EVOLUTION OF LABOUR LAW IN INDIA
BY
SPOORTHI.P
20201BCL0033
BCOM LLB (Hons.) & SECTION: 5
SUBMITTED TO:
ASST. PROF. ADNAN ASRAR
SCHOOL OF LAW, PRESIDENCY UNIVERSITY,
BENGALURU
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KARNATAKA, INDIA
October 2023
INTRODUCTION
Assessing the extent of labour laws in India and their impact on worker welfare is a
challenging undertaking. Between 2000 and 2020, the implementation of state policies had a
substantial influence on the well-being of Indian workers. To address this issue, India has
established a comprehensive labour law system aimed at regulating workers' rights and
safeguarding their interests. These laws are meticulously designed to prevent worker
exploitation and to ensure the provision of safe and healthy workplaces. They also encompass
regulations regarding wages, working hours, and the provision of benefits such as health
insurance and pensions. It is of utmost importance to enforce these laws to prevent employees
from enduring unfair or exploitative working conditions. Furthermore, the enforcement of
these laws plays a pivotal role in combating discrimination based on factors like gender,
religion, race, or ethnicity. Therefore, a thorough examination of Indian labour laws and their
consequences on worker well-being is crucial for ensuring secure and protected workplaces.
The labour movement served as the primary catalyst for transforming despair and misery into
hope and progress. Through its courageous efforts, economic and social reforms were
initiated, leading to the establishment of unemployment insurance, old-age pensions,
government assistance for the destitute, and, most importantly, improved wage levels that
enabled not just survival but a decent quality of life. The leaders of industry did not lead this
transformation; in fact, they resisted it until they were eventually overwhelmed. In the 1930s,
as the wave of union organization swept across the nation, it not only secured its own
position but also uplifted the entire society.
Unions, as a general concept, emerged as a response to the Industrial Revolution that
commenced in the 18th century in Britain. This revolution was characterized by the creation
of large factories, the introduction of new production techniques, enhanced organization, and
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rapid economic expansion. With the proliferation of companies, the demand for both
unskilled and skilled labour surged. During this period, businesses lacked proper
organization, and employers primarily focused on maximizing profits, leading to the
exploitation of uneducated and impoverished workers. In essence, this division gave rise to
two distinct classes within the industrial sector:
1. The Employer Class - Driven by profit motives and indifferent to labour conditions.
2. The Labor Class - Comprising uneducated individuals lacking awareness of their rights and
grappling with financial challenges.
Initially, workers believed that their economic needs were substantial and that their
employers would adequately represent their interests if they protested against exploitative
conditions and wages. However, over time, workers came to realize that individual protests
against employer exploitation would have limited impact on factories. They recognized that
forming groups or "teams" of employees would exert greater influence on employers and
compel them to address labour concerns. The formation of worker groups also empowered
them to advocate for their rights, leading to a strengthened sense of unity and solidarity.
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LABOUR LAWS IN INDIA
In India, the history of labour laws can be traced back to the British colonial era prior to
gaining independence. These laws were enacted by the British administration with the
primary objective of safeguarding the interests of British employers and industrialists.
The British Parliament introduced the Factories Act in 1883, aiming to increase the costs of
Indian labour, thus favouring British textile magnates. Although this act introduced
regulations such as an 8-hour workday, overtime wages, and the prohibition of child labour,
its underlying motivation was to serve vested British interests.
Following World War, I and international discussions on labour reforms, India witnessed the
introduction of the Trade Union Act of 1923 and the Industrial Disputes Act of 1929. These
acts were designed to regulate the relationship between employees and employers, including
provisions to protect workers' rights to form unions for collective bargaining and engage in
protests through strikes and lockouts.
During a period marked by global economic depression, rising unemployment, and continued
calls for independence, the British government established the Royal Commission on Labor
in 1929. This commission encountered significant resistance and boycotts from the Indian
labour movement. Nevertheless, it produced a report that paved the way for a series of labour
legislations between 1932 and 1937. Notable legislations during this period included the
Payment of Wages Act of 1936, which granted employers the authority to deduct wages for
unexcused absences, and the Trade Disputes (Amendment) Act of 1938, which empowered
the government to appoint conciliation officers to mediate disputes.
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The labour laws of independent India draw inspiration from the views expressed by
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nationalist leaders during the struggle for freedom, debates in the Constituent Assembly,
provisions of the Constitution, and international conventions and recommendations. The
Constitution of India, in alignment with fundamental rights and directive principles of state
policy, emphasizes the dignity of human labour and the necessity to protect and safeguard
workers' interests.
Significant human rights conventions and standards from the United Nations have also left an
imprint on labour laws in India. These encompass the right to choose one's work, protection
against discrimination, the prohibition of child labour, the assurance of just and humane
working conditions, social security provisions, wage protection measures, grievance redressal
mechanisms, the right to form trade unions, opportunities for collective bargaining, and
participation in management decisions.
The Indian Labor Conference and the International Labor Conference have played pivotal
roles in shaping labour laws in India. Recommendations stemming from national committees
and commissions, such as the First National Commission on Labor (1969) and the Second
National Commission on Labor (2002), in conjunction with judicial rulings on matters related
to minimum wages, bonded labour, child labour, and contract labour, have further influenced
labour legislation.
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EVOLUTION
The evolution of labour laws in India reflects a historical journey from limited and
unregulated conditions before 1923 to the comprehensive labour laws in place today. During
the colonial era, labour laws primarily served the interests of British colonial administration
and industry. Significant developments in labour legislation include:
1. The Factory Acts Evolution: The Factory Acts of 1881, 1891, 1911, and 1922 marked a
substantial effort to improve working conditions in Indian factories. These laws aimed to
protect factory workers, especially children and women, in response to industrialization.
The Factory Act of 1881 marked the beginning of these reforms, applying to factories using
mechanical power and employing ten or more workers. It introduced crucial provisions,
including regulations on child labour, working hours, and sanitation and safety standards.
This act laid the foundation for subsequent labour reforms and emphasized the need for
labour regulations in India's emerging industrial landscape.
The Factory Act of 1891 built on these foundations by imposing stricter rules on child and
female labour, limiting working hours, and emphasizing safety and sanitation. It represented a
significant step forward in improving labour conditions, especially for vulnerable groups.
The Factory Act of 1911 continued this trajectory by refining working hour regulations,
strengthening protections for child and female labour, and enhancing health and welfare
provisions. It emphasized worker safety and welfare in industrial workplaces.
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The Factory Act of 1922 further enhanced worker protections by expanding regulations,
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focusing on safety, health, and welfare. It reinforced rules against child labour and introduced
comprehensive guidelines for employing adolescents, all while emphasizing proper working
conditions and the availability of first-aid facilities.
Together, these Factory Acts played a pivotal role in shaping India's labour laws and
protections. They gradually addressed the challenges posed by industrialization, striving to
ensure fair and safe working conditions for factory workers and reflecting the growing
importance of safeguarding employee rights.
2. Mines Act, 1901: The Mines Act of 1901 was another significant piece of labour
legislation aimed at regulating labour conditions and safety in mines. It underwent multiple
iterations and amendments during India's colonial period. The original 1901 act focused on
improving mine workers' safety and welfare, covering aspects like ventilation, fire
prevention, safety lamps, and qualified my managers. The Mines (Amendment) Act of 1923
introduced further safety measures, including requirements for fencing open pits, worker
protection from hazardous substances, improved sanitation, and regular my inspections.
3. Workmen's Compensation Act: The origins of the Workmen's Compensation Act in India
date back to the early 20th century during British colonial rule. This legislation aimed to
provide financial compensation to workers, referred to as "workmen" in the act, and their
dependents in cases of injury, disability, or death resulting from work-related accidents. It
applied to various types of employment, including industrial and non-industrial work.
4. Emergence of Trade Unions: The concept of trade unions and labour organizations began
taking shape in response to industrialization during the late 19th and early 20th centuries.
Despite the absence of specific legislation governing trade unions in pre-independence India,
these labour organizations operated informally.
The period between 1923 and 1947 witnessed further labour law developments:
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1. Trade Unions Act, 1926: The Trade Unions Act of 1926 introduced the first
comprehensive legal framework for trade unions during British colonial rule in India. It
provided formal recognition to trade unions, defining their rights, liabilities, and registration
procedures. Registered unions enjoyed legal privileges and exemptions, and the act aimed to
ensure that unions operated within the boundaries of the law, imposing penalties for unlawful
activities. Over time, the act evolved through amendments to address emerging labour issues,
solidifying its role as a foundational element in India's labour landscape. It empowered trade
unions to collectively bargain, advocate for workers' rights, and operate within a structured
legal framework.
2. Labor Law Evolution (1923-1947): During this period, labour-related laws continued to
evolve as India moved closer to gaining independence from British colonial rule. Several
laws, including the Workmen's Compensation Act (amended), Factories Act of 1934, and the
Apprenticeship Act of 1939, were introduced to enhance labour conditions, improve safety,
and address labour disputes.
3. Labor Laws Post-Independence (1947-1991): After gaining independence in 1947, India
saw significant developments in labour law and policy. Key laws like the Industrial Disputes
Act of 1947, Minimum Wages Act of 1948, Factories Act of 1948, Employees' State
Insurance Act of 1948, Employees' Provident Funds and Miscellaneous Provisions Act of
1952, and the Trade Unions Act of 1956 aimed to protect worker interests, enhance working
conditions, and provide social security benefits. Labor welfare measures were introduced to
improve workers' living conditions.
4. Economic Reforms and Labor Law Changes (Post-1991): After 1991, economic
liberalization policies transformed India's labour landscape. Amendments to the Industrial
Disputes Act made it easier for employers to hire and fire workers, while the Contract Labor
Regulation and Abolition Act of 1970 was refined to regulate contract labour more
effectively. Social security schemes, maternity benefits, and occupational safety and health
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standards were updated to align with the changing economic environment.
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Recent labour code reforms have sought to simplify and consolidate existing labour laws,
aiming to improve the ease of doing business while ensuring worker protection. Major labour
codes, including the Industrial Relations Code, Occupational Safety, Health, and Working
Conditions Code, and Social Security Code, have been introduced as part of this reform
process. These changes reflect India's ongoing efforts to strike a balance between labour
rights and economic growth throughout its labour law evolution.
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CONSTITUTIONAL PROVISIONS WITH REGARD TO LABOUR LAWS
The Constitution of India includes provisions related to labour laws, firmly emphasizing the
importance of human dignity in labour and the need to protect laborers' interests. These
provisions are enshrined in Chapter-III (Articles 16, 19, 23 & 24) and Chapter IV (Articles
39, 41, 42, 43, 43A & 54), aligning with both Fundamental Rights and Directive Principles of
State Policy. Labor is considered a concurrent subject in the Indian Constitution, allowing
both the Union and state governments to legislate on labour matters, with the bulk of
significant legislative acts enacted by the Parliament.
These legislative acts can be categorized as follows:
1. Labor laws enacted by the Central Government, where the Central Government holds sole
responsibility for enforcement.
2. Labor laws enacted by the Central Government and enforced by both Central and State
Governments.
3. Labor laws enacted by the Central Government but enforced by the State Governments.
4. Labor laws enacted and enforced by various State Governments, applicable to their
respective states.
The Constitution of India also outlines Directive Principles of State Policy aimed at guiding
the state's activities. These principles emphasize:
a) Ensuring the health and strength of male and female employees.
b) Preventing the exploitation of children at a tender age.
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c) Avoiding economic necessity that forces citizens into unsuitable occupations.
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d) Ensuring just and humane working conditions and providing maternity relief.
e) Encouraging employee participation in the management of undertakings, establishments,
or organizations in any industry through suitable legislation or other means.
Despite these constitutional provisions, laborers face various challenges:
1. Lack of awareness about their rights.
2. Forced to work long and psychologically demanding hours.
3. Exposure to harmful chemicals, posing health risks.
4. Health issues resulting from operating heavy machinery.
5. Insufficient technical training for laborers.
6. The continued presence of child labour in hazardous industries.
These issues persist due to multiple factors, including outdated labour laws, industries'
negligence in safety precautions, delays in judicial proceedings, laborers' reluctance to assert
their rights, and societal tolerance of such injustices.
Such labour rights violations are not only detrimental to laborers but also impact
communities and economies. Addressing these issues requires public awareness and the
implementation of stricter laws to curb such violations. Developed countries like the United
States, the United Kingdom, and China also grapple with similar labour-related challenges.
Laborers deserve a safe workplace, minimum wages, regular health check-ups, adequate
technical training, protection from environmental hazards, and fair compensation in case of
accidents. Ensuring labour rights is not solely the responsibility of policymakers but also of
the judiciary and society at large. Raising awareness and advocating for the rights of laborers
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is essential to create a better world for all.
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