A brief insight into Labour law in India and relevant sections and statutes.

1. By: Atul S. Jaybhaye
Assistant Professor
B.A.LL.M.NET
HNLU, Raipur

3.  Labour law is a Law which regulates the
relationships among workers, trade unions and
the government.
 It is a law relating to rights and responsibilities
of the workers.
 It relates to matters of employment,
remuneration, conditions of work, trade unions
and industrial relations.

4.  To improve the industrial relations and to
minimize the industrial disputes.
 To protect the workers from exploitation by the
employers.
 To help workers in getting fair wages.
 To resolve the conflict between employer and
employee.
 To ensure the Health and safety of the workers.
 To maintain equal opportunity in employment.

5.  To grant freedom to the workers to form the
trade unions.
 To promote the industrial peace by providing
an elaborate machinery for the prevention and
settlement of industrial disputes.

6.  Industrial legislation finds its origin from the
industrial jurisprudence, which is a development
of the 20th century world.
 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 primary state.
 The paramount concern of the Pre-independence
industrial jurisprudence was
the improvement of the working condition of the
workers at the factories.

7.  Before the Independence, India was not only a grea
t 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.

8.  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.

9.  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 through the enactments and the
latter through the judgments.

10.  Doctrine of Laissez- faire was prevalent in ancient
India.
 Laissez-faire is an economic theory that became
popular in the 18th century. The driving principle
behind laissez-faire, a French term that translates as
"leave alone" (literally, "let you do"), is that the less
the government is involved in the economy, the
better off business will be.
 It was the policy of a government to leave trade
unions and employers free to collectively bargain
with one another, with limited government
intervention and oversight.

11.  Under this theory the employer was the
dominating party.
 He used to dictate the terms of contract as per his
own wish and will.
 The right “to hire and fire” was practiced in those
days.
 The condition of the workers was pathetic,
unimaginable.
 The workers were being exploited by the
employer.
 Striking or being active member of the trade union
was punishable.

12.  Gradually, the workers united together to
eradicate this Laissez-faire system.
 Laissez-faire system is now replaced by Social
Welfare State.
 The State began to take the responsibility in the
well-being of the workers.
 Agitation by the workers compelled the
existing government to protect and uphold the
rights of the workers.

13.  Labour policy is required to maintain for
maintaining the industrial peace and welfare of the
workers.
 Labour Policy Highlights:
 Recognition of the State as the custodian of the
interests of the workers.
 Encouragement for mutual settlement, collective
bargaining.
 Ensuring fair wage standards and provisions of
social security.
 Adequate enforcement of legislation.
 To provide medical facilities for workers etc.

14.  After independence the national government
paid a vital role to improve the conditions of
the workers.
 The prosperity of the country depends upon
the development and growth of the industry.
 Social justice and Social security has to be
restored to the labourer.
 Our Constitution of India guarantees social
justice to the people of India.

15.  Relevant Articles:
 Art. 14 Equality before Law
 Art. 16 Equality of Opportunity
 Art. 19 (1) (c) Right to form Associations and Trade
Unions
 Art. 21 Right to livelihood under Right to life.
 Art. 23 Prohibits traffic in human beings and
forced labour.
 Art. 24 Prohibits child labour below the age of 14
years.
 Art. 39(d) ensures equal pay for equal work.

16.  Relevant Articles:
 Art. 41 Right to work, to education and to public
assistance in certain cases
 Art. 42 Provision for just and humane conditions
of work and maternity relief
 Art. 43 Living wage, etc., for workers
 Art. 43-A Participation of workers in management
of industries
 Art. 47 Duty of the State to raise the level of
nutrition and the standard of living and to
improve public health

17.  It has both Advantages and disadvantages:
 Advantages includes:
 Large scale of production of goods at cheaper
costs.
 It creates new job opportunities.
 It improves the standard of the living of
people.
 It eradicates the poverty.

18.  Disadvantages includes:
 Increases pollution.
 Spreads diseases.
 Child labour is rampant.
 gradual disappearance of many natural
resources, the pollution of land, water and air.
 Strike, closure of industries, lock-outs causes
the hardship to the society.

19.  It can be categorised into four:
1. Protective Labour Legislations
2. Regulative Legislations
3. Social Security Legislations
4. Welfare Legislations:

20.  The legislations whose primary purpose is to
protect minimum labour standards and
improve working conditions are protective
labour legislations.
 Legislations laying down the minimum labour
standards in the areas of work, safety,
employment of children and women and also
the manner of wage payment come under this
category.

21.  The Indian labour laws under this category are:
I. The Factories Act, 1948,
II. The Mines Act, 1952,
III. The Plantation Labour Act, 1951,
IV. The Payment of Wages Act, 1936,
V. The Minimum Wages Act, 1948,
VI. The Child Labour (Prohibition and regulation)
Act, 1986 and
VII. Contract Labour (Regulation and Abolition)
Act, 1970.

22.  The legislations whose primary purpose is to
regulate the relations between employers and
employees and to provide for methods and
manners for settling industrial disputes are
Regulative Legislations.
 This laws also regulate the relationships
between workers and trade unions, the rights
and obligations of the organizations of
employers and workers, as well as their mutual
relationships.

23.  The laws under this category are as follows:
1. The Trade Unions Act, 1926,
2. The Industrial Disputes Act, 1947,
3. The Industrial Employment (Standing Orders)
Act, 1946

24.  The Legislations which intend to provide social
security benefits to the workmen during certain
contingencies of life are Social Security
Legislations.
 Though this legislations may cover other
classes of citizens also, their primary goal has
been to protect the workers.

25.  The laws under this category are as follows:
1. The Workmen's Compensation Act, 1923,
2. The Employees State Insurance Act, 1948,
3. The Employees Provident Funds and
Miscellaneous Provisions Act, 1952
4. The Maternity Benefit Act, 1961, and
5. The Payment of Gratuity Act, 1972.

26.  The legislations which aim at promoting the
general welfare of the workers and improve
their living conditions are Welfare legislations.
Such laws carry the term “Welfare” in their
titles.
 All of these laws provide for the funds which is
spent on improving the general welfare of
workers including housing, medical,
educational and recreational facilities.

27.  The Laws under this category are as follows :
1. Mines Labour Welfare Fund Act, 1946,
2. Beedi Workers Welfare Fund Act, 1976.

28.  Social Justice
 Social Security/welfare
 National economy
 International uniformity

29.  Social Justice
 The first step in establishing social justice is to
protect those who can’t protect themselves.
Industrial laws provide social justice to the
workers by ensuring suitable distribution of
profits and benefits among the employer and
employees. It also provides better working
conditions in industry.

30.  Social Security/welfare
Another objective of labour law is to ensure
social welfare of workers. These laws help the
employees to improve their social status i.e.
material and morale of the workers by
providing adequate wages and safety
measures, ensuring appropriate working hours
and health facilities.

31.  National economy:
National economy is another guiding principle
of labour legislation. It ensures normal growth
of industry for the development of nation. It
increases the efficiency of workers and satisfies
their needs. Thus efficient industry finally
contributes a lot to improve national economy.

32.  International uniformity:
 In attaining international uniformity
International Labour Organization (I.L.O.) has
played an important part.
 It aims at securing minimum standard on
uniform basis in respect of all labour matters.
Uniformity of standards can be maintained
only by enforcing various industrial laws.

33.  As per section 2 (k) of Industrial Disputes Act
1947, Industrial Dispute is defined as any
dispute or difference between employers and
employers or between employers and
workmen or between workmen and workmen
which is connected with the employment or
non-employment or the terms employment or
with the condition of labour of any person

34.  Promotion of measures for securing and
preserving amity and good relation between
the employers and workers
 Investigation and settlement of industrial
disputes
 Prevention of illegal strikes and lock–outs
 Relief to workmen in the matter of lay–off and
retrenchment
 Promotion of collective bargaining

35.  This Act extends to the whole of India.
 It encourages arbitration over the disputes
between employers and employees
 It provides for setting up of works committees as
machinery for mutual consultation between
employers and employees to promote cordial
relation
 This Act paved the way for setting up permanent
conciliation machinery at various stages having
definite time limits for conciliation and arbitration
 This Act emphasis on compulsory adjudication
besides conciliation and voluntary arbitration of
Industrial Disputes

36.  The Act empower the Government to make
reference of the dispute to an appropriate
authority ie., Labour court, Industrial tribunal and
National tribunal depending upon the nature of
the dispute either on its own or on the request of t
he parties
 The right to strike by the workers and lock–out by
the employees has been subjected to the restriction
as laid down in the Act
 The Act prohibits strikes and lock–outs during the
pending of conciliation and arbitration
proceedings and in public utility service and it
empowers government to take adequate action.

37.  APPROPRIATE GOVERNMENT – Sec 2 (a)
Refers to Central Government/State
Government
 ARBITRATOR – Sec2 (aa)
 Referred as an umpire.
 It means any person who is appointed to
determine differences and disputes between
two parties.

38.  WAGES – Sec 2(rr) It means all remuneration
capable of being expressed in terms of money, if
the term of employment were fulfilled, be payable
to a workman in respect of his employment or of
work done in such employment.
 INDUSTRY- Sec 2(i)Industry means any systematic
activity carried on by co-operation between an
employer and his workmen whether such work
men are employed by such employee directly or
by or through any agency including a contractor
for the production, supply or distribution of goods
or services with a view to satisfy human wants or
wishes with a motive to make any gain or profit;
not merely spiritual or religious.

39.  WORKMEN - Sec 2(s) Means any person
including an apprentice employed in any
industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory
work for hire or reward the terms of
employment be express or implied and there
should be a contractual relationship between
master and servant.

40.  INDUSTRIAL ESTABLISHMENT- Sec 2(ka)
Means an establishment or undertaking in
which industry is carried on.
 SETTLEMENT – Sec 2(p) Means A written
agreement between the employer and
workmen arrived in the course of conciliation
proceeding provided;

41.  Such agreement has been signed by the parties
thereto in the manner prescribed
 A copy has been sent to an officer authorized
by the appropriate government and the
conciliation officer.

42.  Works Committee (Sec 3)
 Conciliation Officers (Sec 4)
 Board of Conciliation (Sec 5)
 Court of Inquiry (Sec 6)
 Labour Court (Sec 7)
 Industrial Tribunal (Sec7-A)
 National Tribunal (Sec7-B)

43.  Labour Court (Sec 7
 Industrial Tribunal (Sec7-A)
 National Tribunal (Sec7-B)
 Non- Adjudicatory Authorities:
 Works Committee (Sec 3)
 Conciliation Officers (Sec 4)
 Board of Conciliation (Sec 5)
 Court of Inquiry (Sec 6)

44.  Works Committee (Sec 3)
 Applicable only in cases of 100 or more workmen
are employed.
 It works for preserving amity and good relations
between employer and employee.
 It is concerned with day to day problems of the
workers.
 It tries to solve the dispute at first instance by
giving recommendations.
 Recommendations and suggestions are not
binding.

45.  Conciliation Officers (Sec 4)
 Appointment of conciliation officers on
temporary/ permanent basis.
 They are imposed with duty of mediating in or
promoting settlement of industrial disputes.
 They have no power to decide but they strive
to find out solutions.

46.  Board of Conciliation (Sec 5)
 The board is constituted which consist of
chairman and 4 members.
 Chairman must be an independent person i.e.
not connected with the dispute.
 The purpose of the Board is to bring the two
parties together and thrash out their
differences.
 If conciliation officer is not able to find out the
solution, the case may be referred to the Board.

47.  Difference between Conciliation officer and
Board of Conciliation:
 Proceedings before the board- Judicial
 Proceedings before the officer – Administrative
in nature.
 Time limit for filing report- for Board- within 2
months, for Officer- within 14 days.
 The Board gives findings in detail, the officer
only submits the report.

48.  Court of Inquiry (Sec 6)
 It may consist of one or more persons.
 If number is more than 2, then one of them
shall be appointed as chairman.
 Duty- to inquire into the matter referred to it
by govt.
 Making of report based on such inquiry.
 Time for filing report- within 6 months.

49.  Labour Court (Sec 7)
 Industrial Tribunal (Sec7-A)
 National Tribunal (Sec7-B)

50.  Labour Court (Sec 7)
 It consist of only one person called as presiding
officer.
 When conciliation machinery fails to solve
disputes, matter is referred to
Court/Board/tribunals as per sec.10 of the Act.
 Jurisdiction of the court begins from the order
of reference under sec. 10.
 See Schedule II for jurisdiction of matters.

51.  Industrial Tribunal (Sec7-A)
 It consist one person i.e. presiding officer.
 The jurisdiction signifies the authority to
decide.
 It depends upon sec. 10(1)(d) of the Act which
empowers the govt. to refer any matter to
tribunal falling under II or III Schedule of the
Act.
 See III Schedule for jurisdiction of matters.

52.  National Tribunal (Sec7-B)
 Constituted by the Central Govt.
 One or more national tribunals may be
constituted.
 A judge of High Court is appointed as
presiding officer.
 Two persons may be appointed for giving
advise to the Tribunal.
 Matters of national importance are adjudicated
by National Tribunal.