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INTRODUCTION

TO LABOUR LAW
LECTURE-1
ROADMAP

■ AN OVERVIEW OF LABOUR LAWS IN INDIA


■ TO UNDERSTAND THE CONSTITUTIONAL FRAMEWORK
■ TO UNDERSTAND THE ROLE OF ILO
WHAT IS LABOUR LAW?

■ The expression ‘labour law’ refers to laws dealing with employment relations, dispute
resolution, conditions of work, wages and social security.
■ Labour law refers to statutory provisions, rules, judicial interpretation and practices that
have emerged in the countries concerned.
■ Labour law seeks to regulate the relations between an employer or a class of employers
and their employees. The access of this law is the widest, in that it touches the lives of
far more people, indeed millions of men & women as compared to any other branch of
law and this is the aspect which makes it the most fascinating of all branches of law and
the study of this subject is of enormous dimension and of ever changing facets.
PURPOSE OF LABOUR LAW

• It establishes a legal system that facilitates productive individual and collective


employment relationships and hence a productive economy. 
• By providing a framework within which employers, workers, and their representatives
can interact with work-related issues, it serves as an important vehicle for achieving
harmonious industrial relations based on workplace democracy.
• It provides a clear and consistent reminder and the guarantee of fundamental principles
and labour rights that have gained broad social recognition and defines the mechanisms
through which those principles and rights can be implemented and enforced.
Types of Labour Legislations in India:
Industrial
Relations
Legislation

Prohibitory Minimum
Labour Standards of
Legislation Employment
Legislation

Social Security
Wage and Labour
Legislation Welfare
Legislation
SOCIAL JUSTICE AND LABOUR
LAW
■ Concept of Social Justice
JK Cotton Spinning & Wearing Mills v. Labour Appellate Tribunal
AIR 1964 SC 737
■ Public Interest Litigation For Enforcement Of Labour Law
S.P.Gupta v. Union of India, popularly known as the Transfer of
Judges case AIR 1982 SC 149
WHO IS PROTECTED BY LABOUR
LAWS
■ Workers- Organized or Unorganised?
■ Unorganised/Informal Sector
■ Definition: “unorganised sector” means an enterprise owned by individuals or self-
employed workers and engaged in the production or sale of goods or providing service of
any kind whatsoever, and where the enterprise employs workers, the number of such
workers is less than ten;” (Section 2(L) of Unorganised Workers Social Security Act 2008.
■ (m) “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 - (UWSSA 2008)
LABOUR CODE REFORMS
With the objective of strengthening the safety, security, health, social security for every
worker and bringing ease of compliance for running an establishment and to catalyse
creation of employment opportunities, Ministry of Labour and Employment, as per the
recommendations of the 2nd National Commission on Labour, has taken steps for
codification of existing 29 Central Labour laws into 4 Codes by simplifying and
rationalizing the relevant provisions thereof.
The newly enacted Labour Codes are-
■ The Code on Wages, 2019
■ The Occupational Safety, Health and Working Conditions Code, 2020
■ The Code on Social Security, 2020
■ The Industrial Relations Code, 2020
CONSTITUTIONAL FRAMEWORK
THE PREAMBLE OF THE CONSTITUTION STATES:
■ JUSTICE, social, economic and political;
■ LIBERTY of thought, expression, belief, faith and worship;
■ EQUALITY of status and opportunity;
■ and to promote among them all FRATERNITY assuring the dignity of the individual and the unity
of the Nation;
OUR LABOUR LEGISLATIONS ARE ROOTED IN THIS PHILOSOPHY
■ These principles run through our labour legislations like invisible golden thread
■ It meets the aspirations of working class whether it is protective legislations, social security
legislations, welfare legislations or even industrial relations legislations
■ They heavily lean towards working classes due to the philosophy provided in the preamble
Part IV of the Constitution – Directive Principles of
State Policy
■ Article 39 (a) 
“The State shall, in particular, direct its policy towards securing; That the citizens, men and women equally, have the right to an
adequate means of livelihood. It means that every citizen of the country has the right to earn a livelihood without getting
discriminated on the basis of their sex.
■ Article 39 (d) 
Constitution says that “The State shall, in particular, direct its policy towards securing; that there is equal pay for equal work for
both men and women. Wages will not be determined on the basis of sex rather it will be according to the amount of work done by
the worker.
■ Article 41 
Constitution provides “ Right to Work” which means that every citizen of the country has the right to work and the state with the
best of its abilities will secure the right to work and education.
■ Article 42 
Provides for the upliftment of the working conditions for workers. It talks about creating a suitable and Humane workplace. This
article also talks about maternity relief, i.e leave provided to women when they are pregnant.
■ Article 43 
Talks about the “living wage” for its citizens. Living wage not only includes the “bare necessities of life” but also the social and
cultural upliftment of the person. It also includes education and insurances for a person. The State shall constantly try to create
opportunities in the fields of Agriculture and Industries with special reference to cottage industries.
What are the fundamental rights likely
to affect labour legislations ?
■ Article 14-State shall not deny to any person equality before the law or the equal
protection of the laws.
■ Article 19 (1)-speech and expression, assemble peaceably without arms, form
association, practice profession/occupation/trade or business.

■ Article 21- No person shall be deprived of his life and personal liberty except according
to procedure established by law
■ Article 23- 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
■ Article 24- No child below the age of 14years shall be employed to work in any factory
or mine or engaged in any other hazardous employment
DISTRIBUTION OF POWERS

DOP

Union List State List Concurrent List


(97 entries) (66 entries) (47 entries)

In case of conflict what happens???


What are the important entries relating to labour in
the concurrent list?

■ Industrial and labour disputes


■ Trade Unions
■ Many aspects of social security and welfare- Employer’s liability, workmen’s compensation
■ Provident Funds, Old age pensions, Maternity Benefits
There are central acts pertaining to these topics

However, some states have enacted separate amending acts adapting some of these acts to local needs
Two ways:
■ Amendment with the assent of the President
■ By promulgating rules pursuant to a power delegated by the central Act
FLEXIBILITY FOR STATES
■ Central Act delegates powers to State
■ Section 38 of the Industrial Disputes Act
■ Sections 29 and 33 of the Minimum Wages Act
■ Section 26 of the Payment of Wages Act
■ Secondly, State can operate a mechanism created by a Central Act
■ “Appropriate Government”- State Government is empowered to use the machinery
created by the Industrial Disputes Act for the investigation and settlement of any
industrial dispute coming within its jurisdiction.
■ These mechanisms reduces the friction between the centre and the state and has made it
possible for both these governments to co-ordinate their efforts in resolving their
complex and varied problems
CONSTITUTIONAL PROVISIONS
RELATING TO APPEALS FROM
AWARDS
1. Any person aggrieved by a Tribunal’s award can challenge it on the ground of violation
of a fundamental right guaranteed by Part III in Supreme Court or High Court under
Articles 32 and 226.
2. Discretionary jurisdiction under Article 136.
3. After a high court has passed upon an award, the person aggrieved can appeal to the
Supreme Court, in varying circumstances, under Article 132 or under Article 133.
4. Article 227 confers on a high court a power of superintendence over all courts and all
tribunals in its jurisdiction. It can exercise this power Suo moto- for the purpose of
correcting any flagrant abuse of law or any grave miscarriage of justice.
People’s Union for Democratic Rights
v.
Union of India (1982)
■ Facts of the Case: This was a writ petition brought by way of public interest litigation in order to
ensure implementation of various labour laws in relation to workmen employed in the construction
work of various projects connected with the Asian Games.
■ India was hosting the Asian Games in 1982. As part of this, India had to embark upon various
construction projects which included building fly overs, stadia, swimming pools, hotels and Asian
Games Village Complex.
■ This construction work was framed out by the Government of India amongst various Authorities
such as the Delhi Administration, the Delhi Development Authority and the New Delhi Municipal
Committee
■ As part of carrying out the construction work, various authorities engaged contractors. The workers
were engaged through Jamadars. The workers were brought from various parts of the India. They
were entitled to minimum was of 9.25 rupees per day.
■ Petitioners argued that the workers were not paid minimum wage and they were
exploited by the contractors and the jamadars.
■ The matter was brought to the attention of the court by the People’s Union for
Democratic Rights by means of a letter addressed to Justice Bhagwati. Notice was
issued to the Union of India, Delhi Development Authority and Delhi Administration-
the respondents. Respective affidavits were filed by the respondents in reply to the
allegations contained in the writ petition
ISSUES RAISED
■ Main Issue
1. Whether there was any violation of the provisions of the Minimum Wages Act, 1948, Employment
of Children Act, 1938, the Equal Remuneration Act 1976, the Contract labour (Regulation and
Abolition) Act 1970 and the Inter State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act 1979 by the contractors?
Preliminary Objections
2. Whether the Petitioners had the locus standi to maintain the writ petition?
3. Whether the workmen are employees of contractors or Union of India, the Delhi Administration
and the Delhi Development Authority?
4. Whether the writ petition under Article 32 can be maintained as there was no breach of
fundamental rights?
Main issue
■ The minimum wage was fixed as Rs.9.25 per day. Jamadars or the middlemen deducted one
rupee per day per worker as their commission and paid only 8.25. The result was that the
workers did not get the minimum wage of Rs. 9.25 per day- violation of the Minimum
Wages Act.
■ Women workers were only paid Rs. 7 per day and balance of amount was misappropriated
by the jamadars. Violation of Equal Remuneration Act, 1976
■ Children below the age of 14 years were employed by the contractors in the construction
work- Violation of Article 24 and the Employment of Children Act, 1938
■ Proper living conditions and medical and other facilities were denied to the workers in the
construction site- Violation of Contract Labour (Regulation and Abolition) Act, 1970.
■ Non-implementation of provisions of Inter State Migrant Workers (Regulation of
Employment and Conditions of Service) Act, 1979.
Contentions of the respondents

■ The provisions of labour laws were being complied with by the contractors
■  Periodical inspections were carried out by concerned authorities
■ “The Union of India was however more frank and it clearly admitted in its affidavit in reply
that the jamadars were deducting rupee one per day per worker from the wage payable to the
workers with the result that the workers did not get the minimum wage of Rs. 9.25 per day
and there was violation of the provisions of the Minimum Wages Act, 1948”.
■ There were no violation of Employment of Children Act, 1938- as the construction industry
was not included in the schedule of the Act. So there was no prohibition with regard to
employment of children in construction works.
■ Again, no complaint was received with regard to employment of children below 14 years of
age, so no violation of Article 24.
■ The Inter State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act 1979 came into force in the Union Territory of Delhi with effect from 2nd
October 1980, the power to enforce the provisions of the Act was delegated to the
Administrator of the Union Territory of Delhi only on 14th July 1981 and thereafter also
the provisions of the Act could not been enforced because the Rules to be made under
the Act had not been finalized until 4th June 1982
■ With regard to denial of welfare and health facilities under CLRA, the UOI contended
that number of prosecutions have been launched against the contractors.
Preliminary objections
■ Locus Standi of the petitioner to maintain the writ petition:
Traditional rule: Judicial process only to those to whom legal injury is caused or legal wrong
is done
■ New Approach: That where a person or class of persons to whom legal injury is caused or
legal wrong is done is by reason of poverty, disability or socially or economically
disadvantaged position not able to approach the Court for judicial redress, any member of the
public acting bona fide and not out of any extraneous motivation may move the Court for
judicial redress of the legal injury or wrong suffered by such person or class of persons and the
judicial process may be set in motion by any public spirited individual or institution even by
addressing a letter to the court
■ Reasoning of the Court: “........having regard to the peculiar socioeconomic conditions
prevailing in the country where there is, considerable poverty, illiteracy and ignorance
obstructing and impeding accessibility to the judicial process, it would result in closing the
doors of justice to the poor and deprived sections of the community if the traditional rule of
standing evolved by Anglo- Saxon jurisprudence that only a person wronged can sue for
judicial redress were to be blindly adhered to and followed, and it is therefore necessary to
evolve a new strategy by relaxing this traditional rule of standing in order that justice may
became easily available to the lowly and the lost”
■ Construction workers are employees of the contractors and not of the UOI
■ Sections 16- 20 of Contract Labour (Regulation and Abolition) Act, 1970
■ Section 17 and 18 of the Inter State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act 1979
■ Article 24 of the Constitution is concerned....... not only are the contractors under a
constitutional mandate not to employ any child below the age of 14 years, but it is also the
duty of the Union of India, the Delhi Administration and the Delhi Development Authority
to ensure that this constitutional obligation is obeyed by the contractors to whom they have
entrusted the construction work of the various Asiad projects
■ The Equal Remuneration Act 1946, the Union of India, the Delhi Administration and the
Delhi Development Authority cannot avoid their obligation to ensure that these provisions
are complied with by the contractors. (Article 14)
■ The contractors are, of course, liable to pay the minimum wage to the workmen employed
by them but the Union of India the Delhi Administration and the Delhi Development
Authority who have entrusted the construction work to the contractors would equally be
responsible to ensure that the minimum wage is paid to the workmen by their contractors.
Contentions raised by Respondents: Writ Petition
under Article 32 is not maintainable because there is
no violation of any fundamental right

■ Violation of the following articles of the Constitution


■   Article 24
■   Article 14
■   Article 21
■   Article 23 (Prohibition of traffic in human beings and forced labour) Interpretation
of forced labour. Expanded the ambit of Article 23
HOLDING

■ The honourable court held that whatever is the minimum wage for the time
being or if the wage payable is higher than such wage, shall be paid by the
contractors to the workmen directly without the intervention of the jamadars
and that the jamadars shall not be entitled to deduct or recover any amount
from the minimum wage payable to the workmen as and by way of
commission or otherwise.
■ It further mandated the UOI to hold inquiry against the contractors and the
government shall take the necessary legal action against the contracts
whether by way of prosecution or by way of recovery of the amount of the
short-fall.
Class Discussion

■ Do you feel that the emergence of public interest litigation would help the poor
workers?
■ Do you agree with the Supreme Court that “whenever any fundamental right enacted in
article 17, 23 or 24 of the Constitution” is violated, it is the constitutional obligation of
the state to take the necessary steps for the purpose of interdicting such violation and
ensuring observance of fundamental right by the private individual who is transgressing
the same?
INTERNATIONAL LABOUR
ORGANISATION
■ The International Labour Organisation (ILO) was established in 1919 as part of the international
community’s response to the First World War.
■ India is one of its 175 member states.
■ The ILO’s main method of operation is to agree detailed conventions on different aspects of
labour law.
■ Member states may choose whether or not to ratify these conventions. Once a state has ratified a
convention, the ILO monitors its compliance with the obligations it imposes, but the ILO has
virtually no powers of enforcement.
ILO DECLARATION ON FUNDAMENTAL
PRINCIPLES AND RIGHTS AT WORK
■ Globalisation is often regarded as having created an ‘identity crisis’ for the ILO.
■ Its emphasis on detailed labour standards began to seem irrelevant in a climate of competition between states
to attract multinational firms.
■ The ILO responded in 1998 with the Declaration of Fundamental Principles and Rights at Work.
■ This provides that all ILO member states, regardless of which conventions they have ratified, are bound to
uphold four fundamental rights: freedom of association and collective bargaining, freedom from forced labour,
freedom from child labour, and the right not to be discriminated against.
■ The Declaration gave a new impetus to the ILO’s activities by encouraging it to focus on a limited group of
rights, instead of trying to promote hundreds of detailed conventions. On the one hand, the Declaration can be
regarded as enhancing the ‘rights’ orientation of the ILO. Whereas before, the ILO was clearly focused on
workers’ rights, the Declaration emphasises the overlap between workers’ rights and fundamental human
rights. The ILO has gained legitimacy by emphasising (relatively) uncontroversial rights and by tapping into
the powerful rhetoric of human rights. On the other hand, some elements of the Declaration reflect the view
that international organisations like the ILO may be used to protect powerful countries from legitimate
competition. Thus, the Declaration provides that:
“labour standards should not be used for protectionist trade purposes, and that nothing in this Declaration
and its follow-up shall be invoked or otherwise used for such purposes; in addition, the comparative
advantage of any country should in no way be called into question by this Declaration and its follow-up.’
ILO DECLARATION OF
PHILADELPHIA

PHOTO: From ILO Website


ILO DECLARATION OF
PHILADELPHIA
■ Social mandate of ILO
■ 41 DELEGATES WERE THERE IN THE MEETING
■ Declaration- Founding principles of ILO
■ WHAT WAS THE PURPOSE OF THIS DECLARATION?
The Declaration extended the scope of the ILO’s work by affirming the centrality of human rights for all
people. It stated that this should be the central aim of all national and international policies, and upheld the
need for the ILO to examine and consider "all international economic and financial policies and measures
in the light of this fundamental objective." 
■ To set out the guiding principles for national economic and social policies within that order. 
■ In 1946, the Declaration was annexed to the ILO Constitution , and since then has served to inspire other
international instruments, including the Universal Declaration of Human Rights. The foundational
principles of the Declaration remain as relevant as they were 75 years ago, and continue to inspire the
ILO's work as it enters its second century. 
■ There has been a remarkable change in the approach to Labour law and industrial
Principles of ILO was embodies in Philadelphia Charter adopted in 1944”
■ (a) labour is not a commodity;
■ (b) freedom of expression and of association are essential to sustained progress;
■ (c) poverty anywhere constitutes a danger to prosperity everywhere;
■ (d) the war against want requires to be carried on with unrelenting vigour within each
nation, and by continuous and concerted international effort in which the representatives
of workers and employers, enjoying equal status with those of governments, join with
them in free discussion and democratic decision with a view to the promotion of the
common welfare.
THANK YOU!!!

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