Employment and Labour

"Labour" is a subject in the "Concurrent List" under the Constitution of India where both the Central and State Governments are competent to enact legislations subject, however, to reservation of certain matters for the Central Government.

"Welfare of labour including conditions of work, provident funds, employers' invalidity and old-age pension and maternity benefits.

The Ministry of Labour and Employment seeks to protect and safeguard the interests of workers in general and those who constitute the poor, deprived and disadvantaged sections of the society, in particular, with due regard to creating a healthy work environment for higher production and productivity, and developing and coordinating vocational skill training and employment services. Government's attention is also focused on promotion of welfare activities and providing social security to the labour force both in the organised and unorganised sectors, in tandem with the process of liberalisation. These objectives are sought to be achieved through enactment and implementation of various labour laws, which regulate the terms and conditions of service and employment of workers.

The following are the thrust areas of the Government concerning labour laws:

• Labour policy and legislation;
• Safety, health and welfare of labour;
• Social security of labour;
• Policy relating to special target groups such as women and child labour;
• Industrial relations and enforcement of labour laws in the central sphere;
• Adjudication of industrial disputes through Central Government Industrial Tribunals-cum-Labour Courts and National Industrial Tribunals;
• Workers’ education;
• Labour and employment statistics;
• Emigration of labour for employment abroad;
• Employment services and vocational training;
• Administration of central labour and employment services; and
• International cooperation in labour and employment matters.

India has a number of labour laws that govern almost all the aspects of employment such as payment of wages, minimum wages, payment of bonus, payment of gratuity, contributions to provident fund and pension fund, working conditions, accident compensations, etc. The Government has enacted certain central legislations, viz, the Employees Provident Fund and Miscellaneous Provisions Act, Employees State Insurance Act, Payment of Wages Act, Minimum Wages Act, Equal Remuneration Act, Maternity Benefits Act, etc.

In addition, at the State level, the State Governments usually have a separate Labour Ministry, which seeks to ensure compliance with State labour laws (viz, State Shops and Establishments Act, Labour Welfare Fund Act, etc) through its Labour Department, which is generally operational at the district level.

Laws relating to Industrial Relations-

• Industrial Disputes Act, 1947
• Trade Unions Act, 1926
• Laws relating to Wages
• Minimum Wages Act, 1948
• Payment of Wages Act, 1936
• Payment of Bonus Act, 1965
• Laws relating to Social Security
• Employees' Provident Funds and Miscellaneous Provisions Act, 1952
• Employees' State Insurance Act, 1948
• Labour Welfare Fund Act (of respective States)
• Payment of Gratuity Act, 1972
• Employee's Compensation Act, 1923
• Laws relating to Working Hours, Conditions of Services and Employment
• Factories Act, 1948
• Industrial Employment (Standing Orders) Act, 1946
• Shops and Commercial Establishments Act (of respective States)
• Contract Labour (Regulation and Abolition) Act, 1970
• Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
• Weekly Holiday Act, 1942
• National and Festival Holidays Act (of respective States) 1963
• The Plantation Labour Act, 1951
• The Mines Act, 1952
• The Dock Workers (Safety, Health & Welfare) Act, 1986
• Laws relating to Equality and Empowerment of Women
• Equal Remuneration Act, 1976
• Maternity Benefits Act, 1961
• Prohibitive Labour Laws
• Bonded Labour System (Abolition), Act, 1976
• Child Labour (Prohibition & Regulation) Act, 1986
• The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
• The Sexual Harassment at the Workplace (Prevention, Prohibition and Redressal) Act, 2013
• Laws relating to Employment and Training
• Apprentices Act, 1961
• Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959

The law relating to labour and employment is also known as Industrial law in India. The history of labour legislation in India is interwoven with the history of British colonialism. The industrial/labour legislations enacted by the British were primarily intended to protect the interests of the British employers. Considerations of British political economy were naturally paramount in shaping some of these early laws. Thus came the Factories Act. It is well known that Indian textile goods offered stiff competition to British textiles in the export market and hence in order to make India labour costlier the Factories Act was first introduced in 1883 because of the pressure brought on the British parliament by the textile magnates of Manchester and Lancashire. Thus India received the first stipulation of eight hours of work, the abolition of child labour, and the restriction of women in night employment, and the introduction of overtime wages for work beyond eight hours. While the impact of this measure was clearly welfarist the real motivation was undoubtedly protectionist.

The earliest Indian statute to regulate the relationship between employer and his workmen was the Trade Dispute Act, 1929 (Act 7 of 1929). Provisions were made in this Act for restraining the rights of strike and lock out but no machinery was provided to take care of disputes.

The original colonial legislation underwent substantial modifications in the post-colonial era because independent India called for a clear partnership between labour and capital. The content of this partnership was unanimously approved in a tripartite conference in December 1947 in which it was agreed that labour would be given a fair wage and fair working conditions and in return capital would receive the fullest co-operation of labour for uninterrupted production and higher productivity as part of the strategy for national economic development and that all concerned would observe a truce period of three years free from strikes and lockouts. Ultimately the Industrial Disputes Act (the Act) brought into force on 01.04.1947 repealing the Trade Disputes Act 1929 has since remained on statute book.

Constitutional provisions with regard to labour laws

The relevance of the dignity of human labour and the need for protecting and safeguarding the interest of labour as human beings has been enshrined in Chapter-III (Articles 16, 19, 23 & 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India keeping in line with Fundamental Rights and Directive Principles of State Policy.

Labour is a concurrent subject in the Constitution of India implying that both the Union and the state governments are competent to legislate on labour matters and administer the same. The bulk of important legislative acts have been enacted by the Parliament.

Labour Policy of India

Labour policy in India has been evolving in response to specific needs of the situation to suit requirements of planned economic development and social justice and has two fold objectives, namely maintaining industrial peace and promoting the welfare of labour.

Labour Policy Highlights

• Creative measures to attract public and private investment.
• Creating new jobs
• New Social security schemes for workers in the unorganized sector.
• Social security cards for workers.
• Unified and beneficial management of funds of Welfare Boards.
• Reprioritization of allocation of funds to benefit vulnerable workers.
• Model employee-employer relationships.
• Long term settlements based on productivity.
• Vital industries and establishments declared as `public utilities
• Special conciliation mechanism for projects with investments of Rs.150 crores or more.
• Industrial Relations committees in more sectors.
• Labour Law reforms in tune with the times. Empowered body of experts to suggest required changes.
• Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary.
• Amendments to Industrial Disputes Act in tune with the times.
• Efficient functioning of Labour Department.
• More labour sectors under Minimum Wages Act.
• Child labour act to be aggressively enforced.
• Modern medical facilities for workers.
• Rehabilitation packages for displaced workers.
• Restructuring in functioning of employment exchanges. Computerization and updating of data base.
• Revamping of curriculum and course content in industrial training.
• Joint cell of labour department and industries department to study changes in laws and rules.