1.

EVOLUTION OF
EMPLOYMENT LAWS IN THE
INDIAN SUBCONTINENT
BY
Institute of Business Administration
& Employer Federation of Pakistan

Facilitator

PERWEZ SHAFI, Ph.D.

Editor, Author and
Labour Law Advisor & Consultant

BUREAU OF LABOUR PUBLICATIONS

July 7, 2019
Facilitator: PERWEZ SHAFI, M.A. MS, Ph.D.

Co-author: LABOUR CODE OF PAKISTAN

Editor: EASTERN WORKER

Journal of Labour Laws, Industrial Relations, HR & Social Compliance

Advice & Consulting:

To number of national and multinational companies

Tel (Off.): (021) 3241-4975 3701-1600

Email: blplabourlaws@yahoo.com
Website: www.blplabourlaws.com
Evolution of Employment Laws in the Indian Subcontinent

1.

Pre-partition Laws Regulating

Conditions of Employment in
establishment.
 Evolution of Employment Laws in the Indian Subcontinent

Pattern of Employment during Mughal Rule

(Agrarian - Pre-Industrial)
• Who were the employers:
– Mostly state, &
– Agriculture
• Two type of State employment:
bureaucratic & militia
• Life long employment – no termination
• No fixed wages or Benefits
 Evolution of Employment Laws in the Indian Subcontinent

• No written or specific terms and conditions

• No fixed wages or Benefits

• All depends upon war booti

• Usually lifelong employment

• Continuation of employment depends upon
the pleasure of the King
• Waging war was the source of income
• King takes care of one & his family needs
 Evolution of Employment Laws in the Indian Subcontinent

Agriculture
• Employers were Landowners (land
betowed by Kings)
• Employees were landless farmers/haris
who tilled the land.
• No wages for farmers but usually taken
care of them & their families.
• Subsistence living–no guaranty of payment
• In case of no wars, famine, or other
catastrophes living was very difficult.
 Evolution of Employment Laws in the Indian Subcontinent

Other Forms of Employments

• Construction workers who builds masjids,
mausoleum, barricks, forts, etc.
• Artists

• Artesian

• Tile making

• Tile designing
• etc.
 Evolution of Employment Laws in the Indian Subcontinent

Mughal Economy & the West

• Mughal Economy and GDP was far more
than the West (European colonizers)
• West was behind economically from
Mughal India until 1804.
• Colonization gave West competitive
advantage
• Little industry was destroyed to send cheap
raw material to the west
• Cheap or Slave labour was exploited.
 Evolution of Employment Laws in the Indian Subcontinent

Employment Laws under Western

Colonization
• Industrialization started mainly to support
war efforts-- territory, trade, trade routes
•Industrialization to speed up processes and
economics
•West improved employment terms and
conditions
• Guaranty of wages & benefits
Evolution of Employment Laws in the Indian Subcontinent

2.

Employment condition laws

inhereted at the time of partition
of India
 Evolution of Employment Laws in the Indian Subcontinent

Employment Laws under Western

Colonization
•Legal culture was developed, Labour Laws
were instituted by the West
•Penal Code 1860s
•Workmen's Compensation Act, 1923
•Factories Act, 1934
•Payment of Wages Act, 1936
•Industrial Employment (Standing Orders)
Act, 1946
Evolution of Employment Laws in the Indian Subcontinent

3.

Industrial Employment
(Standing Orders) Act, 1946
 Evolution of Employment Laws in the Indian Subcontinent

Industrial Employment (Standing Orders)

Act, 1946
•Objective of the Act :
•To provide regular standing orders for
workers, factories, & working relationship.
•To ensure that employee knows the terms
and conditions of employment and
•To promote industrial peace and harmony by
supporting fair industrial practices.
 Evolution of Employment Laws in the Indian Subcontinent

• Act applies to all industrial establishment

having 100 or more workers
• Workmen classification into categories
such as permanent, temporary, on
probation, etc.
• Method of informing the workmen about
working hours, holidays, etc.
• Shift working.
• Temporary stoppages of work.
 Evolution of Employment Laws in the Indian Subcontinent

• Provisions concerning the termination of

employment and the notice period.
• Actions/inactions which are treated as
misconduct and the consequences for the
fault.
• Grievance redressal mechanism in case of
unjust or unfair treatment by the employer.
• Attendance marking system for workers.
 Evolution of Employment Laws in the Indian Subcontinent

Certification of Standing Orders

Mandatory for every employer to get standing

orders certified by submitting five draft copies
of the standing orders to the certifying officer
such as labour commissioner/regional labour
commissioner & also includes any other officer
appointed to perform the functions of certifying
officer.
 Evolution of Employment Laws in the Indian Subcontinent

Particular information generally provided in

the standing orders include:
•Workmen classification into categories such
as permanent, temporary, on probation, etc.
•Method of informing the workmen about
working hours, holidays, etc.
•Shift working.
•Temporary stoppages of work.
 Evolution of Employment Laws in the Indian Subcontinent

• Provisions concerning the termination of

employment and the notice period.
• Actions/inactions which are treated as
misconduct & the consequences for the
fault.
• Grievance redressal mechanism in case of
unjust or unfair treatment by the employer.
• Attendance marking system for workers.
 Evolution of Employment Laws in the Indian Subcontinent

• Employment termination and the notice

thereof to be provided by both employer
and the workers.
• Procedure for availing leave and
encashment, accumulation of leaves.
• Workmen records and information, etc.
 Evolution of Employment Laws in the Indian Subcontinent

• Payment in case of Misconduct

• If a worker suspended at the investigation
or inquiry into complaints or charges of
misconduct against him, it is mandatory for
the employer to pay to such workman
subsistence allowance at the following
rates:
• For the first 90 days: 
at the rate of 50% of the wages.
 Evolution of Employment Laws in the Indian Subcontinent

• For 91 to 180 days: 

• at the rate of 75 % of such wages of
suspension if the delay in the completion of
disciplinary proceedings.
 Evolution of Employment Laws in the Indian Subcontinent

Modification of Standing Order

•Final Certified Standing orders was not liable

to change, except by an agreement between
the employer and workers to the contrary,
•until the expiry of six months from the date
last modification came into operation.
 Evolution of Employment Laws in the Indian Subcontinent

• An employer or workers or a trade union or

other representative body of the workman
may apply to the certifying officer to have
the standing orders modified, and such
application shall be accompanied by five
copies of the modifications to be
performed.
Thank you!