EMPLOYMENT LAWS -ADMINISTRATIVE RULINGS, AND PRECEDENTS ADDRESSING THE LEGAL RIGHTS AND RESTRICTIONS OF WORKING PEOPLE

Abstract?

Labour laws known as employment laws, are the body of laws, administrative rulings, and precedents that address the legal rights and restrictions of working people and their organisations. Labour laws attempt to regulate the relationships between an employer and their employees. As a result of its vast implications and dynamic facts, it is also the most fascinating area to study. These laws generally address issues like workplace health and safety, collective bargaining, unfair labour practices, certification of unions, labour-management relations, general holidays, annual leave, working hours, unfair termination, the minimum wage, layoff procedure, and so on.

In India, the Central Government has promulgated around 44 labour-related statutes, 29 of which have been consolidated into four new labour codes. This article summarises some of the labour laws in India, as well as the four labour codes.

?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 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.

The purpose and scope of labour laws have evolved over time. Early labour laws were enacted to protect employers’ interests. It was governed by the laissez-faire doctrine, which entails a policy of minimal government intervention in the economic affairs of individuals and society. On the other hand, contemporary labour law aims to safeguard employees from employer exploitation. The foundation of the welfare state doctrine is the concept of progressive social philosophy, which has rendered the previous doctrine of laissez-faire outdated. The ‘hire and fire’ and ‘supply and demand’ theories, which enjoyed unrestricted application under the previous laissez-faire philosophy, are no longer valid.

The approach to labour law and industrial relations has changed significantly since the Philadelphia Charter, which stated that ‘labour is not a commodity’ and that ‘poverty anywhere is a danger to prosperity everywhere.’ W. Friedmann and others who have attempted to analyse the essential characteristics of legal development in this branch of law consider “social duty on the part of the employer” to be the main bedrock upon which this law is built Evolution of labour legislation in India?

The history of labour law in India dates back more than 125 years. Beginning with the Apprentice Act of 1850, which allowed orphaned children to find work when they reached the age of 18, several labour laws covering all aspects of industrial employment have been enacted. Labour laws govern not only the working conditions of industrial establishments but also industrial relations, wage payment, trade union registration, certification of standing orders, and so on. They also provide social security measures for workers. The Indian Constitution serves as the foundation for all Indian laws. According to the Constitution, labour is a matter under the Concurrent List, meaning that both the Central and State governments may pass labour laws, subject to the restriction that the State legislature may not pass laws that conflict with Central law.?

The Apprentice Act of 1850 was followed by the Factories Act, 1881, and the Bombay Trade Disputes (and Conciliation) Act, 1934, was the first State law. During World War II, both of these, as well as the Bombay Industrial Disputes Act, 1938 were amended. In its place, the Bombay Industrial Relations Act, 1946, was enacted. The Central government passed the Industrial Employment (Standing Orders) Act, 1946 around this time. The Industrial Disputes Act, 1947, which was later amended, took the place of the Trade Disputes Act, 1947.? This law is the primary tool for governmental intervention in labour disputes. Following independence, many laws governing labour employment and social security were enacted, which are discussed in the latter part of this article.?

?Factors influencing labour laws in India?

The following are the factors influencing labour laws:

? Early industrial society of exploitation?

The excesses of early industrialization after the industrial revolution were where labour laws first emerged. Early industrialization in the capitalist nations of the world was marked by long workdays, the hiring of young children in very unhygienic conditions, the payment of low wages, and other excesses. The workers’ access to legal protection was limited. Such excesses could not have continued indefinitely without public outrage and the demand for reforms. ? Development of trade unionism?

Another factor that accelerated the expansion of labour laws was the trade union movement, which emerged from the industrial revolution. They pushed for the protection of working-class interests, and as a result, laws were passed that dealt with wages, working conditions, women’s rights, social security, and other issues. However, as a result of their expansion, laws addressing industrial disputes, their prevention and resolution, and trade union privileges and rights also had to be passed.

? Emergence of socialist and other revolutionary ideas?

Karl Marx showed through his analysis of capitalism that the capitalist economic system is inherently exploitative of labour. He, therefore, promoted the overthrow of the capitalist system. The slogan ‘The workers of the world unite, you have nothing to lose but your chains’ sent tremors through conservative and capitalist circles, causing ameliorative and protective labour laws to emerge as safe alternatives. They quickly realised that labour laws could be used as a check on the spread of revolutionary ideas. The first and second internationals, as well as the creation of socialist and communist parties in numerous nations, strengthened the trend toward progressive labour laws. ? 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. Constitutional provisions relating to labour laws in India?

The Constitution is the supreme law of a country, and all laws are based on it. The Constitution, which has a significant impact on all laws, particularly labour laws, guarantees its citizens a ‘Socialistic pattern of Society’ and the formation of a “Welfare State”. Indian labour laws are greatly influenced by the Preamble, fundamental rights, directive principles of state policy, and judicial wisdom.

? Seventh Schedule?

?

The Indian Constitution, the supreme law of the land, governs all legislative, executive, and judicial actions in the country. The Constitution’s Seventh Schedule envisions the distribution of legislative powers between the central and state legislatures on various issues. The Schedule is divided into three lists: the Central List (List I), the State List (List II), and the Concurrent List (List III).?

???????List III (Concurrent List) addresses the majority of labour-related issues. These cover a variety of topics, such as maternity benefits, employers’ liability, workmen’s compensation, invalidity and old age pensions, social security and social insurance, employment and unemployment, labour unions, industrial and labour disputes, and provident funds. Parliament has passed labour laws in almost all of these areas because the majority of labour-related issues are on the Concurrent List. However, states have amended the Central Acts to meet their local needs and have obtained the President’s approval for the changes. ? Directive principles of state policy?

Socio-economic justice, which is the main objective of the State as prescribed by the Constitution, is emphasised in the Preamble to the Constitution. The framers of the Constitution recognised that without economic democracy, political democracy would be useless in a developing nation like India. As a result, they added a few clauses to the Constitution that would help the socio-economic situation of the general public. The directive principles work to establish some socio-economic objectives that the Indian government must pursue to strengthen and advance. The country is supposed to transition into social and economic democracy through directive principles. These principles oblige the State to act constructively in certain directions to advance the welfare of the people and achieve economic democracy. In India, the executive and legislative branches should exercise their authority in accordance with these principles.?

?????In industrial legislation and adjudication, Articles 38, 39, 41, 42, and 43 are particularly crucial. They serve as the ‘Magna Carta’ of industrial law or its foundation. These obligations include the Central and State governments’ duty to ensure social order and living wages in line with the economic and political circumstances of the nation. ? Article 38 of the Indian Constitution?

The concept of social justice is outlined in Article 38 of the Constitution, which states that “the State shall strive to promote the welfare of the people by securing and protecting, as effectively as it can, social order where justice, social, economic, and political shall inform all institutions of national life.” This directive reaffirms what is stated in the Preamble to the Constitution, namely, that the function of the Republic is to ensure social, economic, and political justice. Furthermore, Article 39 mandates that the state must incorporate specific social justice principles into its legislative process.?

??????In the case of State of Mysore v. Workers of Gold Mines, 1958, Justice Gajendragadkar stated that “the idea of social and economic justice is a living idea of revolutionary import that upholds the rule of law and gives the welfare state ideal meaning and significance.” Article 39 of the Indian Constitution?

The right to a livelihood has been included in Article 21 according to the Supreme Court’s interpretation of Article 39(a). In Olga Tellis v. Bombay Municipal Corporation, 1986, the Supreme Court stated, “If the State has an obligation to secure to its citizens an adequate means of livelihood and the right to work, it would be sheer pedantry to exclude the right to livelihood from the content of the right to life.”

???Articles 39(b) and (c) are crucial constitutional provisions because they have an impact on India’s entire economic system. Socialism seeks to distribute the community’s material resources in a way that promotes the welfare of all. According to Article 39(b), socialism requires distributive justice.

????In accordance with Article 39(d) of the Constitution, Parliament passed the Equal Remuneration Act, 1976 and the Act is judicially enforceable. The Act forbids gender discrimination and requires equal pay for men and women performing the same or similar work. The Supreme Court has drawn the general principle of equal pay for equal work from the reading of Articles 14, 16, and 39(d).?

???????The Supreme Court in Randhir Singh v. Union of India, 1982 identified that even though the idea of ‘equal pay for equal work’ is not a fundamental right, it is unquestionably a constitutional objective that can be upheld through constitutional remedies under Article 32 of the Constitution. Fundamental Rights (Part III of the Indian Constitution)?

Part III of the Constitution enumerates the fundamental rights. The freedoms and rights mentioned in Part III are all intended to be shielded from arbitrary state action.

? Article 14?

Article 14 is particularly important because it states that “the State shall not deny to any person within the territory of India, equality before the law or equal protection of the laws.”

Equality before the law strictly prohibits discrimination; it is a negative concept. While the concept of equal protection under the law is a positive one, it necessitates the State to provide special treatment to people in various situations in order to achieve equality among all. As a result, equals must be treated equally, whereas unequals must be treated unequally. ? Article 16?

Article 16? prohibits the State from discriminating on the basis of religion, race, caste, sex, descent, place of birth, residence, or any combination of these factors, and guarantees equal opportunity in public employment. The State is also empowered to make special provisions for the underprivileged classes under this Article.

? Article 19?

Furthermore, Article 19 protects ‘the right to free speech and expression, the right to peaceful assembly without the use of arms, the right to assemble in unions or associations, the right to practise any profession, and the right to engage in any occupation, trade, or business.’ These constitutional protections, which include minimum standard legislation, are crucial in the area of labour law. The ability of the legislature to pick and choose which businesses or industries must adhere to minimum standards is constrained by equal protection. The freedom to engage in any trade, profession, or business reduces the burden that legislation may impose on businesses in the interest of workers. Workers’ rights to free speech, assembly, association, and unionisation protect their efforts to advance their interests through self-organisation, picketing, or strike action. ? Article 21?

Everyone has the right to life and liberty under Article 21. The definition of life has become incredibly expansive. A lot of different rights that contribute to a citizen’s personal liberty are included under the umbrella term ‘personal liberty’, which has been given a very broad amplitude. Its derivation must follow the appropriate legal process, which must be fair, just, and reasonable. According to a broad interpretation, the right to life guaranteed by Article 21 encompasses more than mere survival, existence, or animal existence. As a result, it encompasses all aspects of life that contribute to a man’s life being meaningful, complete, and worthwhile.

? Articles 23 and 24?

Human trafficking and forced labour are prohibited under Article 23. It states that trafficking in human beings and begar, as well as other similar forms of forced labour, is prohibited, and any violation of this provision is punishable by law. The Supreme Court has interpreted life in Article 21 to include livelihood, and the Court has held in several cases that any employment below minimum wage levels is illegal because it accounts for slavery. Article 24 prohibits the employment of children under the age of 14 in any factory, mine, or other hazardous occupation Labour laws in India?

Some of the labour laws in India are as follows:

? Trade Union’s Act, 1926?

One of the earliest labour laws in the nation is the Trade Unions Act, 1926. The early passage of the Trade Unions Act, as well as the constitutional provision guaranteeing freedom of association, have aided trade unions in legitimising their existence and operations. The main function of trade unions is to enable workers to take collective action. When negotiating with employers, people are in a weak bargaining position because strikes are a last resort for trade unions and should only be used when all other options have failed.

?????The Act includes detailed provisions for formation, procedure, and registration, as well as conditions of registration, benefits of registration, and the immunities available to union leaders when they participate in union activities of a registered Trade Union from both civil and criminal laws. The Act applies to both employer associations and labour unions.

? Industrial Dispute Act, 1947?

Industrial disputes are those that arise from a disagreement in labour relations. Industrial relations covers a wide range of interactions between employers and employees. Such relationships can result in dissatisfaction for either of the parties involved when there is a conflict of interests, which can result in conflicts or industrial disputes. The dispute could take the form of demonstrations, strikes, lockouts, layoffs, and other actions.

??????The Industrial Disputes Act, 1947, is a progressive piece of social legislation intended to improve the working conditions for industrial workers. The primary objective of this Act is to reduce conflict between labour and management while providing the highest level of assurance for economic and social justice. The purpose of this Act was to address the investigation and settlement of labour disputes.?

??????The Act encourages harmonious relationships between employers and employees and establishes procedures for peaceful conflict resolution. The Act is beneficial legislation that aims to prevent industrial tensions and provide dispute resolution mechanisms. The Act defines the powers, functions, and duties of Conciliation Officers, Work Committees, Courts of Inquiry, Labour Courts, Industrial Tribunals, and National Tribunals, as well as the procedure to be followed by them.

? The Payment of Wages Act, 1936?

During the early stages of industrialization, two common employer malpractices were late payment of wages and unauthorised deductions from wages. The Payment of Wages Act, 1936, was passed in response to a recommendation made by the Royal Commission on Labour in 1931 to end such malpractices.

???????The main objective of this Act is to eradicate all malpractices by defining the timing and procedure for wage payments and ensuring that workers are paid on time and without any unauthorised deductions. The Act gives the government the authority to raise the ceiling in the future by notification in order to increase its reach and enable more efficient enforcement. ? Minimum Wages Act, 1948?

The Minimum Wages Act was passed in 1948 to safeguard workers’ rights by setting a minimum wage in certain occupations. The Act sets a minimum wage for time work, a minimum wage for piece work, a guaranteed time rate, and an overtime rate for different occupations, regions, or classes of work, as well as for adults, teenagers, children, and apprentices. It is also important to point out that this Act complies with Article 43 of the Indian Constitution, which ensures a living wage and respectable working conditions.

??????The Act was primarily enacted to protect the interests of workers in the unorganised sector. The Act establishes and revises the minimum wage for workers in scheduled employment. The Act mandates that both the central and state governments establish and revise the minimum wage, as well as enforce payment of the minimum wage for scheduled employment within their respective jurisdictions.

? The Factories Act, 1948?

The Factories Act, 1948 was another law enacted to promote social change. The provisions of this Act state indisputably that its labour regulations are for the benefit and welfare of workers, and the Act’s purpose is to regulate labour. The primary objectives of the Act are to control the working conditions of the factory, to take appropriate measures to ensure employee welfare, safety, and health, to control working hours, and to provide efficient equipment for the administration of the Act.

???????The Act aims to protect workers employed in factories from industrial occupational hazards and to provide them with safe and healthy living and working conditions. It includes comprehensive provisions for the health, safety, and welfare of employees to provide comfortable working environments and other perks to enhance their quality of life.

?????The Court ruled in Ravi Shankar Sharma v. the State of Rajasthan, 1993, that the Factories Act is social legislation that addresses issues relating to the welfare, safety, and health of factory workers. In a nutshell, the Act aims to improve working conditions in industrial settings and to safeguard workers from being exploited by greedy commercial enterprises. The labour codes?

??The Code on Wages, 2019?

The Code on Wages, 2019 was passed by both Houses of Parliament and received assent by the President on August 8, 2019. The Code aims to regulate wages in all jobs involving any industry, trade, business, or manufacturing, including wages and bonuses. It consolidates the following laws pertaining to wages:

(A) Minimum Wage Act, 1948

(B) Payment of Wages Act, 1936

(C) Payment of Bonus Act, 1965?

(D) Equal Remuneration Act, 1976?

Two important definitional changes came about as a result of the codification. First, the Code widened the scope by erasing the distinction between scheduled and non-scheduled employment, whereas the Minimum Wage Act of 1948 only applied to the ‘schedule of employment’ covered by the law.? As a result, the definitions of employee and employer have been broadened to include both the formal and informal sectors.

???Second, the Code extended the application of the Minimum Wage Act of 1948 and the Payment of Wages Act of 1936 to all establishments and employees, unless expressly exempted, rather than just those whose income had to be below a fixed limit.

?Salient features of the Code on Wages, 2019?

1. It contains all the necessary clauses regarding wages, equal pay, payment, and bonuses.

2. Provisions of wage shall be applicable to all employees, including both organised and unorganised sectors.

3. It enables the relevant government to choose the criteria for determining the minimum wage for various employee categories. The factors will be decided by taking into account the necessary skills, the difficulty of the work assigned, the geographical location of the workplace, and any other factors that the relevant government deems necessary.

4. To guarantee that those making less than a predetermined wage ceiling are entitled to an annual bonus of at least 8.3 % of their wage or Rs. 100, whichever is higher, provisions from the previous Payment of Bonus Act, 1965, have been incorporated.

5. The specific references to ‘man’ and ‘woman’ in the Equal Remuneration Act of 1976, which guaranteed equal pay for equal work for men and women, have been replaced by ‘gender.’ This has the potential to protect transgender communities from discrimination.

6. The Code also establishes a quasi-judicial appellate authority to handle disputes. It is significant that the Inspectors-in-Charge of Compliance Monitoring have been renamed Inspectors-cum-Facilitators in the Code.

7. The code also established Central and State Advisory Boards to decide on Minimum Wages and other related issues, and women’s representation on the boards was made statutory.

8. The statute of limitations for filing claims has been increased from six months to two years to three years to give workers more time to resolve their claims. ? The Industrial Relations Code, 2020?

The Industrial Relations Code was passed by Parliament in September 2020 and received the President’s assent on September 28, 2020.? The Industrial Relations Code was brought into force to consolidate and amend the laws governing trade unions, working conditions in industrial establishments, undertaking investigations, resolving industrial disputes, and other related issues. It consolidates the following labour laws:?

(A) Industrial Disputes Act, 1947?

(B) Trade Unions Act, 1926?

(C) Industrial Employment (Standing Orders) Act, 1946?

?Salient features of the Industrial Relations Code, 2020?

1. The Code governs strikes, trade union registration, and industrial dispute resolution.

2. The definition of a worker under the Code has been broadened to include individuals in supervisory positions making up to 18,000 rupees per month or an amount as determined from time to time by the Central Government.

3. To register a trade union, either 10% of an industry’s workers or a minimum of 100 workers must be present. A trade union will be designated as the negotiating union only if 51% of the workers support it. In all other cases, the Code requires the formation of a union negotiating council.

4. In addition, workers are now required to provide 60 days’ notice before striking, which was not previously required. Companies with more than 300 employees must obtain permission from the union or the state government before terminating employees. The previous law stipulated that there must be 100 employees in an establishment for the provisions to be in effect. It also recommends establishing an industrial tribunal to settle disputes.

5. To resolve disputes resulting from individual complaints, all establishments with more than 20 employees are required to have one or more grievance redressal committees. Both employers and employees must have an equal number of representatives on this committee. Notably, the committee must have a sufficient number of women employees, and the chairman must be selected alternately from among the employees and the employer ? The Occupational Safety, Health and Working Conditions Code, 2020?

The Code on Occupational Safety, Health and Working Conditions, 2020, received the assent of the President on 20.09.2020. The purpose and objective of the code are to consolidate and amend the laws regulating the occupational safety, health, and working conditions of the persons employed in an establishment and other connected matters. It also contains provisions concerning the employment of women in all types of work. The code consolidates the following legislations?

(A) The Factories Act, 1948

(B) The Contract Labour (Regulation and Abolition) Act, 1970

(C) The Mines Act, 1952

(D) The Dock Workers (Safety, Health and Welfare) Act, 1986

(E) The Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

(F) The Plantations Labour Act, 1951

(G) The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979

(H) The Working Journalist and Other Newspaper Employees (Conditions of Service and Miscellaneous Provision) Act, 1955

(I) The Working Journalists (Fixation of rates of wages) Act, 1958

(J) The Cine Workers and Cinema Theatre Workers Act, 1981

(K) The Motor Transport Workers Act, 1961

(L) The Sales Promotion Employees (Conditions of Service) Act,1976

(M) The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

Salient features of the Occupational Safety, Health, and Working Conditions Code, 2020?

1. The Code applies to factories with at least 20 workers engaged in a manufacturing process that requires power or at least 40 workers engaged in a manufacturing process that does not require power.

2. The Code does not apply to the Central Government, State Governments, ships of war, or any other nationality, but its provisions apply to contract employees who are employed by a contractor in places of business where the Central Government or a State Government is the principal employer.

4. The code places a high priority on the health, safety, and welfare of employees working in a variety of trades, businesses, manufacturing facilities, motor vehicle operations, building and other construction work, newspaper establishments, audio-video production, plantations, mines, and service industries.

5. By replacing multiple registrations under various laws with a single common registration, one licence, and one return, the Code seeks to lessen the administrative burden on employers. Eventually, this will result in the creation of a centrally located database that will facilitate business operations.

6. Provisions for leave encashment are set aside for use at the end of the fiscal year. Most importantly, if a worker does not use all of his/her permitted leave in a given calendar year, the Code allows for the carry forward of leaves. The total number of leave days that can be carried forward cannot exceed 30 days, but any unpaid leave may be carried forward indefinitely.

7. There are provisions for women’s employment between the hours of 7 p.m. and 6 a.m., with conditions pertaining to their consent and safety, working hours, and holidays. If women’s employment poses a risk to their health and safety, the employer will provide adequate safeguards before their employment.

8. The employer is required to obtain the employee’s permission for overtime work. It also applies to small businesses with fewer than ten employees. Additionally, the employees will be paid twice as much for their overtime work.

9. The code also provides the Central Government broad authority to control the general safety and health of citizens in all or parts of India in the event of an epidemic, pandemic, or disaster. Furthermore, it also provides for a social security fund to care for unorganised workers. Conclusion?

Labour law was developed as a result of workers’ struggles for their justly deserved rights and lives throughout the world.? They engaged in disputes to defend themselves and improve their living conditions. The field of labour law is dynamic and has a unique place in the legal profession. It has specific components aimed toward employees.? In some ways, India’s labour laws resemble those of advanced industrial societies.? Many laws govern social security, workplace health and safety, and other issues such as minimum employment standards.? However, only a small portion of India’s workforce is formally covered by the nation’s labour laws, and even among that group, the actual application of the law is very limited.

The consolidation of multiple labour laws is a significant step toward making compliance easier. Because of the rationalisation of definitions and the expansion of coverage to include the unorganised sector, the benefits of the law will be available to a larger workforce. Even though it took decades, the change should pave the way for more significant ones in the years ahead, improving India’s ease of doing business, creating jobs, and influencing the country’s future industrial relations.