SCHOOL OF LAW, MUMBAI

A Research paper submitted on

PROTECTION OF RIGHTS OF UNORGANIZED

LABOURERS FOR SEMESTER VII OF 2020-21, IN THE SUBJECT

LABOUR LAW

SUBMITTED TO:

Professor Kamaljit Singh Sandhu

SUBMITTED BY:

Mayank Srivastava (A058)

BBA LLB (Hons.)

Fourth Year

1|Page
S.No Index Page No

1 Introduction 3

2 Objectives 4

3 Methodology 4

4 Statement of the problem 4

5 The Constitutional Framework 5

6 Trends in Unorganised Sector 5

7 Problems of Unorganised Sector 6-7

8 Special Legislations 7-8

9 Conclusions 9

INTRODUCTION:-

2|Page
At all times and in every society, at every stage of development, there have been sick people requiring
medical aid and care, handicapped and old people unable to work for a living. 1 “There are five giants on
the road of reconstruction”. These are want, disease, ignorance, squalor and idleness”. 2
Every person is exposed to some kind of risk or danger. As per World Development Report, 1997, social
security should be viewed as an investment for the human development. 3 United Nation Development
Programme (UNDP) stated that for most people, a feeling of insecurity arises more from worries about
daily life (like will they and their families have enough to eat or will they lose their job?) than from the
dread of a cataclysmic world event.4
An unorganized Sector can be defined as the sector where the elements of the Organized Sector is absent.
In the absence of a more analytical definition, the landscape of the unorganized sector becomes
synonymous with the kaleidoscope of unregulated, poorly skilled and low-paid workers. While defining
an unorganized sector we can say that it is a part of the workforce which has not been able to organize in
pursuit of a common objective because of constraints such as casual nature of employment, ignorance and
illiteracy, small size of establishments with low capital investment, per person employed, scattered nature
of establishments, superior strength of the employer etc. “ The unorganized Sector consists of all private
enterprises having less than ten total workers, operating on a proprietary or partnership basis.” 5
Labour market is not homogenous. It is broadly segmented into unorganized and organized, wage earners
and self-employed, skilled, semi-skilled and unskilled and so on. Every regulation relating to social
security and working conditions has different meaning and implication for every segment. 6

Objectives:-
More especially the study makes an earnest attempt by having the following as its objectives:

1
1 Government of India, Report of Committee on Labour Welfare, 1969, p. 255
2
2 Beverage, William: “Report of Social Insurance and Allied Services” in S.C. Srivastava, Social Security and Labour
Laws (Eastern Book Co.)
3
Sharma, A.M. (2006), Aspects of Labour Welfare and Social Security (Himalaya Publishing House).
4
4 India: Economic Reforms and Labour Policy
5
by National Commission on Enterprises in the Unorganized sector in 2004
6
DR. BALWINDER SINGH -WORKER’S LIFE, WORK AND DECENCY NEEDED REGULATORY MEASUR IN INDIA (2009)

3|Page
1. To bring out the problems of unorganized sector.
2. To study the Welfare and Social Security Provisions for Unorganized Sector Workers.
3. To analyze some legal framework for unorganized sector workers.
4. To suggest some measures to solve the problems of unorganized workers.

Methodology:-
This study has made use of secondary data to collect information with regard to total number of
Unorganized Sector Workers, problems of unorganized sector, Social Security Schemes for Workers in
Unorganized Sector and some activities of central board for unorganized workers etc.

Statement of the problem:-

In unorganized sectors, employee has less facilities than the employees of organized sector. The
workplace is scattered and fragmented. There is no formal employer – employee relationship. In rural
areas, the unorganized labour force is highly stratified on caste and community considerations. In urban
areas while such considerations are much less, it cannot be said that it is altogether absent as the bulk of
the unorganized workers in urban areas are basically migrant workers from rural areas. Workers in the
unorganized sector are usually subject to indebtedness and bondage as their meager income cannot meet
with their livelihood needs. The unorganized workers are subject to exploitation significantly by the rest
of the society. They receive poor working conditions especially wages much below that in the formal
sector, even for closely comparable jobs, i.e., where labour productivity are no different. The work status
is of inferior quality of work and inferior terms of employment, both remuneration and employment.
Primitive production technologies and feudal production relations are rampant in the unorganized sector,
and they do not permit or encourage the workmen to imbibe and assimilate higher technologies and better
production relations.

THE CONSTITUTIONAL FRAMEWORK:-

Indian Constitution provides an overarching framework for regulation of conditions of work as well as
protection and promotion of livelihoods. The Fundamental Rights guaranteed by the Constitution prohibit

4|Page
the exploitation of labour through the use of forced labour and child labour in factories and mines or in
hazardous occupations (Articles 13 and 14). It also guarantees non-discrimination by the State and
equality of opportunity in matters of public employment (Articles 15 and 16). The Right to form
associations and unions is also a Fundamental Right under Article 19.
The Directive Principles of the Constitution (in Part IV) lay down goal posts and the direction of State
Policy. While the right to work is not a fundamental right for the citizens of India, it is included in the
Directive Principles of State Policy. It states "The state shall within the limits of its economic capacity
and development, make effective provision for securing the right to work". The Directive Principles also
include provision for just and human conditions of work and maternity relief. Further, "The state shall
endeavor to secure by suitable legislation, or economic organisation or any other way, to all workers,
agricultural, industrial or otherwise, work, a living wage, and conditions of work ensuring a decent
standard of life".7

Trends in Unorganized Sector:-

The Indian Economy is characterized by the existence of a vast majority of informal or unorganized
labour employment. As per the Economic Survey 2007-08, 93% of India’s workforce include the self-
employed and employed in unorganized sector. The term ‘unorganised labour’ has been defined as those
workers who have not been able to organise themselves in pursuit of their common interests due to certain
constraints, such as casual nature of employment, ignorance and illiteracy, small and scattered size of
establishments, etc. A large number of unorganized workers are home based and are engaged in
occupations such as beedi rolling, agarbatti making, papad making, tailoring, and embroidery work.

The major characteristics of the unorganized laborers:

1. The unorganized labour is overwhelming in terms of its number range and therefore they are
omnipresent throughout India.
2. As the unorganized sector suffers from cycles of excessive seasonality of employment, majority of the
unorganized workers does not have stable durable avenues of employment. Even those who appear to be
visibly employed are not gainfully and substantially employed, indicating the existence of disguised
unemployment.
3. The workplace is scattered and fragmented.
4. There is no formal employer – employee relationship.
5. In rural areas, the unorganized labour force is highly stratified on caste and community considerations.
In urban areas while such considerations are much less, it cannot be said that it is altogether absent as the
bulk of the unorganized workers in urban areas are basically migrant workers from rural areas.
6. Workers in the unorganized sector are usually subject to indebtedness and bondage as their meagre
income cannot meet with their livelihood needs.
7
Regulations of Conditions of Unorganised Workers in India ,Report of National Commission for Enterprises in the
unorganised Sector,2007.

5|Page
The Ministry of Labour, Government of India, has categorized the unorganized labour force under four
groups in terms of Occupation, nature of employment, especially distressed categories and service
categories.
1. In terms of Occupation:
Small and marginal farmers, landless agricultural labourers, share croppers, fishermen, those engaged
in animal husbandry, beedi rolling, labeling and packing, building and construction workers, leather
workers, weavers, artisans, salt workers, workers in brick kilns and stone quarries, workers in saw
mills, oil mills etc. come under this category.
2. In terms of Nature of Employment:
Attached agricultural labourers, bonded labourers, migrant workers, contract and casual labourers
come under this.
3. In terms of Specially distressed categories:
Toddy tappers, Scavengers, Carriers of head loads, Drivers of animal driven vehicles, Loaders and
unloaders come under this category.
4. In terms of Service categories:
Midwives, Domestic workers, Fishermen and women, Barbers, Vegetable and fruit vendors,
Newspaper vendors etc. belong to this category. 8

Problems of Unorganised Sector:-

I. Problems of the workforce- 90% of workforce in vast informal sector, little awareness of
workplace hazards, living areas close to work areas, extended work hours, exploitation, no
concept of occupational safety/services, lack of implementation of Health & Safety legislation,
no concept of Trade/Labour Union. Problems of women workers and 'beedi' workers desperately
poor low wages, fraudulent contractors, disease causing environments, child labour, and >50%
women Deplorable social conditions .
II. Problems faced by Govt. - Problem of definition and identification, workforce uneducated about
the benefits of organized sector, scattered nature of sector, employers avoid any form of
regulation, unorganized sectors contribute to almost 60% of GDP (apart from providing
livelihood to population), same labour laws cannot be applied.
III. Problems from the Organized Sector- Unfair competition (Walmart, Reliance), loss of
employment Legal “bullying”, buyer preference for the “cleaner” retail stores, financial aid not
available to the unorganised sector easily to compete.
IV. They face a number of problems also. In India, the patriarchal society imposes a lot of
restrictions on women. This causes less freedom for women in the society and exploitation at the
work place. Women face sexual harassment and the pressures of the family responsibilities
together at the work place. Street vendors usually face this problem. Ill-behaved men used to
harass them by passing rude comments. Another major issue for the women vendors is the
absence of toilets near the work place. They are replaced frequently, in case of better wage

8
Report of National Commission on Labour, 1969

6|Page
 demands, as they are in surplus in the market. The women working in the clothing industry in
South Africa are also unorganised sector workers. This kind of informalisation enhances the
profitability by avoiding state-imposed controls on hiring and firing. The working class women
are most likely to be in low-wage and low skilled category. They are not unionized. They are
engaged in unregulated and flexible jobs which are least visible and they face various difficulties
as they operate from homes. Most of them were formal clothing sector employees earlier. They
lost their jobs when the factories were closed down. Some women are engaged in this type of
informal work.9

SPECIAL LEGISLATIONS:-
1. Contract Labour (Regulation & Abolition) Act, 1970 – It aims to regulate the employment of the
contract labour in every establishments employing twenty or more workmen and also to provide for its
abolition in certain circumstances
2. Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 – An
act to provide the employment of inter-State migrant workmen and to provide for their conditions of
service.
3. Cine-workers welfare Fund Act, 1981 – An Act to provide for the financing of activities to promote
the welfare of certain cine-workers. "cine-worker" means an individual who has been employed in
connection with the production of not less than five feature films to work as an artiste (including actor,
musician or dancer) or to do any work, skilled, unskilled, manual, supervisory, technical, artistic or
otherwise; and whose remuneration with respect of each of any five feature films, has not exceeded
1600/- per month in case of monthly payment and Rs. 8000/- where such remuneration has been by way
of a lump sum.
4. Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund Act, 1976 – An
Act to provide for the financing of activities to promote the welfare of persons employed in the iron ore
mines, manganese ore mines and chrome ore mines.
5. Limestone and Dolomite Mines Labour Welfare Fund Act, 1972 – An Act to provide for the levy and
collection of a cess on limestone and dolomite for the financing of activities to promote the welfare of
persons employed in the limestone and dolomite mines.
6. Mica Mines Labour Welfare Fund Act, 1946 – An Act to constitute a fund for the financing of
activities to promote the welfare of labour employed in the mica mining industry.
7. Beedi Workers welfare Fund Act 197610 - An Act to provide for the financing of measures to promote
the welfare of persons engaged in beedi establishments.

9
Abdul Majid- Legal Protection to Unorganised Labour
10
It is implemented in most of the States.

7|Page
8. Building and other Construction Workers (Regulation of Employment and conditions of service) Act,
199611 - An Act to regulate the employment and condition of service of buildings and other construction
workers and to provide for their safety, health and welfare measures and for other matters connected
therewith or incidental thereto.

CONCLUSION:-
The idea of protective form of social security implies that the members of society have already reached
an acceptable standard of living and should be guarded only against specific contingencies. This type of
social security may succeed in developed countries; its applicability and adaptability to developing

11
It is implemented only in 12 states properly namely; Kerala, T.N., Karnataka, A.P., Pondichery, Haryana, Punjab,
West Bengal, Tripura, Assam, M.P. and Maharastra

8|Page
countries like India are found to be questionable given the large unorganized sector in these countries. 12
Therefore, promotional aspect of social security is the order of the day.
In India, it seems, the list of unorganised workers is never ending. The needs are pretty high and the
instant measures may be considered as a first step, if some ambiguities are removed from principal law
like Unorganised Workers’ Social Security Act, 2008. For improving the distribution policy, the areas of
concern are lack of appropriate legislation and shoddy implementation of existing laws and schemes,
along with minimal investment.13 Moreover, various Commissions have suggested ratification of certain
conventions.14 India is constitutionally a socialist state. The principle aim socialism is to eliminate
inequality of income and status and to provide a decent standard of living to the working people.
International commitments15 and constitutional obligations bind the government to its responsibility of
providing social security benefits to all citizens. In fact, the welfare state demands from the government
that there should be a “substantive equality” to those who are in relatively weak position and unorganised
workers are definitely in bad shape compared to organised workers. The present scenario in India is that
it even failed to provide “formal equality” to the unorganised worker and therefore, providing social
security by way of substantive equality is a distant dream.

12
D. Rajasekhar et al, At Times When Limbs May Fail: Social Security For Unorganized Workers In Karnataka
13
4 NCEUS Report of 2006 blames this performance on these grounds and recommends Rs 45,000 crore action
plan for overall improvement of the unorganised sector.
14
Report on National Commission on Labour, 2002 suggested that ratification of ILO Convention No. 177 of 1996
will offer substantial safeguards to millions of workers. Article 4 of Convention.
15
As a member of the United Nations, India has signed the Universal Declaration of Human Rights (UDHR), It has
also ratified the International Covenant on the Economic, Social and Cultural Rights (ICESCR) - This Covenant, inter
alia, recognises the right of everyone to social security including social insurance. Articles 21 to 31 of the UN’s
‘International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families
1991’ provides for social security and other labour rights of migrant workers. India has also ratified the following
conventions of ILO : 1. Convention No. 18 – Workmen’s Compensation (Occupational Diseases) 1925 on 30.09.1927
2. Convention No. 19 – Equality of Treatment (Accident Compensation) 1925 on 30.09.1927 3. Convention No. 42 –
Workmen’s Compensation (Occupational Diseases) Convention (Revised) 1934 on 13.01.1964 4. Convention No.
118 – Equality of Treatment (Social Security) 1962 on 19.08.1964 (branches (c) and (g) and branches (a) to (c) and
(i).

9|Page