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The Evolution of Labour Laws constitute
basic knowledge of the Learners. The
event responsible behind the evolution
and purpose thereof has been illustrated
in the next slide. So keep on learning ...
INTRODUCTION:
Labour law also known as employment law is the body of laws,
administrative rulings, and precedents which address the legal rights of,
and restrictions on, working people and their organizations. As such, it
mediates many aspects of the relationship between trade unions,
employers and employees. In other words, Labour law defines the
rights and obligations as workers, union members and employers in the
workplace. Generally, labour law covers:
 Industrial relations - certification of unions, labour‐management
relations, collective bargaining and unfair labour practices;
 Workplace health and safety;
 Employment standards, including general holidays, annual leave,
working hours, unfair dismissals, minimum wage, layoff procedures
and severance pay.
There are two broad categories of labour law.
 First, collective labour law relates to the tripartite relationship between
employee, employer and union.
 Second, individual labour law concerns employees' rights at work and
through the contract for work. The labour movement has been instrumental in
the enacting of laws protecting labour rights in the 19th and 20th centuries.
Labour rights have been integral to the social and economic development
since the industrial revolution.
History of Labour laws:
Labour law arose due to the demands of workers for better conditions, the
right to organize, and the simultaneous demands of employers to restrict the
powers of workers in many organizations and to keep labour costs low.
Employers' costs can increase due to workers organizing to win higher
wages, or by laws imposing costly requirements, such as health and safety or
equal-
opportunities conditions. Workers' organizations, such as trade unions, can
also transcend purely industrial disputes, and gain political power ‐ which
some employers may oppose.
 The state of labour law at any one time is therefore both the product of, and a
component of, struggles between different interests in society. International
Labour Organisation (ILO) was one of the first organisations to deal with
labour issues. The ILO was established as an agency of the League of
Nations following the Treaty of Versailles, which ended World War I.
Post‐war reconstruction and the protection of labour unions occupied the
attention of many nations during and immediately after World War I. In
Great Britain, the Whitley 4-
 Commission, a subcommittee of the Reconstruction Commission,
recommended in its July 1918 Final Report that "industrial councils" be
established throughout the world. The British Labour Party had issued its
own reconstruction programme in the document titled Labour and the New
Social Order. In February 1918, the third Inter‐Allied Labour and Socialist
Conference (representing delegates from Great Britain, France, Belgium and
Italy) issued its report, advocating an international labour rights body, an end
to secret diplomacy, and other goals. And in December 1918, the American
Federation of Labour (AFL) issued its own distinctively apolitical report,
which called for the-
achievement of numerous incremental improvements via the collective
bargaining process. As the war drew to a close, two competing visions
for the post‐war world emerged. The first was offered by the
International Federation of Trade Unions (IFTU), which called for a
meeting in Berne in July 1919. The Berne meeting would consider both
the future of the IFTU and the various proposals which had been made
in the previous few years. The IFTU also proposed including delegates
from the Central Powers as equals. Samuel Gompers, president of the
AFL, boycotted the meeting, wanting the Central Powers delegates in a
subservient role as an admission of guilt for their countries' role in the
bringing about war. Instead, Gompers favoured a meeting-
 In Paris which would only consider President Woodrow Wilson's Fourteen
Points as a platform. Despite the American boycott, the Berne meeting went
ahead as scheduled. In its final report, the Berne Conference demanded an
end to wage labour and the establishment of socialism. If these ends could
not be immediately achieved, then an international body attached to the
League of Nations should enact and enforce legislation to protect workers
and trade unions.
 The British proposed establishing an international parliament to enact labour
laws which each member of the League would be required to implement.
Each nation would-
have two delegates to the parliament, one each from labour and
management. An international labour office would collect statistics on
labour issues and enforce the new international laws. Philosophically
opposed to the concept of an international parliament and convinced
that international standards would lower the few protections achieved
in the United States, Gompers proposed that the international labour
body be authorized only to make recommendations, and that
enforcement be left up to the League of Nations. Despite vigorous
opposition from the British, the American proposal was adopted. The
Americans made 10 proposals. Three were adopted without change:
That labour should not be treated as a commodity; that all workers had
the right to a wage sufficient to live on; and that women should receive
equal pay for equal work.
 A proposal protecting the freedom of speech, press, assembly, and
association was amended to include only freedom of association. A proposed
ban on the international shipment of goods made by children under the age of
16 was amended to 5 ban goods made by children under the age of 14.
 A proposal to require an eight‐hour work day was amended to require the
eight‐hour work day or the 40‐hour work week (an exception was made for
countries where productivity was low). Four other American proposals were
rejected. Meanwhile, international delegates proposed three additional
clauses, which were adopted: One or more days-
for weekly rest; equality of laws for foreign workers; and regular and
frequent inspection of factory conditions. The Commission issued its
final report on 4 March 1919, and the Peace Conference adopted it
without amendment on 11 April. The report became Part XIII of the
Treaty of Versailles. (The Treaty of Versailles was one of the peace
treaties at the end of World War I. It ended the state of war between
Germany and the Allied Powers. It was signed on 28 June 1919.) The
first annual conference (referred to as the International Labour
Conference, or ILC) began on 29th October 1919 in Washington DC
and adopted the first six International Labour Conventions, which dealt
with hours of work in industry, unemployment, maternity protection,
night work for women, minimum age and night work for young
persons in industry.
 The prominent French socialist Albert Thomas became its first Director
General. The ILO became a member of the United Nations system after the
demise of the League in 1946.
Purpose of labour legislation:
 Labour legislation that is adapted to the economic and social challenges of
the modern world of work fulfils three crucial roles:
 it establishes a legal system that facilitates productive individual and
collective employment relationships, and therefore a productive economy;
 by providing a framework within which employers, workers and their
representatives can interact with regard to work‐related issues, it serves as an
important vehicle for
achieving harmonious industrial relations based on workplace
democracy;
 It provides a clear and constant reminder and guarantee of fundamental
principles and rights at work which have received broad social
acceptance and establishes the processes through which these
principles and rights can be implemented and enforced. But experience
shows that labour legislation can only fulfils these functions effectively
if it is responsive to the conditions on the labour market and the needs
of the parties involved. The most efficient way of ensuring that these
conditions and needs are taken fully into account is if those concerned
are closely involved in the formulation of the legislation through
processes of social 6 dialogue. The involvement of stakeholders in this
way is of great importance in developing a broad basis of support for
labour legislation and in facilitating its application
within and beyond the formal structured sectors of the economy.
Evolution of Labour law in India :
 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.
Evolution of Labour Laws in India

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Evolution of Labour Laws in India

  • 1.
  • 2. The Evolution of Labour Laws constitute basic knowledge of the Learners. The event responsible behind the evolution and purpose thereof has been illustrated in the next slide. So keep on learning ...
  • 3. INTRODUCTION: Labour law also known as employment law is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations. As such, it mediates many aspects of the relationship between trade unions, employers and employees. In other words, Labour law defines the rights and obligations as workers, union members and employers in the workplace. Generally, labour law covers:  Industrial relations - certification of unions, labour‐management relations, collective bargaining and unfair labour practices;  Workplace health and safety;  Employment standards, including general holidays, annual leave, working hours, unfair dismissals, minimum wage, layoff procedures and severance pay.
  • 4. There are two broad categories of labour law.  First, collective labour law relates to the tripartite relationship between employee, employer and union.  Second, individual labour law concerns employees' rights at work and through the contract for work. The labour movement has been instrumental in the enacting of laws protecting labour rights in the 19th and 20th centuries. Labour rights have been integral to the social and economic development since the industrial revolution. History of Labour laws: Labour law arose due to the demands of workers for better conditions, the right to organize, and the simultaneous demands of employers to restrict the powers of workers in many organizations and to keep labour costs low. Employers' costs can increase due to workers organizing to win higher wages, or by laws imposing costly requirements, such as health and safety or equal-
  • 5. opportunities conditions. Workers' organizations, such as trade unions, can also transcend purely industrial disputes, and gain political power ‐ which some employers may oppose.  The state of labour law at any one time is therefore both the product of, and a component of, struggles between different interests in society. International Labour Organisation (ILO) was one of the first organisations to deal with labour issues. The ILO was established as an agency of the League of Nations following the Treaty of Versailles, which ended World War I. Post‐war reconstruction and the protection of labour unions occupied the attention of many nations during and immediately after World War I. In Great Britain, the Whitley 4-
  • 6.  Commission, a subcommittee of the Reconstruction Commission, recommended in its July 1918 Final Report that "industrial councils" be established throughout the world. The British Labour Party had issued its own reconstruction programme in the document titled Labour and the New Social Order. In February 1918, the third Inter‐Allied Labour and Socialist Conference (representing delegates from Great Britain, France, Belgium and Italy) issued its report, advocating an international labour rights body, an end to secret diplomacy, and other goals. And in December 1918, the American Federation of Labour (AFL) issued its own distinctively apolitical report, which called for the-
  • 7. achievement of numerous incremental improvements via the collective bargaining process. As the war drew to a close, two competing visions for the post‐war world emerged. The first was offered by the International Federation of Trade Unions (IFTU), which called for a meeting in Berne in July 1919. The Berne meeting would consider both the future of the IFTU and the various proposals which had been made in the previous few years. The IFTU also proposed including delegates from the Central Powers as equals. Samuel Gompers, president of the AFL, boycotted the meeting, wanting the Central Powers delegates in a subservient role as an admission of guilt for their countries' role in the bringing about war. Instead, Gompers favoured a meeting-
  • 8.  In Paris which would only consider President Woodrow Wilson's Fourteen Points as a platform. Despite the American boycott, the Berne meeting went ahead as scheduled. In its final report, the Berne Conference demanded an end to wage labour and the establishment of socialism. If these ends could not be immediately achieved, then an international body attached to the League of Nations should enact and enforce legislation to protect workers and trade unions.  The British proposed establishing an international parliament to enact labour laws which each member of the League would be required to implement. Each nation would-
  • 9. have two delegates to the parliament, one each from labour and management. An international labour office would collect statistics on labour issues and enforce the new international laws. Philosophically opposed to the concept of an international parliament and convinced that international standards would lower the few protections achieved in the United States, Gompers proposed that the international labour body be authorized only to make recommendations, and that enforcement be left up to the League of Nations. Despite vigorous opposition from the British, the American proposal was adopted. The Americans made 10 proposals. Three were adopted without change: That labour should not be treated as a commodity; that all workers had the right to a wage sufficient to live on; and that women should receive equal pay for equal work.
  • 10.  A proposal protecting the freedom of speech, press, assembly, and association was amended to include only freedom of association. A proposed ban on the international shipment of goods made by children under the age of 16 was amended to 5 ban goods made by children under the age of 14.  A proposal to require an eight‐hour work day was amended to require the eight‐hour work day or the 40‐hour work week (an exception was made for countries where productivity was low). Four other American proposals were rejected. Meanwhile, international delegates proposed three additional clauses, which were adopted: One or more days-
  • 11. for weekly rest; equality of laws for foreign workers; and regular and frequent inspection of factory conditions. The Commission issued its final report on 4 March 1919, and the Peace Conference adopted it without amendment on 11 April. The report became Part XIII of the Treaty of Versailles. (The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919.) The first annual conference (referred to as the International Labour Conference, or ILC) began on 29th October 1919 in Washington DC and adopted the first six International Labour Conventions, which dealt with hours of work in industry, unemployment, maternity protection, night work for women, minimum age and night work for young persons in industry.
  • 12.  The prominent French socialist Albert Thomas became its first Director General. The ILO became a member of the United Nations system after the demise of the League in 1946. Purpose of labour legislation:  Labour legislation that is adapted to the economic and social challenges of the modern world of work fulfils three crucial roles:  it establishes a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy;  by providing a framework within which employers, workers and their representatives can interact with regard to work‐related issues, it serves as an important vehicle for
  • 13. achieving harmonious industrial relations based on workplace democracy;  It provides a clear and constant reminder and guarantee of fundamental principles and rights at work which have received broad social acceptance and establishes the processes through which these principles and rights can be implemented and enforced. But experience shows that labour legislation can only fulfils these functions effectively if it is responsive to the conditions on the labour market and the needs of the parties involved. The most efficient way of ensuring that these conditions and needs are taken fully into account is if those concerned are closely involved in the formulation of the legislation through processes of social 6 dialogue. The involvement of stakeholders in this way is of great importance in developing a broad basis of support for labour legislation and in facilitating its application
  • 14. within and beyond the formal structured sectors of the economy. Evolution of Labour law in India :  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-
  • 15. 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.
  • 16.  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.