NATIONAL LAW INSTITUTE UNIVERSITY,

BHOPAL

CONSTITUTIONAL SPIRIT OF
INDUSTRIAL LAWS

MID TERM PROJECT

8TH SEMESTER

A PROJECT UNDER: SUBMITTED TO:

LABOUR LAW Mr. MAHENDRA SONI

(FACULTY OF LABOUR LAW)

SUBMITTED BY:
VIVEK GAUTAM

ROLL NO.
2017BALLB38

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CONTENTS Page no.

ACKNOWLEDGEMENT…………………………………………………………………………..3
INTRODUCTION…………………………………………………………………………………..4
STATEMENT OF PURPOSE AND HYPOTHESIS……………………………………………….4
RESEARCH OBJECTIVES………………………………………………………………………...5
EVIL IMPACT OF INDUSTRIAL REVOLUTION ON INDIA…………………………………...6
LABOUR PROBLEMS IN INDIA…………………………………………………..;…………….7
EVOLUTION OF INDUSTRIAL JURISPRUDENCE IN INDIA………………………………….8
INDIAN CONSTITUTION AND SOCIAL JUSTICE……………………………………………...9
SOME IMPORTANT LABOUR ENACTMENTS IN INDIA……………………………………..13
RECENT TRENDS IN LABOUR LAW……………………………………………………………15
ROLE OF LABOUR COURTS IN SETTLEMENT OF INDUSTRIAL DISPUTES……………..16
INDUSTRIAL TRIBUNALS……………………………………………………………………….17
CONCLUSION……………………………………………………………………………………...19
BIBLIOGRAPHY…………………………………………………………………………………...20

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 ACKNOWLEDGEMENT

This project on “Constitutional spirit of Industrial laws” has been made successful by the help of Mr.
Mahendra Soni. He went into minute details of the subject, which in turn enabled us to benefit from
experience of learning in his classes. His contribution in teaching us has always enabled us to think
apart from the very obvious. I thank him for his extremely gracious help that he has always provided to
the students in every walk of life.

I would utilize this opportunity to thank all those who have played a part in completion of this project.
Special thanks to my parents for their never ending support and blessings.

-Vivek Gautam

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INTRODUCTION

The prerequisites for the effective operation of a work unit are a friendly environment, cooperation
between labor and management, reasonable remuneration and adequate working conditions. From
laissez-faire to "welfare state", the socio-economic situation has undergone earth-shaking changes, not
only in India, but also all over the world.

The industrial status that prevailed in the pre-independence era in India has not remained in its original
state. India’s Industrial Revolution brought some inhumane and unjust aspects of the colonial era. In
order to solve these problems, India has enacted industrial legislation. In order to keep up with India’s
changing socio-economic conditions, both the legislature and the courts must control the unfavorable
growth of industrial laws.

Industrial law originated from the jurisprudence of industrial law, which is the development of the
world in the twentieth century. In India, industrial law prevailed before independence, but it was in its
infancy. The industrial revolution is a factor derived from the development of industrial law. The
Industrial Revolution brought with it the most inhuman aspect of human life. It saw the exploitation of
men by men. Maximizing profits, even at the cost of workers’ lives, is the main goal of employers.
"Freedom of contract" is the obvious result of laissez-faire. Employers can dismiss employees at will.
Therefore, employees always suffer losses.

To protect the interests of employees, legislatures and courts, India took a big step and Industrial
jurisprudence was born in India, the first was promulgated and the second handed down judgments.
The scope of industry jurisprudence not only includes the protection of employee interests, but also
aims to ensure a friendly relationship between employers and employees in the workplace.

STATEMENT OF PURPOSE
Both the Legislature as well as the Judiciary in India has played their due role in shaping the Labour
and Industrial Legislation in India.

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HYPOTHESIS
Industrial legislation finds its origin from the industrial jurisprudence, which is a development of the
20th century world. To protect the interest of the employees, the legislature and courts, in India took a
giant step to give birth to the industrial jurisprudence in India- former through the enactments and the
latter through the judgments.

RESEARCH OBJECTIVES

 To understand the need of Industrial revolution in India

 To study the problems labour class faced without Industrial Laws
 To study the evolution of Industrial Jurisprudence in India
 To analyze the Constitutional spirit of Industrial Laws
 To study the different types of Industrial Laws enacted by the Parliament
 To study the role of Labour Courts in settling Industrial disputes

RESEARCH METHODOLOGY

The methodology adopted in this project is descriptive in nature. The research is based upon secondary
sources and help of electronic sources has been taken in order to complete the project.

SCOPE OF THE STUDY

This projects deals with the detailed analysis of Industrial laws in India. The primary part of the project
deals with the evolution of Industial law as to the reason of the development of laws of labour. The
second part of the project deals with the constitutional spirit of these laws and the thirds part deals with
the role of Industrial Tribunals in settling the disputes arising out of conflict between employers and
workers.

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EVIL IMPACT OF INDUSTRIAL REVOLUTION ON INDIA

According to the economic policy of the British government, they never wanted to turn India into an
industrial base, but wanted to turn India into a raw material supplier for their industries. They did not
promote India’s industrial development, but continued to de-industrialize and ruralize the Indian
economy.

With the advent of the British Industrial Revolution, the British government has accelerated its efforts
to further develop the Indian economy. As a result, when the British left in 1947, India represented the
present danger of economic collapse, social morbidity, and the evil influence of neo-colonialism.
However, the evil effects of the Industrial Revolution can be divided into social ills and economic ills,
as discussed below:

Economic Evils.
1. Psychological satisfaction of the artisans was lost and they were not able to produce goods
themselves. Only parts of the finished good are produced by the artisans in industries.
2. Workers and labourers were not paid properly, hence were underpaid. The wages which they
get provide them with the daily bread but they were deprived of other necessities of their life.
3. No security of the term. Employers can anytime fire the labourers, hence they were often
arbitrary.
4. Periodic employment and under-employment are other economic evils which the labourers
faced.

Social Evils.

1. Cities became overcrowded due to the large-scale immigration of the village population in
the cities. This eventually gives rise to industrial slums and housing problems. This

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 adversely affected worker’s health and led to other problems in the cities, such as of
sanitation.
2. Improper and hazardous working conditions in the factories. Workers have to work for
hours with no rest and there aren’t any facilities of their welfare. Focus of factory owners
was on machines without giving heed to the safety of the workers.
3. Improperly managed machines in the factory gives rise to serious accidents and workers
were forced to work in such conditions. Inspite of such exposition factory owners don’t take
these accidents seriously and the workers were left without any remuneration.
4. Inadequate and insufficient wages give rise to the exploitation of the wives and children of
the workers by the owners of the factories. No regards were given to their physical
conditions and they were kept of very low wages.

LABOUR PROBLEMS IN INDIA

Regardless of the health and working conditions of the workers, the factory owner only pays attention
to the maintenance of the machine. Employers ignore workers' conditions because they have a lot of
manual labor. Workers' wages are too low. They cannot raise their voices due to non-legalization of
trade unions. They are illiterate and poor, so they do not know their rights. Taking advantage of this
situation, the employer determines its own conditions.

The government did not intervene in this matter either, considering it as contractual freedom. The
situation deteriorated further. The government cannot simply treat this as a neutral participant, it must
intervene. Additionally, some charities, such as the Servants of India Society and the Social Service
League, have voiced opposition to these issues. Later, some industrial social workers also voiced
opposition to these issues. Initially, they lacked resources and bargaining power, but they successfully
mobilized public voices against these issues.

It is the later stage, when factory owners realized the seriousness of this problem of labourers and they
also realized that a contended worker will add to the factories productivity.

Now Government came into action as it cannot be a mere spectator. It sooner realized that for the
interest of the national economy and the labourers which forms a bulk of population in India, it has to
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do something. So this forced Government to intervene in the situation for the welfare of the labourers
and for the protection of Indian economy.

EVOLUTION AND CONSTITUTUIONAL SPIRIT OF INDUSTRIAL JURISPRUDENCE IN

INDIA

The evolution of Indian industrial law can be traced back to the post-independence period. Before
independence, industrial law existed in a basic form. The main focus of the pre-independence industrial
jurisprudence was to improve the working conditions of factory workers. For the working class, almost
no agreement on social justice has been reached. It was only after our constitution came into effect that
appropriate provisions concerning workers’ social justice were inserted.

Before independence, India was not only an important agricultural country, but also an important
manufacturing country. But the British government, as a matter of policy, always tends to discourage
Indian industry. This has led to widespread nationalism in India, emphasizing the boycott of foreign
products. This gave rise to non-cooperative movement, also known as the swadeshi movement, which
emphasized the use of local products and the boycott of foreign products.

The industrialization aspect of India is based on the planning scheme, which was accepted after the
1930s.

It is important to note that the plantation industry in Assam is the first to attract industrial legislation.
The situation is that the employer has cracked down on the employees. Employees cannot leave the tea
plantation. Some bills were passed after 1863, but they only protected the interests of employers. Other
bills have been approved to regulate this situation. But the Workers' Compensation Act of 1923 is a
landmark law.

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INDIAN CONSTITUTION AND SOCIAL JUSTICE

Before the Indian Constitution began, industrial jurisprudence was not very developed. Before
independence, the main focus of the government was to improve the conditions of factory workers.
After the constitution was promulgated, the government’s main focus shifted to social justice for
workers, who make up the majority of the population.

In a historical case, Bhagwati J. believes that the concept of justice does not originate from the fantasy
concept of any particular ruling, but must be based on a stronger foundation 1. Justice Gajendragadkar
believes that “the concept of social and economic justice is a revolutionary and living concept; it
supports the rule of law and the meaning and significance of the concept of a welfare state”2.

The Constitution of India also enshrines the concept of social justice as one of the national goals.
Some of those provisions are as follows:
1. The state should strive to promote the well-being of the people by ensuring and protecting
social order as effectively as possible, in which justice, society, economy, and politics will run
through all institutions of national life3.
2. The state should strive to promote the well-being of the people by ensuring and protecting
social order as effectively as possible, in which justice, society, economy, and politics will run
through all institutions of national life.4
3. The State must strive to promote the well-being of the people by guaranteeing and protecting in
the most effective way possible a social order, in which justice, society, the economy and
politics provide information to all the institutions of national life5
4. 4. In particular, the state should strive to minimize income inequality, and strive to eliminate
1
Muir Mills Ltd. v. Suti Mill Mazdoor Union, (1955 1 LJJ 1 (SC).
2
State of Mysore v. Workers of Gold Mines, AIR 1958 SC 923.
3
Art. 38 of the Indian Constitution.
4
Art. 38 of the Indian Constitution.
5
Art. 38 of the Indian Constitution.

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 inequality in status, facilities, and opportunities, not only among individuals, but also among
groups of individuals who live in different regions or have different occupations.6
5. The State shall, in particular, direct its policy towards securing7 -

a. Citizens are equal to men and women and have the right to adequate means of earning a living;

b. that ownership and control of the community's material resources are distributed to best serve the
common good;

c. that the functioning of the economic system does not lead to the concentration of wealth
and means of production to the detriment of the common good;

d. that there is equal pay for equal work for both men and women;

e. that the health and strength of workers, men and women, and the tender age of children
are not abused and that citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength;

f. that children are given opportunities and facilities to develop in a healthy manner and in
conditions of freedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment.

Article 14 of the Indian Constitution explains the concept of equality before the law. The concept of
equality does not mean absolute equality between people which cannot be physically achieved. It is a
concept which implies the absence of any special privilege due to birth, creed or the like which benefits
any individual, and is also subject to the equality of all individuals, individuals and classes with the law
municipality of the country. As Dr Jennings said: “Equality before the law means that between laws
which must be equal and must be applied equally, these rights must be treated equally. The right to sue
and be sued, to sue and be sued equally. the action must be the same for all citizens of age and
knowledge without distinction of race, religion, wealth, social status or political influence ”. The law of
equality should be applied to everyone in the same circumstances, and should not discriminate between
one person and another. As for the object of law, their position is the same. So the rule is that like
should be treated equally and not dissimilar should be treated equally.

In Randhir Singh v. UoI, the Supreme Court held that though “equal pay for equal work” is not
6
Art. 39 of the Indian Constitution.
7
Art. 39 of the Indian Constitution.

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specifically mentioned in the Constitution but it is a part of Article 14, 19 and 39 (c) of the Constitution
as it a constitutional goal of the Constitution to promote equality.

Other provisions of the Industrial Constitution which protects, supports and act as a guideline to
various labour laws for their effective implementation and functioning are:

Article 16
There should be equal of opportunity to everyone for the purposes of employment without any
discrimination.

Article 19(1)(c)
This article provides freedom of speech and expression to all the citizens to form unions and
associations.

Article 21
No one can live without the means to live, that is, without the means of self-sufficiency. If the right to
life is not considered part of the constitutional right to life, the easiest way to deprive a person of the
right to life is to deprive them of their means of subsistence until abolished. Such deprivation not only
compromises its true content and meaning, but also makes life unliveable. Therefore, there is a strong
connection between life and livelihood.
In Maneka Gandhi v UoI8, Supreme Court held that Right to live is a part of Article 21. Extending the
ration in Francis Cralie v. Union Territory of Delhi9, the Court held that the limit of the righto live is
not restricted to mere minimal existence but it has something more than physical well-being.

Article 23
Article 23 prohibits begging and other similar forms of forces labour practices.
In People’s Union of Democratic Rights v. UoI 10, the Court held that the ambit of Article 23 is wide
and unlimited and prohibits human trafficking and begging.
In Sanjit Roy v. State of Rajasthan 11, the court held that state cannot give wage less than the minimum
wage to the workers of the state affected from famine or drought. It has to give minimum wage to the

8
AIR 1978 SC 597
9
AIR 1978 SC 59
10
AIR 1982 SC 1943.
11

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workers under Article 23.

Article 24

This article prohibits employment of children below 14 years of years in factories and employment
which is hazardous.
In People’s Union of Democratic Rights v. UoI, it was contended that Employment of Children Act,
1938 is not applicable for the children employed in Asiad projects in Delhi. The court rejected that
contention and held that construction is a hazardous activity and children below 14 years cannot be
employed for such activities under Article 24.
Article 32
This article is meant to enforce fundamental rights enshrined in the Constitution. If the fundamental of
worker or labour is infringed he can go to the Supreme Court for enforcing the fundamental right.
Court will provide appropriate remedy for the violation of Fundamental Rights. Also they can reach
High Court under Article 226 of the Constitution.

The Court now allows public interest or social interest litigation initiated by “publicly motivated
citizens” to apply the constitutional rights and other legal rights of any any person or group of people,
because they are poor or because of their social or economic difficulties, are not able to apply to the
Court for settlement.

“Articles 38, 39, 39-A, 41, 42, 43, 43-A and 47 of the Constitution embody the Directive Principles of
State Policy which though cannot be enforced through a court of law are nevertheless fundamental in
the governance of the country, casting a duty on the State to apply those principles in making laws. The
directive principles are therefore subordinate to the fundamental rights guaranteed under Part III of the
Constitution.”

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SOME IMPORTANT LABOUR ENACTMENTS IN INDIA

The salient features of the Central and State Labour Acts in force in the district are given hereunder:

1. The Indian Factories Act of 1948 provides for the health, safety and welfare of the workers.

2. The Punjab Shops and Commercial Establishment Act, 1958, regulates the conditions of work
and terms of employment of workers engaged in shops, commercial establishments, theatres,
restaurants, etc.

3. The Punjab Maternity Benefit Act, 1943, provides for the grant of cash benefits to women
workers for specified periods before and after confinements.

4. The Employment of Children Act, 1938, prohibits the employment of young children below the
age of 15 years in certain risky and unhealthy occupations.

5. The payment of wages Act, 1936, regulates the k\timely payment of wages without any
unauthorized deductions by the employers.

6. The Minimum Wages Act, 1948, ensures the fixation and revision of minimum rates of wages
in respect of certain scheduled industries involving hard labour.

7. The Industrial Disputes Act, 1947, provides for the investigation, and settlement of industrial
disputes by mediation, conciliation, adjudication and arbitration. There is scope for payment of
compensation in cases of lay-off and retrenchment.

8. The Industrial Employment (Standing Orders) Act, 1946, requires employers in Industrial
establishments to define precisely the conditions of employment under them and make them
known to their workmen. These rules, once certified, are binging on the parties for a minimum
period of six months.

9. The Workmen’s Compensation Act, 1923, provides for compensation to injured workmen of
certain categories and in the case of fatal accidents to their dependants if the accidents arose

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 out of and in the course of their employment. It also provides for payment of compensation in
the case of certain occupational diseases.

10. The Indian Trade Unions Act, 1926, recognizes the right of workers to organise into trade
unions, when registered, have certain rights and obligations and function as autonomous
bodies.

11. The Employees’ State Insurance Act, 1948, provides for sickness benefit, maternity benefit,
disablement benefit and medical benefit.

12. The Employees’ Provident Fund Act, 1952, seeks to make a provision for the future of
industrial worker after he retires or in case he is retrenched, or for his dependents in case of his
early death.

13. The Punjab Industrial Housing Act, 1956, provides for the administration allotment, realization
of rent, etc., in connection with quarters constructed under the Subsidized Industrial housing
Scheme12.

12
http://punjabrevenue.nic.in/gaz_ldh36.htm

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RECENT TRENDS IN LABOUR LAW

India's experience over the past 50 years as the Supreme Court of India, various high courts, labor
courts and labor tribunals has enriched the country with many precedents in labor application. work by
their sweat and their efforts and their missionary research in almost all the arid and abandoned fields. of
labor jurisprudence. They have transmitted to the world community a jurisprudence as living, as
precious as it is solid, redeeming the lost faith of the industrial masses in law and justice. Their
contribution to the development of labor law and the redemption of the social values of law and justice,
unprecedented in the history of world jurisprudence, far exceeds that of Equity in the United Kingdom.
The assessment of industrial needs is a complex task, the courts must address the merits of each
problem, which necessarily involves examining, analyzing and appreciating the economics of labor, the
sociological approach. and the related technical aspects of each problem. Work-related needs are often
addressed by powerful bodies of the International Labor Organization, the Indian Labor Conference,
the Labor Inquiry Commission, the Wages Board and the Wages Commission. and various government
agencies, etc.

In practice, these reports and recommendations are often adopted as guidelines by the Supreme Court,
the High Court and the Industrial Tribunals. Under section 10 of the Industrial Disputes Act 1947, the
competent government is empowered to bring the dispute to court. This government power is
appropriate regardless of whether a mediation process has taken place. In practice, however, the dispute
is referred to the labor court / tribunal for arbitration by the competent government after examination of
the unsuccessful mediation report received from the mediator.

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ROLE OF LABOUR COURTS IN SETTLEMENT OF INDUSTRIAL DISPUTES

Prejudices are deeply rooted in the labor sector. While collective bargaining serves a lasting peace, and
unions and vested interests value negotiation and amicable resolution of labor needs, the lack of an
amicable resolution often makes litigation an issue. priority over a test of strength. With the exception
of a few who resort to strikes and lockouts, exceptions that justify the general rule, unions have become
accustomed to arbitration. This confidence in arbitration was inspired by the benefits that the workforce
gains through this system. Employers in this country find arbitration in their favor because it not only
restricts work habits that guide action, but also provides a powerful means of inspection and control of
claims and expenses. Labor costs are too expensive. It is difficult for the state to find a better
alternative to achieve economic and social justice through the rule of law in the labor sector. Therefore,
industrial arbitration still exists a lot in our country. Industrial arbitration is a dynamic and
revolutionary process that transforms traditional jurisprudence, which has proven to be totally
ineffective and powerless in protecting poor industry from social injustice and economic exploitation
(due to the industrial revolution) - into a progressive and flexible legal institution of social
regeneration. and economic justice. To some extent, he redeemed the disgrace of individualistic legal
systems and demonstrated that with the right injection of progressive social philosophy, law and
jurisprudence can become potential agents of economic and social progress.

Competence and Jurisdiction of Labour Courts/Industrial Tribunals

Under section 7 of the Labor Disputes Act 1947, a government-appointed labor court has jurisdiction to
rule and pronounce judgments on matters principally related to rights, such as:

1. Layoff or layoff of workers, including reinstatement or licensing of workers who have been
inappropriately dismissed;
2. Withdraw any customary concessions or privileges;
3. Illegality or otherwise of a strike or lockouts; and
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 4. All matters other than those specified in Schedule Ill.

INDUSTRIAL TRIBUNALS

Industrial Tribunals under section 7A of the Industries Disputes Act 1947 have also been established to
hear cases falling under Annex II and III, i.e. disputes over rights and interests. Under section 78 of the
Industrial Disputes Act 1947, the central government may also establish a national tribunal to arbitrate
disputes if it is a matter of national importance or of a Such a nature that industrial establishments lo-
cated in more than one country are likely to be interested in or affected by the dispute, whether or not it
is the appropriate government concerned with the establishment. Labor or Industrial Tribunals also
have the power to investigate and investigate industrial disputes concerning them and, after judgment,
to issue judgments binding on the parties. Labor and industrial tribunals also serve as a forum for ap-
peals under section 11A in the event of dismissal, dismissal or termination.

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Industrial disputes are protested from collective opposition to employment and working conditions.
Under Industrial Disputes Act of 197, "there is a difference between employers and employers, or a
difference between employers and workers, or between employment or employment or employment
under conditions of employment. Industrial disputes mainly mean the dismantling of employers and
employees. It is not a personal dispute of any one person. It engages a large number of workers’ association
having a correlated interest.

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CONCLUSION

Industrialization created a number of social and economic problems like employment of women and
children, minimum wages, unions, poor quality housing and poor working conditions in factories, etc.
Civil law is not enough to respect them. The State has adopted a progressive policy and keeps pace
with the labor policy of the Indian government and the standards set by the International Labor
Organization. It makes a lot of laws and their administration. These laws also cover the regulation of

19
labor relations between management and employees.

Both the legislature and the judiciary in India have played an important role in the development of
labor law in India.

BIBLIOGRAPHY.

Text
1. Mishra, S N, Labour and Industrial Laws, 24th ed., 2008, Central Law Agency, Allahabad.
2. Pai, G B, Labour Law in India, Vol.1, 2001, Butterworths India.
3. Srivastav, Suresh C., Labour Law and Labour Relations, 3rd edn, 2007, Indian Law Institute,
New Delhi.

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URLs
1. http://en.wikipedia.org/wiki/
Fundamental_Rights,_Directive_Principles_and_Fundamental_Duties_of_India
2. http://punjabrevenue.nic.in/gaz_ldh36.htm
3. https://labour.gov.in/sites/default/files/364_2019_LS_Eng.pdf
4. http://www.legalservicesindia.com/article/181/Constitutional-Protection-on-Labour-Laws.html

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