Development of Labour Laws in India

Development of Labour Laws in India Overview

 Introduction
 Developments of Labour Laws in India
  Introduction
  Developments of Labour Laws in India
  Pre-1920s
  Post-World War I and the 1920s
  The 1930s

 World War II and the Pre-Independence Period

 Post- Independence, 1948 Onwards
  India’s Recent Developments and Reforms

The development of Labour Laws in India can be mapped back to the formulation of ILO in the
year 1919. Labour Policy in India has been very dynamic and continuously adapting and catering
as a stimulant to the environment and suits the requirements of social justice and economic
development

Labour legislations facilitated to serve to the economic and social challenges of the modern era
needs to satisfy three basic roles, which encloses a legal system that caters productive
individuals, collective employment relations and productive economy, by delivering a framework
within which employers, workers along with their representatives can communicate in relation to
work-related issues, it caters as an important conveyance for reaching harmonious industrial
relation.

However, these laws can function efficiently only when an active response is initiated by the
labour legislation to the conditions in the labour markets and the needs of the parties are
involved. The most effective way that the account of concerns is addressed is when there are a
close association and linkage of the issues with the legislation, which can be achieved through
active communication. The participation of stakeholders is of great importance in steadily
formulating a broader basis of support for labour legislation and in catering its implementation
within and beyond just the sector of the economy which is just limited to a formal structure.

Introduction

The development of ‘Law of Employment’ or Labour Laws can be mapped back to the
formulation of ILO (International Labour Organisation), in the year 1919. It a forum where
workers, government and employers from different countries and member states come
together, for the setting carefully scrutinized standards, development of policies and
devise programmes, promote decent work and health conditions for both men and
women.

India has been a permanent member in the governing body of ILO since the year 1922, which
served as a major background for progressive labour legislation in the land of diversity.

The history of labour legislation in India can be traced intertwined with the chronicle of British
colonialism. British political economy had a significant impact in moulding the early laws in India.
In the initial days, there was difficulty in accessing Indian workers to run British establishments,
 hence laws for indenturing the workers became of great importance. These were the labour
legislation in order to conserve and protect the interests of British employers

Labour Policy in India has been very dynamic and continuously adapting and catering as a
stimulant to the environment and suits the requirements of social justice and economic
development, hence it is necessary to know the development and the origin of labour laws, to be
assured that any new developing legislation or future policy is not in conflict with the parent
labour legislation and further helps in promoting the objectives such as industrial peace and
welfare of labour force, helping in bring out the essence of the Constitution of ILO.

Developments of Labour Laws in India



Pre-1920s
The advent of industrialisation has seen a steady shift in the labour force from the
rural areas to the cities, the organisation of

work was not paid much heed by the colonial authorises apart from the penal provisions present
at that time, which was formulated for labour supply and discipline for emerging industries. Most
of the Regulations of the Britishers in relation to workers, majorly revolved around “forced
labour”.

The Workmen’s Breach of Contract Act 1859[3], was considered significant legislation. This
Act not only demanded fines in cases where there was a breach of employment contracts but
also allowed orders for for specific performance of service.

These provisions were extensively used for labour discipline. It was significant that in the same
time labour organisation was also about family, land, regulation in relation of culture, master and
servant relationship laws and the concept of “contract” of employment with the traditional format
of regulations instilled in the earlier customs and ways were complex.

From the 1880’s there was a legislative intervention of the government, with regards to the
employment of women and children, and working hours of work in factories and mines. Most of
the legislation is an outcome of different government enquiries. The legislation, however, was not
fairly implemented in the working practices by these industries; hence the impact was very
minimal and selective. The Factories Act of 1881, for example, only concerned with a premise
with 100 or more employees, using electrical power. The Factories Act of 1891 considered 50
or more employees in the premise.
Post-World War I and the 1920s
Various factors had mixed up the industrial and political portrait, this is inclusive of the
emergence of a strong nationalist movement, the trade unions were growing rapidly (this led to
the establishment of All India Trade Union Congress in 1920), and the beginning of the
Communist influence in the labour movement. At that very time, the newly created ILO
(International Labour Organisation) began to influence the policies in relation to workers.

The protective legislation in this period included Factories Act 1922, the Mines Act 1922,
and the Workmen’s Compensation Act 1923.  This period witnessed the emergence of a
modern outlook, with regards to the industrial relations, the formulation of The Trade Union Act
of 1926 and the Trade Dispute Act of 1929 came into being which is formally still continued to be
used by present-day India.

The Trade Dispute Act of 1926, extended trade unions the legal status and few protections
against civil and criminal liability, this legislation (the unregistered unions were excluded from
such protection) however did not provide any aid to the ‘collective bargaining’ system, the
employers were not entitled to bargain with these registered or unregistered unions, and no
support was provided in the path of the industrial dispute nor was there any obligation legally to
bargain in good faith.

The Trade Dispute Act of 1929, put forth various restrictions and boundaries regarding the right
to strike and conditioned on the compulsory reference of the industrial dispute to a court of
enquiry, however, the conclusions to the same were not binding upon the parties. The All India
Trade Union Congress (AITUC), criticised both legislations.

The 1930s

There was a spur in unemployment due to the world economic depression, in this period there
was constant distress for Indian Independence within which the All India Trade Union Congress
played a major role. The Mass dismissal was escorted by a surge of strikes , especially with the
economic depression.

The British government founded the Royal Commission on Labour in India in 1929.[8] This

commission was rejected or boycotted by the Indian Labour movement, the AITUC strongly
criticised by vocalising that the establishment of the Commission was an “open and brutal attack
upon the trade union movements by using repressive legislation” and the lack of “bona fides”.
The industrial unrest, reduction in wages, reduced jobs continued to exist.

However, during the 1930s, there was an advent of two conclusions from the Report of the Royal
Commission. Firstly, the central and provincial government introduced a few new labour
legislations. These laws mostly revolved around mines regulation and protective factory, the
subjects were to do with hours of work, compensation, wages.

Secondly and the most significant development which emerged out of the Government of India
Act, 1935, which under new constitutional arrangement gave rise to newer expectations that
increased “labour” or “union” friendly policies would further be catered in the provincial
government level.

This further led to a period of extensive strike actions. Prior to the act of 1935, several provincial
governments had started finding ways while discovering contributions, that could be made and
implemented for better working conditions at the workplace.

The introduction of Trade Disputes (Conciliation) Act 1934 by the provincial government of
Bombay was encapsulated with the changes in the collective labour relations by designating a
Labour Officer to act as a representative of the workers by putting forth their interest and
grievances.
The establishment of the Industrial Dispute Act, 1938 introduced by the Bombay Provincial
Government had a significant impact as it made it legally obligatory on the part of the employers
to acknowledge the trade unions. However, these measures were limited and did not possess a
general acceptance by the Indian trade Union Movements. The Bombay bill of 1938, was
described as “uncalled for, reactionary, prejudicial and harmful to the interest of the workers” and
“calculated to create slave unions” by the AITUC.

World War II and the Pre-Independence Period

Policies and regulations during this phase were continuously under industrial unrest and strikes
in relation to the conditions. These legislations were aimed at bringing the central and state-level
coordination among the labour force.

Section 49 A of the Bombay Industrial Dispute Act of 1941, provided the Bombay Government to
address to the disputes in relation to industries in compulsory arbitration by the Industrial Courts
and banned all strikes and lockdown prior to the arbitration. Such limiting legislation was
continued after the war ended as Bombay Industrial Relations Act 1946.

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