NOIDA INTERNATIONAL UNIVERSITY

Assignment Project
Subject- Employment & Labour Law
Code – LLM/OP/204

Submitted to:
Ms. Swati Duggal
Faculty of Law
Noida International University
Submitted by:
Umakant Singh
LLM (1-year course) 2023

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 INDEX
S.no Date Topic Teacher’s Page No.
sign
1. UNIT I: LAW RELATING TO EMPLOYMENT 3-10
REGULATION
2. UNIT II: INTRODUCTION TO LABOUR 11-12
LEGISLATION
3. UNIT III: LAWS ON WORKING CONDITIONS 13-17
4. UNIT IV: LAW RELATING TO INDUSTRIAL 18-21
RELATIONS
5. UNIT V: LAWS FOR LABOUR WELFARE AND 22-26
SOCIAL SECURITY

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 UNIT-I -Employment/Service Law- Recruitment Procedure- Rules Agencies —
Employment Exchange

Employment/Service Law- Recruitment Procedure- Rules Agencies —Employment Exchange

Introduction
Labor law is a concurrent topic under India’s Constitution, which means that the country’s labour and
employment laws are controlled at both the federal and state levels. The Industrial Job (Standing
Orders) Act (IESA), 1946, and the Industrial Disputes Act (IDA), 1947, as modified, are the two
primary federal legislation that governs employment termination.
The Shops and Establishments Act, which has been passed in most states with slight variances in
implementation procedures, also regulates the Indian labour market. The Shops and Establishments
Act governs labour and employment in any location where a trade, business, or profession is
conducted. Furthermore, the application of state laws varies depending on the employer’s business
activities, as described in the laws and supporting guidelines.
In India there are many types of employees and employers
In India, there are primarily two categories of employers and two types of employees recognised by
the law.
Employers come in a variety of shapes and sizes, including:
1. Establishments– This phrase encompasses a wide range of employers.
2. Factories– This phrase refers to employers who work in the manufacturing industry.
Employees come in a variety of shapes and sizes.
1. Employees– A phrase that encompasses all employees in whatever capacity.
2. The term “workmen” was coined in 1947. Workmen are employees who are not in
administrative, supervisory, or management positions.
Types of employment termination
Termination on one’s own accord
An employee who voluntarily leaves his or her job with a corporation is referred to as a voluntary
termination. This might include personal motivations for an employee, such as obtaining a new and
better job, retiring from a profession, or launching their own business. This might also be attributed to
a constructive dismissal for professional grounds. When an employee is unsatisfied with his or her
workplace, it is referred to as constructive dismissal. They may be subjected to harassment, low pay,
lengthy work hours, and a long commute, among other things.
Termination without warning
When an employee is forced to quit a company against their choice, this is known as involuntary
termination. During layoffs, terminating employees, downsizing, and other situations, a firm may
choose involuntary termination.

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Downsizing and layoffs
Layoffs and downsizing are terms used to describe a company’s decision to reduce its staff.
Employees that are downsized are frequently fired without cause. Companies reduce and rearrange
their personnel to save money. When a firm goes bankrupt or merges, downsizing is frequent. Layoffs
can also occur when an employee’s skill set is no longer relevant to the company’s current needs.
Losing your job
Employees may be dismissed as a result of poor work performance or because their actions and
attitudes cause problems in the workplace. A 30-day notice is not required in many countries,
including India, when an employee is fired for misbehaviour. Before being dismissed, employees who
have been fired for breaking business policies must be given the opportunity to defend themselves.
Unlawful dismissals
An employer has total control over anyone he or she hires and fires in his or her company. However,
an employer, on the other hand, cannot terminate an employee without good reason. In many
countries, firing an employee based on caste, race, colour, gender, or other factors is unlawful. An
employee who has taken maternity leave or a leave of absence, or who has revealed organisational
wrongdoings, cannot be dismissed for these reasons.
If your organisation is found guilty of unfairly firing employees, you must pay them and either restore
or give equivalent job opportunities. If companies are found guilty of wrongful termination, they may
face financial penalties.
Contractual termination
The method for ending employment is usually extremely explicit in most employment contracts. This
is most common when the termination is mutually agreed upon, and in particular when contractual
employment is for a specified amount of time. Consultants with international organisations, for
example, or interns at private companies, for example, frequently have set job terms.
Unless a new contract is provided or the terms of the existing contract are changed, an employee is
regarded as dismissed at the end of such a contract. Employees who are fired by their employers are
frequently given one month’s notice or paid one month’s salary in lieu of notice, as is the case in most
countries.
Termination under the law
As previously stated, any termination must adhere to federal and state laws, which take precedence
over contract provisions. When there is no specified method for termination, however, state law
becomes extremely relevant. In such cases, state law becomes the standard for dismissing an
employee. State legislation varies depending on the employer’s business practises.
Employee termination HR checklist
Here’s a brief guide to some of the steps that must be followed when dismissing staff.
Examine the company’s human resources policy
Before giving a termination notice to any employee, it is necessary to review your company’s HR
guidelines and policies. Every business has its own set of protocols for dealing with various
circumstances.

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Consult the employee contract
The employment agreement will detail the notice time, severance pay, and other benefits that must be
provided to the employee in the event of termination. This agreement is frequently signed at the start
and acts as a valuable reference that may be used in a court of law.
Publish a notice
Serving a notice is an important aspect of terminating an employment. 30 to 90 days before
termination, a severance notice must be delivered. This notification must be in writing and provide a
detailed explanation of why the employee is being fired.
Agree on a severance package
Employees who retire, get laid off, or reach the end of their contractual obligations are eligible for
severance pay. Employees who have worked for a year or longer shall be paid one month’s wages.
Employees must be granted three months’ pay if they are being laid off in a protected industry.
Employees are entitled to gratuity payments after five years of continuous employment under the
Payment of Gratuity Act.
Employee protection and access to the courts in the event of a conflict
A fired employee has the legal right to appeal to his or her jurisdictional authority. For one of the
following reasons, the employee might file a lawsuit in court:

• An employee was fired by his or her company for no apparent cause.

• The employee has not been found guilty of any wrongdoing and maintains his innocence.
• The employee believes their dismissal was made on unjustified grounds.
An employee must first construct a case and obtain clearance from their local labour authority before
seeking remedy of any of the following concerns. The matter may be handled by jurisdictional
conciliation officers, industrial tribunals, or labour courts if consent is given. The Indian Industrial
Act of 1947 was enacted to address the problems of workers in the manufacturing industry.
Conditions of Service terms Central Civil Service Rules State Civil Service Rules Pay
Commission Fixation of pay and other allowances- Law Relating to Civil Servants/Rules
‘Doctrine of pleasure’

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Doctrine of pleasure in India
In India, the doctrine of pleasure has not been completely adhered to, rather it has been modified to
suit the needs of the country. This doctrine has been incorporated in Article 310 of the Constitution of
India. Article 310(1) reads as follows:
“except as expressly provided by the Constitution, every person, who is a member of defence service
or of a civil service of the Union or of an All India Service or holds any post connected with defence
or any civil post under the Union, holds office during the pleasure of the President, the state holds
office during the pleasure of the Governor of the State.”
In our constitutional set-up, when an office is held during the pleasure of the President, it means that
the officer can be removed by the authority on whose pleasure he holds office, without assigning any
reason. The authority is not obliged to assign any reason or disclose any cause for the removal. Article
310 also makes it clear that though a person serves the Union or a State during the pleasure of the
President/Governor, the power of removal at pleasure is subjected to the other express provisions of
the Constitution.
Pleasure under Article 310 is not required to be exercised by the President or the Governor personally.
It may be exercised by the President or the Governor acting on the advice of the Council of Ministers.
In another case, it was decided that the pleasure of the President or the Governor under Article 310 is
not subject to any contract and cannot be fettered by contract, ordinary legislation, or the rules made
under Article 309.
What is the implication of the doctrine of pleasure?
The Supreme Court has justified the pleasure doctrine on the basis of ‘public policy’, ‘public interest’
and ‘public good’ insofar as inefficient, dishonest or corrupt persons, or those who have become a
security risk, should not continue in service.
Under Article 310, the government has the authority to penalize any of its servants for misconduct
committed not only in the course of official duties but even for that committed by him in private life.
The government has the right to expect that each of its servants will abide by certain values of
decency and morality in his private life. If the government were not able to do so, there would be an
appalling fall in the moral prestige of the administration. Thus, disciplinary action can be taken

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against a police constable (for example) for behaving crudely and improperly with a member of the
public in his private life.
Civil servants and the doctrine of pleasure
The legislature has constituted commissions at the Central and state levels (UPSC/SPSC) to regulate
the employment and working conditions of civil servants, supervise appointments and promotions and
endorse the value of public service. It is an independent constitutional body in the sense that it has
been directly created by the constitution. Articles 315 to 323 in Part XIV of the Constitution contain
elaborate provisions regarding the composition, appointment and removal of members along with the
independence, powers and functions of UPSC. Under the provisions of Article 309, Parliament is
authorized to regulate the prerequisite conditions of service of persons appointed to public service and
posts in connection with the affairs of the Union. Similarly, State Legislatures are parallelly given the
same powers to regulate recruitment and conditions of service of persons appointed to public service
or posts in connection with affairs of the State.
The term ‘civil servant’ includes members of a civil service of the centre or a state, or of all India
service, or all those who hold civil posts under the Centre or a State. A ‘civil post’ means an
appointment or office on the civil side and includes all personnel employed in the administration of
the union and the states.
The origin of Indian civil services can be traced back to England when it was officially known as
Imperial civil service in the late 18th century to early 19th century. It was considered to be an exam
for the elite class who, after passing the exam, would be appointed under the crown under Section
XXXII of the Government of India Act, 1858, enacted by the Parliament of the UK. It was headed by
the Secretary of State for India, a British member cabinet.
Thereby, they shall work under the crown’s pleasure. After the Indian independence, the inkling to
establish a Public Service Commission for the recruitment of Public Services in the country was first
expressed in the memorandum presented to the Committee on the division of functions by the
Government of India in 1919. The Royal Commission on Public Services (Lee Commission) in 1924,
emphasised the requirement for establishing without delay a Public Service Commission under the
Government of India Act, 1919.
They planned to allot to the Commission four different purposes; First, the enrollment of employees
for public services; Second, proper standardization of qualifications for admission to the services;
Third, punitive control and protection of services and finally, advisory roles in regard to the overall
service complications.
Independence of civil services
The independence of the civil service in giving advice in policy-making and in performing field
responsibilities is an important issue that has affected the functioning of the civil services in recent
years. In the Constituent Assembly of India, on 10th October, 1949, Sardar Vallabh Bhai Patel said:
“If you want an efficient all-India service, I advise you to allow the service to open their mouth freely.
If you are a Premier, it would be your duty to allow your Secretary, or Chief Secretary, or other
services working under you, to express their opinion without fear or favour.
But I see a tendency today that in several provinces, the services are set upon and told, “No, you, are
servicemen, you must carry out our orders.” The Union will go, you will not have a united India if
you do not have a good all- India service that has the independence to speak out its mind, which has a
sense of security that you will stand by your word and that after all, there is the Parliament, of which

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we can be proud, where their rights and privileges are secure. If you do not adopt this course, then do
not follow the present Constitution.”
In the early years of independence, in the 1950s and even the early 1960s, the nexus between the
political executive and civil service was of trust and non-partisan operatives of the civil service. The
trust has finally caved into the segmentation of civil servants and their politicisation in many cases.
Two emerging areas of relationship occurred, the first in those, where civil servants tried to preserve
their integrity and moral behaviour, and in the second where civil servants would bootlick up to the
political executive and cater to their needs irrespective of the service rules, good behaviour or ethical
conduct as the partisan class may not advantage them with respect to their assignments, allocations,
transfers and, other departmental matters.
The Second Administrative Reforms Commission (10th report on personnel administration, 2008) had
observed, “Often systematic rigidities, needless complexities and over-centralization make public
servants ineffective and helpless in achieving positive outcomes and on the other hand, the negative
power of abuse of authority through flagrant violation of law, petty tyranny and nuisance value is
virtually unchecked.”
The Hota Committee and the Santhanam committee have recognized that much of the deterioration in
the standards of probity and accountability within the Civil services can be traced to the practice of
issuing and acting on verbal instructions or oral orders which are not recorded. At present, the scheme
of handovers, placements, elevations, disciplinary and other non-personnel matters relating to the
higher civil services are ad-hoc and non-transparent. Transfers are often used as instruments of reward
and punishment, with officials being frequently transferred on the whims and caprices, as well as the
personal needs of local politicians and other vested interests. Officers, especially those in the All India
services serving in the state governments have no stability or security of tenure, the arena of transfer
is backed by entrenched and powerful vested interests, as frequent transfers generate huge amounts of
black money for corrupt officials and politicians, both directly and indirectly.
What are the constitutional safeguards under Article 311?
Article 311 provides a procedural safeguard. This safeguard has existed since the commencement of
administrative services in India in the form of rules, but the safeguard was elevated to constitutional
status in 1935.
All civil servants hold office during the pleasure of the Crown and are liable to be dismissed without
any reason assigned to them at the time of dismissal under the English Common Law. The Secretary
of State for the implementation of the doctrine of pleasure, though, outlined rules which, according to
the Judicial Committee, were envisioned to serve as a solemn pledge to the services that the rule of
pleasure shall not be used in a whimsical and capricious manner. The nature of the rules under the
Government of India Act, 1915, were executive instructions and it merely had the force of law.
However, in 1919, Section 96-B was introduced by the British Parliament which reiterated the rule of
pleasure, subjecting it to certain conditions and was given statutory force to the provision. In later
years, after certain modifications, it culminated as Article 311(1) and Article 311(2) in our
constitution.
Article 311(1): – According to this constitutional provision, no civil servant is to be dismissed or
removed by an authority ‘subordinate’ to the authority by which he was appointed. Dismissal or
removal of a civil servant by an authority subordinate to the appointing authority is invalid.

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Article 311(2):- This safeguard was introduced for the first time in the 1935 Act under (Sec. 240 (3) )
and its scope was interpreted in I.M. Lai’s case. Both the provisions apply to a person who is a
member of the civil service of the Union, All-India Services, the civil services of a state or holds a
civil post under the Union or a state. The most significant limitation imposed on the doctrine of
pleasure is by Article 311(2). According to this provision, no civil servant can be dismissed, removed
or reduced in rank except after an inquiry in which he has been informed of the charges against him
and given a reasonable opportunity of being heard in respect of those charges.

Judicial Review Central Administrative Tribunal State Administrative tribunalPowers and

Functions Appeal Provision —Writs
Growth of Administrative Tribunals
The 42nd Amendment to the Constitution introduced Part XIV-A which included Article 323A and
323B providing for constitution of tribunals dealing with administrative matters and other issues.
According to these provisions of the Constitution, tribunals are to be organized and established in
such a manner that they do not violate the integrity of the judicial system given in the Constitution
which forms the basic structure of the Constitution.
The introduction of Article 323A and 323B was done with the primary objective of excluding the
jurisdiction of the High Courts under Article 226 and 227, except the jurisdiction of the Supreme
Court under Article 136 and for originating an efficacious alternative institutional mechanism or
authority for specific judicial cases.
Characteristics of Administrative Tribunals
The following are the few attributes of the administrative tribunals which make them quite disparate
from the ordinary courts:

• Administrative tribunals must have statutory origin i.e. they must be created by any statute.
• They must have some features of the ordinary courts but not all.
• An administrative tribunal performs the quasi-judicial and judicial functions and is bound to
act judicially in every circumstance.
• They are not adhered by strict rules of evidence and procedure.
• Administrative tribunals are independent and not subject to any administrative interference in
the discharge of judicial or quasi-judicial functions.
• In the procedural matters, an administrative tribunal possesses the powers of a court to
summon witnesses, to administer oaths and to compel the production of documents, etc.
• These tribunals are bound to abide by the principle of natural justice.
• A fair, open and impartial act is the indispensable requisite of the administrative tribunals.
• The prerogative writs of certiorari and prohibition are available against the decisions of
administrative tribunals.
Procedure and Powers of Tribunals
Section 22 of the Administrative Tribunals Act, 1985 lays down the powers and procedure of
tribunals discussed below-
A tribunal is not bound to follow the procedure laid down by the Code of Civil Procedure, 1908. It has
the power to regulate its own procedure but must abide by the principle of natural justice.

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• A tribunal shall decide the applications and cases made to it as rapidly as possible and every
application shall be decided after scrutinizing the documents and written submissions and
perceiving the oral arguments.
• Tribunals have the same powers as vested by the civil courts under the Code of Civil
Procedure, 1908, while trying a suit, with regard to the following subject-matter-
• Summoning and enforcing the attendance of any person and examining him on oath;
• Production of documents;
• Receiving evidence on affidavits;
• Ask for any public record or document from any office under Section 123 and 124 of the
Indian Evidence Act, 1872;
• Issuing commissions for the examination of witnesses and documents;
• Reviewing its decisions;
• Deciding the case ex-parte;
• Setting aside any order passed by it ex-parte;
• Any other matter prescribed by the Central Government.
• Leading Case Laws

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 UNIT-11 INTRODUCTION TO LABOUR LEGISLATION

What is labour legislation

‘Labour legislation’ is a body of law formed for the working class of people to provide them with
legal rights, and also restrict them with rules and regulations. It defines the rights and obligations of
the working class. Labour law covers several areas-

• Certification of Labour Unions – The Labour Union is issued with a formal document
which ensures them the right to represent on behalf of all the labourers. This Union acts as an
exclusive bargaining agent.
• Collective Bargaining – The workers through their unions put demands before their
employers, like the terms of their employment, payment, leave, health and safety policies and
the number of working hours.
• Labour-Management Relations – The head of any working organisation has to resolve
conflict among his labourers because any misunderstanding between his employees will
create a downfall in his work progress.
• Workplace health and safety – It ensures that the employees are getting a safe environment
to work in and are not physically or mentally abused by the work culture because in the end a
better environment will only make them work with all their might.
• Employment standards – It includes annual holidays, working hours, unfair means of
dismissal of labourers, and compensation provided to the labourers who got terminated or
have left the job.
Concept and origin of labour laws
In society, institutions develop to abhor the gap that changes leave behind. The Industrial Revolution,
a historical phenomenon, completely transformed society from rural and agricultural to industrial and
consumerist. The changes brought about by the industrial revolution left some gaps, and it became
society’s responsibility to fill those gaps. To fill the gaps, society turned to certain social devices
known as labour laws. Labour laws are the result of the industrial revolution, and they were created to
address the problems that they caused. They differ from ordinary legislation in that they are meant to

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address unique issues brought on by particular situations. As a result, their orientation, philosophy,
and concepts are specific rather than general.
Industrial society resulted in the over-exploitation of the working classes by employers who took
advantage of the individual worker’s dispensability and sought the highest profit from their
investment. Due to the capitalist axiom that ‘risk and right’ go hand in hand, they had the authority to
‘hire and fire.’ The law at the time also included ideas like ‘master and servant,’ among others. The
common law principle was in effect. The terms of the contract were typically verbal and were mostly
used in cases of breach, which resulted in prosecution and imprisonment of the workers.
Establishment of the international labour organisation (ILO)
The establishment of the International Labour Organization in 1919 had a significant impact on how
labour laws developed throughout the world. Acceptance of the principle that ‘labour is not a
commodity’ and the slogan that ‘poverty anywhere is a threat to prosperity everywhere’ have
influenced the development of labour laws in all countries. The ILO has consistently established the
need for improved labour laws through its ongoing investigation of workers’ living conditions. It has
proposed new labour laws, gone through extensive deliberations and reviews, and adopted
conventions and recommendations. By attempting to establish uniform labour standards insofar as the
world’s diverse conditions and uneven economic development permit, the ILO has performed a
singular service in the field of labour legislation.

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 UNIT-III LAWS ON WORKING CONDITIONS

The Factories Act, 1948

Important provisions of the 1881 Act
The important provisions of the 1881 Act are as follows:

• Children under the age of seven are not allowed to work, and they cannot work two jobs on
the same day.
• The working hours for children were nine hours per day.
• Four holidays must be given to children each month.
• Intervals must be provided to take a rest.
• Care must be taken when handling machinery’s dangerous parts fence.
• Accidents in a factory or industry must be reported.
• The Act was applicable to factories with mechanical power and 100 or more employees.
Since the Factory Act of 1881 was not enough and did not cover all aspects of the Act, there was a
further amendment to the Act called the Factory Act of 1891.
Important provisions of the 1891 Act
The important provisions of the 1891 Act are as follows:

• Registration of a factory with 50 or more employees.

• Local governments were obliged to report activities that employed even 20 employees in a
factory.
• The employment of children under the age of nine was prohibited.
• In the case of children aged 9 to 14, seven hours of work were given.
• In the case of women, eleven hours of work were given with a 1.5-hour break per day.
• Women and children were not permitted to work between the hours of 8 p.m. and 8 a.m.
• All employees must be offered weekly holidays.
• A rest interval of at least 0.5 hours must be provided.
• Provincial governments are empowered to enact sanitation and comfort rules.

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 Salient features of Factories Act, 1948
The important features of the 1948 Act are as follows:
The word “factory” has been expanded by the Factories (Amendment) Act of 1976 to include
contract labour when determining whether a factory has a maximum of 10 or 20 employees.
The Act increased the minimum age for children to work in workplaces from 12 to 14 and
reduced their daily working hours from 5 to 4 and a half.
The Act forbids women and children from working in factories from 7 p.m. to 6 a.m.
The difference between a seasonal and non-seasonal factory has been abolished by the Act.
The Act, which has provisions for factory registration and licencing.
Objectives of Factories Act, 1948
The important objectives of the 1948 Act are as follows:
The major goal of the Factories Act of 1948 is to establish adequate safety measures and to enhance
the health and welfare of workers employed in a factory. The Act also protects workers from various
industrial and occupational hazards.

• Heath: According to the Act, all factories must be kept clean, and all essential safeguards
must be taken to safeguard the health of workers. The factory must have a sufficient drainage
system, adequate lighting, ventilation, temperature, etc. There must be clean water supplies.
Separate restrooms and urinals must be built in convenient locations for males and females.
These must be freely accessible to employees and kept clean.
• Safety: The Act requires that machines be properly fenced; that no young adults work on any
dangerous machines in enclosed places, and also that appropriate manholes be provided so
that employees may escape in an emergency.
• Welfare: The Act specifies that appropriate and suitable washing facilities for workers must
be provided and maintained in every factory. There must be storage and drying facilities, as
well as sitting areas, first-aid equipment, shelters, restrooms and lunch rooms.
Labour and welfare
The word ‘labour welfare’ refers to the services offered to employees within as well as outside the
factory, such as canteens, restrooms, recreation areas, housing, and any other amenities that support
employee well-being. States that take welfare measures care about the overall well-being and
productivity of their workforce. Early on in the industrialization process, social programmes for
manufacturing workers did not receive enough priority. In the past, industrial labour conditions in
India were terrible. Due to a growth in industrial activity in the latter part of the twenty-first century,
several attempts were made to improve the working conditions of the workforce through the
recommendations of the Royal Commission.

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Registers required to be maintained under the Factories Act, 1948

Form 6 Register of hygrometre (Humidity register)

Form 7 Register of white-washing

Form 7A Register of tight clothes provided

Form 9 Register of compensatory holidays

Form 10 Register of overtime for exempted workers

Form 12 Register of adult workers

Form 14 Register of child labour

Form 15 Register of leave with wages

Form 24 & 25 Muster Roll-9

Form 26 Register of accident & dangerous occurrence

Child Labour (Prohibition and Regulation Act, 1986

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Defining child labour
The idea of child creates uncertainty because it is motivated by personal views. Therefore, a standard
must be recognized to define the minimum age at which a child is considered to be. The International
Labour Organization (ILO) defines child labor as any work that robs children of their youth, potential,
and dignity and is detrimental to their physical and mental development.
As a result, under Article 2(3) of the International Labour Organization (ILO), the minimum age for
entry into employment or work in any profession “shall not necessarily be below the age of
completion of compulsory Schooling and, in any case, shall not be less than 15 years of age” under
the ILO’s definition of “Child.”
The ILO explains how child labor is defined in many approaches, and definitions provide various kid
labor estimates.[3] However, the UNICEF definition of Child labor is distinctive. According to the
1989 UN Convention on the Rights of the Child, which includes the right to refrain from economic
exploitation, “A child is a person under the age of 18.”
The Child Labor Act, 1986
Since 1881, numerous laws have been passed to gradually provide legal protection to children who
are working machinery. The Child Labor (Prohibition and Regulation) Act of 1986[15] repealed the
two principal pieces of legislation governing child labor, the Children (Pledging of Labor) Act of
1933[16] and the Employment Children Act of 1938.[17]
It undoubtedly resulted from various suggestions made by numerous Commissions, including the
Sanat Mehta Committee in 1984 and the Gurupad Swamy Committee on Labor in 1976. Because of
the policies of both prohibition and regulation, these commissions frequently worked to reform the
legal system.
Applicability of the Act
Any business or class of establishments that do not engage in the activities mentioned in Section 3 of
this Part of the Act are subject to the provisions of this Part.
The Act aims to:

• Forbid the use of children, or those under the age of fourteen, in specific processes and
activities.
• Establish a method for deciding whether to make changes to the list of prohibited jobs or
functions;
• Control the circumstances of child workers’ employment in the range of jobs they are allowed
to hold;
• Impose harsher punishments for employing children in violation of the provisions of this Act
and other laws that prohibit doing so;
• Ensure that legislation about children is uniform in its definition of a child.
Critical analysis of the Child Labour Prohibition & Regulation Act, 1986
The Act is in favor of regulation rather than abolition of child labor with the conflicting dual
objectives of prohibiting and regulating child labor, which is in violation of Article 24 of the
Constitution.

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Another significant gap in the Act is the lack of programs for the child’s rehabilitation. By employing
children in regards to their homes and work experience, the caveat attached to Section 3 is being
misused.[19]
This provision aids employers in posing as family members of the youngsters working in their
facilities, allowing them to continue abusing the children. Additionally, different laws define a child’s
age differently. The age of a child cannot be determined using any precise standards or objective
scientific measures. As a result, this Act created ambiguity and uncertainty.
Additionally, the Child Labor (Prohibition and Regulation) Act of 1986’s definition of a child
conflicts with the Juvenile Justice (Care and Protection of Children) Amendment Act of 2006[20]
And the 1989 United Nations Convention on the Rights of the Child.
Indirectly permitting child labor and only partially outlawing it, Article 24 of the Constitution. It is
clear from a straightforward reading of Article 24 that the employment of minors under the age of 14
is not outright prohibited under the Indian Constitution.
Their work is only forbidden in mines, factories, and other dangerous jobs. All establishments must
hire children over the age of fourteen, excluding factories, mines, and jobs that could be
dangerous.[21]
The many laws and regulations about child labor and child rights seem to function independently of
one another. No connections exist between them. It should be highlighted that the child labor rules
were unaffected by the right to education—the Right of Children to Free and Compulsory Education
Act of 2009.[22]
All children between the ages of 6 and 14 were supposed to get free and required education under the
Law. However, the 1986 Child Labour (Prohibition and Regulation) Act makes a mockery of
children’s rights by allowing minors under fourteen to work in non-hazardous jobs.
It is possible to conclude that the rules and laws governing child labor are flawed in themselves and
violate children’s fundamental right to an education. To make the Act consistent with the right to
education, it must be changed immediately. Including children who work in agricultural settings in the
definition of child labor is also crucial.
As a result, it can be seen that this Act does not entirely outlaw child labor and does not adhere to the
ILO recommendation for the minimum age for employment, which is fifteen years old. India was the
first country to join the International Programme for the Elimination of Child Labor (IPECL) when it
was established by the International Labour Organization (ILO) in 1991.
However, despite poor plans and program implementation, the issue still exists. Although laws might
help with the issue of child labor, their practical implementation remains a challenge.

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 UNIT-IV LAW RELATING TO INDUSTRIAL RELATIONS

History of Trade Union - Trade Union Act, 1926

Historical background of the trade union movement in India
The industrial revolution in India in the 19th century had a drastic impact on the western world. This
caused an impact on the social structure resulting in significant changes in the production, shipping
and transportation processes. The development of science and technology in the industrial sector led
to the emergence of the two classes. The managerial class (entrepreneurship class) and the working
class (labour or wage-earning class). Further , both these classes have conflicting interests. While the
working class demands for higher wages with better working conditions the managerial class demands
for more production at minimum wages.
As a result of change in the industrial relations, the managerial and the wage-earning classes have
different goals and this conflict is mainly caused by how the government manages them. In order to
resolve the dispute between both the classes the government implements certain policies and make
use of administrative actions and tripartite consultation. These disputes include the dispute over wages
of the worker, inadequate security and facilities and other similar issues.
The factors like restrictions on free speech, unequal wages for the workers, lack of industrial
development and other forms of exploitation of the workers have significantly contributed to the
growth of trade union movement in India during the 19th century and the First World War.
N.M.Lokhande (Narayan Meghaji Lokhande) who is regarded as the father of the trade union
movement in India was the first to set up the organised labour movement in India. His aim was to
revise the Factories Act of 1881 and to create awareness about the unfair treatment of the textile
workers in India.
Registration of trade unions
The method of registration of the trade unions encourages the unions to expand steadily and maintain
strong unions. The Act provides certain protection and benefits to the registered trade union. As a
result, it is necessary to register the trade union under the Trade Union Act, 1926.
The provisions relating to the registration of the trade unions are provided under Chapter II, Section 3
to 14 of the Trade Union Act, 1926. The registration of trade unions ensures the advancement of long-
lasting and reliable unions. Although the registration of the trade union is not mandatory, it is
recommended because the registered trade union enjoys certain immunities. Similarly, certain rights
and privileges have been provided to the members of the registered trade union.
Provisions of the Trade Unions Act, 1926
The labourers, especially the ones who work in the unorganised sectors, lack the capacity to bargain,
and this becomes a major reason for their exploitation. The right to collective bargaining is provided
only to those trade unions that are registered. But in India, there is legislation regarding the
recognition of trade unions but there is no single legislation on the registration of trade unions.
Realising the need to have central legislation for the registration of trade unions, the parliament
passed the Indian Trade Union (Amendment) Act in the year 1947. The said Act sought to introduce
Chapter III-A into the Trade Union Act, 1926, which enumerated the conditions required for the
mandatory recognition of any trade union. However, this Act was never brought into force. Therefore,
the mandatory recognition of trade unions is not present under any law in force in India.

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Registration of trade unions
By relying on the registration mechanism, unions are encouraged to grow steadily and permanently.
According to the Act, a registered trade union is entitled to certain protections and benefits. As a
result, the union’s supporters are prompted into registering their trade unions under the Trade Unions
Act of 1926.
The regulations relating to the registration of trade unions are outlined in Sections 3 to 14 of Chapter
2 of the Trade Union Act of 1926 and the Central Trade Union Regulations, 1938, which have around
17 Rules and forms A, B, and C. A useful tool for ensuring the expansion of long-lasting and reliable
unions is registration. Although it is not required, registration is preferred because a registered trade
union is granted certain benefits and immunity. Members of a registered trade union are also granted
certain rights and advantages. In other words, those who belong to a legally recognised union are
entitled to protection, immunity, and exemption from certain legal obligations on both the civil and
criminal sides. However, it should be remembered that a personal conflict only becomes an industrial
issue when it is represented by a group of employees or a trade union, whether they are registered or
not.
Collective bargaining
What is collective bargaining
Definition
According to Article 2 of the Collective Bargaining Convention, 1981 (No. 154) of the International
Labour Organisation, “collective bargaining extends to all negotiations which take place between an
employer, a group of employers or one or more employers’ organisations, on the one hand, and one or
more workers’ organisations, on the other, for
(a) determining working conditions and terms of employment; and/or
(b) regulating relations between employers and workers; and/or
(c) regulating relations between employers or their organisations and workers or workers’
organisations”.
In the case of Ram Prasad Viswakarma v. Industrial Tribunal (1961), it was observed that before
collective bargaining was introduced, labourers found it very difficult to negotiate the terms and
conditions of their contracts. With the arrival of trade unions, collective bargaining became the norm.
It became more convenient as employers only had to negotiate with the representatives of the
labourers instead of engaging with every individual labourer.
Advantages of collective bargaining
The following are the advantages of collective bargaining:
Being a part of a group helps employees to voice their demands and negotiate better with their
employers. It is harder for employers to dismiss the demands of a unified large group of employees or
a trade union in comparison with individual employees.
It helps to improve the workplace conditions for employees.
It makes the rights and obligations of both employers and employees clear.

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Stages of collective bargaining
The following are the stages that the process of collective bargaining typically goes through:
Forming a union
As per Section 9A of the Trade Unions Act, 1926, the minimum number of employees to constitute a
trade union is seven. Though registration of a union is not compulsory, it definitely comes with its
advantages such as providing adequate representation for workers, using funds for specific purposes,
immunity from civil suits, etc.
Making a charter of demands
In this stage, either the union or the employer may initiate the proceedings of collective bargaining.
The trade union then drafts a charter of demands through several discussions conducted among all of
its members.
Negotiation
The negotiations begin with the submission of the charter of demands. Generally, it is the union that
formally presents proposals for changes in the existing labour agreements in the initial meeting. Then,
the management gets the opportunity to present counter-proposals. This keeps going on until they can
form an agreement. When it becomes impossible for them to reach an agreement, a third party may be
appointed as a mediator or an arbitrator.
Forming an agreement
Once a negotiation becomes successful, the management and the union form a written agreement.
This agreement is called a collective bargaining agreement.
Strikes
In case the negotiation process fails, the union may declare a strike. As per Section 22 of the
Industrial Disputes Act, public utility sector employees must provide six weeks’ notice of a strike, and
may strike fourteen days after providing such notice. Neither the management nor the union is
permitted to take any industrial action while the conciliation is pending, and not until seven days after
the conciliation proceedings conclude, or two months after the legal proceedings conclude.
Conciliation
The conciliation process begins when the conciliation officer receives a notice of strike. There are two
alternatives that can be taken in this step. As per Section 4 of the Act, during the cooling-off period,
the state government may appoint a conciliation officer for investigating, mediating and promoting
settlement. As per Section 5 of the Act, the second alternative is that the state government may
appoint a Board of Conciliation and it shall be composed of a chairman and either two or four
members. Strikes are not organised during the process of conciliation as per Sections 22 and 23 of the
Act. Section 20 of the Act provides that this step ends with a settlement or a reference to an industrial
tribunal or labour court, and sometimes no settlement is arrived at.
Freedom of Association
Man is a social animal.He cannot develop keeping himself aloof from his fellowmates in the
community. No man can live and progress in isolation. He needs people around to communicate with
in order to survive in the society. He cannot afford to live in a shell or act timid, far and distant from
the other individuals in the surrounding.

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Continuous existence will be troublesome if he detaches himself or stays disconnected and totally
separate from the people residing in the society and also from their actions and activities. If a person
shuns the society around to live in seclusion, he will not be able to lead a comfortable and a stable
life.Necessity compels man to live together and form relationships with other individuals. He will find
himself incapable to satisfy his day to day needs and other necessities if he restrains from interaction
and networking. He will remain unsatiated if he does not have the cooperation and coordination of his
fellow beings. He should keep himself involved in some kind of a group or association or a club etc
which would assist him in communication with the others as well as help in self awareness.
Participation in different organizations, groups will aid an individual in keeping himself updated and
informed with regard to the daily happenings and instances occurring in the society. In today’s era, a
man cannot live in his own self made zone, reluctantand nervous or be it adamant and rigid to step
into the outside world, having the perception that he would be able to sustain himself withoutsocial
interaction , companionship , bonding or discussion.
If a man believes so , then most evidently he is carrying a misapprehension in his head and definitely
is living in a bubble at the same moment. So , these associations , clubs and groups will not only help
an individual socialize and develop warm and cordial relations with others but also at the same time
will give him an opportunity to put forth his own thoughts and opinions relating to any issue or a
particular agenda in the society.
When he joins a certain group or an association, the same serves as a helping hand to him in
promotion and acknowledgement of his views, choices and interests and also inspires others to come
ahead and share their own ideologies. People engaged in a certain group or in an organization having
common aims and goals should strive together to achieve the same.

Industrial Disputes Act

Objectives of the Industrial Disputes Act, 1947
The act was drafted to make provision for the investigation and settlement of industrial disputes and
to secure industrial peace and harmony by providing mechanisms and procedures for the investigation
and settlement of industrial disputes by conciliation, arbitration and adjudication which is provided
under the statute.
This Act was passed with the key objective of “Maintenance of Peaceful work culture in the Industry
in India” which is mentioned under the Statement of Objects & Reasons of the statute.
The Industrial Dispute Act also lays down:

• The provision for payment of compensation to the workman on account of closure or layoff or
retrenchment.
• The procedure for prior permission of the appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
• The actions to be taken against unfair labour practices on the part of an employer, a trade
union or workers.

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 UNIT-V LAWS FOR LABOUR WELFARE AND SOCIAL SECURITY
Constitution and Labour Welfare

Labour Rights and Indian Constitution

Indian constitution provides numerous safeguards for the protection of labour rights. These safeguards
are in the form of fundamental rights and the Directive principle of State policy.
Articles 14,19,21,23 and 24 comprise of fundamental rights promised under part III of the
Constitution. Articles 38, 39, 39A, 41, 42, 43,43A and 47 form part of the Directive Principles of
State Policy under Part IV of the Constitution, but they are not enforceable in a court of law.
Article 39, 39A, 41, 42, 43 and 43A collectively can be termed “Magna Carta of working class in
India.”
Principle of equal pay for equal work and Indian Supreme Court
The principle of equal pay for equal work is enshrined in Article 39(d) of the Constitution. For the
first time, this principle was considered in Kishori Mohanlal Bakshi v. Union of India3 in
1962.Supreme Court then ruled that it was not capable of being enforced in a court of law. The Apex
court changed its mind in 1982 when in Randhir Singh v. Union of India4, through a 3 judge bench, it
held that:

The principle of ‘equal pay for equal work’, which meant equal pay for everyone irrespective of sex,
was deducible from preamble and Articles 14,16 and 39(d) of the Constitution. The principle of equal
pay for equal work w as held to be applicable to cases of unequal scales of pay, based on
classification or irrational classification, though both sets of employees(engaged on temporary and
regular basis, respectively) performed identical duties and responsibilities.
Article 38(1) enjoins the State to strive to promote the welfare of the people by securing and
protecting as effective as it may a social order in which justice- social, economic and political shall
inform all institutions of the national life. In particular, the State shall strive to minimise the
inequalities in income and endeavour to eliminate inequalities in status, facilities and
opportunities.Art.39 (d) enjoins a duty to see that there is equal pay for equal work for both men and

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women and this directive should be understood and interpreted in the light of the judgement of this
court in Randhir Singh v.Union of India (1982).

The jurisprudence developed through these two case laws was recently applied by the Apex Court in
the case of State of Punjab v.Jagjit Singh6 (2016) where it held that temporarily engaged
employees(daily wage employees, ad‐hoc appointed on casual basis , contractual employees and the
like),are entitled to minimum of the regular pay scale, along with dearness allowance(as revised from
time to time )on account of their performing same duties, which are discharged by those engaged on
regular basis, against sanctioned posts.

Minimum Wage

Fixing Minimum Rates of Wages

Section 3 of the Act provides for fixing the rates of the minimum wage by the appropriate
government. Sub-section (1) provides that the appropriate government shall fix the minimum rate of
wages payable to the employees in employment mentioned under Part I or Part II of the Schedule to
the Act (Scheduled Employment) and review the minimum wages for a period of five years. Sub-
section (1A) provides that the appropriate government may refrain from fixing minimum wages for
any Scheduled Employment where the number of employees in the whole State is less than one
thousand until such number remains less than one thousand.

Sub-section (2) provides that the appropriate government may fix:

• Minimum time rate;

• Minimum piece rate;
• A guaranteed time rate; and
• An overtime rate.

Sub-section (3) provides the power to the appropriate government to fix different rates of minimum
wages for the following:

• Different scheduled employments;

• Different classes of work in the same scheduled employment;
• Adults, adolescents, children and apprentices; and
• Different localities

These minimum wages can be fixed either on an hourly basis, by the day, by the month, or by any
other time period as prescribed by the appropriate government.

Section 4 of the Act provides the minimum rates of wages. Minimum rates of wages shall consist of
either:

“(i) a basic rate of wages and a special allowance at a rate to be adjusted, at such intervals and in such
manner as the appropriate Government may direct, to accord as nearly as practicable with the
variation in the cost of living index number applicable to such workers (hereinafter referred to as the
“cost of living allowance”); or

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(ii) a basic rate of wages with or without the cost of living allowance, and the cash value of the
concessions in respect of supplies of essential commodities at concessional rates, where so authorised;
or

(iii) an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash value of
the concessions, if any.”

Further, Section 5 of the Act provides that the appropriate government may fix or revise minimum
wages either by appointing committees and sub-committees or by publishing its proposal for the
people likely to be affected by such proposals in the Official Gazette.

In Standard Vacuum Refining Company v. Its Workmen (1961), the Apex Court held that the
following shall be the guiding principles for the determination of minimum wages by all wage fixing
authorities:

• A standard working-class family should contain 3 units for every earning member, in which
the earnings of women, children, and adolescents must be disregarded;
• Minimum food requirement must be calculated on the basis of net calorie intake;
• Clothing must be calculated at the rate of 18 yards per person per annum;
• With respect to housing, the rent corresponding to the minimum area provided for under the
Government’s Industrial Housing Scheme should be taken into consideration; and
• Fuel, lighting, and other miscellaneous items of expenditure must constitute 20% of the total
minimum wage.

Later, in Reptakos Brett & Company’s case, the Court added another factor for fixing minimum
wages in addition to the above five. It was held that the education of the children, medical
requirements, minimum recreation, including festivals, etc., and provision for old age, etc. should
further constitute 25% of the total minimum wage.

With regards to the question of whether dearness allowance would constitute a part of the minimum
wages, the Bombay High Court in the case of Harilal Jechand Doshi Ghatkopar v. Maharashtra
General Kamgar Union (2000) held that the provisions of the Minimum Wages Act, 1948 do not
postulate different criteria for the calculation of minimum wages. If the employer pays a total wage
that is above the minimum wages fixed under the Act, he cannot be held to be in contravention of the
provisions of the Act, as the total wages would comprise of basic wages and a dearness allowance.

A similar view has been taken by the Hon’ble Supreme Court in the case of Airfreight Ltd. v. State of
Karnataka & Ors. (1999). The Court held that in cases where the minimum wages are linked with the
cost of living index, the amount paid on the basis of dearness allowance is not to be taken as an
independent component but rather has to be considered a part and parcel of the minimum wages.

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Labour and Human Rights Equality

Payment of Remuneration at Equal Rates to Men and Women Workers and Other Matters
Chapter 2 of the Act, provides for payment of remuneration at Equal Rates to Men and Women
workers and other matters.
Duty of employer to pay equal remuneration to men and women workers for the same work or
work of similar nature
The employer must not discriminate on grounds of sex, when it comes to remuneration provided for
the same amount and nature of work. This Act was placed because there were numerous cases of
women getting paid at a lower rate than their male counterparts.
In the case of People’s Union of Democratic Republic v. Union of India 1982, women were only paid
7 per day as opposed to 9.25 per day for male workers. After hearing both sides, Justice P.N.
Bhagwati held that the authorities need to make sure that the men and women both are paid at par to
each other for similar amount of work.
No discrimination to be made while recruiting men and women workers
The Act suggests that there must not be discrimination in recruitment of personnel on the basis of
ground of sex. The section states that there must be no discrimination in remuneration from the
commencement of the Act and provides an exception regarding employment of women is prohibited.
There are certain places which are hazardous for employment of women and children, the section
provides immunity from employment at those places.
Advisory Committee
Section 6(1) of the Act states that an Advisory committee must be created which will aid the purposes
increasing employment opportunities. The government is taking all possible steps in making a change
in the remuneration policies of the employers in India.
Section 6(2) states, the definition of appropriate government is given in 2(a)(1) here means, the part of
the Central Government which is responsible for the administration of that area of work. The areas of
work, which are administered by a Central authority or a Central Act, for example, Banking
companies, oil fields etc. will be addressed to the Central Government. The rest of the areas which
come under the state government’s authority, will be governed by the State government.

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The advisory committee must consist of at least 10 people, which will be nominated by the
appropriate government. Women must consist of one-half of this committee because that will help in
formulation of policies with the help of people who are the real stakeholders.
Section 6(3) states, the factors which make a difference in the decision are:

• Number of women at work

• Nature of work
• Hours of work
• Suitability of women
• Need to provide opportunities
After consideration of all these factors, the committee must decide in bringing the appropriate norms
in effect. The advisory committee will work towards bringing reforms by understanding the
requirements of the employees. The committee is free to regulate its own procedures. The appropriate
government will implement the policy as suggested by the committee.

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