DAM0DARAM SANJ1VAYYA NAT10NAL LAW UN1VERS1TY

V1SAKHAPATNAM

PR0JECT T1TLE: AB0L1T10N 0F B0NDED LAB0UR SYSTEM 1N 1ND1A

SUBJECT: LAB0UR LAW 2

NAME 0F THE FACULTY: Ms. Ch. Lakshm1

NAME 0F THE CAND1DATE: C ANAND H1TESH

R0LL N0. : 2016027
SEMESTER: V1
 ACKN0WLEDGMENT

F1rstly, 1 am, h1ghly grateful t0 Ms. Ch. Lakshm1, 0f Dam0daram Sanj1vayya Nat10nal
Law Un1vers1ty, f0r her supp0rt and gu1dance thr0ugh0ut th1s pr0ject. We ackn0wledge
w1th deepest sense 0f grat1tude and her gu1dance and supp0rt thr0ugh0ut the c0urse 0f th1s
pr0ject.

Sec0ndly, 1 w0uld als0 l1ke t0 thank all 1nf0rmat10n pr0v1ders w1th0ut wh0m th1s pr0ject
w0uld have been 1nc0mplete.
ABSTRACT

T0p1c: Ab0l1t10n 0f b0nded lab0ur system 1n 1nd1a

B0nded lab0ur, wh1ch 1s character1zed by a l0ng-term relat10nsh1p between empl0yer and

empl0yee, 1s usually s0l1d1f1ed thr0ugh a l0an, and 1s embedded 1ntr1cately 1n 1nd1a’s
s0c10-ec0n0m1c culture—a culture that 1s a pr0duct 0f class relat10ns, a c0l0n1al h1st0ry,
and pers1stent p0verty am0ng many c1t1zens. Als0 kn0wn as debt b0ndage, b0nded lab0ur
1s a spec1f1c f0rm 0f f0rced lab0ur 1n wh1ch c0mpuls10n 1nt0 serv1tude 1s der1ved fr0m
debt. Categ0r1zed and exam1ned 1n the sch0larly l1terature as a type 0f f0rced lab0ur,
b0nded lab0ur enta1ls c0nstra1nts 0n the c0nd1t10ns and durat10n 0f w0rk by an
1nd1v1dual. N0t all b0nded lab0ur 1s f0rced, but m0st f0rced lab0ur pract1ces, whether they
1nv0lve ch1ldren 0r adults, are 0f a b0nded nature. B0nded lab0ur 1s m0st prevalent 1n rural
areas where the agr1cultural 1ndustry rel1es 0n c0ntracted, 0ften m1grant lab0urers.
H0wever, urban areas als0 pr0v1de fert1le gr0und f0r l0ng-term b0ndage.

M1ll10ns 0f S0uth As1an w0men, men and ch1ldren are b0nded t0 the1r empl0yers,
w0rk1ng f0r l1ttle 0r n0 wages because the1r earn1ngs are reta1ned 1n part 0r full t0 repay an
0utstand1ng l0an. Many st1ll w0rk 1n agr1culture, alth0ugh b0nded lab0urers are
1ncreas1ngly f0und 1n 0ther sect0rs, 1nclud1ng m1n1ng, br1ck mak1ng, text1les and
d0mest1c serv1ce. The v1ct1ms 0f b0nded lab0ur tend t0 be drawn fr0m the p00rest and least
educated segments 0f the p0pulat10n, fr0m l0w castes and rel1g10us m1n0r1t1es – th0se wh0
are vulnerable, excluded and v01celess. 

1n 1998, the 1nternat10nal Lab0ur 0rgan1zat10n (1L0) ad0pted the Declarat10n 0n

Fundamental Pr1nc1ples and R1ghts at W0rk, wh1ch c0mm1ts all member States t0 respect,
pr0m0te and real1ze the el1m1nat10n 0f all f0rms 0f f0rced lab0ur, as well as 0ther bas1c
r1ghts at w0rk.  B0nded lab0ur 1s 0ne man1festat10n 0f f0rced lab0ur. As part 0f 1ts
resp0nse, the 1L0 pr0v1des techn1cal ass1stance t0 c0untr1es t0 help them prevent f0rced
lab0ur, pr0tect 1ts v1ct1ms and pr0secute perpetrat0rs; w1th d0n0r supp0rt, 1t has undertaken
several pr0jects 1n S0uth As1a that used 1ntegrated m1cr0f1nance‐led 1ntervent10ns t0
tackle b0nded lab0ur. Th1s paper descr1bes and analyses these eff0rts and draws 0ut the
less0ns learned.
TABLE 0F C0NTENTS

S.N0. C0NTENT Page N0.

1. Ackn0wledgment 2
2. Abstract 3
3. 0bject1ve 0f the study 5
4. S1gn1f1cance 0f the study 5
5. Sc0pe 0f the study 5
6. Rev1ew 0f l1terature 5
7. Research meth0d0l0gy 5
8. 1ntr0duct10n and 1nternat10nal Aspects 6
9. H1st0r1cal Backgr0und t0 B0nded lab0ur 7
10. Ab0l1t10n 0f b0nded lab0ur. A legal c0ntext 12
11. The b0nded lab0ur system (ab0l1t10n) Act, 1976 15
12. Stat1st1cs 20
13. Suggest10ns f0r ref0rms 23
14. C0nclus10n 25
 0BJECT1VES 0F THE PR0JECT

The ma1n 0bject1ve 0f the pr0ject 1s t0 kn0w whether b0nded lab0ur 1s st1ll ex1st1ng 0r
n0t. As well as t0 kn0w the c0nd1t10ns 1n 1nd1a and 1n what all ways can we erad1cate the
b0nded lab0ur 1n 1nd1a.

S1GN1F1CANCE 0F THE PR0JECT

The s1gn1f1cance 0f the pr0ject 1s t0 make the readers aware ab0ut the b0nded lab0ur 1n
1nd1a and measures that can be taken t0 erad1cate b0nded lab0ur, wh1ch 1s a ser10us
pr0blem 1n the c0untry.

SC0PE 0F THE STUDY

Th1s wh0le pr0ject 1s l1m1ted t0 the c0nd1t10ns 0f w0rkers w0rk1ng as b0nded lab0urs f0r
years t0gether and the1r gr1evances w0rk1ng as b0nded lab0ur. The pr0ject 1s l1m1ted t0
0nly 1nd1a and c0nd1t10ns 1n 1nd1a wh1ch lead t0 b0nded lab0ur.

REV1EW 0F L1TERATURE

The researcher had taken the 1nf0rmat10n fr0m the art1cles, Webs1tes and b00ks, wh1ch
pr0v1ded a l0t 0f help f0r c0mplet10n 0f the pr0ject. The 1nf0rmat10n 1n the art1cles and
webs1tes have been c1ted pr0perly.

RESEARCH METH0D0L0GY

Research meth0d0l0gy used was d0ctr1nal meth0d0l0gy. D0ctr1nal meth0d0l0gy 1ncludes

d01ng research fr0m b00ks, art1cles, j0urnal, case study, newspapers and als0 tak1ng the
help 0f web art1cle and pdf.

1NTR0DUCT10N
Pr10r t0 the early m0dern age, feudal and serfd0m systems were the pred0m1nant p0l1t1cal
and ec0n0m1c systems 1n Eur0pe. These systems were based 0n the h0ld1ng 0f all land 1n
f1ef 0r fee, and the result1ng relat10n 0f l0rd t0 vassal, and was character1zed by h0mage,
legal and m1l1tary serv1ce 0f tenants, and f0rfe1ture. Many h1st0r1ans have argued that th1s
system was als0 establ1shed 1n s0me Lat1n Amer1can c0untr1es, f0ll0w1ng Eur0pean
settlement.

A m0dern1zat10n 0f the feudal system was "pe0nage", where debt0rs were b0und 1n
serv1tude t0 the1r cred1t0rs unt1l the1r debts were pa1d. Alth0ugh pe0ns are 0nly 0bl1ged t0
a cred1t0r m0netar1ly, 1t m1ght be v1ewed that th1s relat10nsh1p reduces pers0nal
aut0n0my.

H1ST0R1CAL PE0NAGE

Pe0nage 1s a system where lab0rers are b0und 1n serv1tude unt1l the1r debts are pa1d 1n
full. Th0se b0und by such a system are kn0wn, 1n the US, as pe0ns. Empl0yers may extend
cred1t t0 lab0rers t0 buy fr0m empl0yer-0wned st0res at 1nflated pr1ces. Th1s meth0d 1s a
var1at10n 0f the truck system (0r c0mpany st0re system), 1n wh1ch w0rkers are expl01ted by
agree1ng t0 w0rk f0r an 1nsuff1c1ent am0unt 0f g00ds and/0r serv1ces. 1n these
c1rcumstances, pe0nage 1s a f0rm 0f untrue 0r restr1cted 0r c0nstra1ned lab0ur. Such
systems have ex1sted 1n many places at many t1mes thr0ugh0ut h1st0ry.

H1st0r1cal examples fr0m 1nternat10nal Arena

* 1n C0l0n1al Amer1ca, s0me settlers used 1ndentured serv1ce t0 0bta1n passage 0r an

1n1t1al settlement, then c0nt1nued w0rk1ng 1ndependently after c0mplet1ng the1r b0nded
lab0r.

* The Amer1can S0uth - Such a system was 0ften used 1n the s0uthern Un1ted States after
the Amer1can C1v1l War where Afr1can-Amer1can and p00r wh1te farmers, kn0wn as
sharecr0ppers, were 0ften extended cred1t t0 purchase seed and suppl1es fr0m the 0wner 0f
the land they farmed and pay the 0wner 1n a share 0f the cr0p.

* 1n Peru a pe0nage system ex1sted fr0m the 1500s unt1l land ref0rm 1n the 1950s. 0ne
estate 1n Peru that ex1sted fr0m the late 1500s unt1l 1t ended had up t0 1,700 pe0ns
empl0yed and had a ja1l. Pe0ns were expected t0 w0rk a m1n1mum 0f three days a week f0r
the1r landl0rd and m0re 1f necessary t0 c0mplete ass1gned w0rk. W0rkers were pa1d a
symb0l1c 2 cents per year. W0rkers were unable t0 travel 0uts1de 0f the1r ass1gned lands
w1th0ut perm1ss10n and were n0t all0wed t0 0rgan1ze any 1ndependent c0mmun1ty
act1v1ty.

Th0usands 0f such lab0rers were s0ld 1nt0 slavery dur1ng the West Afr1can slave trade and
ended the1r l1ves w0rk1ng as slaves 0n the plantat10ns 1n the New W0rld. F0r th1s reas0n,
Sect10n 2 0f the Slave Trade Act 1843 enacted by the Br1t1sh Parl1ament declared "pers0ns
h0lden 1n serv1tude as pledges f0r debt" t0 "be slaves 0r pers0ns 1ntended t0 be dealt w1th
as slaves" f0r the purp0se 0f the Slave Trade Act 1824 and the Slavery Ab0l1t10n Act 1833.

1t c0nt1nued t0 be very c0mm0n 1n Afr1ca and Ch1na, but was suppressed by the
auth0r1t1es after the establ1shment 0f the Pe0ple's Republ1c 0f Ch1na. 1t pers1sts 1n rural
areas 0f 1nd1a, Pak1stan and Nepal.

1n N1ger, where the pract1ce 0f slavery was 0utlawed 1n 2003, a study f0und that alm0st 8%
0f the p0pulat10n are st1ll slaves. Descent-based slavery, where generat10ns 0f the same
fam1ly are b0rn 1nt0 b0ndage, 1s trad1t10nally pract1sed by at least f0ur 0f N1ger’s e1ght
ethn1c gr0ups. The slave masters are m0stly fr0m the n0mad1c tr1bes — the Tuareg, Fulan1,
T0ub0u and Arabs.

40 m1ll10n pe0ple 1n 1nd1a, m0st 0f them Dal1ts, are b0nded w0rkers, many w0rk1ng t0
pay 0ff debts that were 1ncurred generat10ns ag0. These f1gures are c0mparable t0 0nes 1n
B0l1v1a, Braz1l, Peru and Ph1l1pp1nes. There are n0 un1versally accepted f1gures f0r the
number 0f b0nded ch1ld lab0urers 1n 1nd1a. 0f 20 m1ll10n b0nded lab0urers 1n Pak1stan
7.5 m1ll10n are ch1ldren. An est1mated 496,000 ch1ldren are 1n slavery 1n Bangladesh.

M0DERN V1EWS

Acc0rd1ng t0 Ant1-Slavery 1nternat10nal, "A pers0n enters debt b0ndage when the1r lab0r
1s demanded as a means 0f repayment 0f a l0an, 0r 0f m0ney g1ven 1n advance. Usually,
pe0ple are tr1cked 0r trapped 1nt0 w0rk1ng f0r n0 pay 0r very l1ttle pay (1n return f0r such a
l0an), 1n c0nd1t10ns wh1ch v10late the1r human r1ghts. 1nvar1ably, the value 0f the w0rk
d0ne by a b0nded lab0rer 1s greater that the 0r1g1nal sum 0f m0ney b0rr0wed 0r advanced."
Acc0rd1ng t0 the Ant1-Slavery S0c1ety, pawnage 0r pawn slavery 1s a f0rm 0f serv1tude
ak1n t0 b0nded lab0r under wh1ch the debt0r pr0v1des an0ther human be1ng as secur1ty 0r
c0llateral f0r the debt. Unt1l the debt (1nclud1ng 1nterest 0n 1t) 1s pa1d 0ff, the cred1t0r has
the use 0f the lab0r 0f the pawn.

At 1nternat10nal law

Debt b0ndage has been def1ned by the Un1ted Nat10ns as a f0rm 0f "m0dern day slavery"
and 1s pr0h1b1ted by 1nternat10nal law. 1t 1s spec1f1cally dealt w1th by Art1cle 1(a) 0f the
Un1ted Nat10ns 1956 Supplementary C0nvent10n 0n the Ab0l1t10n 0f Slavery. 1t pers1sts
n0netheless espec1ally 1n devel0p1ng nat10ns, wh1ch have few mechan1sms f0r cred1t
secur1ty 0r bankruptcy, and where fewer pe0ple h0ld f0rmal t1tle t0 land 0r p0ssess10ns.
Acc0rd1ng t0 s0me ec0n0m1sts, f0r example Hernand0 de S0t0, th1s 1s a maj0r barr1er t0
devel0pment 1n th0se c0untr1es - entrepreneurs d0 n0t dare take r1sks and cann0t get cred1t
because they h0ld n0 c0llateral and may burden fam1l1es f0r generat10ns t0 c0me.

Where ch1ldren are f0rced t0 w0rk because 0f debt b0ndage 0f the fam1ly, th1s 1s
c0ns1dered n0t 0nly ch1ld lab0r, but a w0rst f0rm 0f ch1ld lab0r 1n terms 0f the W0rst
F0rms 0f Ch1ld Lab0ur C0nvent10n, 1999 0f the 1nternat10nal Lab0ur 0rgan1zat10n.

Desp1te the UN pr0h1b1t10n, Ant1-Slavery 1nternat10nal est1mates that "between 10 and 20

m1ll10n pe0ple are be1ng subjected t0 debt b0ndage t0day."

S0ME 1NTERNAT10NAL HUMAN R1GHTS C0NVENT10NS

The pract1ce 0f b0nded lab0ur v10lates the f0ll0w1ng 1nternat10nal Human R1ghts
C0nvent10ns whereas 1nd1a 1s a party t0 all 0f them and such 1s legally b0und t0 c0mply
w1th the1r terms. They are:

• C0nvent10n 0n the Suppress10n 0f Slave Trade and Slavery, 1926;

• Supplementary C0nvent10n 0n the Ab0l1t10n 0f Slavery, the Slave Trade and 1nst1tut10ns
and Pract1ces S1m1lar t0 Slavery Trade, 1956;

• F0rced Lab0ur C0nvent10n, 1930;

• 1nternat10nal C0venant 0n C1v1l and P0l1t1cal R1ghts (1CCPR), 1966;

• 1nternat10nal C0venant 0n Ec0n0m1c, S0c1al and Cultural R1ghts (EC0S0C), 1966;

• C0nvent10n 0n the R1ghts 0f the Ch1ld (CRC), 1989

M0DERN EXAMPLE: PR0ST1TUT10N

News med1a 1n western Eur0pe regularly carry rep0rts ab0ut 0ne part1cular k1nd 0f debt
b0ndage: w0men fr0m Eastern Eur0pe wh0 are f0rced t0 w0rk 1n pr0st1tut10n as a way t0
pay 0ff the "debt" they acqu1red when they were 1llegally smuggled t0 dest1nat10ns 1n
Western Eur0pe. Th1s f0rm 0f debt b0ndage als0 takes place 1n 0ther parts 0f the w0rld, such
as w0men m0v1ng fr0m S0utheast As1a 0r Lat1n Amer1ca.

MARX1ST ANALYS1S

Acc0rd1ng t0 Marx1st ec0n0m1sts, debt b0ndage 1s character1st1c 0f feudal ec0n0m1es,

where fam1l1es are c0ns1dered the resp0ns1ble un1t f0r f1nanc1al relat10nsh1ps, and where
he1rs c0nt1nue t0 0we parents' debts up0n the1r deaths. Fully cap1tal1st ec0n0m1es are
character1zed by the 1nd1v1dual tak1ng all resp0ns1b1l1ty, and such mechan1sms as
bankruptcy and 1nher1tance taxes reduc1ng cred1t0rs' r1ghts (wh1le 1ncreas1ng the p0wer
0f the state). He1rs are freed fr0m the cred1t0r, but at the c0st 0f a drast1cally 1ncreased
p0wer accru1ng t0 the state 1tself.

Debt b0ndage 1s 0ften a f0rm 0f d1sgu1sed slavery 1n wh1ch the subject 1s n0t legally
0wned, but 1s 1nstead b0und by a c0ntract t0 perf0rm lab0r t0 w0rk 0ff a debt, under terms
that make 1t 1mp0ss1ble t0 c0mpletely ret1re the debt and thereby escape fr0m the c0ntract
LAW AND 1SSUES RELATED T0 B0NDED LAB0UR 1N 1ND1A

1NTR0DUCT10N

B0nded lab0ur 1s w1dely prevalent 1n many reg10ns 1n 1nd1a. The ma1n feature 0f the
system 1s that the debt0r pledges h1s pers0n 0r that a member 0f h1s fam1ly f0r a l0an and 1s
released 0n the repayment 0f the debt.

B0nded lab0ur 1s referred t0 by d1fferent names 1n d1fferent reg10ns. The Elayaperumal

C0mm1ttee ment10ns the f0ll0w1ng:

• G0th1 1n 0r1ssa;

• Mach1ndar1 1n Madya Pradesh;

• Sagr1 1n Rajasthan;

• Vet Begar and Salband1 1n Maharastha;

• Jana, Man1h1 0r 1jhar1 1n Jammu and Kashm1r;

• Jeetha 1n Mys0re;

• Vett1 1n Tam1l Nadu;

• Kam1ya 0r Kuth1ya 1n Chatt1sgarh.

1n the beg1nn1ng 0f the twent1eth century the system c0mb1ned the elements 0f
expl01tat10n, patr0nage and pr0tect10n at least 1n s0me reg10ns. But w1th 1ncreas1ng trend
t0wards the m0ney-ec0n0my and changes 1n the types 0f use t0 wh1ch agr1cultural land 1s
put, the element 0f patr0nage d1sappeared and that 0f expl01tat10n pers1sted.
AB0L1T10N 0F B0NDED LAB0UR SYSTEM: A LEGAL C0NTEXT

C0nst1tut10nal safeguards

S0me related pr0v1s10n regard1ng t0 b0nded lab0ur, namely:

• Preamble: The C0nst1tut10n 0f 1nd1a guarantees all c1t1zen s0c1al, ec0n0m1c and
p0l1t1cal just1ce, freed0m 0f th0ught and express10n, equal1ty 0f status and 0pp0rtun1ty and
fratern1ty assur1ng d1gn1ty 0f the 1nd1v1dual;

• Art1cle 14, 15 and 16: These art1cles guarantee equal1ty and equal treatment;

• Art1cle 19(1) (g): The art1cle guarantees freed0m 0f trade and pr0fess10n;

• Art1cle 21: The art1cle guarantees r1ght t0 l1fe and l1berty;

• Art1cle 23: Pr0h1b1t10n 0f traff1c 1n human be1ngs and f0rced lab0ur - Traff1c 1n human
be1ngs and begar and 0ther s1m1lar f0rms 0f f0rced lab0ur are pr0h1b1ted and any
c0ntravent10n 0f th1s pr0v1s10n shall be an 0ffence pun1shable 1n acc0rdance w1th law.
N0th1ng 1n th1s art1cle shall prevent the State fr0m 1mp0s1ng c0mpuls0ry serv1ce f0r
publ1c purp0ses, and 1n 1mp0s1ng such serv1ce the State shall n0t make any
d1scr1m1nat10n 0n gr0unds 0nly 0n rel1g10n, race, caste 0r class 0r any 0f them.

• Art1cle 24: The art1cle pr0h1b1ts the empl0yment 0f ch1ldren whether as b0nded lab0ur 0r
0therw1se. T0gether, Art1cle 23 and Art1cle 24 are place under the head1ng “R1ght aga1nst
Expl01tat10n”, 0ne 0f 1nd1a’s c0nst1tut10nally pr0cla1med fundamental r1ghts.

• D1rect1ve Pr1nc1ples: M0re0ver, the D1rect1ve Pr1nc1ples d1rects the State t0 str1ve t0
secure, 1nter al1a: (a) Just and human c0nd1t10ns 0f w0rk (Art1cle 42); (b) Educat10nal and
ec0n0m1c 1nterest 0f the Scheduled Caste and Scheduled Tr1be and 0ther weaker sect10n 0f
the s0c1ety (Art1cle 46).

• Under Art1cle 42. Pr0v1s10n f0r just and humane c0nd1t10ns 0f w0rk and matern1ty rel1ef
- The State shall make pr0v1s10n f0r secur1ng just and humane c0nd1t10ns 0f w0rk and f0r
matern1ty rel1ef.
• Under Art1cle 43. L1v1ng wage, etc. f0r w0rkers - The State shall endeav0ur t0 secure, by
su1table leg1slat10n 0r ec0n0m1c 0rgan1zat10n 0r 1n any 0ther way, t0 all w0rkers,
agr1cultural, 1ndustr1al 0r 0therw1se, w0rk and l1v1ng wage, c0nd1t10ns 0f w0rk ensur1ng
a decent standard 0f l1fe and full enj0yment 0f le1sure and s0c1al and cultural 0pp0rtun1t1es
and, 1n part1cular the State shall endeav0ur t0 pr0m0te c0ttage 1ndustr1al 0n an 1nd1v1dual
0r c0-0perat1ve bas1s 1n rural areas.

1nd1an Penal C0de:

Under Sect10n 374. Unlawful c0mpuls0ry lab0ur - Wh0ever unlawfully c0mpels any pers0n
t0 lab0ur aga1nst the w1ll 0f that pers0n, shall be pun1shable w1th 1mpr1s0nment 0f e1ther
descr1pt10n f0r a term wh1ch may extend t0 0ne year, 0r w1th f1ne, 0r w1th b0th, als0;

Ch1ldren (Pledg1ng 0f Lab0ur) Act, 1933:

Ch1ldren (Pledg1ng 0f Lab0ur) Act, 1933 says that unless there 1s s0meth1ng repugnant 1n
the subject 0r c0ntext - “an agreement 0f pledg1ng the lab0ur 0f ch1ld” means an agreement
wr1tten 0r 0ral, express 0r 1mpl1ed, whereby the parent 0r guard1an 0f a ch1ld, 1n return f0r
any payment 0r benef1t rece1ved 0r t0 be rece1ved by h1m, undertakes t0 cause 0r all0w the
serv1ces 0f the ch1ld t0 be ut1l1zed 1n any empl0yment. Pr0v1ded that any agreement made
w1th0ut detr1ment t0 a ch1ld, and n0t made 1n c0ns1derat10n 0f any benef1t 0ther than
reas0nable wages t0 be pa1d f0r the ch1ld’s serv1ces and term1nable at n0t m0re than a
weeks n0t1ce, 1s n0t an agreement w1th1n the mean1ng 0f th1s def1n1t10n. 1t als0 says that
“Wh0ever, be1ng the parent 0r guard1an 0f a ch1ld, makes an agreement t0 pledge the lab0ur
0f that ch1ld, shall be pun1shed w1th f1ne wh1ch may extend up t0 f1fty rupees”.

Based 0n th0se pr0v1s10ns, the system 0f b0nded lab0ur 1s thus t0tally 1nc0mpat1ble w1th
the a1m 0f an egal1tar1an s0c10-ec0n0m1c 0rder under the C0nst1tut10n 0f 1nd1a. The
system 1s als0 an 1nfr1ngement 0f the bas1c human r1ghts and destruct10n 0f the d1gn1ty 0f
human lab0ur.

NAT10NAL LAW

1n 0rder t0 g1ve effect t0 the c0nst1tut10nal pr0h1b1t10n 0f b0nded lab0ur as spec1f1ed

under Art1cle 23 0f 1nd1an C0nst1tut10n, B0nded Lab0ur System (Ab0l1t10n) Act was
passed 1n 1976.
The Act was 1ntended t0 free all b0nded lab0urers, cancel the1r debts, establ1sh
rehab1l1tat1ve measures and pun1sh 0ffender thr0ugh 1mpr1s0nment and f1nes.
1mplementat10n 0f the Act 1s the resp0ns1b1l1ty 0f the State G0vernment.

Bef0re g01ng 1nt0 the mater1al parts and the 1mplementat10n 0f the Act 0f 1976, let us
0bserve a few devel0pments 1n th1s area pr10r t0 the p0s1ng 0f the Act 0f 1976.

LEG1SLAT1VE H1ST0RY

Pr10r t0 1976, all eff0rts t0 tackle the 1ssue 0f b0nded lab0ur were made at the reg10nal level
0nly. Bef0re the 1ndependence, there were tw0 leg1slat10ns, namely:

• The B1har and 0r1ssa Kam1aut1 Agreement Act, 1920;

• The Madhras Debt B0ndage Ab0l1t10n Regulat10n Act, 1940.

1n the p0st 1ndependence per10d tw0 leg1slat10n wh1ch had dealt w1th the ab0l1t10n 0f
b0nded lab0ur deserves ment10n are:

• The 0r1ssa Debt B0ndage Ab0l1t10n Regulat10n, 1948;

• The Rajasthan Sagr1 System Ab0l1t10n Act, 1961.

1n all, acc0rd1ng t0 the Rep0rt 0f the C0mm1ss10n f0r SCs and STs 1964-11965, the net
results 0f these enactments are fa1lure. And 1n 1975, yet an0ther attempt was made t0
ab0l1sh the system thr0ugh 1nd1a under the twenty-p01nt pr0gramme.

1n1t1ally, the B0nded Lab0ur System 0rd1nance was pr0mulgated 1n 1975 and later th1s
was enacted by the Parl1ament. Thus came 1nt0 be1ng the B0nded Lab0ur System
(Ab0l1t10n) Act 1976.

Apart fr0m the ab0vement10ned the resp0nse 0f the jud1c1ary has been p0s1t1ve but the
d1sapp01ntment c0mes when 1t 1s seen that t1ll date there has n0t been a s1ngle case 0f
c0nv1ct10n. S0me 0f the maj0r case laws related t0 the 1ssue 0f b0nded lab0ur are:
• Dharamb1r v State (1979, where the Supreme C0urt held that pr1s0ners are ent1tled t0 fa1r
wages wh1le d01ng w0rk 1n the ja1ls. The c0urt held that free lab0ur by pr1s0ners 1s
v10lat1ve 0f Art1cle 23 0f the C0nst1tut10n.

• PUDR v U01 (1982), where the Supreme C0urt held that g1v1ng wages bel0w the l1m1ts
set by the M1n1mum Wages Act w0uld am0unt t0 f0rced lab0ur.

• Bandhua Mukt1 M0rcha v U01 (1984), wherethe Supreme C0urt 1ssued d1rect10ns f0r the
release and rehab1l1tat10n 0f b0nded lab0urers engaged 1n the m1n1ng 0perat10ns.

• Neerja Chaudhary v State 0f M.P (1984), wherethe Supreme C0urt expressed angu1sh 0ver
the 1nd1fference 0f the g0vernment t0wards the rehab1l1tat10n 0f released b0nded lab0urers.

• Shankar Mukherjee v U01 (1990), wherethe Supreme C0urt held that the C0ntract Lab0ur
Act, 1970 1s a welfare leg1slat10n that must be 1nterpreted l1berally 1n fav0ur 0f the
lab0urers. The c0urt further held that the system 0f c0ntract lab0ur 1s just an0ther f0rm 0f
b0nded lab0ur and 1t sh0uld be ab0l1shed due t0 1ts baneful effect.

• PUCL v State 0f TN (2004) , where the Supreme C0urt apprec1ated the r0le 0f NG0s 1n the
prevent10n 0f b0nded lab0ur and the1r emanc1pat10n. The c0urt further 0bserved that the
appr0ach 0f jud1c1ary sh0uld be benev0lent t0wards b0nded lab0urers.
THE B0NDED LAB0UR SYSTEM (AB0L1T10N) ACT, 1976

SAL1ENT FEATURES

The 0pen 0bject1ves 0f the Act are 1dent1f1cat10n, Release and Rehab1l1tat10n 0f B0nded
Lab0urers. Let us analyse s0me 0f the s1lent features 0f the Act:

F1rstly, 1t 1s ab0ut the awareness 0f the need f0r mach1nery relat1ng t0 1ts 1mplementat10n.
Sec0ndly, the Act env1sage the C0nst1tut10n 0f V1g1llance C0mmun1t1es at the d1str1ct
and sub-d1v1s10ned level, t0 adv1se the D1str1ct Mag1strate and t0 ensure the
1mplementat10n 0f the pr0v1s10n 0f the Act.

Th1rdly, Sect10n 16 t0 19 0f the Act deals w1th the Penal Sanct10ns wh1ch are, 1f enf0rced
pr0perly, suff1c1ent t0 have the requ1ste effect.

1MPLEMENTAT10N

The real pr0blem l1es 1n the 1mplementat10n aspects. The fa1lure 1n the 1mplementat10n 0f
the Act may ar1se because 0f a var1ety 0f fact0rs ch1de am0ng them, namely:

• Lack 0f Awareness: The need t0 create awareness 0f s0c10-ec0n0m1c leg1slat10n 0r t0

publ1c1ze 1t 1s hardly real1zed.

• Lack 0f Actual Pr0secut10n 0f the 0ffenders: As als0 seen fr0m past exper1ence, there 1s
hardly any enf0rcement 0f the penal sanct10ns pr0v1s10ns.

• Lack 0f Adm1n1strat1ve and P0l1t1cal W1ll: N0t 1nfrequently, the adm1n1strat0rs wh0
1mplement the pr0grammes are drawn fr0m the d0m1nant castes wh0se 1nterests are
adversely affected by the leg1slat10n.

• Lack 0f Fac1l1t1es f0r Legal A1d and Adv1ce: 0ften, 1ll1teracy, lack 0f c0mmun1cat10n,
rem0teness fr0m urban centers and p0verty 1nh1b1ts the weaker sect10n fr0m tak1ng
advantage 0f the legal pr0cess ava1lable t0 them.

• S0c1al and Ec0n0m1c Dependence: The law sh0uld take acc0unt 0f the s0c1al and
ec0n0m1c backgr0und 0f the 1ssue.
• Lack 0f Measures t0 Make C0ncerned 0ff1c1al C0untable f0r The1r 1n Act10n 0r
M1sdeeds: 1n Neeraja Chaudhary v. State 0f M.P. (1982), m0st 0f the released b0nded
lab0urer had n0t been rehab1l1tated even after s1x m0nths 0f the1r release.

As per the B0nded Lab0ur System (Ab0l1t10n) Act, 1976:

“b0nded lab0ur” means any lab0ur 0r serv1ce rendered under the b0nded lab0ur system-
Sect10n 2 (e).

“b0nded lab0urer” means a lab0urer wh0 1ncurs, 0r has, 0r 1s presumed t0 have 1ncurred a
b0nded debt-Sect10n 2(f).

“b0nded lab0ur system” means the system 0f f0rced, 0r partly f0rced, lab0ur under wh1ch a
debt0r enters, 0r has, 0r 1s presumed t0 have, entered, 1nt0 an agreement w1th the cred1t0r t0
the effect that he w0uld-

1. render, by h1mself 0r thr0ugh any member 0f h1s fam1ly, 0r any pers0n dependent 0n
h1m, lab0ur 0r serv1ce t0 the cred1t0r, 0r f0r the benef1t 0f the cred1t0r, f0r a spec1f1ed
per10d 0r f0r any unspec1f1ed per10d, e1ther w1th0ut wages 0r f0r n0m1nal wages, 0r

11. f0r the freed0m 0f empl0yment 0r 0ther means 0f l1vel1h00d f0r a spec1f1ed per10d 0r
f0r an unspec1f1ed per10d, 0r

111. f0rfe1t the r1ght t0 m0ve freely thr0ugh0ut the terr1t0ry 0f 1nd1a, 0r

1v. f0rfe1t the r1ght t0 appr0pr1ate 0r sell at market value any 0f h1s pr0perty 0r pr0duct 0f
h1s lab0ur 0r the lab0ur 0f a member 0f h1s fam1ly 0r any pers0n dependent 0n h1m;

and 1ncludes the system 0f f0rced, 0r partly f0rced, lab0ur under wh1ch a surety f0r a debt0r
enters, 0r has, 0r 1s presumed t0 have, entered, 1nt0 an agreement w1th the cred1t0r t0 the
effect that 1n the event 0f the fa1lure 0f the debt0r t0 repay the debt, he w0uld render the
b0nded lab0ur 0n behalf 0f the debt0r-Sect10n 2(g)

Thr0ugh 1ts var10us judgments, Supreme C0urt has g1ven a very br0ad, l1beral and
expans1ve 1nterpretat10n 0f the def1n1t10n 0f the b0nded lab0ur. Acc0rd1ng t0 the
1nterpretat10n g1ven by the apex c0urt, where a pers0n pr0v1ded lab0ur 0r serv1ce t0
an0ther f0r remunerat10n less than the m1n1mum wage, the lab0ur 0r serv1ce falls clearly
w1th1n the sc0pe and amb1t 0f the w0rds f0rced lab0ur under the c0nst1tut10n.

F0RMS 0F C0ERC10N

There are many f0rms 0f c0erc10n, and s0me may be qu1te subtle. A categ0r1sat10n and a
few examples may 0ffer better 1ns1ght. F0rced lab0ur 1s usually 0bta1ned as a result 0f 0ne
0f the f0ll0w1ng1:

B0nded Lab0ur 1n Agr1culture

The B0nded Lab0ur System Ab0l1t10n Act (1976) 1dent1f1ed a large number 0f trad1t10nal
lab0ur systems wh1ch repr0duce b0ndage, w1th 0r w1th0ut debt. The Gandh1-Peace
F0undat10n – Nat10nal Lab0ur 1nst1tute survey 0f 1978 (Sarma, 1981) 1dent1f1ed a large
number 0f b0nded agr1cultural lab0urers 1n the States surveyed. A study 0f farm servants 1n
d1fferent areas 0f Uttar Pradesh by Sr1vastava (1989) sh0wed that cust0mary lab0ur
relat10ns, wh1ch c0uld result 1n attachment w1th0ut any debt b0ndage, were underg01ng
change 1n s0me parts, w1th the hal1 lab0ur system 1n Western Uttar Pradesh hav1ng bec0me
m0re c0ntractual w1th wages reflect1ng 1nd1v1dual and sk1ll d1fferent1als. The decl1ne 0f
trad1t10nal lab0ur systems wh1ch resulted 1n f0rced lab0ur has been d0cumented and
analysed 1n a number 0f stud1es. At the same t1me, new f0rms 0f attachment have been
ar1s1ng 1n devel0ped agr1culture, lead1ng Sr1vastava (1989, 1996) t0 assert that there was a
‘U’ shaped relat10nsh1p between the ex1stence 0f lab0ur attachment and agr1cultural
devel0pment 1.e. that 1t 1n1t1ally decl1nes as agr1culture devel0ps, but starts t0 1ncrease
aga1n at a later stage 0f devel0pment.

The nature 0f attachment, s1nce the study by Bardhan and Rudra (1978), has been the
subject 0f 1ntense c0ntr0versy 1n the the0ret1cal l1terature. An analys1s 0f recent ev1dence
c0rr0b0rates the c0nclus10n reached by the NCRL, 1991 (M1n1stry 0f Lab0ur 1991a and b)
and the NHRC Expert Gr0up that there 1s st1ll a s1zeable 1nc1dence 0f b0nded lab0ur 1n
agr1culture 1n several parts 0f the c0untry (NHRC, 2001). These b0nded lab0ur
relat10nsh1ps are embedded 1n s0c10-ec0n0m1c d0m1nance 0f certa1n gr0ups, but they als0
reflect the chang1ng lab0ur requ1rements 0f agr1cultural empl0yers under the 1mpact 0f
cap1tal1st devel0pment. Further, they 0ften reflect the art1culat10n between devel0ped and
backward agr1culture.

1
Based 0n a presentat10n by M1ke Kaye, Ant1-Slavery 1nternat10nal
Punjab’s agr1culture has been am0ng the m0st devel0ped 1n 1nd1a. 1t has earl1er been
argued that the r1se 1n l1teracy 0f SCs, the1r entry 1nt0 serv1ces, h1gher asp1rat10ns and
wage demands led t0 a decl1ne 1n attached lab0urers fr0m the l0cal SC c0mmun1ty and
the1r replacement by m1grant lab0urers fr0m B1har, 1n1t1ally fr0m the tr1bal c0mmun1ty
1n Ranch1. The pr0cess 0f recru1tment was managed by c0ntract0rs wh0 had the1r agents 1n
Ranch1. The recru1ted tr1bal lab0urers were c0nf1ned l0cally and s0ld t0 the1r empl0yers.
0nce empl0yed, the lab0urers were kept 1n b0ndage (S1ngh, 1997). They were pa1d a
p1ttance and had t0 pay 1nterest 0n advances. Many, h0wever, were c0mpelled a sec0nd
t1me t0 return t0 H0sh1arpur thr0ugh the c0ntract0rs. The system 0f b0ndage 1s c0ns1dered
(1b1d.) t0 have reg1stered a decl1ne by the m1d 1990s, due t0 a steady supply 0f 1mm1grant
lab0ur and the r0le 0f v0luntary 0rgan1sat10ns. But recent ev1dence has been accumulat1ng
bef0re the NHRC, 1n the f0rm 0f c0mpla1nts 0f b0ndage am0ng b0th l0cal and m1grant
lab0urers f1led by several 0rgan1sat10ns such as the 1nd1an S0c1al 1nst1tute and the
V0lunteers f0r S0c1al Just1ce.2

The recent dec1s10ns 0f the Supreme C0urt 1n Bandhua Mukt1 M0rcha' and Neeraja
Ch0udary set a new trend t0 amel10rate the pl1ght 0f b0nded lab0urers. The ep0ch mak1ng
dec1s10ns have attempted t0 secure s0c1al and ec0n0m1c just1ce t0 the unf0rtunate
spec1mens 0f human1ty l1v1ng 1n b0ndage. 0ne can w1tness jud1c1al rad1cal1sm 1n these
tw0 m0ment0us dec1s10ns. The def1n1t10n 0f the express10n 'b0nded lab0urer' 1n the
B0nded Lab0ur System (Ab0l1t10n) Act, 1976 was expanded 1n Bandhua Mukt1 M0rcha t0
1ts l0g1cal end. The C0urt 0bserved:

"Whenever 1t 1s sh0wn that a lab0urer 1s made t0 pr0v1de f0rced lab0ur, the C0urt w0uld
ra1se a presumpt10n that he 1s requ1red t0 d0 s0 1n c0ns1derat10n 0f an advance 0r 0ther
ec0n0m1c c0ns1derat10n rece1ved by h1m and he 1s theref0re a b0nded lab0urer. Th1s
presumpt10n may be rebutted by the empl0yer and als0 by the State G0vernment 1f 1t s0
ch00ses but unless and unt1l sat1sfact0ry mater1al 1s pr0duced f0r rebutt1ng th1s
presumpt10n, the C0urt must pr0ceed 0n the bas1s that the lab0urer 1s a b0nded lab0urer
ent1tled t0 the benef1t 0f the pr0v1s10ns 0f the Act.”

St0ne Quarr1es, Crushers and M1nes

2
The k0ls are g1ven the status 0f Scheduled Castes 1n Uttar Pradesh, whereas 1n ne1ghb0ur1ng Madhya
Pradesh, they are categ0r1sed as Scheduled Tr1bes.
The Study Gr0up 0n B0nded Lab0ur f0r the Nat10nal C0mm1ss10n 0n Rural Lab0ur
rep0rted a h1gh 1nc1dence 0f b0nded lab0ur 1n st0ne quarr1es and crushers, sandst0ne,
marble and slate m1nes 1n a number 0f States 1nclud1ng Haryana, Uttar Pradesh, Madhya
Pradesh, Rajasthan, Karnataka and Tam1l Nadu (M1n1stry 0f Lab0ur 1991b).

B0ndage 1n st0ne quarr1es 1n the areas ar0und Delh1 became a matter 0f 1ntense leg1slat1ve
scrut1ny after the early 1980s, when the Bandhua Mukt1 M0rcha f1led 1ts landmark case 1n
the Supreme C0urt. The Supreme C0urt app01nted tw0 C0mm1ss10ners, Dr. Mahaveer Ja1n
and Dr. Lakshm1 Dhar M1shra, t0 1nvest1gate the c0nd1t10n 0f b0nded lab0ur 1n the
1ndustry 1n Haryana and als0 gave a number 0f d1rect1ves t0 el1m1nate the pract1ce and t0
rehab1l1tate the lab0urers. H0wever, b0nded lab0ur c0nt1nues t0 be rep0rted fr0m the
quarr1es ar0und Delh1.

1n 1999, the NHRC rece1ved a c0mpla1nt fr0m the Bandhua Mukt1 M0rcha that 20 pers0ns
(men, w0men and ch1ldren) were kept as b0nded lab0urers 1n a st0ne quarry 1n Gurga0n,
Haryana. Alth0ugh the d1str1ct adm1n1strat10n adm1tted that m1n1mum wages had n0t
been pa1d t0 them, 1t d1d n0t c0ncede that 1t was a case 0f b0nded lab0ur. The lab0urers had
been g1ven s0me wage arrears and had been d1spatched t0 Rajasthan. The C0mm1ss10n’s
0wn enqu1ry sh0wed that 29 pers0ns 1nclud1ng 10 ch1ldren were l1v1ng 1n the 0pen near
Ja1pur c1ty 1n Rajasthan. They bel0nged t0 the Banjara n0mad1c tr1be and had g0ne t0
Haryana 1n 1994 t0 market the1r pr0duce. Wh1le they were there, a c0ntract0r f0r a st0ne
quarry 0ffered them attract1ve wages f0r w0rk 1n the quarry. After a year they were den1ed
wages and, 1n l1eu 0f wages, arrangements were made w1th a l0cal merchant t0 supply them
da1ly rat10ns 0n cred1t.

The m1nes are 0perated 0n leases fr0m g0vernment and are small-scale, l0cal1sed
enterpr1ses w0rked ent1rely by manual lab0ur; the m1n1ng pract1ces are unsc1ent1f1c and
pr1m1t1ve. 1llegal m1n1ng 1s rampant, w1th c0ntract0rs 0perat1ng 0n exp1red leases,
leases 1n the names 0f 0ther pers0ns (kn0wn as the benam1 system), and m1n1ng 1n areas
n0t c0vered by the1r leases. 1n August 2000, the M1ne Lab0ur Pr0tect10n Campa1gn
(MLPC) carr1ed 0ut a rand0m sample survey 1n the sandst0ne m1n1ng belt 1n the J0dhpur
area 1n wh1ch appr0x1mately 70,000 w0rkers are empl0yed and wh1ch c0ntr1butes
appr0x1mately US$ 3.3 m1ll10n t0 the state ec0n0my annually. A number 0f leases have
been granted t0 l0w caste lease h0lders but are actually 0perated by d0m1nant pers0ns fr0m
the area.
The leases are br0ken up 1nt0 small parcels, each m1ned under the superv1s10n 0f a p1ece-
rated w0rker wh0 has a gr0up 0f fam1ly-based t1me-rated lab0urers w0rk1ng under h1m. A
small percentage 0f lab0urers c0me fr0m the v1llages 1n the m1n1ng area, but the vast
maj0r1ty are m1grants wh0 reta1n l1nks w1th the1r areas 0f 0r1g1n, s1nce the m1nes
funct10n f0r 0nly ab0ut e1ght m0nths 1n a year. The system 0f advances 1s w1dely
prevalent, and b0th categ0r1es 0f w0rkers b0rr0w fr0m the lease 0perat0r 0r the superv1s0r.
The da1ly wage w0rkers are pa1d a p1ttance and female lab0urers are pa1d ar0und half 0f
what the men rece1ve. There 1s als0 a s1gn1f1cant 1nc1dence 0f ch1ld lab0ur (Waz1r, 2002;
CEC 2001a). The M1ne Lab0ur Pr0tect10n Campa1gn survey sh0wed that 97% 0f sandst0ne
m1new0rkers 1n J0dhpur are 1ndebted, a maj0r1ty 0f them be1ng 1n b0ndage. The debts are
passed 0n fr0m 0ne fam1ly member t0 an0ther, 0r fr0m 0ne generat10n t0 the next, and can
cause the lab0urer t0 be ‘s0ld’ t0 an0ther c0ntract0r (M1ne Lab0ur Pr0tect10n Campa1gn,
2001).

The Nat10nal C0mm1ss10n 0n Rural Lab0ur (1991) had 1dent1f1ed slate m1nes and st0ne
quarr1es 1n Madhya Pradesh as hav1ng a h1gh 1nc1dence 0f b0nded w0rkers. Recently, a
c0mpla1nt regard1ng the ex1stence 0f 400 b0nded lab0urers 1n the Ch0la m1nes (quarr1es)
1n Gwal10r d1str1ct 0f Madhya Pradesh was made by Pr0f. She0taj S1ngh 0f Bandhua
Mukt1 M0rcha. The d1str1ct adm1n1strat10n 1n1t1ally den1ed the rep0rt but, 0n the
1ntervent10n 0f the NHRC, 44 b0nded lab0urers were released fr0m the m1nes 1n 2003 and
sent t0 the1r h0mes 1n Guna and Sh1vpur1 d1str1cts. The empl0yer was pr0secuted under
the BLSA Act and SC/ST Atr0c1t1es Act and a rehab1l1tat10n package was g1ven t0 the
released lab0urers. The w0rkers’ test1m0n1es stated that they were den1ed wages; 1nstead,
the c0ntract0rs 1ssued them w1th paper c0up0ns t0 purchase essent1al suppl1es fr0m sh0ps
des1gnated by the empl0yers.

B0nded Lab0ur 1n 0ther Sect0rs

C0nstruct10n:

Lab0ur 1n large publ1c w0rks and c0nstruct10n s1tes 1s 0ften 0rgan1sed thr0ugh m1ddlemen
and c0ntract0rs, lead1ng t0 well-entrenched systems 0f advances and result1ng 1n b0ndage.
The case 0f c0ntract lab0ur fr0m areas ar0und Mahb00bnagar d1str1ct 1n Andhra Pradesh
(0ften called Palamuuru lab0ur) has drawn the attent10n 0f a number 0f sch0lars. 0ls0n and
Murthy (2000) surm1se that nearly 150,000 lab0urers seas0nally m1grate fr0m th1s d1str1ct,
0f wh0m nearly 50,000 are b0nded. 1n a survey 0f c0ntract lab0ur h0useh0lds 1n 1991 and
1994, they f1nd that these lab0urers, wh0 ha1l fr0m landless 0r small farm h0useh0lds 1n an
endem1cally dr0ught pr0ne and un1rr1gated reg10n, 1ncreas1ngly rely 0n advances and
l0ans fr0m ma1str1es (c0ntract0rs) wh0 pr0cure the1r lab0ur f0r c0nstruct10n c0mpan1es 0n
publ1c w0rks s1tes. The w0rkers w0rk f0r ab0ut 12 h0urs each day, and are pa1d a small
wage wh1ch 1s adjusted aga1nst advances and l0ans at the end 0f the 8 t0 9 m0nth c0ntract
per10d. Dur1ng th1s t1me, they are pr0v1ded f00d f0r themselves and the1r dependents, a
packet 0f b1d1s and ha1r 01l (all adjusted aga1nst wages). W0men lab0urers n0t 0nly have t0
hand 0ver the advances t0 the men f0lk, but are als0 s0met1mes subject t0 sexual
expl01tat10n at the s1tes. There have been sp0rad1c rep0rts 0f b0nded lab0ur 1n the
c0nstruct10n 1ndustry 1n several 0ther places.

Debt b0ndage: L0ans and debts are the m0st 1mp0rtant means t0 t1e w0rkers t0 0ne
empl0yer. W0rkers d0 n0t always have a ch01ce 0r aren’t fully 1nf0rmed 0f the
c0nsequences when they accept a l0an 0r an advance 0n salary fr0m the1r empl0yer. 1n many
cases a l0an 1s taken t0 be able t0 c0ver bas1c subs1stence needs 0r unav01dable 0ne-0ff
payments. 0n that m0ment the w0rker l0ses all c0ntr0l 0ver w0rk1ng c0nd1t10ns, and the
debt 1s 0ften art1f1c1ally 1nflated by ex0rb1tant charges f0r 1nterest, f00d, and
acc0mm0dat10n. The b0nded lab0urers end up w0rk1ng f0r l1ttle 0r n0 pay, as the1r wages
are used t0 serv1ce the1r debts, e.g., as 1s the case 1n 1nd1a, Nepal, Pak1stan and 0ther
c0untr1es. Subtle pract1ces and man1pulat10ns can 1nduce th1s phen0men0n, such as
pay1ng wages 1n k1nd 0r bel0w m1n1mum wage; charg1ng excess1ve fees f0r transp0rt,
t00ls, f00d etc.; w1thh0ld1ng w0rk f0r a per10d 0f t1me; c0ntract subst1tut10n, n0n-, under-
0r deferred payment. The result 1s that when salar1es are due, w0rkers f1nd themselves left
w1th l1ttle 0r n0 m0ney 0r even 1ndebted t0 the empl0yer, e.g., as 1s the case 1n B0l1v1a,
Braz1l, Peru and Paraguay.

Debt b0ndage 1s als0 0ften used as a c0erc1ve mechan1sm 1n the traff1ck1ng pr0cess. The
debt may be d1rectly t0 traff1ckers f0r arrang1ng transp0rt, travel d0cuments and a fee f0r
secur1ng the j0b. M1grants take l0ans fr0m fam1ly members, leg1t1mate th1rd part1es 0r the
traff1ckers t0 pay th1s. The 1mperat1ve t0 repay 1s extremely str0ng and 1s a key element 1n
the traff1ck1ng pr0cess.

Absence 0f state pr0tect10n: S0met1mes the state 1tself 1s resp0ns1ble f0r f0rced lab0ur.
1n s0me cases the state can be d1rectly 1nv0lved 1n and even structurally make use 0f f0rced
lab0ur. F0r example, th1s 1s the case 1n Burma, where pe0ple are systemat1cally f0rced t0
lab0ur f0r the m1l1tary reg1me; 1n N0rth K0rea, where pr1s0ners are f0rced t0 w0rk 0ften
even w1th0ut any f0rmal 0r 1nf0rmal jud1c1al dec1s10n 0r 1n Sudan, where g0vernment-
supp0rted m1l1t1as have carr1ed 0ut abduct10ns after wh1ch pe0ple were used as f0rced
lab0urers. The state can als0 be 1nd1rectly resp0ns1ble f0r f0rced lab0ur when 1t 1s e1ther
unable t0 0ffer adequate pr0tect10n due t0 l1m1ted 1nst1tut10nal capac1ty, l0cal presence 0r
p0wer 0r c0rrupt10n 0r unw1ll1ng t0 0ffer pr0tect10n due t0 1nf0rmal 0r 1rregular status 0f
w0rkers.

Restr1ct10ns 0n freed0m 0f m0vement: The m0st 0bv10us f0rm 0f c0erc10n used 1s

pr0bably phys1cally restr1ct1ng the w0rker’s m0vement. Th1s 1s a harsh real1ty f0r
d0mest1c w0rkers l0cked 1nt0 h0uses; w0men traff1cked 1nt0 pr0st1tut10n held 1n flats 0r
br0thels; b0nded lab0urers l0cked up 1nt0 1s0lated 0r rem0te estates; w0rkers prevented fr0m
travell1ng t0 t0wns t0 buy essent1al g00ds because 0f 1nsuff1c1ent t1me 0ff, leav1ng them
dependent 0n the estate st0re; and pe0ple traff1cked t0 rem0te areas w1th n0 means 0f
return1ng. Armed guards are used t0 prevent w0rkers fr0m escap1ng fr0m camps, s1tes 0r
sweatsh0ps.

S0met1mes restr1ct10ns are m0re f0rmal, wh1ch has nevertheless a phys1cal 1mpact. F0r
example, the 1rregular m1grat10n status 0f many traff1cked pe0ple prevents them fr0m
den0unc1ng the1r w0rk1ng c0nd1t10ns, and f0rmal requ1rements may t1e m1grant w0rkers
t0 0ne empl0yer. 1n s0me places there are even l0cal curfews and bans 0n assembly f0r
m1grant w0rkers.

V10lence, threats and 1nt1m1dat10n: Bes1des these greater categ0r1es, a great var1ety 0f
c0erc1ve means can apply t0 1nd1v1dual 0r c0llect1ve cases. These can range fr0m phys1cal
and psych0l0g1cal abuse and verbal phys1cal c0erc10n thr0ugh threaten1ng w0rkers w1th
charges f0r 1llegal entry 1n the c0untry 0r the use 0f fraudulent d0cuments, detent10n and
dep0rtat10n t0 d1fferent f0rms 0f 1nt1m1dat10n, such as the w1thdrawal 0f h0us1ng, w0rk,
f00d 0r v1sas fr0m b0nded lab0urers, traff1cked pe0ple, slaves by descent 0r s0c1al
1s0lat10n 0r reject10n. The latter can be very p0werful, as 1n the case 0f ch1ldren rejected
by the1r fam1l1es, 1nclud1ng due t0 certa1n r1tual bel1efs l1ke Devadas1 and Tr0k0s1.

F0rced 0vert1me

N0t many w0rkers are keen 0n w0rk1ng 0vert1me. H0wever, m0st w0rkers als0 real1se that
1t w0uld be unreas0nable t0 refuse 0vert1me 1n certa1n except10nal and unpred1ctable
c1rcumstances that put the1r empl0yer under acute pressure. When d0es 0vert1me qual1fy as
f0rced lab0ur 1s pr0bably 0ne 0f the m0st prevalent quest10ns 1n the d1scuss10ns
surr0und1ng the legal l1m1ts 0f f0rced lab0ur. Tw0 prel1m1nary remarks are 1mp0rtant:
f1rst, the 1L0 C0mm1ttee 0f Experts 0n the appl1cat10n 0f C0nvent10ns and
Rec0mmendat10ns has spec1f1ed that 0vert1me can never be f0rced as l0ng as 1t stays
w1th1n l1m1ts perm1tted by nat10nal leg1slat10n and c0llect1ve agreements. Bey0nd that
the cr1ter10n 0f “vulnerab1l1ty” 0f the w0rker 1s key. 0vert1me 1s f0rced where w0rkers 1n
pract1ce have n0 ch01ce t0 refuse 0vert1me because 0f fear 0f d1sm1ssal 0r 1f w0rk1ng
n0rmal da1ly w0rk1ng h0urs w0uld n0t g1ve them the m1n1mum wage (e.g., where
remunerat10n 1s based 0n pr0duct1v1ty targets).

Human traff1ck1ng

The Un1ted Nat10ns def1ne human traff1ck1ng as: “...recru1tment, transp0rtat10n, transfer,
harb0ur1ng 0r rece1pt 0f pers0ns, by means 0f the threat 0r use 0f f0rce 0r 0ther f0rms 0f
c0erc10n, 0f abduct10n, 0f fraud, 0f decept10n, 0f the abuse 0f p0wer 0r 0f a p0s1t10n 0f
vulnerab1l1ty 0r 0f the g1v1ng 0r rece1v1ng 0f payments 0r benef1ts t0 ach1eve the c0nsent
0f a pers0n hav1ng c0ntr0l 0ver an0ther pers0n, f0r the purp0se 0f expl01tat10n.
Expl01tat10n shall 1nclude, at a m1n1mum, the expl01tat10n 0f the pr0st1tut10n 0f 0thers 0r
0ther f0rms 0f sexual expl01tat10n, f0rced lab0ur 0r serv1ces, slavery 0r pract1ces s1m1lar
t0 slavery, serv1tude 0r the rem0val 0f 0rgans.”

NUANCES 0F THE B0NDED LAB0UR SYSTEM (AB0L1T10N) ACT, 1976

0n c0mmencement 0f th1s Act the b0nded lab0ur system shall stand ab0l1shed and every
b0nded lab0urer shall stand freed and d1scharged free fr0m any 0bl1gat10n t0 render b0nded
lab0ur.

Any cust0m, agreement 0r 0ther 1nstrument by v1rtue 0f wh1ch a pers0n 1s requ1red t0

render any serv1ce as b0nded lab0ur shall be v01d.

L1ab1l1ty t0 repay b0nded debt shall be deemed t0 have been ext1ngu1shed.

Pr0perty 0f the b0nded lab0urer t0 be freed fr0m m0rtgage etc.

Freed b0nded lab0urers shall n0t be ev1cted fr0m h0mesteads 0r 0ther res1dent1al prem1ses
wh1ch he was 0ccupy1ng as part 0f c0ns1derat10n f0r the b0nded lab0ur.

D1str1ct Mag1strates have been entrusted w1th certa1n dut1es and resp0ns1b1l1t1es f0r
1mplement1ng the pr0v1s10n 0f th1s Act.

V1g1lance c0mm1ttees are requ1red t0 be c0nst1tuted at d1str1ct and sub-d1v1s10nal

levels.

0ffences f0r c0ntravent10n 0f pr0v1s10ns 0f the Act are pun1shable w1th 1mpr1s0nment f0r
a term wh1ch may extend t0 three years and als0 w1th f1nes wh1ch may extend t0 tw0
th0usand rupees.

P0wers 0f Jud1c1al Mag1strates are requ1red t0 be c0nferred 0n Execut1ve Mag1strates f0r

tr1al 0f 0ffences under th1s Act. 0ffences under th1s Act may be tr1ed summar1ly.

Every 0ffence under th1s Act shall be c0gn1zable and ba1lable.

STAT1ST1CS : THE TRUTH NEVER REVEALED

0ff1c1al stat1st1cs reflect1ng enf0rcement 0f the B0nded Lab0ur System (Ab0l1t10n) Act
are equally d1ff1cult t0 0bta1n. Stat1st1cs regard1ng appl1cat10n 0f the B0nded Lab0ur
System (Ab0l1t10n) Act t0 ch1ldren are n0nex1stent. 1ndeed, at least s0me g0vernment
0ff1c1als 1nterv1ewed by Human R1ghts Watch appeared t0 be lab0r1ng under the
c0nv1ct10n that the B0nded Lab0ur System (Ab0l1t10n) Act d0es n0t apply t0 ch1ldren, an
1nterpretat10n that has n0 bas1s 1n the law 1tself n0r 1n Supreme C0urt cases 1nterpret1ng
the law.

As 0f March 1993, the latest date f0r wh1ch 0ff1c1al f1gures are ava1lable, state
g0vernments had rep0rted the 1dent1f1cat10n and release 0f a t0tal 0f 251,424 b0nded
lab0rers. Th1s number 1nd1cates all b0nded lab0rers 1dent1f1ed and released s1nce the
B0nded Lab0ur System (Ab0l1t10n) Act was passed 1n 1976. 0f th1s number, 227,404 were
rep0rted t0 have been rehab1l1tated. 1f th1s number 1ncludes any rehab1l1tated b0nded
ch1ld lab0rers, that fact has n0t been rep0rted.

State g0vernments' stat1st1cs gr0ssly under-rep0rt the current 1nc1dence 0f b0nded lab0r. As
ment10ned, the Supreme C0urt has been exam1n1ng the 1nc1dence 0f b0nded lab0r 1n
th1rteen states. These th1rteen states, ch0sen by the c0urt f0r 1nvest1gat10n because 0f the1r
reputat10n f0r h1gh rates 0f debt b0ndage, all cla1med 1n aff1dav1ts t0 the c0urt that there
was l1ttle 0r n0 b0nded lab0r w1th1n the1r jur1sd1ct10ns. The c0urt, skept1cal 0f these
cla1ms, app01nted teams 0f 1nvest1gat0rs t0 study the 1ssue 1n each state.

When d1str1cts and states d0 rep0rt 0n stat1st1cs regard1ng the 1dent1f1cat10n and
rehab1l1tat10n 0f b0nded lab0rers, these numbers are frequently unrel1able. The team
1nvest1gat1ng b0nded lab0r 1n Tam1l Nadu, f0r example, f0und that"statut0ry reg1sters
relat1ng t0 b0nded lab0ur were n0t ma1nta1ned 1n many d1str1cts." S1mple neglect 0r lack
0f res0urces 1s n0t the 0nly 0r even the pr1mary reas0n f0r lack 0f accurate stat1st1cs.
Acc0rd1ng t0 the 1nvest1gat1ve team, "Deta1ls pr0v1ded by the state g0vernment and the
d1str1ct adm1n1strat10n d0 n0t tally 1n m0st d1str1cts and even appear fabr1cated."

Th1s can be seen 1n states' stat1st1cs 0n b0nded lab0r wh1ch are subm1tted t0 the central
g0vernment. F0r example, there are at least three examples fr0m 1988 t0 1995 where states
have rep0rted that the number 0f b0nded lab0rers that have been rehab1l1tated are greater
than the number 0f b0nded lab0rers that have been 1dent1f1ed. 1n 1988, the state 0f Tam1l
Nadu rep0rted that 34,640 b0nded lab0rers had been rehab1l1tated, but they als0 rep0rted
that 33,581 b0nded lab0rers had been 1dent1f1ed, mean1ng that the state cla1med 1t had
rehab1l1tated 1,059 m0re pe0ple than 1t had ever 1dent1f1ed as b0nded lab0rers. 1n the
1989-90 rep0rt t0 the M1n1stry 0f Lab0ur, the state 0f 0r1ssa rep0rted that 51,751 b0nded
lab0rers had been rehab1l1tated, but 0nly 48,657 had been 1dent1f1ed. The state 0f Tam1l
Nadu rep0rted 1n the 1994-95 M1n1stry 0f Lab0ur Annual Rep0rt that 39,054 b0nded
lab0rers had been rehab1l1tated, but they had 1dent1f1ed 38,886. 1n t0tal, these three
examples 1nd1cate that 4,321 m0re pe0ple were rehab1l1tated than were 1dent1f1ed as
b0nded lab0rers.

These stat1st1cs are d1sturb1ng f0r tw0 reas0ns:

• these stat1st1cs are cumulat1ve t0tals, mean1ng that every year, new cases are added t0 the
cases fr0m prev10us years, dat1ng back t0 1976, when the B0nded Lab0ur System
(Ab0l1t10n) Act became law, s0 that the yearly stat1st1cs represent the t0tal number 0f
b0nded lab0rers that have ever been 1dent1f1ed, released, and rehab1l1tated.

• bef0re b0nded lab0rers can be el1g1ble f0r rehab1l1tat10n, they must be 1dent1f1ed as
b0nded lab0rers. Because 0f th1s meth0d0l0gy, the cumulat1ve t0tals f0r rehab1l1tat10n can
never be m0re than the cumulat1ve t0tals f0r 1dent1f1cat10n and when th1s 0ccurs, such as
the prev10us three cases, 1t 1nd1cates a ser10us flaw 1n rep0rt1ng. Th1s may be due t0
several fact0rs: state g0vernments may be arb1trar1ly determ1n1ng b0nded lab0r stat1st1cs,
0r the 1naccurac1es may be due t0 s1mple err0r, 0r pe0ple wh0 were n0t b0nded lab0rers are
be1ng rehab1l1tated as b0nded lab0rers. 1n 0ne example 0f the latter, a survey 0f 180 b0nded
lab0rers wh0 had been 0ff1c1ally rehab1l1tated by the B1har g0vernment f0und that 120 had
never been b0nded.

An0ther 1nd1cat10n that the law 1s n0t be1ng enf0rced 1s the fact much 0f the m0ney
all0cated f0r the rehab1l1tat10n 0f b0nded lab0rers 1s unspent and reabs0rbed by the
g0vernment. Fund1ng f0r rehab1l1tat10n 1s all0cated thr0ugh a f1fty-f1fty match1ng grant
1n wh1ch the states undertake rehab1l1tat10n and the central g0vernment matches the1r
expend1tures. 1t 1s adm1n1stered thr0ugh several schemes under the 1ntegrated Rural
Devel0pment Pr0gram (1RDP) and Jawahar R0zgar Y0jana (JRY). Rec0rds 0f expend1tures
f0r these pr0grams sh0w that 1n 1989-90, 0nly 76.16 percent 0f the funds were ut1l1zed. 1n
1990-91, 78.41 percent 0f funds were ut1l1zed. And 1n 1991-92, 0nly 47.83 percent 0f funds
ava1lable were ut1l1zed f0r rehab1l1tat1ng b0nded lab0rers. 0n March 14, 1996, the
Parl1amentary C0mm1ttee 0n Lab0ur and Welfare rep0rted that 0nly 38.39 percent 0f the
funds ava1lable f0r the rehab1l1tat10n 0f b0nded lab0rers had been ut1l1zed. The reas0n
g1ven was that "the state g0vernments fa1led t0 subm1t cert1f1cates 1n regard t0 the
expend1ture 1ncurred by them. Because 0f th1s lapse, the Central g0vernment d1d n0t
release funds t0 them." The fa1lure t0 rep0rt expend1tures 1nd1cates a fa1lure t0 enf0rce the
law.

A Supreme C0urt lawyer cl0sely c0nnected t0 b0nded lab0r l1t1gat10n c0rr0b0rated the
unrel1able nature 0f the d1str1ct c0llect0rs' rep0rts, say1ng there 1s "n0 mechan1sm t0
ascerta1n the c0llect0rs' verac1ty." Acc0rd1ng t0 th1s adv0cate and 0thers fam1l1ar w1th the
1ssue, c0rrupt10n 1n appl1cat10n 0f the B0nded Lab0ur System (Ab0l1t10n) Act and
d1spersal 0f act-related rehab1l1tat10n funds 1s c0mm0n. "A c0llect0r may rece1ve 100,000
rupees f0r rehab1l1tat10n eff0rts but d1sperse 0nly 10,000 0f 1t. Embezzlement 1s d1ff1cult
t0 track, but we all kn0w 1t happens. F0r example, a b0nded lab0urer c0mes 1n, puts h1s
thumb pr1nt 0n the d0cument say1ng he w1ll rece1ve 6,250 rupees, but rece1ves 0nly 3,000
rupees."

C0rrupt10n and neglect are n0t the 0nly reas0ns f0r bad stat1st1cs regard1ng b0nded lab0r.
An0ther 1s pass1v1ty 0n the part 0f enf0rc1ng 0ff1c1als, wh0 t00 0ften take n0 aff1rmat1ve
steps t0 d1sc0ver and r00t 0ut debt b0ndage 1n the1r d1str1cts. Whether th1s 1s due t0
s1mple apathy 0r t0 a m1sunderstand1ng 0n the1r part 0f the1r 0ff1c1al dut1es, the effect 1s
d1sastr0us f0r b0nded lab0rers, wh0 are left 1n the1r state 0f enslavement 1ndef1n1tely. 1n
Tam1l Nadu, f0r example, the 1nvest1gat0rs f0und that "m0st D1str1ct C0llect0rs... had 0ne
bas1s t0 assume that b0nded lab0ur d0es n0t ex1st-N0 0ne 1s c0m1ng f0rward [t0 rep0rt that
they are 1n b0ndage."

Human R1ghts Watch was unable t0 0bta1n any stat1st1cs 0n pr0secut10n under the B0nded
Lab0ur System (Ab0l1t10n) Act after 1988. Up t0 1988, there were 7,000 pr0secut10ns under
the B0nded Lab0ur (Ab0l1t10n) Act thr0ugh0ut 1nd1a, 0f wh1ch 700 resulted 1n
c0nv1ct10ns. 1t 1s certa1n that pr0secut10n under the act 1s rare. 1n Tam1l Nadu, the f1rst
pr0secut10ns under the twenty-year-0ld act 0ccurred 1n 1995, when e1ght beed1 empl0yers
were arrested by the N0rth Arc0t D1str1ct C0llect0r. The case, wh1ch drew headl1nes 1n the
reg10nal press, was dep1cted as a b0ld "get t0ugh" measure. The agents spent 0ne n1ght 1n
ja1l and were f1ned 500 rupees each. The B0nded Lab0ur System (Ab0l1t10n) Act all0ws f0r
pun1shment 0f three years 1n pr1s0n and a 2,000 rupee f1ne.

H1NDRANCES: The pr0blem 0f B0nded Lab0ur System 1s n0t a pr0blem 1n 0r by 1tself. 1t

1s a part 0f the larger 1ssue 0f welfare 0f the nat10n as a wh0le. Bes1des the several fa1lures
0f 1mplementat10n 0f the Act, the Rep0rt fr0m Human R1ght Watch As1a (1996) f1nds that
there are als0 s0me 0bstacles t0 enf0rce the Act, namely:

• Apathy;

• Caste and Class B1as;

• 0bstruct10n;
• C0rrupt10n;

• Lack 0f Acc0untab1l1ty;

• Lack 0f Adequate Enf0rcement Staff.

SUGGEST10NS

The pr0blem 0f b0nded lab0ur 1s dynam1c 1n nature and 1t can re0ccur at any p01nt 0f
t1me. Thus, the b0nded lab0urers must be rehab1l1tated as s00n as p0ss1ble after the1r
release. 1f th1s 1s n0t d0ne than 1t 1s a remedy w0rst than the malady because these
lab0urers w1ll d1e 0f starvat10n. Thus, bef0re releas1ng the b0nded lab0urers a s0und
rehab1l1tat1ve plann1ng 1s 1nev1table. The f0ll0w1ng measures can be ad0pted 1n th1s
regard:

• Publ1c awareness and educat10n 1s a must,

• Pr0duct1ve and 1nc0me generat1ng schemes must be f0rmulated 1n advance 0therw1se

they w1ll aga1n fall back up0n the system 0f b0nded lab0ur after the1r release,
• These schemes sh0uld be ch0sen after duly c0nsult1ng the c0ncerned lab0urers and NG0s
1nv0lved 1n the1r emanc1pat10n and rehab1l1tat10n,

• The g0vernment sh0uld w0rk 0n a pr10r1ty bas1s 1n areas vulnerable f0r the system 0f
b0nded lab0ur and f0r the rehab1l1tat10n 0f already releases lab0urers,

• An effect1ve and speed1er gr1evance redressal mach1nery sh0uld be establ1shed f0r pr0per
d1sp0sal 0f cases perta1n1ng t0 b0nded lab0ur,

• A human1tar1an tra1n1ng pr0gramme sh0uld be f0rmulated f0r pers0ns deal1ng w1th

b0nded lab0urers,

• There sh0uld be a system 0f summary d1sp0sal 0f cases under var10us laws deal1ng w1th
the ev1l 0f b0nded lab0ur,

• There sh0uld be a str1ct enf0rcement 0f the welfare and lab0ur leg1slat10ns,

• There sh0uld be m0re str1ngent penal laws f0r effect1vely deal1ng w1th the menace 0f
b0nded lab0ur etc.

Bes1des the measures f0r 1mpr0vement ment10ned already 1n the f0reg0ne d1scuss10n, the
G0vernment 0f 1nd1a sh0uld dem0nstrate 1ts c0mm1tment t0 the erad1cat10n 0f b0nded
lab0ur by 1mplement1ng s0me 0f the f0ll0w1ng rec0mmendat10ns at the earl1est p0ss1ble.

• The B0nded Lab0ur System (Ab0l1t10n) Act sh0uld d1rect V1g1llance C0mm1ttees and
D1str1ct C0llect0rs t0 1n1t1ate serv1ng and cred1t pr0gramme at the c0mmun1ty level.

• 1n add1t10n t0 genu1ne g0vernment act10n, 1t 1s essent1al that n0n-g0vernmental

0rgan1zat10n be enc0uraged by the G0vernance t0 c0llab0rate 1n th1s eff0rt.

• A nat10n-w1de publ1c awareness campa1gn sh0uld be launched regard1ng the legal

pr0h1b1t10n 0f b0nded lab0ur.

• The scheme f0r rehab1l1tat10n pr0grammes sh0uld be 1ntegrated w1th ex1st1ng 1RDP and
NREP (35th Sess10n 0f the Lab0ur M1n1sters C0nference held 1n 11 May 1985).
• The C0urt sh0uld als0 aband0n the c0nvent10nal appr0ach and c0me t0 the rescue 0f the
b0nded lab0urers, part1culary 1n the techn1cal rules 0f ev1dence and degree 0f burden 0f
pr00f.

C0NCLUS10N

B0nded lab0ur must be attacked fr0m many fr0nts. Enf0rcement 0f the law 1s essent1al, but
1t 1s n0t en0ugh. The b0nded lab0ur must have s0meplace else t0 g0. The el1m1nat10n 0f
current debt b0ndage and the prevent10n 0f new 0r renewed b0ndage theref0re, requ1re a
c0mb1nat10n 0f c0ncerted g0vernment act10n and extens1ve c0mmun1ty 1nv0lvement.

B0nded lab0ur 1s a vast, pern1c10us, and l0ngstand1ng s0c1al ev1l and the tenac1ty 0f the
B0nded Lab0ur System must be attacked w1th s1m1lar tenac1ty. Anyth1ng less than t0tal
c0mm1tment 1s certa1n t0 fa1l. D1ff1cult t0 trace, because b0nded lab0ur 1s 0ften c0ncealed
beh1nd the ve1l 0f an empl0yer empl0yee relat10nsh1p. W1th0ut a th0r0ugh 1nvest1gat10n
and d1rect c0ntact w1th empl0yees 1t 1s hard, 1f n0t 1mp0ss1ble, t0 ensure empl0yees are
n0t f0rced t0 w0rk t0 pay 0ff the1r ‘debts’. Theref0re, c0ntact w1th l0cal NG0s 0r trade
un10ns 1s p1v0tal. 1n the agr1cultural sect0r, as the example 1n the c0tt0n seed 1ndustry
1llustrates, the supply cha1ns are s0met1mes c0mplex and unsettled. M0n1t0r1ng the supply
cha1n theref0re, can make great demands 0n a c0mpany but 1s 1nd1spensable. Keep1ng
cl0se c0ntacts w1th l0cal NG0s t0 keep track 0f and ass1st 1n m0n1t0r1ng the l0cal
s1tuat10n can be 0f ass1stance. B0nded lab0ur 0ccurs m0stly 1n 1nd1a and 0ther As1an
c0untr1es, m0st n0tably 1n the sect0rs 0f agr1culture and text1le pr0duct10n. There are m0re
rep0rts 0f 1nstances where f0rced ch1ld lab0ur 1s l1nked w1th debt b0ndage.

A l0ng term strategy w1ll f0cus 0n m1grant lab0ur 1n s0urce d1str1cts f0r 1t 1s here that
m1cr0f1nance and m1cr0enterpr1se serv1ces w1ll help allev1ate the c0nd1t10ns that
c0ntr1bute t0 b0nded lab0ur. 1mpr0v1ng l1vel1h00ds 1n less fav0ured areas am0ng extreme
p00r h0useh0lds 1s the 0nly l0ng term way 0ut 0f b0ndage. F0r l1vel1h00d enhancement,
m1cr0f1nance 1s 0nly 0ne 0f a number 0f strateg1es. 1t requ1res state and c1v1l s0c1ety
1nv0lvement – b0th act1ng 1n tandem and 0ffer1ng f1nanc1al and n0n-f1nanc1al strateg1es
f0r the extreme p00r. The purp0se 1s t0 atta1n susta1nable l1vel1h00ds t0 stay 0ut 0f
b0ndage and 0ther f0rced lab0ur s1tuat10ns. 1t 1s necessary t0 n0t 0nly 1mplement laws but
als0 t0 change m1nd sets t0 make the pract1ce 0f b0ndage unacceptable.

B1BL10GRAPHY

1. Lab0ur and 1ndustr1al laws by H.K.Saharay

2. Lab0ur Laws 1n 1nd1a by G.B.Pa1
3. 1ndustr1al Law 1 by P.L.Mal1k
4. Lab0ur and 1ndustr1al cases 2012(2) Rep0rts 1201-2400
5. www.pblab0ur.g0v.1n
6. www.nhrc.n1c.1n