INTRODUCTION TO LABOUR LAWS
Nidhi Shukla
XISS
LAW & JUSTICE
 Law is the content and justice is the enforcement
 Justice is the end Law is the instrument
 Law comprises rules decrees and enactments
 Justice is of three kinds
i) Natural or moral justice: justice in deed and in
truth
ii) Legal justice : realisation and expression of
natural justice
iii) Administrative justice: functional dispensation of
justice by courts of Law
SOURCES OF LAW
 Constitution: Supreme Law of the land; every
legislative act should be in harmony with
and intended to achieve constitutional goals
 Statutes: enacted by Parliament , state
legislatures, UT legislatures.
 Customary Law: local customs and
conventions not against statute, morality etc.
Recognised to the extent courts find them
feasible to take into account.
 Case Law: judicial decisions of the superior
courts binding on the lower courts
INDUSTRIAL JURISPRUDENCE
It is the science of industrial law
dealing with its:
- Definition
- Meaning
- Scope
- Interpretation
- Origin
- classification
PRINCIPLES OF INDUSTRIAL
JURISPRUDENCE
 Social justice : larger public interest, protect a social order
 Natural Justice: institution of the unbiased judge
 Equity: based on concepts of justice, decisions that became
precedence
 National economy: industrial growth, industrial efficiency,
industrial productivity and prosperity
 Equal pay for equal work: applicable on equals
 Dynamism: law is not static
 Constitutional norms:
 Welfare: protective to ameliorative
 Res Judicata: “thing", "already decided”( identical issue, same
parties)
 Laches: limitations to delay in asserting right to relief
 Vicarious liability: of persons who do not actually commit an
illegal Act
LABOUR LAW
 Labour law also known as employment
law is the body of laws, administrative
rulings, and precedents which address the
legal rights of, and restrictions on, working
people and their organizations.
 As such, it mediates in and regulates many
aspects of the relationship between trade
unions, employers and employees.
 In other words, Labour law defines the
rights and obligations workers, union
members and employers in the workplace.
COVERAGE
 Industrial relations – registration and
recognition of unions, labour-
management relations, collective
bargaining and unfair labour practices;
 Workplace health, welfare and safety;
 Employment standards, including
general holidays, annual leave,
working hours, unfair dismissals,
minimum wage, layoff procedures and
severance pay.
 Social Security
CATEGORIES
 There are two broad categories of
labour law.
 First, collective labour law relates
to the tripartite relationship
between employee, employer and
union.
 Second, individual labour law
concerns employees' rights at work
and through the contract for work.
HISTORY OF LABOUR LAWS
 Labour law arose due to the demands of workers
for better conditions, the right to organize, and
the simultaneous demands of employers to
restrict the powers of workers in many
organizations and to keep labour costs low.
 International Labour Organisation (ILO) was one
of the first organisations to deal with labour issue.
The ILO was established as an agency of the
League of Nations following the Treaty of
Versailles, which ended World War I. Post-war
reconstruction and the protection of labour unions
occupied the attention of many nations during
and immediately after World War I.
CONTD...
 The first annual conference (referred to as
the International Labour Conference, or ILC)
began on 29th October 1919 in Washington
DC and adopted the first six International
Labour Conventions, which dealt with
 hours of work in industry,
 unemployment,
 maternity protection,
 night work for women,
 minimum age and
 night work for young persons in industry.
The prominent French socialist Albert
Thomas became its first Director General.
The ILO became an integral part of the
United Nations system
PURPOSE OF LAB. LEG.
 fulfils three crucial roles:
it establishes a legal system that facilitates productive
individual and collective employment relationships,
and therefore a productive economy;
by providing a framework within which employers,
workers and their representatives can interact with
regard to work-related issues, it serves as an
important vehicle for achieving harmonious industrial
relations based on workplace democracy;
it provides guarantee of fundamental principles and
rights at work and establishes the processes through
which these principles and rights can be implemented
and enforced.
FORCES INFLUENCING MODERN
LAB. LEG. IN INDIA
 Excesses of early industrialism
 Rise of trade unionism
 Struggle for national emancipation
 Adoption of Indian constitution
 Growth of political freedom and democracy
 Rise of socialist and revolutionary ideas
 Growth of the concept of Welfare State
 Establishment of the ILO
 Old and archaic basis of Indian social system
 Liberalisation and the need for reforms
EXCESSES OF EARLY
INDUSTRIALISM
 The origin of labour legislation is the history of continuous
and relentless struggle for emancipation of working class
from the clutches of aggressive capitalism.
 The struggle was between two unequals.
 The contract between capital and labour could never be
struck on equitable terms.
 The social scientists interpreted this struggle in different ways.
The point, however, was to change it.
 The change contemplated was one of transforming a slave
into partner and thereby bridle the power of capital to
impose its own terms on the workmen.
 Numerous forces, directly and indirectly, hastened the pace
facilitating the passing of labour friendly legislation.
CHARACTERISTICS OF THE
INDUSTRIAL SOCIETY
 unbridled individualism,
 Freedom of contract and the laissez-faire
 excessive hours of work,
 employment of young children under very
unhygienic and unhealthy conditions,
 payment of low-wages and other
excesses. ,
CONTEMPORARY EVENTS
 Along with Industrial Revolution, Revolutionary thinking of
Rousseau, J.S.Mill, the French Revolution, Hegel, Marx &
Engels and Russian Revolution greatly influenced the
thought processes and hastened the pace of labour
jurisprudence.
 The world wars made it possible for the labourers to
realise their importance that unless they produce, it will be
difficult for warring nations to win. Therefore, they must
stake their claims for better quality of work life.
 The revolution in science, technology, the communication
and telecommunication also helped in bringing the world,
closer. It became easier for the working classes of the
underdeveloped world to know the better conditions of
service of their counterparts in the developed world
THE GROWTH OF TRADE UNIONISM
 On the one hand, their demands for protection
of the interests of the working class led to
legislations in the field of wages, hours of
work, workmen's compensation, social security
and other areas;
 On the other hand, their growth necessitated
legislations for the regulation of industrial
disputes, their prevention and rights and
privileges of employers and employees.
 Trade unions have been as much conditioned
by labour legislations as they have
conditioned them.
GROWTH OF POLITICAL FREEDOM
AND EXTENSION OF FRANCHISE
 Gradual extension and adoption of
universal adult suffrage placed in the
hands of the working class, a powerful
instrument to influence the cause of state
policy.
 Their representatives started espousing
the cause of labour and getting
progressive legislations passed. The
workers used their political powers for
betterment and amelioration of their
RISE OF SOCIALIST AND OTHER
REVOLUTIONARY IDEAS
 Marx showed that the exploitation of labour was
inherent in the capitalist economic system. Therefore, he
advocated the overthrow of capitalist system
 . The echo of the slogan, "the workers of the world unite,
you have nothing to lose but your chains", reverberating
throughout the capitalist world, sent a shudder among the
conservative and capitalist circles to which ameliorative
and protective labour legislations came as safe
alternatives. They readily grasped labour legislations as
antidote to the spread' of revolutionary ideas.
 The Fabian Society of England (gradualist and reformist
approach), the establishment of socialist and communist
parties in many countries strengthened the trend of
progressive Labour Legislations
. EVOLUTION OF LABOUR LAW IN
INDIA
 The law relating to labour and employment is
also known as Industrial and law in India.
 The history of labour legislation in India is
interwoven with the history of British colonialism.
 The industrial/labour legislations enacted by the
British were primarily intended to protect the
interests of the British employers. the Factories Act
was first introduced in 1883 because of the
pressure brought on the British parliament by the
textile magnates of Manchester and Lancashire.
CONTD..
 The earliest Indian statute to regulate the
relationship between employer and his
workmen was the Trade Dispute Act, 1929
(Act 7 of 1929). Provisions were made in
this Act for restraining the rights of strike
and lock out but no machinery was
provided to take care of disputes.
 The original colonial legislation underwent
substantial modifications in the post-
colonial era because independent India
called for a clear partnership between
labour and capital.
TRIPARTITE CONFERENCE IN
DECEMBER 1947
 it was agreed that labour would be
given a fair wage and fair working
conditions
 in return capital would receive the fullest
co-operation of labour for uninterrupted
production and higher productivity
 all concerned would observe a truce
period of three years free from strikes
and lockouts.
CONSTITUTIONAL PROVISIONS
WITH REGARD TO LABOUR LAWS
The Constitution of India provides detailed
provisions for the rights of the citizens and also
lays down the Directive Principles of State Policy
which set an aim to which the activities of the
state are to be guided.
need for protecting and safeguarding the interest
of labour as human beings has been enshrined in
Chapter-III (Articles 14, 19, 23 & 24) and Chapter IV
(Articles 39, 41, 42, 43, 43A & 54) of the Constitution of
India keeping in line with Fundamental Rights and
Directive Principles of State Policy.
COMMITTEES AND COMMISSIONS
 Labour legislations have also been shaped and
influenced
 by the recommendations of the various National
Committees and Commissions such as
 First National Commission on Labour (1969) under the
Chairmanship of Justice Gajendragadkar,
 National Commission on Rural Labour (1991),
 Second National Commission on Labour (2002) under
the Chairmanship of Shri Ravindra Varma etc.
 and judicial pronouncements on labour related
matters specifically pertaining to minimum wages,
bonded labour, child labour, contract labour etc.
CATEGORIES
 1) Labour laws enacted by the Central
Government, where the Central Government
has the sole responsibility for enforcement.
 2) Labour laws enacted by Central
Government and enforced both by Central and
State Governments.
 3) Labour laws enacted by Central
Government and enforced by the State
Governments.
 4) Labour laws enacted and enforced by the
various State Governments which apply to
respective States.
LABOUR POLICY OF INDIA
 Labour policy in India has been
evolving in response to specific
needs of the situation to suit
requirements of planned economic
development and social justice and
has two fold objectives, namely
 maintaining industrial peace and
 promoting the welfare of labour.
LABOUR LAWS IN INDIA
 The term ‘labour’ means productive work
especially physical work done for wages.
 The labour laws of independent India derive their
origin, inspiration and strength from the :-
1. Views expressed by important nationalist leaders
during the days of national freedom struggle,
2. Debates of the Constituent Assembly and
3. The provisions of the Constitution and International
Conventions and Recommendations.
4. Recommendations of various national committees
and commissions
PRINCIPLES OF MODERN LAB. LEG.
 Principle of protection
 Principle of social justice
 Principle of regulation
 Principle of welfare
 Principle of social security
 Principle of economic development
 Principle of international obligation
LAB. LEG V SOC. LEG
SOCIAL LEGISLATION LABOUR LEGISLATION
 Considers individual
primarily as a citizen
 Designed to redress social
evils
 Protects the interests of the
underprivileged
 Creates a set of rights and
privileges
 Removes handicaps
blocking progress of certain
groups or sections
 Regards individual as a
worker
 Designed to improve the
conditions of workers
 Protects the rights of lab.
unions, employers and
public from excesses of
organized labour
CLASSIFICATION OF LABOUR LAWS
 Laws relating to Industrial Relations-
 Laws relating to Wages
 Laws relating to Social Security
 Laws relating to Working Hours, Conditions
of Services and Employment
 Laws relating to Equality and Empowerment
of Women
 Prohibitive Labour Laws
 Laws relating to Employment and Training
RECENT TRENDS AND REFORMS
 Identification of paradigm shifts in IR due to contextual socio-
economic changes
 The evolution of laws and their interpretation
 The relevance of Labour Laws at all stages of evolution
- Industrial revolution Labour Laws &
- Liberalization Labour Reforms
- Globalization
- Law abhors vacuum
- Laws are interpreted contextually
ROLE AND IMPORTANCE OF REFORMS
 In a dynamic economic context, laws need to be reviewed from
time to time for them to be in tune with the changing needs of
the economy, such as :
 Higher levels of productivity
 Competitiveness
 Investment promotion
 Employment generation
PRESENT PROPOSALS
1. Labour to be shifted to ‘State List’.
2. Multiplicity of Labour Laws to be reduced.
3. Simplification of archaic laws into more meaningful laws.
4. Uniform definitions of a single term which is presently
defined in many different ways.
5. Self-certification and a single consolidated return.
6. Reduction in the levels of dispute settlement.
7. Separate set of simple labour laws for MSMEs (less than 50
employees bracket).
8. Separate laws for unorganised sector (most recent being the
reforms related to laws regulating the conditions of domestic
workers).
THANK
You

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Introduction to labour laws copy

  • 1. INTRODUCTION TO LABOUR LAWS Nidhi Shukla XISS
  • 2. LAW & JUSTICE  Law is the content and justice is the enforcement  Justice is the end Law is the instrument  Law comprises rules decrees and enactments  Justice is of three kinds i) Natural or moral justice: justice in deed and in truth ii) Legal justice : realisation and expression of natural justice iii) Administrative justice: functional dispensation of justice by courts of Law
  • 3. SOURCES OF LAW  Constitution: Supreme Law of the land; every legislative act should be in harmony with and intended to achieve constitutional goals  Statutes: enacted by Parliament , state legislatures, UT legislatures.  Customary Law: local customs and conventions not against statute, morality etc. Recognised to the extent courts find them feasible to take into account.  Case Law: judicial decisions of the superior courts binding on the lower courts
  • 4. INDUSTRIAL JURISPRUDENCE It is the science of industrial law dealing with its: - Definition - Meaning - Scope - Interpretation - Origin - classification
  • 5. PRINCIPLES OF INDUSTRIAL JURISPRUDENCE  Social justice : larger public interest, protect a social order  Natural Justice: institution of the unbiased judge  Equity: based on concepts of justice, decisions that became precedence  National economy: industrial growth, industrial efficiency, industrial productivity and prosperity  Equal pay for equal work: applicable on equals  Dynamism: law is not static  Constitutional norms:  Welfare: protective to ameliorative  Res Judicata: “thing", "already decided”( identical issue, same parties)  Laches: limitations to delay in asserting right to relief  Vicarious liability: of persons who do not actually commit an illegal Act
  • 6. LABOUR LAW  Labour law also known as employment law is the body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.  As such, it mediates in and regulates many aspects of the relationship between trade unions, employers and employees.  In other words, Labour law defines the rights and obligations workers, union members and employers in the workplace.
  • 7. COVERAGE  Industrial relations – registration and recognition of unions, labour- management relations, collective bargaining and unfair labour practices;  Workplace health, welfare and safety;  Employment standards, including general holidays, annual leave, working hours, unfair dismissals, minimum wage, layoff procedures and severance pay.  Social Security
  • 8. CATEGORIES  There are two broad categories of labour law.  First, collective labour law relates to the tripartite relationship between employee, employer and union.  Second, individual labour law concerns employees' rights at work and through the contract for work.
  • 9. HISTORY OF LABOUR LAWS  Labour law arose due to the demands of workers for better conditions, the right to organize, and the simultaneous demands of employers to restrict the powers of workers in many organizations and to keep labour costs low.  International Labour Organisation (ILO) was one of the first organisations to deal with labour issue. The ILO was established as an agency of the League of Nations following the Treaty of Versailles, which ended World War I. Post-war reconstruction and the protection of labour unions occupied the attention of many nations during and immediately after World War I.
  • 10. CONTD...  The first annual conference (referred to as the International Labour Conference, or ILC) began on 29th October 1919 in Washington DC and adopted the first six International Labour Conventions, which dealt with  hours of work in industry,  unemployment,  maternity protection,  night work for women,  minimum age and  night work for young persons in industry. The prominent French socialist Albert Thomas became its first Director General. The ILO became an integral part of the United Nations system
  • 11. PURPOSE OF LAB. LEG.  fulfils three crucial roles: it establishes a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy; by providing a framework within which employers, workers and their representatives can interact with regard to work-related issues, it serves as an important vehicle for achieving harmonious industrial relations based on workplace democracy; it provides guarantee of fundamental principles and rights at work and establishes the processes through which these principles and rights can be implemented and enforced.
  • 12. FORCES INFLUENCING MODERN LAB. LEG. IN INDIA  Excesses of early industrialism  Rise of trade unionism  Struggle for national emancipation  Adoption of Indian constitution  Growth of political freedom and democracy  Rise of socialist and revolutionary ideas  Growth of the concept of Welfare State  Establishment of the ILO  Old and archaic basis of Indian social system  Liberalisation and the need for reforms
  • 13. EXCESSES OF EARLY INDUSTRIALISM  The origin of labour legislation is the history of continuous and relentless struggle for emancipation of working class from the clutches of aggressive capitalism.  The struggle was between two unequals.  The contract between capital and labour could never be struck on equitable terms.  The social scientists interpreted this struggle in different ways. The point, however, was to change it.  The change contemplated was one of transforming a slave into partner and thereby bridle the power of capital to impose its own terms on the workmen.  Numerous forces, directly and indirectly, hastened the pace facilitating the passing of labour friendly legislation.
  • 14. CHARACTERISTICS OF THE INDUSTRIAL SOCIETY  unbridled individualism,  Freedom of contract and the laissez-faire  excessive hours of work,  employment of young children under very unhygienic and unhealthy conditions,  payment of low-wages and other excesses. ,
  • 15. CONTEMPORARY EVENTS  Along with Industrial Revolution, Revolutionary thinking of Rousseau, J.S.Mill, the French Revolution, Hegel, Marx & Engels and Russian Revolution greatly influenced the thought processes and hastened the pace of labour jurisprudence.  The world wars made it possible for the labourers to realise their importance that unless they produce, it will be difficult for warring nations to win. Therefore, they must stake their claims for better quality of work life.  The revolution in science, technology, the communication and telecommunication also helped in bringing the world, closer. It became easier for the working classes of the underdeveloped world to know the better conditions of service of their counterparts in the developed world
  • 16. THE GROWTH OF TRADE UNIONISM  On the one hand, their demands for protection of the interests of the working class led to legislations in the field of wages, hours of work, workmen's compensation, social security and other areas;  On the other hand, their growth necessitated legislations for the regulation of industrial disputes, their prevention and rights and privileges of employers and employees.  Trade unions have been as much conditioned by labour legislations as they have conditioned them.
  • 17. GROWTH OF POLITICAL FREEDOM AND EXTENSION OF FRANCHISE  Gradual extension and adoption of universal adult suffrage placed in the hands of the working class, a powerful instrument to influence the cause of state policy.  Their representatives started espousing the cause of labour and getting progressive legislations passed. The workers used their political powers for betterment and amelioration of their
  • 18. RISE OF SOCIALIST AND OTHER REVOLUTIONARY IDEAS  Marx showed that the exploitation of labour was inherent in the capitalist economic system. Therefore, he advocated the overthrow of capitalist system  . The echo of the slogan, "the workers of the world unite, you have nothing to lose but your chains", reverberating throughout the capitalist world, sent a shudder among the conservative and capitalist circles to which ameliorative and protective labour legislations came as safe alternatives. They readily grasped labour legislations as antidote to the spread' of revolutionary ideas.  The Fabian Society of England (gradualist and reformist approach), the establishment of socialist and communist parties in many countries strengthened the trend of progressive Labour Legislations
  • 19. . EVOLUTION OF LABOUR LAW IN INDIA  The law relating to labour and employment is also known as Industrial and law in India.  The history of labour legislation in India is interwoven with the history of British colonialism.  The industrial/labour legislations enacted by the British were primarily intended to protect the interests of the British employers. the Factories Act was first introduced in 1883 because of the pressure brought on the British parliament by the textile magnates of Manchester and Lancashire.
  • 20. CONTD..  The earliest Indian statute to regulate the relationship between employer and his workmen was the Trade Dispute Act, 1929 (Act 7 of 1929). Provisions were made in this Act for restraining the rights of strike and lock out but no machinery was provided to take care of disputes.  The original colonial legislation underwent substantial modifications in the post- colonial era because independent India called for a clear partnership between labour and capital.
  • 21. TRIPARTITE CONFERENCE IN DECEMBER 1947  it was agreed that labour would be given a fair wage and fair working conditions  in return capital would receive the fullest co-operation of labour for uninterrupted production and higher productivity  all concerned would observe a truce period of three years free from strikes and lockouts.
  • 22. CONSTITUTIONAL PROVISIONS WITH REGARD TO LABOUR LAWS The Constitution of India provides detailed provisions for the rights of the citizens and also lays down the Directive Principles of State Policy which set an aim to which the activities of the state are to be guided. need for protecting and safeguarding the interest of labour as human beings has been enshrined in Chapter-III (Articles 14, 19, 23 & 24) and Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India keeping in line with Fundamental Rights and Directive Principles of State Policy.
  • 23. COMMITTEES AND COMMISSIONS  Labour legislations have also been shaped and influenced  by the recommendations of the various National Committees and Commissions such as  First National Commission on Labour (1969) under the Chairmanship of Justice Gajendragadkar,  National Commission on Rural Labour (1991),  Second National Commission on Labour (2002) under the Chairmanship of Shri Ravindra Varma etc.  and judicial pronouncements on labour related matters specifically pertaining to minimum wages, bonded labour, child labour, contract labour etc.
  • 24. CATEGORIES  1) Labour laws enacted by the Central Government, where the Central Government has the sole responsibility for enforcement.  2) Labour laws enacted by Central Government and enforced both by Central and State Governments.  3) Labour laws enacted by Central Government and enforced by the State Governments.  4) Labour laws enacted and enforced by the various State Governments which apply to respective States.
  • 25. LABOUR POLICY OF INDIA  Labour policy in India has been evolving in response to specific needs of the situation to suit requirements of planned economic development and social justice and has two fold objectives, namely  maintaining industrial peace and  promoting the welfare of labour.
  • 26. LABOUR LAWS IN INDIA  The term ‘labour’ means productive work especially physical work done for wages.  The labour laws of independent India derive their origin, inspiration and strength from the :- 1. Views expressed by important nationalist leaders during the days of national freedom struggle, 2. Debates of the Constituent Assembly and 3. The provisions of the Constitution and International Conventions and Recommendations. 4. Recommendations of various national committees and commissions
  • 27. PRINCIPLES OF MODERN LAB. LEG.  Principle of protection  Principle of social justice  Principle of regulation  Principle of welfare  Principle of social security  Principle of economic development  Principle of international obligation
  • 28. LAB. LEG V SOC. LEG SOCIAL LEGISLATION LABOUR LEGISLATION  Considers individual primarily as a citizen  Designed to redress social evils  Protects the interests of the underprivileged  Creates a set of rights and privileges  Removes handicaps blocking progress of certain groups or sections  Regards individual as a worker  Designed to improve the conditions of workers  Protects the rights of lab. unions, employers and public from excesses of organized labour
  • 29. CLASSIFICATION OF LABOUR LAWS  Laws relating to Industrial Relations-  Laws relating to Wages  Laws relating to Social Security  Laws relating to Working Hours, Conditions of Services and Employment  Laws relating to Equality and Empowerment of Women  Prohibitive Labour Laws  Laws relating to Employment and Training
  • 30. RECENT TRENDS AND REFORMS  Identification of paradigm shifts in IR due to contextual socio- economic changes  The evolution of laws and their interpretation  The relevance of Labour Laws at all stages of evolution - Industrial revolution Labour Laws & - Liberalization Labour Reforms - Globalization - Law abhors vacuum - Laws are interpreted contextually
  • 31. ROLE AND IMPORTANCE OF REFORMS  In a dynamic economic context, laws need to be reviewed from time to time for them to be in tune with the changing needs of the economy, such as :  Higher levels of productivity  Competitiveness  Investment promotion  Employment generation
  • 32. PRESENT PROPOSALS 1. Labour to be shifted to ‘State List’. 2. Multiplicity of Labour Laws to be reduced. 3. Simplification of archaic laws into more meaningful laws. 4. Uniform definitions of a single term which is presently defined in many different ways. 5. Self-certification and a single consolidated return. 6. Reduction in the levels of dispute settlement. 7. Separate set of simple labour laws for MSMEs (less than 50 employees bracket). 8. Separate laws for unorganised sector (most recent being the reforms related to laws regulating the conditions of domestic workers).