UNIVERSITY INSTITUTE OF LEGAL INSTITUTES

PANJAB UNIVERSITY, CHANDIGARH

Labour Laws Project Work

On Topic-

CONSTITUTIONAL PROTECTION
TO UNORGANIZED LABOUR

Made By- Arshdeep Kaur

Roll No.- 03/18
Class- B.A. L.L.B (Hons.)
Section- ‘A’
Submitted To-

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 ACKNOWLEDGEMENT
I would like to express my special thanks and gratitude to my professor of Labour
Laws who gave me this golden opportunity to work on this wonderful project on the
topic of ‘Constitutional Protection to Unorganized Labour’. This project has really
helped in enhancing my knowledge and enabled better understanding of the
fundamentals of Labour laws and its Constitutional backing.
Secondly, I would also like to thank my friends and classmates who helped me in
best way possible within their reach to finalize this project within limited time frame.

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 TABLE OF CONTENTS

TABLE OF CASES ............................................................................................................................................. 4

INTODUCTION TO THE CONCEPT OF UNORGANIZED SECTOR WORKERS ..................................................... 5
What is Unorganized Sector? .................................................................................................................... 5
Unorganized Sector Workers ..................................................................................................................... 5
CONSTITUTIONAL PROTECTION TO UNORGANIZED LABOUR ....................................................................... 7
Concept of Labour Welfare........................................................................................................................ 7
Part III of the Constitution ......................................................................................................................... 7
Article 14 ................................................................................................................................................ 7
Article 21 ................................................................................................................................................ 8
Articles 23 and 24 .................................................................................................................................. 9
Part IV of the Constitution ....................................................................................................................... 11
Article 39 .............................................................................................................................................. 11
Article 41 .............................................................................................................................................. 12
Article 42 .............................................................................................................................................. 12
Article 43 .............................................................................................................................................. 12
Steps taken by Government in compliance with Constitutional Mandate for Protection of Unorganized
labour ....................................................................................................................................................... 13
THE UNORGANIZED WORKER’S SOCIAL SECURITY ACT, 2008 ............................................................. 14
OTHER SOCIAL SECURITY MEASURES .................................................................................................. 15
Role of Judiciary in upholding the Constitutional Mandate of Protection of Unorganized Labour ........ 16
CONCLUSION................................................................................................................................................ 19
REFERENCES ................................................................................................................................................. 21

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 TABLE OF CASES

All India Reserve Bank Employees v. Reserve Bank ................................................................... 13

Bandhua Mukti Morcha v. Union of India...................................................................................... 9
Calcutta Electricity Supply Corporation (India) Limited v. Subhash Chandrabose ....................... 9
Consumer Education and Research Center v. Union of India ...................................................... 10
Daily Rated Casual Labour V. Union Of India............................................................................. 18
Delhi Jal Board v. National Campaign for Dignity and Rights of Sewerage and Allied Workers18
Eveready Flashlight Co. v. Labour Court ..................................................................................... 13
Francis Coralie v. Union Territory of Delhi ................................................................................... 9
Kahason Thangkhul v. Simrei Shailei .......................................................................................... 10
M.C Mehta v State of Tamil Nadu................................................................................................ 18
Neeraja Chaudhary v. State of Madhya Pradesh .......................................................................... 17
People’s Union for Democratic Rights v. Union of India ............................................................ 10
Shabnam v. Union of India ............................................................................................................. 9
State V. Banwari ........................................................................................................................... 18

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 INTRODUCTION TO THE CONCEPT OF UNORGANIZED
SECTOR WORKERS

What is Unorganized Sector?

According to the Unorganized Workers Social Security Act,2008

“Unorganized sector means an enterprise which is engaged in the production or sale of the food
or in providing services of any kind owned by individuals or self-employed workers and where
the number of worker working is less than 10 in number.”
The term unorganized sector when used in the Indian contexts is also defined by National
Commission for Enterprises in the Unorganised Sector, in their Report on Conditions of Work and
Promotion of Livelihoods in the Unorganised Sector as "... consisting of all unincorporated private
enterprises owned by individuals or households engaged in the sale or production of goods and
services operated on a proprietary or partnership basis and with less than ten total workers." 1
Amongst the characteristic features of this sector are ease of entry, smaller scale of operation, local
ownership, uncertain legal status, labor-intensive and operating using lower technology based
methods, flexible pricing, less sophisticated packing, absence of a brand name, unavailability of
good storage facilities and an effective distribution network, inadequate access to government
schemes, finance and government aid, lower entry barriers for employees, a higher proportion of
migrants with a lower rate of compensation. Employees of enterprises belonging to the
unorganised sector have lower job security and poorer chances of growth, and no leave or paid
holidays, they have lower protection against employers indulging in unfair or illegal practices.

Unorganized Sector Workers

According to the report of the National Commission on Labour in 1969.

‘Unorganized workers’ are other groups of workers who are not covered under the definition and
can organise in pursuit of a common goal due to force such as:-

1. 1 Report On Conditions Of Work And Promotion Of Livelihoods In The Unorganised Sector. Academic Foundation. 1
January 2008. p. 1774. ISBN 978-81-7188-678-4. Accessed on 13th November 2022.

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 ▫ Casual nature of employment.
▫ Ignorance and illiteracy.
▫ Establishment of small size with the low capital invested per person employed.
▫ Scattered nature of establishments.
▫ Muscular strength of the employer operating either singly or in combination.
National Commission also gives some categories of workers, which can be categorised as
unorganised workers, which are the following:
▫ Contract-based worker and it also includes workers engaged in the construction work.
▫ Informal(casual) labour.
▫ Labour engaged in small industry.
▫ Handloom/ power worm workers.
▫ Beedi and cigar workers.
▫ Employed in shops and commercial establishments.
▫ Sweepers and scavengers.
▫ Workers in teaberries.
▫ Tribal labour.
▫ Other unprotected labour.
These categories are only ‘illustrative’ and are not exhaustive.
Section 2(m) of Unorganized Workers’ Social Security Act, 2008 defines ‘Unorganized Workers’
as follows-
“unorganised worker” means a home-based worker, self-employed worker or a wage worker in
the unorganised sector and includes a worker in the organised sector who is not covered by any
of the Acts mentioned in Schedule II to this Act i.e. the Employee's Compensation Act, 1923 (3 of
1923), the Industrial Disputes Act, 1947 (14 of 1947), the Employees' State Insurance Act, 1948
(34 of 1948), the Employees Provident Funds and Miscellaneous Provision Act, 1952 (19 of 1952),
the Maternity Benefit Act, 1961 (53 of 1961) and the Payment of Gratuity Act, 1972 (39 of 1972).

Based on the distinctiveness, the government has classified the unorganised workforce exclusively
in four categories-
▫ In terms of employment like construction workers, waiver, fisheries, workers of the paper
mill, sawmill etc.
▫ The labourers which are most in exploited-Head and shoulder loaders, scavengers,
variety of labour works.

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 ▫ Labourers who are providing service-Hotel boy, Midwives, Air Hostesses, barber,
masseur etc.
Apart from category described above handicrafts, artisans, cobblers, handloom weavers,
physically handicapped self-employed persons, lady tailors, a rickshaw puller, carpenters, tannery
labour, power loom workers and urban poor, Truck and Auto drivers also come under the ambit
of unorganised labour.

CONSTITUTIONAL PROTECTION TO UNORGANIZED

LABOUR

Concept of Labour Welfare- The concept of labour welfare is a broad concept. It connotes a
condition of well-being, happiness, satisfaction, conservation and development of human
resource.2
The Committee on Labour Welfare, 1969, noted that “labour welfare includes such services, as
facilities and amenities as adequate canteen, rest and recreational facilities, sanitary and medical
facilities, arrangement for travel to and from work and for the accommodation of the workers
employed at a distance from their homes and such other services amenities and facilities as
contribute to improve the condition under which workers are employed.”
Constitution of India is mother of all the laws in India. It is the Grund norm of the country which
ensures social, economic and political justice for all its citizens including the labourers or workers
in th unorganized sector.

Part III of the Constitution of India is the benchmark for labor laws in India.

Article 14 states, “The State shall not deny to any person equality before the law or the equal
protection of the laws within the territory of India.” That means every person is treated equally
before law irrespective of his caste, color, religion, place of birth or gender. And also, all persons

2 P. Tyagi, “Labour Economics and Social Welfare”, page no 601, 2004

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enjoy equal protection of laws without any discrimination. This provision forms the base for
Constitutional protection to unorganized labourers.
Equality before the law which is interpreted in labor laws as “Equal pay for Equal work”. It does
not mean that article 14 is absolute. There are a few exceptions in it regarding labor laws such as
physical ability, unskilled and skilled labors shall receive payment according to their merit.
In the case of Randhir Singh vs Union of India, the Supreme Court said that “Even though the
principle of ‘Equal pay for Equal work’ is not defined in the Constitution of India, it is a goal
which is to be achieved through Article 14,16 and 39 (c) of the Constitution of India.

Article 21 states, “Protection of Life and Personal Liberty: No person shall be deprived of his life
or personal liberty except according to procedure established by law.”
The right to life does not merely mean the continuance of a person's animal existence but a quality
of life. It means the fullest opportunity to develop one's personality and potentiality to the highest
level possible in the existing stage of a civilization. Inevitably, it means the right live decently as
a member of a civilized society. It is to ensure all freedom and advantages that would go to make
life agreeable. The right implies reasonable standard of comfort and decency.
Article 21 has a very wide ambit and it includes numerous facets. Following are the facets of this
Article relevant to protection of unorganized sector labour-
(A) Right to live with human dignity-
In case of Francis Coralie v. Union Territory of Delhi 3, the Supreme Court observed that, “the
right to life includes the right to live with human dignity and all that goes along with it, namely,
the bare necessities of life such as adequate nutrition, clothing and shelter over the head and
facilities for reading writing and expressing oneself in diverse forms, freely moving about and
mixing and Co-mingling with fellow human beings.
In Bandhua Mukti Morcha v. Union of India4, Justice Bhagwati stated, “it is the fundamental
right of everyone in this country ...to live with human dignity free from exploitation. This right to
live with human dignity enshrined in Article 21 derives its life breath from Directive Principles of
State Policy and particularly clauses (e) and (f) of Article 39 and Articles 41 and 42 and at least,
therefore, it must include protection of health and strength of the workers, men and women, and

3 AIR 1981 SC 1281

4 AIR 1984 SC 802

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of the tender age of children against abuse, opportunities and facilities of children to develop in a
healthy manner and in conditions of freedom and dignity educational facilities just and humane
conditions of work and maternity relief.
Shabnam v. Union of India5 the apex court while stating that right to human dignity had many
elements, observed: “first and foremost, human dignity is the dignity of each human being ‘as a
human being’. Another element which needs to be highlighted in the context of.... is that human
dignity is infringed if a person's life, physical or mental welfare is harmed. It is in this sense torture,
humiliation, forced labour, etc. all infringe human dignity.....”
(B) Right to Social Security and Protection of Family
Interpreting Article 39(e) of the Constitution of India vis-a-vis article 25(2) of Universal
Declaration of Human Rights and Article 7 of the International Convention on Economic, Social
and Cultural Rights, 1966, K. Ramaswamy, J. in Calcutta Electricity Supply Corporation
(India) Limited v. Subhash Chandrabose6 held that the right to social and economic justice was
a fundamental right. The learned judge explained that, rights to life and dignity of a person and
status without means, were cosmetic rights. Socio Economic rights were, therefore, basic
aspirations for meaningful right to life and that the right to Social Security and protection of family
were integral part of right to life.
(C) Right to health and timely medical aid -
In Consumer Education and Research Center v. Union of India7 the Supreme Court laid down
that, “social justice which is a device to ensure life to be meaningful and livable with human dignity
required the State to provide to workmen facilities and opportunities to reach minimum standard
of health, economic security and civilized living. The health and strength of the worker, the court
said, was an integral facet of right to life. Denial thereof denudes the Workman the final facets of
life violating article 21.

Articles 23 and 24 guarantee the fundamental right against exploitation. This right is secured to
every person, whether citizen, non-citizen or alien. The protection contained therein is available

5 AIR 2015 SC 3648

6 AIR 1992 SC 573
7 AIR 1995 SC 922

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not only against the State but also against private individuals.
Article 23 is Prohibition of traffic in human beings and forced labour-
(1) Traffic in human beings and begar and other similar forms of forced labour are prohibited and
any contravention of this provision shall be an offence punishable in accordance with law.
(2) Nothing in this article shall prevent the State from imposing compulsory service for public
purpose, and in imposing such service the State shall not make any discrimination on grounds only
of religion, race, caste or class or any of them.
BEGAR – The term “begar” means involuntary work without payment. Begar constitutes 2
elements-
▫ It is to compel a person to work against his will; and
▫ He is not paid any remuneration for that work
Begar, thus, means, “labor or service exacted by the government or a person in power without
giving remuneration for it.”
Kahason Thangkhul v. Simrei Shailei8 In this case, a custom though immemorial, according to
which the head men or kulaka of the village for being the head men and the first settlement in the
village was entitled to one day's free labour of one person from each household every month, was
struck down as amounting to begar, prohibited by Article 23(1).
In People’s Union for Democratic Rights v. Union of India9 the Supreme Court held that Article
23(1) would strike at forced labour in whatever form it might manifest itself. It thus prohibited not
only “begar” or other unpaid labour but also prohibited all compelling unwilling labour, whether
paid or not. Any amount of remuneration paid to a person will be immaterial if labour is forced
upon him.
Article 24 states, “No child below the age of 14 years shall be employed to work in any factory or
mine or engaged in any other hazardous employment.”
This provision read with the Directive Principles of State Policy contained in Articles 39(e) and
39(f), provides for the protection of the health and strength of children below the age of fourteen
years.

8 AIR 1961 Manipur 1

9 AIR 1982 SC 328

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SC in People’s Union for Democratic Rights v. Union of India10, held that building construction
work was such hazardous employment where children below the age of 14 yrs should not be
employed, and the prohibition contained in Article 24 could be plainly and indubitably enforced
against everyone, whether State or private individual.
In pursuance of the obligation, contained in Article 24 Parliament enacted the Child Labour
(Prohibition and Regulation) Act, 1986 which specifically prohibits the employment of children
in certain industries. In addition to this legislation, many other laws, enacted before and after the
commencement of Constitution prohibit child labour, for example, The Employment of Children
Act, 1938; The Children (Pledging of Labour) Act, 1933; The Indian Factories Act, 1948; The
Mines Act, 1952; The Merchant Shipping Act, 1958; The Motor Transport Workers Act, 1951;
The Plantation Labour Act, 1951; The Bidi and Cigar Workers (Conditions of Employment) Act,
1966; The Apprentices Act, 1961.

Part IV of the Constitution relates to the Directive Principles of State Policy. It sets forth the
ideals and objectives to be achieved by the State for setting up in India a Social Welfare State, as
distinguished from a mere Police State, which aims at social welfare and common good and to
secure to all its citizens justice- social and economic.

Article 39 - Certain principles of policy to be followed by the State: “The State shall, in particular,
direct its policy towards securing
(a) that the citizens, men and women equally, have the right to an adequate means to livelihood;
(b) that the ownership and control of the material resources of the community are so distributed as
best to subserve the common good;
(c) that the operation of the economic system does not result in the concentration of wealth and
means of production to the common detriment;
(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;

10 AIR 1982 SC 1473

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(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 41 - Right to work, to education and to public assistance in certain cases: “The State shall,
within the limits of its economic capacity and development, make effective provision for securing
the right to work, to education and to public assistance in cases of unemployment, old age, sickness
and disablement, and in other cases of undeserved want.”

Article 42 seeks to ensure humane work conditions and provide for maternity relief. It states that
“The State shall make provision for securing just and humane conditions of work and for maternity
relief”.

Article 43 -Living wage, etc., for workers: “The State shall endeavor to secure, by suitable
legislation or economic organization or in any other way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full
enjoyment of leisure and social and cultural opportunities and, in particular, the State shall
endeavor to promote cottage industries on an individual or cooperative basis in rural areas.”
Article 43 has been held to furnish the principle by which unfair labor practice can be judged. It is
not possible to lay down an exhaustive test of unfair labor practice but it can be said that unfair
labour practice while violates the principles of Article 43 and other Articles referring to decent
wages and living condition for workmen and which practice, if permitted to become normal would
lead to industrial strife.11
The ‘living wage’ is to be distinguished from ‘minimum’ and ‘fair wage’. While ‘living wage’ is
such a wage as enables the male earner to provide for himself and his family not merely the bare
necessities but a measure of frugal comforts, ‘minimum wage’, on the other hand is just sufficient
to cover the bare needs of a workman and his family. Minimum wage is to be fixed in an industry
irrespective of its capacity to pay. A ‘fair wage’ is a mean between ‘living wage’ and minimum
wage. It has been held that though our constitutional aim, as laid down in Article 43, is ‘living

11 Eveready Flashlight Co. v. Labour Court, AIR 1962 All 497

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wage’ for workers, in actual practice, are general wage structure has at best reached to the lower
level of a ‘fair wage’. 12

Steps taken by Government in compliance with Constitutional Mandate for

Protection of Unorganized labour

Despite of outstanding contribution to national economy, the unorganized worker faces

multifaceted problems. The unorganized worker works in unhealthy working condition, they have
no social security and adequate legislations, no principle of promotion, no proper education and
skills, no sufficient row materials and market, no maintenance of equal pay for equal work for
bonded, women and child workers who are often exploited and harassed at the working place.
Therefore, to look into the multi-folded problems of the unorganized labourers, the Government
of India has under taken numbers of schemes, policies and enacted laws to ensure social security
of the labour section of the society in compliance with Fundamental Rights and Directive
Principles of State Policy (DPSPs) laid down in the Indian Constitution.
Various Legislations enacted by Government of India are-
▫ The Industrial Disputes Act, (1947),
▫ The Coal Mines Provident Funds and Miscellaneous Provisions Act, (1948),
▫ The Minimum Wages Act, (1948),
▫ The Employees Provident Funds and Miscellaneous Provisions Act,(1952),
▫ The Maternity Benefit Act, (1961),
▫ The Contract Labour Act, (1970),
▫ The Payment Gratuity Act, (1972),
▫ The Building and Construction Workers Act, (1996) etc.
to protect the interest of labourers. But the unorganized workers are rarely benefitted and protected
by these Acts. Therefore, the Government of India enacted the Unorganised Worker’s Social
Security Act, 2008 which is exclusively committed to ensure social security for the unorganized
workers of India.

12 All India Reserve Bank Employees v. Reserve Bank, AIR 1966 SC 305

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THE UNORGANIZED WORKER’S SOCIAL SECURITY ACT, 2008:
This Act is exclusively designed for the unorganized workers to take up measures for unorganized
workers relating to the matters covering life and disability, health and maternity benefits, old age
protection and any other benefits determined by the central government. The Act also empowers
the state government to formulate suitable welfare policies for the unorganized workers relating to
provident fund, employment injury benefits, housing, educational scheme, skill up-gradation of
workers, funeral assistance and old age homes.
The Act provides the provision of forming the National Social Security Board at central level to
recommend the central government about the welfare schemes for unorganized workers, to advise
the central government in administrative matters, to monitor the welfare schemes of central
government for unorganized workers, to review the progress of registration, to assess the
performance at state level, to review the expenditure of funds and any other functions assigned by
the central government. Accordingly, the Government of India formed the National Social Security
Board for Unorganized Workers in 2009. Similarly, the Act also instructs to form the State Social
Security Board to recommend the state government for suitable welfare scheme for unorganized
workers, to advise the state government in administrative matters, to monitor the welfare schemes
of state government for unorganized workers, to review the progress of registration, to assess the
performance at district level, to review the expenditure of funds and any other functions assigned
by the state government (Mann, 2010).
The Act has listed out some of the acts such as The Workmen’s Compensation Act, 1923 (8 of
1923), The Industrial Disputes Act, 1947 (14 of 1947), The Employees’ State Insurance Act, 1948
(34 of 1948), The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of
1952), The Maternity Benefit Act, 1961 (53 of 1961), The Payment of Gratuity Act, 1972 (39 of
1972) to be dealt with the unorganized workers. Besides, the Act has listed out 10 social security
schemes for the unorganized workers which can be discussed as below:
▫ The Indra Gandhi National Old Age Pension Scheme (IGNOAPS)
▫ The National Family Benefit Scheme (NFBS)
▫ The Janani Suraksha Yojana (JSY)
▫ The Handloom Weavers Comprehensive Welfare Scheme (HWCWS)
▫ The Handicrafts Artisans Comprehensive Welfare Scheme (HACWS)

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 ▫ The Pension to Master Craft Persons Scheme (PMCPS)
▫ The National Scheme for Welfare of Fishermen and Training and Extension (NSWFTE)
▫ The Janashree Bima Yojana (JBY)
▫ Aam Admi Bima Yojana (AABY)
▫ The Rashtriya Swasthya Bima Yojana (RSBY)

OTHER SOCIAL SECURITY MEASURES - The Government of India has undertaken some
new schemes and Act to ensure social security for the unorganized workers of India which can
be discussion as follows:-
▫ The Atal Pension Yojana (APY): The Atal Pension Yojana is a new scheme launched by
the Government of India in May, 2015 attempts to provide financial security by ensuring
pension benefits to the unorganized workers.
▫ The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): The Pradhan Mantri Jeevan
Jyoti Bima Yojana is an insurance scheme for all people launched in May, 2015. The
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) provides 2 lakhs life insurance
coverage for death due to any reason for one year to the people in the age group of 18-50
years with the affordable annual premium of Rs. 330 (Kumar, 2019). The policy facilitates
the auto-debit facility from the saving bank account of the policy holders.
▫ The Pradhan Mantri Suraksha Bima Yojana (PMSBY):
▫ Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): also known
as the MGNREG Scheme ensures the legal right of poor people to work at minimum wage
rate with dignity. The Act/scheme provides employment opportunity for 100 days work for
one financial year with job card facility to every household who are willing to do unskilled
manual work. The Act also provides time-bound employment within the 15 days of
application for work; if it is not done the daily unemployment allowance should be given
as per the Act (Kumar & Chakraborty, 2016). The Act also generates 33% employment
opportunity to the rural women who have registered and requested for work. The scheme
has been implemented by the Panchayati Raj Institutions with social audit system.

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 Role of Judiciary in upholding the Constitutional Mandate of Protection of
Unorganized Labour

Sometimes due to failure of proper implementation of legislations judiciary come forward for the
protection of the rights of unorganised workers. Unorganised workers indeed remain outside the
purview of social security measures.
Indian Judiciary played a pivotal role in the development of modern jurisprudence and made a
significant contribution to the protection of interests of weaker section of society which could be
reflected from several decisions. Judiciary also tried to extend the benefits of labour welfare
measurements such as the Employees Compensation Act, Payment of Gratuity Act, Employees
State Insurance Act, Employees Provident Fund etc.
Judiciary has exclusive responsibility for the protection of interest of a weaker section of society.
Through various judgments, the Supreme Court of India emphasized on Right to Livelihood as an
inherent part of Right to Life.
In the case of Rural Litigation and Entitlement Kendra, Dehradun v. Uttar Pradesh.13 The
court stated that the right to life under Article 21 of the Constitution of India also includes the right
to livelihood.
In the case of Sanjit Roy v State Of Rajasthan14, It was held that payment of wages lower than
the minimum wage to the person employed on famine relief work is violative of Article 23.
Whenever Any labour or service is taken by the state from any person, who is affected by drought
and scarcity condition the state cannot pay him less wage than the minimum wages on the ground
that it is given help to them to meet famine situation. The state cannot take advantage of their
helplessness.

13 1985 SCR (3) 169

14 1983 SCR (2) 271

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In the case of Deena vs Union of India15. The court held that the labour work that is taken from
the prisoners it without paying sufficient wages is considered forced labour, and it is an
infringement of Article 23 of The Constitution.The prisoners have the right to claim the reasonable
wages for their service rendered, and the court must enforce the claim of labourers.
In the case of Bandhua Mukti Morcha v. Union Of India16 The court held that whenever the
public interest litigation if initiated alleging the practice of bonded labour, the government needs
to accept it as the opportunities and to examine the issues or problem of labour and make efforts
to eradicate the practice of bonded labour and protect the labourers. Article 23 of the Constitution
of India, which prohibits the practice of bonded labour protects and helps the labourers to earn for
their livelihood.
In the case of Neeraja Chaudhary v. State of Madhya Pradesh 17. Justice Bhagwati held that it
is not sufficient for the Government to find about the existence of bonded labour, but it is also
necessary that the labourers should be rehabilitated because if they are not rehabilitated, then they
would be driven to despair, poverty and helplessness.
Article 21 states that bonded labour should be identified and efforts need to be made by the
Government to complete rehabilitation of the labourers. Directive Principles of State policy was
enacted as the guidelines for the government. Under DPSP, the State Government needs to provide
a basic human dignity to bonded labour and if it is not fulfilled, then it will result in the
infringement of Article 21 of the Constitution.
In the case of Daily Rated Casual Labour V. Union Of India18, it was held that whenever the
employees are classified into the casual and regular employees. Leads to the infringement of

15 WRIT PETITION (CRIMINAL) NO. 89 OF 2015

16
1984 SCR (2)67

17 (1984) 3 SCC 243

18 1988 SCR (1) 598

17
Article 14 and Article 16 of the Constitution. It is also against the spirit of Article 7 of the
International Covenant on Economic, Social And Cultural Rights,1966. When the labourers are
not paid minimum wages as prescribed by the Minimum Wages Act, then it amounts to
exploitation of labour. The court also stated that the Government should be the model employer
and not take advantage of its dominant position.
In the case of State V. Banwari19. The High Court of Allahabad stated that “The person cannot
refuse to render the services merely on the ground that such labours belong to the Scheduled Caste.
This is done to protect the interest of weaker sections of society.
In the landmark case M.C Mehta v State of Tamil Nadu20. The Supreme Court of India gave
order to the Government to do a survey and to stop the child labour in the matchstick and cracker
factories. The court also directed that the minimum wage paid by the subcontractors under
Minimum Wages Act should be directly paid and the provisions of section 21 of the Contract
Labour Act, 1970 should be observed.
In the case of Delhi Jal Board v. National Campaign for Dignity and Rights of Sewerage and
Allied Workers21. Neither the lawmakers nor those entrusted with the duty of implementing laws
enacted for the welfare of unorganized workers have put in place appropriate mechanism for the
protection of persons employed by or through contractors to whom service meant to benefit the
public at large are outsourced by state and its agencies for doing workers, which are inherently
hazardous and dangerous to live nor have they made provision for payment of reasonable,
compensation in the event of death.

Therefore, Judiciary is active to take all necessary steps for protection of the rights of unorganised
workers and implementing social security welfare schemes and also extend the advantages of
various labour welfare legislation.

19 1957 CriLJ 539

20
(1996) 6 SCC 756

21 2011 SCC OnLine SC 925

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 CONCLUSION

All the provisions of Constitution, Legislations made by the Governments over the years since
independence and Schemes aiming at ensuring social security for Unorganized sector workers
have improved the situation of unorganized sector manyfold. Government is now focusing on
having a full-fledged database containing record of number and identities of the workers in
unorganized sector to make it sure that all benefits go down to them in reality.
Over 22 crore unorganised workers have been registered on the e-shram portal till 18 January
2022, according to the Economic Survey 2021-2022. The portal was launched in August 2021 in
order to extend social security schemes and benefits to construction, migrant, platform,
agricultural, and MGNREGS workers, among others who work in the unorganised sector.
States including Uttar Pradesh (34.9 percent), West Bengal (10.7 percent), Bihar (10.7 percent),
Odisha (5.7 percent), Madhya Pradesh (3.5 percent) and Jharkhand (3.5 percent) rank the highest
with the greatest number of registrations. The survey highlighted that agriculture accounts for
11.53 crore registrations, and domestic workers and construction workers trail with 2.45 crore and
2.2 crore registrations respectively.
Currently, the sector is expected to have around 38 crore informal and unorganised workers.
Developed by the Ministry of Labour and Employment, the e-SHRAM portal was launched ‘to
create a National Database of Unorganized Workers (UWs),’ as per the Economy Survey released
today.
“One of the main objectives of this portal is to facilitate delivery of Social Security Schemes to
the workers. This database is seeded with Aadhaar and for age group between 16-59 years,” the
Survey added.
The portal provides an accidental insurance cover of Rs 2 lakhs for a year to all the eligible
registered workers. The cover can also be used during any national crisis or pandemic-like
situations, said the survey. Once registered, informal workers are allotted an e-Shram card with a
12-digit universal account number to avail of the government’s social security schemes. The
account number is valid throughout the country.

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Hence, India is progressing slowly and steadily to achieve complete protection of unorganized
labour.

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 REFERENCES

• www.scconline.com
• https://www.legalserviceindia.com/legal/article-8224-protection-of-rights-of-unorganised-
labourers-in-india.html
• https://blog.ipleaders.in/unorganised-sector-rights-protection/
• https://blog.ipleaders.in/unorganised-sector-rights-protection/
• https://www.indiabudget.gov.in/economicsurvey/ebook_es2022/files/basic-html/page398.html
• https://www.moneycontrol.com/news/business/economic-survey-2022-over-22-crore-
unorganised-workers-registered-on-govts-e-shram-portal-till-mid-january-8008241.html
• https://msme.gov.in/sites/default/files/Condition_of_workers_sep_2007.pdf
• https://blog.ipleaders.in/constitutional-values-labour-welfare/
• https://byjus.com/ias-questions/what-is-article-
42/#:~:text=Article%2042%20seeks%20to%20ensure,work%20and%20for%20maternity%20relie
f%E2%80%9D.

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