered to refer a dispute to the Tribunal. This power of the appropriate government is independent of the fact whether conciliation proceedings have been held or not. However, in practice, a dispute is referred to the Tribunal/ Labour Court for adjudication by the appropriate government after considering the failure of conciliation report received from the conciliation officer.
6.1. CONSOLIDATION, SIMPLIFICATION AND RATIONALIZATION OF LABOUR LAWS
Codification
of labour laws is a desirable long term goal. However, certain practical
difficulties may arise in operationalising this. In view of this the Working
Group agreed with the suggestion of the Second National Commission on Labour
and NCEUS that labour laws should be consolidated in a few cognate groups to
reduce multiplicity of laws for better enforcement and more effective
compliance. This should also help in moving closer to a uniform labour policy
on common issues. The Working Group therefore recommends that labour laws
should be clubbed under the following four major cognate groups: -
1.
Laws
governing Industrial Relations
·
The Industrial Disputes Act, 1947
·
The Industrial Employment (Standing
Orders) Act, 1946.
·
The Trade Unions Act, 1926
An
attempt may be made to consolidate the above laws into one law i.e. Industrial
Relations Act.
2.
Laws
governing Wages
·
The Equal Remuneration Act, 1976
·
The Minimum Wages Act, 1948
·
The Payment of Bonus Act, 1965
·
The Payment of Wages Act, 1936
The
above four Acts may be consolidated into one Act i.e. Payment of Wages Act.
3.
Laws
governing Social Security
·
The Employees’ State Insurance Act, 1948
·
The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
·
The Payment of Gratuity Act, 1972
The
definition of establishments, eligibility criteria, etc. in the above Acts may
be harmonized for purposes of consolidation.
4. Laws governing Working Conditions
& Welfare
·
The Factories Act, 1948
·
The Maternity Benefit Act, 1961
·
The Workmen’s Compensation Act, 1936
·
The Contract Labour (Regulation and
Abolition) Act, 1970
·
The Inter-State Migrant
Workers(RE&CS) Act, 1979
The
above individual Acts will need harmonization of definitions and coverage
before they can be consolidated. 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. A consensus will have to
emerge from the stakeholders regarding this.
6.2. Indian Prime Minister Narendra Modi Launched Key Labour Reforms,
Promised Better Work Culture
Prime
Minister Narendra Modi unveiled some key labour reforms
that rely on trust and promote the ease of doing business on Thursday 16th
October, 2014, and said the measures will go a long way in changing India's
work culture, promoting social security and skilling the youth.
The prime minister also unveiled the Shram Suvidha portal, a Labour Inspection Scheme, and
also the portability of social security through a Universal Account Number for Employees Provident Fund. He
also launched Apprentice Protsahan
Yojana of the labour ministry.
These efforts are a great example," said Modi
amid applause. "This is Minimum Government, Maximum Governance."
"The Shram Suvidha portal simplifies compliance
of 16 labour laws with on online form," he said.
The prime minister added: "E-governance is easy
governance. It builds trust for transparency."
On the issue of social security of labour force, the
prime minister expressed concern that as much as Rs.27,000 crore was lying
unclaimed with the Employees Provident Fund Organisation.
"This money belongs to poor workers of
India," he said, adding the portability provided under the Employees
Provident Fund through one universal account number will put an end to such
large sums of money being locked up and not reaching the intended beneficiary.
The prime
minister said the "Shramev Jayate" initiatives were essential
elements of the "Make in India" vision, paving the way for skill
development of youth in a big way, and creating opportunities for India to meet the global requirement of
skilled labour.
He said skilled labour has not been given due dignity
in the society and was generally regarded as lower to other forms of work.
"A compassionate approach would result in the Shram
Yogi (labourer) becoming a Rashtra Yogi and hence, a Rashtra Nirmaata
(nation-builder). There is need to change outlook,"
Referring to apprenticeship encouragement scheme of
the labour ministry, he said it will help meet needs of skilled workforce.
Labour ministry officials said the Apprentices Act,
1961, had been enacted to regulate apprenticeship training in the industry.
They said a major initiative has been taken to revamp
the existing apprenticeship scheme with the aim of increasing apprenticeship
seats to more than 20 lakh in the next few years.
The officials said that information about schemes such
as National Old Age Pension Scheme and Aam Aadmi Bima Yojana will be captured
in the card issued under the revamped Rashtriya Swasthya Bima Yojna for labour
in the unorganized sector.
CHAPTER 7
CONCLUSION
Mahatma
Gandhi had once said,
'A nation may do without its millionaires and
without its capitalists, but a nation can never do without its labour'.
Industrialisation
creates a number of social and economic problems like employment of women and
children, minimum wages, trade unions, insanitary living quarters and
deplorable working conditions in the factories, etc. Labour laws are,
therefore, enacted to facilitate their solutions, as ordinary civil laws are
inadequate to meet them. The State has adopted a progressive policy, and
is keeping pace with the labour policy of the Government of India and the
standard laid down by the International Labour Organisation. This has
produced a plethora of legislation and their administration. These laws
also deal with the regulation of industrial relations between the management
and the workers.
But It’s virtually without debate that the Indian labour law regime requires a comprehensive overhaul. Central and state legislations need to be examined in totality to understand how permissions and compliances required can be made as few and as simple as possible, without adversely affecting rights of workers.
But It’s virtually without debate that the Indian labour law regime requires a comprehensive overhaul. Central and state legislations need to be examined in totality to understand how permissions and compliances required can be made as few and as simple as possible, without adversely affecting rights of workers.
1. There
has been consistent decline in real minimum wages.
2. Growing
casualisation and contractrisation of labour and decline in proportion of
permanent work force have become order of the day.
3. There
is an urgent need for simplification of labour legislation. This need is
two-fold. Firstly, the laws must be drafted in such a way that they can be
understood by an ordinary study thereof done by an average man for whom they
are meant. Secondly, little is done to remove ambiguous interpretations,
phrases and provisions and they are left to be adjudged by the tribunals. As
far as possible such ambiguities must be removed and proper legislative
clarification incorporated at appropriate places.
4. Collective
bargaining has been accepted as the best method of settlement of industrial
disputes but the existing laws do not provide any framework for regulating it.
A good number of industrial differences can be alienated by legislative
engineering in this field also.
5. The
present plethora of legislation serves s minority of industrial labour. The
rural labour, the urban labour in the unorganised sector, the tribal forest and
scheduled caste labour have by and large not received much attention.
Similarly, the small scale industries, the petty shops, establishments,
self-employed sectors also deserve a distinct treatment. Legislative engineering
should, therefore, be employed for extending benefits of social justice to
these neglected segment of labour and also for protecting the small sectors
from the onslaughts of aggressive trade unionism.
While
it is desirable to move to a system where workers can be employed on negotiated
terms and where the distinction between permanent and contract employees are
entirely dissolved, there are three levels of protection that would need to be
in place before that happens:
1. A national legislation on minimum
wages and standards, so that under no circumstance can a worker (in a factory,
service company, household or tea-shop) be employed at standards inferior to
that.
2. Sanctity for collective bargaining
agreements, so that the overwhelmingly superior bargaining position of the
employer over individual employees does not lead to exploitative terms of
employment; and
3. Social security measures such as
unemployment insurance and retraining facilities, so that loss of employment
does not mean that a worker has to starve.
Once a simplified regime incorporating these safeguards
comes into effect, the enforcement of these provisions will also be
considerably easier and less expensive.
A comprehensive reading of this short
project report reveals that there has been considerable change in the social
outlook towards labour legislation in India, and Technological evolutions with
active role and support of ILO have also contributed in the simplification of
labour legislations to make them more labour-friendly and thereby promoting
social justice.
BIBLIOGRAPHY
A.
Books Referred:
a)
An Introduction to
Industrial and Labor and Industrial Law, S.K. Puri, 2015, 11th
Edition (Allahabad Law Agency)
b)
Social Security
and Labour Law, S.C. Srivastava, 2014(EBC)
c)
d)
The Constitutional
law of India, J.N. Pandey, 2008, 47th Edition
e)
Indian
Constitutional law, Prof. M.P. Jain, 2008, 5th Edition
f)
D.D. BASU, Constitutional Law of
India, (8th Edn. Vol. 3),
B.
Websites Referred:
a) mrunal.org/2012/07/economy-social-security-epfo.html
b) https://www.ssa.gov/policy/docs/ssb/v16n5/v16n5p11.pdf
c) workspace.unpan.org/sites/internet/documents/unpan92408.pdf
d) www.legalservicesindia.com/article/article/social-security-826-1.html
e) ssrn.in
f) en.wikipedia.org/labourlaw_in_india
g)
academia.edu.in
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