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Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.
Page | 1
HC 01, MBA –III Semester,
Unit: 1
Topic: Labour Policy of India
Dr. Faryas Kausar Ansari
Visiting Faculty
Dept. of Management
MMHA&P University, Patna
Labour Policy of India
Labour policy in India has been evolving in response to specific needs of the
situation to suitrequirements ofplanned economic development and socialjustice
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.
Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.
Page | 2
 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.
Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.
Page | 3
 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 departmentand industriesdepartmentto studychanges
in laws and rules.
Factors Specific to India
The factorsdiscussedabovearethe generalfactorsinfluencing the shapeof labour
legislation. Therearespecific factors,peculiar to Indiawhichhas influenced labour
legislations.
Influence of colonial rule
Mostof the early labour legislation came into being becauseof the pressurefrom
the manufacturers of Lancashire and Birmingham; because labour employed in
factories and mills in India wereproving very cheap in comparison to their British
counterpart. No doubt, these legislations werebeneficial to Indian labour but this
benefit was incidental to the main purpose, i.e. the protection of the interests of
British Capitalists.
Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.
Page | 4
The British Civil Servants carried with them the British tradition of democracy and
pragmatism. TheWorkman Compensation Act, 1923, theIndian TradeUnions Act,
1926, the Payment of Wages Act, 1936 etc. followed British pattern
The struggle for national emancipation and adoption of Indian Constitution
The Industrial Workers got support from the freedom struggle and nationalist
leaders who made tireless efforts to get protective labour legislations enacted.
The IndianTradeUnions Act, the appointmentof RoyalCommissionon Labouretc.
was because of pressure from freedom struggle. The leaders of the national
movement had promised the establishment of a better and justsocial order after
independence; which was ultimately embodied in the Preamble, Fundamental
Rights and Directive Principles of State Policy of the Indian Constitution.
We have plethora of labour legislations immediately after independence :
 The Factories Act, 1948
 The E.S.I. Act, 1948
 The Minimum Wages Act, 1948
 Mines Act, 1952 z Employees P.F.& Miscellaneous Provisions Act, 1952
 Plantation Labour Act, 1951
 Payment of Bonus Act, 1965

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Labour Policy of India.docx

  • 1. Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna. Page | 1 HC 01, MBA –III Semester, Unit: 1 Topic: Labour Policy of India Dr. Faryas Kausar Ansari Visiting Faculty Dept. of Management MMHA&P University, Patna Labour Policy of India Labour policy in India has been evolving in response to specific needs of the situation to suitrequirements ofplanned economic development and socialjustice 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.
  • 2. Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna. Page | 2  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.
  • 3. Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna. Page | 3  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 departmentand industriesdepartmentto studychanges in laws and rules. Factors Specific to India The factorsdiscussedabovearethe generalfactorsinfluencing the shapeof labour legislation. Therearespecific factors,peculiar to Indiawhichhas influenced labour legislations. Influence of colonial rule Mostof the early labour legislation came into being becauseof the pressurefrom the manufacturers of Lancashire and Birmingham; because labour employed in factories and mills in India wereproving very cheap in comparison to their British counterpart. No doubt, these legislations werebeneficial to Indian labour but this benefit was incidental to the main purpose, i.e. the protection of the interests of British Capitalists.
  • 4. Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna. Page | 4 The British Civil Servants carried with them the British tradition of democracy and pragmatism. TheWorkman Compensation Act, 1923, theIndian TradeUnions Act, 1926, the Payment of Wages Act, 1936 etc. followed British pattern The struggle for national emancipation and adoption of Indian Constitution The Industrial Workers got support from the freedom struggle and nationalist leaders who made tireless efforts to get protective labour legislations enacted. The IndianTradeUnions Act, the appointmentof RoyalCommissionon Labouretc. was because of pressure from freedom struggle. The leaders of the national movement had promised the establishment of a better and justsocial order after independence; which was ultimately embodied in the Preamble, Fundamental Rights and Directive Principles of State Policy of the Indian Constitution. We have plethora of labour legislations immediately after independence :  The Factories Act, 1948  The E.S.I. Act, 1948  The Minimum Wages Act, 1948  Mines Act, 1952 z Employees P.F.& Miscellaneous Provisions Act, 1952  Plantation Labour Act, 1951  Payment of Bonus Act, 1965