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EvolutionofIndianLabourLegislations
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Introduction:
TheIndianLabourLegislationsoweitsexistencetotheBritishRaj.Mostofthelabourlegislationswereenactedprior
toIndiasindependence.Thepostindependenceenactmentofimportantlegislationsintheareasofemployee
securityandwelfarederivetheiroriginpartlyfromthevisionofindependentIndiasleadersandpartlyfromthe
provisionsintheIndianConstitutionandinternationalconventionsliketheInternationalLabourOrganization(ILO).
ThelabourlegislationswerealsoenactedkeepinginmindtheinternationalstandardsonHumanRightsandUnited
NationsProtocols.

HistoricalPerspectivesonIndianLabourLegislations.
Initialperiodsofimperialismwerebasedonexploitationoftheworkerclass.WiththeemergenceofILOatan
internationallevelandwiththeinhumanetreatmentmetedouttoworkmenbeingreplacedwithanoutlookofdignity
oflabour,thewholescenariooflabourlegislationsbeganinpreindependenceIndia.
AfterindependencelegislationsrelatedtoworkerwelfarelikeProvidentFundAct,EmployeeStateInsuranceAct,
PaymentofBonusActandPaymentofGratuityActwereenactedwiththeintentionofprovidingsecurityand
retirementbenefitstoworkmen.
Overaperiodoftimeseveralamendmentshavebeenmadetotheexistinglabourlegislationsaspertheneedsof
theindustry.ThecaseinpointisthelatestamendmenttotheFactoryActwherebywomenworkerisallowedtowork
between7pmand6am.SuchamendmentshavebeendoneafterindustryassociationslikeNASSCOMand
ASSOCHAMrecommendationstothelabourministry.NowBPOandITsectorwhichemploysalargewomen
workforceduringitsnightshiftsbenefitstremendouslyfromthisamendmenttotheFactoryAct.

FollowingtabletimelinestheevolutionofHRthoughtsinIndia:
Period
Developments
EmphasisonPeople
Outcomes
1700
To
1900s
Slaveryduetoimperialism
Exploitationoflabour
Bondedlabour
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Masterslaverelationship
1900
To
1920s
Workmenstatusdefinedbyacts
Employeremployeerelationshipestablished.Wagespaid
Legalrecognitionofworkmen.Endofslavery.
1920s
To
1947
Tradeunionswereorganizingworkers
Tradeunionsbeingrecognisedbyworkersandfactorymanagers
Collectivebargaining.Workersmovements.
1947
To
1960s
IndependentIndiabelievedinasocialistsociety.
Workerwelfarebylabourofficers.LawslikeEPF,ESIC,minimumwages,andbonusact.
Beginningoflabourwelfareadministrationandpersonnelfunction
1970s
To
1980s
TradeunionsmgtconflictsCOD,MOU,etc.
Productivitybargaining.Workersparticipationinmanagement
Empowermentofworkersupliftmentofworkersstatusandrole.
1990s
To
2000
Globalization,internationalmarkets,neweconomy.
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Developingpeopleasakeyresource
HRDreplacespersonnelmanagement
2001
Onwards
AdventoftheKnowledgeEra.Growthofservicesector.
Rightsizingoforganizationstocompeteglobally.
Managinghumanassetswithalongtermstrategicfocusondevelopmentandretention
PeoplemanagementneedreplacesHRDwithHRM.Hrisalignedtobusinessgoals.HRMtoSHRM
Abbreviationused:
HRDHumanResourcesDevelopment
HRMHumanResourcesManagement
SHRMStrategicHumanResourcesManagement
HCMHumanCapitalManagement
LabourWelfare/IndustrialRelations
Relationshipbetweentheemployerandtheemployeerepresentativesi.e.:Unions,forestablishingworking
relationshipsandforregulatingtheworkingconditions
PersonnelManagement
Themosteffectiveuseofpeopletoachieveorganizationalandindividualgoals.Itbelievesmoreincontrol
mechanismsthanemployeeempowerment
HRDEmpowerpeoplebydevelopingthemfortheircurrentandfutureroles
HRMLeveragingthesystemsapproachtotheHRfunction.IntegratingHRfunctionswithotherorganizational
functions
SHRMAligntheHRgoalstotheorganizationalgoals
HCMHumanCapitalManagement
FromtheabovefigureweseethattodayHCMencompassesLabourWelfarealongwithitsroleofprovidinga
strategicintenttoHumanResources.

RoleofIndiasConstitutionalFrameworkonIndianLabourLaws.
Therelevanceofthedignityofhumanlabourandtheneedforprotectingandsafeguardingtheinterestoflabouras
humanbeingshasbeenenshrinedinChapterIII(Articles16,19,23&24)andChapterIV(Articles39,41,42,43,
43A&54)oftheConstitutionofIndiakeepinginlinewithFundamentalRightsandDirectivePrinciplesofState
Policy.
UndertheConstitutionofIndia,LabourisasubjectintheconcurrentlistwhereboththeCentralandState
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Governmentsarecompetenttoenactlegislations.Thiscategorizationislistedasfollows:

(a)LabourlawsenactedbytheCentralGovernment,wheretheCentral
Governmenthasthesoleresponsibilityforenforcement
1.TheEmployeesStateInsuranceAct,1948
2.TheEmployeesProvidentFundandMiscellaneousProvisionsAct,
1952
3.TheDockWorkers(Safety,HealthandWelfare)Act,1986
4.TheMinesAct,1952
5.TheIronOreMines,ManganeseOreMinesandChromeOreMines
LabourWelfare(Cess)Act,1976
6.TheIronOreMines,ManganeseOreMinesandChromeOreMines
LaborWelfareFundAct,1976
7.TheMicaMinesLabourWelfareFundAct,1946
8.TheBeediWorkersWelfareCessAct,1976
9.TheLimestoneandDolomiteMinesLabourWelfareFundAct,1972
10.TheCineWorkersWelfare(Cess)Act,1981
11.TheBeediWorkersWelfareFundAct,1976
12.TheCineWorkersWelfareFundAct,1981

(b)LabourlawsenactedbyCentralGovernmentandenforcedbothby
CentralandStateGovernments
13.TheChildLabour(ProhibitionandRegulation)Act,1986.
14.TheBuildingandOtherConstructionsWorkers(Regulationof
EmploymentandConditionsofService)Act,1996.
15.TheContractLabour(RegulationandAbolition)Act,1970.
16.TheEqualRemunerationAct,1976.
17.TheIndustrialDisputesAct,1947.
18TheIndustrialEmployment(StandingOrders)Act,1946.
19.TheInterStateMigrantWorkmen(RegulationofEmploymentand
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ConditionsofService)Act,1979.
20.TheLabourLaws(ExemptionfromFurnishingReturnsand
MaintainingRegistersbyCertainEstablishments)Act,1988
21.TheMaternityBenefitAct,1961
22.TheMinimumWagesAct,1948
23.ThePaymentofBonusAct,1965
24.ThePaymentofGratuityAct,1972
25.ThePaymentofWagesAct,1936
26.TheCineWorkersandCinemaTheatreWorkers(Regulationof
Employment)Act,1981
27.TheBuildingandOtherConstructionWorkersCessAct,1996
28.TheApprenticesAct,1961

(c)LabourlawsenactedbyCentralGovernmentandenforcedbythe
StateGovernments
29.TheEmployersLiabilityAct,1938
30.TheFactoriesAct,1948
31.TheMotorTransportWorkersAct,1961
32.ThePersonalInjuries(CompensationInsurance)Act,1963
33.ThePersonalInjuries(EmergencyProvisions)Act,1962
34.ThePlantationLabourAct,1951
35.TheSalesPromotionEmployees(ConditionsofService)Act,1976
36.TheTradeUnionsAct,1926
37.TheWeeklyHolidaysAct,1942
38.TheWorkingJournalistsandOtherNewspapersEmployees
(ConditionsofService)andMiscellaneousProvisionsAct,1955
39.TheWorkmensCompensationAct,1923
40.TheEmploymentExchange(CompulsoryNotificationofVacancies)
Act,1959
41.TheChildren(PledgingofLabour)Act1938
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42.TheBondedLabourSystem(Abolition)Act,1976
43.TheBeediandCigarWorkers(ConditionsofEmployment)Act,1966

(d)TherearealsoLabourlawsenactedandenforcedbythevariousState
GovernmentswhichapplytorespectiveStates.
ImpactofInternationalLabourOrganization(ILO)onIndianLabourLaws
IndiaisafoundermemberoftheInternationalLabourOrganization,whichcameintoexistencein1919.Atpresent
theILOhas175Members.AuniquefeatureoftheILOisitstripartitecharacter.ThemembershipoftheILOensures
thegrowthoftripartitesystemintheMembercountries.AteverylevelintheOrganization,Governmentsare
associatedwiththetwoothersocialpartners,namelytheworkersandemployers.Allthethreegroupsare
representedonalmostallthedeliberativeorgansoftheILOandshareresponsibilityinconductingitswork.Thethree
organsoftheILOare:
InternationalLabourConferences:GeneralAssemblyoftheILOMeetseveryyearinthemonthofJune.
GoverningBody:ExecutiveCounciloftheILO.MeetsthreetimesinayearinthemonthsofMarch,Juneand
November.
InternationalLabourOffice:Apermanentsecretariat.
TheworkoftheConferenceandtheGoverningBodyissupplementedbyRegionalConferences,RegionalAdvisory
Committees,IndustrialandAnalogousCommittees,CommitteeofExperts,PanelsofConsultants,Special
Conferenceandmeetings,etc.

InternationalLabourConference
ExceptfortheinterruptioncausedbytheSecondWorldWar,theinternationalLabourConferencehascontinued,
sinceitsfirstsessionin1919tomeetatleastonceayear.TheConference,assistedbytheGoverningBody,adopts
biennialprogrammeandbudget,adoptsInternationalLabourStandardsintheformofConventionsand
Recommendationsandprovidesaforumfordiscussingsocialeconomicandlabourrelatedissues.Indiahas
regularlyandactivelyparticipatedintheConferencethroughitstripartitedelegations.

GoverningBody
TheGoverningBodyoftheILOistheexecutivewingoftheOrganization.Itisalsotripartiteincharacter.Since1922
IndianhasbeenholdinganonelectiveseatontheGoverningBodyasoneofthe10countriesofchiefindustrial
importance.IndianemployersandworkersrepresentativeshavebeenelectedasMembersoftheGoverningBody
fromtimetotime.
TheGoverningBodyofILOfunctionsthroughitsvariousCommittees.Indiaisamemberofallsixcommitteesofthe
GoverningBodyviz.(i)Programme,Planning&Administrative(ii)FreedomofAssociation(iii)LegalIssuesand
InternationalLabourStandards(iv)Employment&SocialPolicy(v)TechnicalCooperationand(vi)Sectoraland
TechnicalMeetingsandRelatedissues.

TheInternationalLabourOffice
TheInternationalLabourOffice,GenevaprovidestheSecretariatforallConferencesandothermeetingsandis
responsibleforthedaytodayimplementationofdecisionstakenbytheConference,GoverningBodyetc.Indians
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haveheldpositionsofimportanceintheInternationalLabourOffice

InternationalLabourStandardsILOConventions:
TheprincipalmeansofactionintheILOisthesettinguptheInternationalLabourStandardsintheformof
ConventionsandRecommendations.Conventionsareinternationaltreatiesandareinstruments,whichcreatelegally
bindingobligationsonthecountriesthatratifythem.Recommendationsarenonbindingandsetoutguidelines
orientingnationalpoliciesandactions.
TheapproachofIndiawithregardtoInternationalLabourStandardshasalwaysbeenpositive.TheILOinstruments
haveprovidedguidelinesandusefulframeworkfortheevolutionoflegislativeandadministrativemeasuresforthe
protectionandadvancementoftheinterestoflabour.TothatextenttheinfluenceofILOConventionsasastandard
forreferenceforlabourlegislationandpracticesinIndia,ratherthanasalegallybindingnorm,hasbeensignificant.
RatificationofaConventionimposeslegallybindingobligationsonthecountryconcernedand,therefore,Indiahas
beencarefulinratifyingConventions.IthasalwaysbeenthepracticeinIndiathatweratifyaConventionwhenwe
arefullysatisfiedthatourlawsandpracticesareinconformitywiththerelevantILOConvention.Itisnowconsidered
thatabettercourseofactionistoproceedwithprogressiveimplementationofthestandards,leavetheformal
ratificationforconsiderationatalaterstagewhenitbecomespracticable.Wehavesofarratified39Conventionsof
theILO,whichismuchbetterthanthepositionobtaininginmanyothercountries.Evenwhereforspecialreasons,
IndiamaynotbeinapositiontoratifyaConvention,IndiahasgenerallyvotedinfavouroftheConventionsreserving
itspositionasfarasitsfutureratificationisconcerned.
CoreConventionsoftheILO:TheeightCoreConventionsoftheILO(alsocalledfundamental/humanrights
conventions)are:
ForcedLabourConvention(No.29)
AbolitionofForcedLabourConvention(No.105)
EqualRemunerationConvention(No.100)
Discrimination(EmploymentOccupation)Convention(No.111)

(TheabovefourhavebeenratifiedbyIndia).
FreedomofAssociationandProtectionofRighttoOrganisedConvention(No.87)
RighttoOrganiseandCollectiveBargainingConvention(No.98)
MinimumAgeConvention(No.138)
WorstformsofChildLabourConvention(No.182)

(ThesefourareyettoberatifiedbyIndia)
ConsequenttotheWorldSummitforSocialDevelopmentin1995,theabovementionedConventions(Sl.No.1to7)
werecategorisedastheFundamentalHumanRightsConventionsorCoreConventionsbytheILO.Lateron,
ConventionNo.182(Sl.No.8)wasaddedtothelist.
AspertheDeclarationonFundamentalPrinciplesandRightsatWorkanditsFollowup,eachMemberStateofthe
ILOisexpectedtogiveeffecttotheprinciplescontainedintheCoreConventionsoftheILO,irrespectiveofwhether
ornottheCoreConventionshavebeenratifiedbythem.
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UnderthereportingprocedureoftheILO,detailedreportsareduefromthememberStatesthathaveratifiedthe
priorityConventionsandtheCoreConventionseverytwoyears.UndertheFollowuptotheILODeclarationon
FundamentalPrinciplesandRightsatWork,areportistobemadebyeachMemberStateeveryyearonthoseCore
Conventionsthatithasnotyetratified.
Source:MinistryofLabourGOI.

RoleoftheNationalCommissiononLabour
LabourlegislationshavealsobeenshapedandinfluencedbytherecommendationsofthevariousNational
CommitteesandCommissionssuchasFirstNationalCommissiononLabour(1969)undertheChairmanshipof
JusticeGajendragadkar,NationalCommissiononRuralLabour(1991),SecondNationalCommissiononLabour
(2002)undertheChairmanshipofShriRavindraVarmaetc.andjudicialpronouncementsonlabourrelatedmatters
specificallypertainingtominimumwages,bondedlabour,childlabour,contractlabouretc.
TheFirstNationalCommissiononLabourwasconstitutedon24.12.1966whichsubmitteditsreportinAugust,1969
afterdetailedexaminationofallaspectsoflabourproblems,bothintheorganisedandunorganisedsector.Theneed
forsettingupoftheSecondNationalCommissiononLabourwasfeltduetovastchangesoccurringintheeconomy
duringthelastthreedecadesespeciallyintheninetiesduetoglobalization,liberalizationandprivatization.
TheSecondNationalCommissiononLabourwasgiventwopointtermsofreference:
i)Tosuggestrationalizationofexistinglawsrelatingtolabourintheorganisedsectorand
ii)Tosuggestanumbrellalegislationforensuringaminimumlevelofprotectiontotheworkersintheunorganised
sectors
TheCommissionsubmitteditsReporttotheGovernmenton29.06.2002.TheCommissionhascomprehensively
coveredvariousaspectsoflabourandgivenrecommendationsrelatingtoreviewoflaws,socialsecurity,women&
childlabour,wages,skilldevelopment,labouradministration,unorganizedsectoretc.
TherecommendationsofSecondNationalCommissiononLabourinteralia,included(i)introductionofumbrella
legislationforworkersintheunorganizedsectorandagriculturallabour,(ii)emphasisonupgradationand
developmentofskillofworkforcebytraining/retrainingofworkers,(iii)encouragementofsmallscaleindustries,agri
businessandruralsectorforhigheremploymentgeneration,(iv)bringingattitudinalchangeandchangeinthe
mindsetandworkculturewheretheemployerandtheworkerworkaspartnerswithemphasisonparticipative
management,(v)consolidationofsocialsecuritylegislationsandestablishmentofsocialsecuritysystem,(vi)
abolitionofchildlabour,etc.
TheMinistryofLabourhadheldconsultationsandinteractionswiththeworkersrepresentatives,employers
organizations,experts,professionalsetc.TherecommendationsoftheCommissionwerediscussedinthe38th
SessionofIndianLabourConferenceheldon2829September2002,aNationalSeminaronUnorganizedSector
Workersheldon78November2002,TripartiteCommitteemeetingheldon1819February2003,andConsultative
CommitteeMeetingsofMinistryofLabourheldon07.02.2003and30.4.2003.Therecommendationshadagainbeen
discussedinthe39thSessionofIndianLabourConferenceheldon1618October,2003.Whilecarryingoutthe
amendmentsinlabourlaws,therecommendationsofSecondNationalCommissiononLabourarealsotakeninto
consideration.
Source:ThePlanningCommissionofIndia

IndianLabourLawsReviewbyASSOCHAM
Evenafter17yearsofglobalization,IndiahasyettodismantleInspectorRajforSSIsectorwherethenumbersof
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inspectorshaveratherincreasedfrom20toabout40byendof2008,accordingtoTheAssociatedChambersof
CommerceandIndustryofIndia(ASSOCHAM).Incidentally,liberalizedandReformed`RedBooksnowprovidefor
50%curtailmentinnumbersofinspectorsforothersectorbutSSIswhichgeneratelargeemployment,contribute
substantiallytoexportscover38%andmanufacturingishighlyregulatedbyinspectorsandcausemaximum
harassmenttothem,ASSOCHAManalysisfurtherunveils.TheChambercitedanexampleoffoodprocessing
industrywhichusedtoberegulatedby100inspectors17yearsago,theirnumbershavereducedto46.Theunified
FoodLawwhichiscompositionof9laws,enactedin2007isprimarilyresponsibleforhugelyreducingthenumberof
inspectorsforfoodprocessingindustryforwhichthecreditshouldgototheMinistryofFoodProcessingandits
Minister,SubodhKantSahay.
TheFactoryActof1948wouldprovidefortakingmandatorylicensingevenifanentrepreneurwantedtocommence
manufacturingattinyscale,todaythereisnosuchconditionandthishappenedmainlybecauseoftransitionprocess
ofliberalizationremainedindustryfriendly,pointedouttheASSOCHAM.Anothercaseforexampleisagainfood
processingindustryinwhichbeforeenactmentofUnifiedFoodLaw,theindustrywouldbesubjectedtomultiple
inspectorssuchasWeighingInspectorandInspectorsforISI,Corporation,Health,HygieneandevenMedicaletc.
Today,thesesectorsareexaminedbynotmorethan2inspectors.Onthecontrary,theSSIsectorwhichwouldbrave
asmanyas20inspectorsover17yearsagoisnowsubjectedtoinspectorsmonitoringwhosenumberhavegone
beyond40,saystheASSOCHAManalysis.17yearsagoisnowsubjectedtomanyotherinspectionswhichinclude
oneseparateinspectortomonitortheirregisterofemployees,accounts,balancesheetandontaxationfronts
particularlytheservicetaxinspector.Likewise,manymoreareaswereaddedinwhichtheSSIsectorissubjectedto
tediousinspections.
However,theSSIsectorcontinuestoremainunderthetightgripofinspectorrajwhichwassupposedtobecomeout
withadvancementofliberalization.ThisdidnothappenbecausemostofstatesgoverntheSSIsectorand
governmentsnevertookespecialinitiativesforreducingthenumberofinspectors.Theanalysisisbasedon
feedbackcomingtoChamberSecretariatdirectlyfromitsmembers,beitmanufacturing,foodprocessingandSSIs.
Evenobtainingoflicenceisnolongerrequiredtocommenceindustrialoperationsinanysectorotherthanthose
enlistedinthesensitivelistwhichincludedefence,strategicalliancesandtosomeextenttelecom,civilaviationand
insurance.Thischangehastakenplaceasgovernmentbroughtaboutvariousnotificationsandamendmentsin
somesensetoprototypelaws.TheSSIsectorwhichwouldgothroughinspectionsfromexcise,customs,banks,
insurance,PF,PPFandrecordinspectors,16yearsagoisnowsubjectedtomanyotherinspectionswhichinclude
oneseparateinspectortomonitortheirregisterofemployees,accounts,balancesheetandontaxationfronts
particularlytheservicetaxinspector.Likewise,manymoreareaswereaddedinwhichtheSSIsectorissubjectedto
tediousinspections.
Besides,theFactoryAct1948,MinimumWagesAct1948,PaymentofBonusAct1965,EmploymentExchange
CompulsoryNotificationofVacanciesAct1959,Air(Prevention&ControlofPollution)Act1981jointlyprovide
empowermenttogovernmentdepartmentsandvariousstategovernmentstostillregulatetheSSIsector.
Source:ASSOCHAM

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