Labor law (1 and 2)

Industrial Jurisprudence and Labour Law in India

Constitutional Framework for Labour Laws:

1. Labour as a Concurrent Subject: Under the Indian Constitution, Labour is a

subject in the Concurrent List, which means both the Central and State Governments
have the power to enact legislations related to labour. However, certain matters are
reserved exclusively for the Centre.

2. Labour Codes: To streamline and ensure workers' rights, the Central Government
has amalgamated multiple laws into comprehensive Labour Codes. These include:

o The Wage Code (combining 4 laws),

o The Social Security Code (merging 9 laws),

o The Occupational Safety, Health, and Working Conditions Code, 2020

(combining 13 laws),

o The Industrial Relations Code (merging 3 laws).

Key Labour Organisations under the Ministry of Labour and Employment:

1. Chief Labour Commissioner (CLC): The CLC, established in 1945, is responsible

for preventing and settling industrial disputes, enforcing labour laws, and promoting
worker welfare in establishments under the Central Government's jurisdiction.

2. Directorate General of Employment (DGE): This body coordinates national-level

employment services and supports the country’s employment exchanges and career
centers, although the administration of these exchanges is under State Governments.

3. Directorate General Factory Advice Service and Labour Institutes

(DGFASLI): Set up in 1945, this agency assists the government with occupational
safety and health policies in factories and docks.
 4. Labour Bureau: Responsible for compiling and publishing data on wages, working
conditions, industrial relations, and monitoring labour enactments.

5. Directorate General of Mines Safety (DGMS): Regulates the safety and welfare
of workers in mines through the Mines Act, 1952.

6. Employees State Insurance Corporation (ESIC): A social security system

providing medical care and various cash benefits to workers and their dependants.

7. Employees Provident Fund Organisation (EPFO): Administers the provident

fund for workers, ensuring financial security in cases of unemployment, sickness,
old age, and disability.

8. Dattopant Thengadi National Board for Workers Education and Development

(DTNBWED): Works towards educating and enlightening workers, fostering their
active participation in socio-economic development.

9. V.V. Giri National Labour Institute: A research and training institution focusing
on labour-related issues, including studies, publications, and consultations.

Indian Labour Law Framework:

Labour law in India governs the relationship between workers, employers, and trade
unions. It covers both individual and collective rights, ensuring fair working conditions,
and safety standards in workplaces.

1. Individual Labour Law: Concerns the rights of employees in their contracts of

work, including issues such as working hours, wages, health and safety, and
employment standards.

2. Collective Labour Law: Deals with relationships between trade unions, employers,
and employees, including the regulation of industrial disputes, strikes, collective
bargaining, and union certification.
Labour Law History and Evolution in India

Labour law in India has evolved over time, influenced by workers' demands for better
conditions and the need for employers to manage labour costs. The historical context of
colonialism shaped early industrial and labour policies, which were aimed at protecting
British interests.

• Pre-Independence: The first industrial legislation, such as the Factories Act of

1883, was introduced to counteract competition from Indian textiles, which were
becoming increasingly successful. This Act introduced the 8-hour workday,
abolished child labour, and limited women's employment at night.

• Post-Independence: With India's independence, labour law underwent significant

changes, particularly with the introduction of the Industrial Disputes Act, 1947,
which established mechanisms for resolving industrial disputes and promoting
harmonious relations between capital and labour.

Purpose and Impact of Labour Legislation

Labour legislation serves three primary purposes:

1. Facilitating Productive Employment: Establishing a legal framework for

individual and collective employment relationships contributes to a productive
economy.

2. Promoting Harmonious Industrial Relations: It creates a framework for the

interaction between workers, employers, and their representatives, fostering
industrial peace.

3. Guaranteeing Fundamental Rights: Labour legislation ensures workers'

fundamental rights, such as the right to fair wages, safe working conditions, and
social security.
The Role of the International Labour Organization (ILO)

The International Labour Organization (ILO), established as a part of the League of

Nations after World War I, plays a crucial role in drafting and promoting international
labour standards. The ILO’s tripartite structure, comprising governments, employers, and
workers, aims to foster fair working conditions worldwide.

Evolution of Labour Law in India

Labour law, also known as industrial law in India, has evolved significantly over the years,
with its roots in the British colonial era. The history of labour legislation is intertwined
with the colonial past, as British industrial interests played a crucial role in shaping the
initial legal frameworks.

Early Colonial Legislation

The first significant labour legislation in India was introduced under British rule, primarily
to protect the interests of British employers. A key example of this was the Factories Act
of 1883, which was introduced due to the pressure from British textile magnates who faced
stiff competition from Indian textiles. This Act stipulated important provisions, such as:

• A maximum of eight hours of work a day.

• Abolition of child labour.

• Restrictions on the employment of women at night.

• Overtime wages for work beyond the prescribed eight hours.

These measures were aimed at making Indian labour costlier, particularly to protect British
textile industries, rather than for the welfare of Indian workers.
Pre-Independence Labour Laws

During the industrial revolution, the first steam-powered cotton mill in Asia was
established in Bombay in 1854, which marked the beginning of industrialization in India.
This led to the establishment of more factories and mills, resulting in a surge of labourers.
However, working conditions were poor, and the British industrialists exploited the
workforce for their own gain. The welfare of Indian workers was neglected in favor of
colonial economic interests.

Trade unions began to form in response to this exploitation. Notable early examples
include:

• Trade Unions in Calcutta (established in 1854 due to the rise of the jute industry).

• Bombay Millhands Association (formed in 1884 under the leadership of Narayan

Meghji Lokhande), which was the first factory-based trade union in India.

In 1881, the Indian Factory Act was passed, which included provisions for child labour
regulations, safety against dangerous machinery, and working hour restrictions for
children. The Factories Act of 1891 further improved conditions by mandating weekly
holidays for workers and limiting the workday for women to 11 hours.

The Post-Colonial Shift

After India gained independence in 1947, the approach towards labour laws shifted
significantly. The post-colonial era emphasized a partnership between labour and capital.
This was formalized in a Tripartite Conference held in December 1947, where it was
agreed that labour would receive fair wages and working conditions, and in return, capital
would get the cooperation of labour for higher productivity and uninterrupted production.
This partnership was crucial to the national economic development of independent India.

The Industrial Disputes Act, 1947 was introduced to replace the Trade Disputes Act,
1929, and aimed at preventing strikes and lockouts while providing machinery for
resolving disputes between workers and employers.
Rise of Trade Unions and New Legislations

The industrialization of India further fueled the formation of trade unions. In 1918, the
Madras Labour Union was established, marking the first organized trade union in the
country. The government also introduced several legislations to safeguard workers' rights
and improve working conditions:

• Workmen's Compensation Act (1923): Provided compensation for workers who

were injured in the course of employment.

• Trade Union Act (1926): Legalized and regulated the formation of trade unions.

• Industrial Disputes Act (1947): Focused on resolving industrial disputes and

industrial relations.

Advantages and Disadvantages of Industrialization

Advantages:

1. Mass manufacturing: Industrialization allowed large-scale manufacturing, making

products available at lower prices.

2. Increased productivity: Automation and mechanization resulted in higher

efficiency and more affordable consumer goods.

3. Improved living standards: The rise of industries contributed to a better standard

of living for many workers.

4. Variety of goods: Consumers had access to a diverse range of products.

Disadvantages:

• Environmental degradation: Industrialization led to the depletion of natural

resources and pollution of air, soil, and water.

• Health issues: The unsafe and unhealthy working conditions in factories led to new
diseases and health issues.
 • Child labour: Despite laws, child labour remained a persistent issue in many
industries.

• Exploitation: The gap between rich industrialists and poor workers widened,
leading to greater social alienation and inequality.

International Labour Organization (ILO)

The International Labour Organization (ILO) is a specialized agency of the United

Nations dedicated to promoting social justice and fair labor practices globally. It was
founded on the belief that lasting peace can only be achieved through social justice, which
includes decent work, fair wages, and rights at work.

Structure and Functioning of ILO

The ILO operates on a tripartite structure, which means that its members include
representatives from governments, employers, and workers. This tripartite membership
works together to draft, adopt, and monitor the implementation of international labour
standards in the form of ILO Conventions and Recommendations.

The ILO is responsible for:

• Conducting research and data collection on global labour issues.

• Publishing reports and statistics related to the world of work.

• Managing development cooperation projects worldwide to improve working

conditions.

• Creating frameworks for decent work, social protection, and social dialogue.

The ILO has 187 member states and its headquarters are located in Geneva,
Switzerland, with field offices in over 40 countries. Its main bodies are:

• International Labour Conference: Meets annually to discuss labour issues, adopt

new standards, and approve the ILO’s work plan and budget.
 • Governing Body: The executive council of the ILO, which meets three times a year
in Geneva.

India and the ILO

India is a founding member of the ILO and has consistently participated in ILO activities.
India’s approach to international labour standards has been progressive, though it
ratifies conventions only when it is fully confident that its national laws align with the
standards set by the ILO. India has ratified 41 ILO conventions, which is significantly
higher than many other countries.

Despite this, India has generally taken a cautious approach to ratifying conventions,
preferring to implement the provisions progressively and formalize ratification when
possible. The ILO continues to play an important role in shaping India's labour laws and
policies, especially regarding issues such as child labour, wages, and workplace safety.

International Labour Organization (ILO) – Structure and Functions

The International Labour Organization (ILO), established in 1919, is a specialized

agency of the United Nations dedicated to promoting social justice and fair labor standards
worldwide. The ILO operates on a tripartite principle, where governments, employers,
and workers are represented equally at all levels. This unique structure ensures that social
dialogue between the key stakeholders is central to its functioning.

Structure of the ILO

The ILO's structure consists of three main components:

1. International Labour Conference (ILC)

2. Governing Body

3. International Labour Office (ILO Office)

1. International Labour Conference (ILC)

• Purpose: The ILC is the primary forum where policies are set, and international
labor standards are developed. It is held annually in Geneva, Switzerland, and is
attended by all ILO member states, each sending four delegates (two from the
government, one from workers, and one from employers).

• Key Functions:

o Adoption of international labor standards in the form of Conventions and

Recommendations.

o Discussions and deliberations on global labor issues, social policies, and

working conditions.

o The conference adopts the biennial program and budget for the ILO.

o It acts as a forum to review important issues regarding labor.

• Notable History: The conference has seen Indian participation at the highest levels,
with Indian Presidents and Vice Presidents holding key positions in the ILC.
Notably, Sir Atul Chatterjee became the first Indian President in 1927, and there
have been 8 Indian Vice Presidents, with Indians chairing committees related to
standards, resolutions, and applications.

2. Governing Body

• Purpose: The Governing Body acts as the executive wing of the ILO, responsible
for overseeing the implementation of the ILC's decisions. It meets three times
annually in Geneva.

• Structure: The Governing Body is made up of 56 titular members (representing

governments), 66 deputy members (representing employers and workers). The
members include 10 countries of chief industrial importance, where India has had
a non-elective seat since 1922.
 • Key Functions:

o The Governing Body adopts the ILO’s program and budget, which is then
submitted to the ILC for approval.

o It elects the Director-General of the ILO.

o The Governing Body manages the administration of the organization and

oversees the activities of the ILO Office.

o It also coordinates the work of committees within the ILO, such as the
Programme, Planning & Administrative Committee, the Freedom of
Association Committee, and the Legal Issues and International Labour
Standards Committee.

• Indian Participation: India has played a significant role in the Governing Body,
with four Indian Chairmen elected to lead it: Sir Atul Chatterjee, Shri Shamal
Dharee Lall, Shri S.T. Merani, and Shri B.G. Deshmukh.

3. International Labour Office (ILO Office)

• Purpose: The ILO Office is the permanent secretariat that carries out the daily
work of the ILO. It is responsible for providing technical assistance, conducting
research, and coordinating the implementation of ILO policies.

• Key Functions:

o It acts as the implementing arm for decisions taken by the ILC and the
Governing Body.

o Technical cooperation and capacity building are central to its function,

providing expertise to member states on labor issues.

o It organizes regional meetings to address local labor and social challenges.

 o The ILO Office ensures implementation and monitoring of ILO
conventions and recommendations across member states.

• Indian Participation: India has had key figures in leadership roles within the ILO
Office, which has further strengthened the country’s role in shaping international
labor standards.

Key Functions of the ILO

The ILO performs a broad range of functions aimed at improving labor conditions and
social justice. Some of its main functions are:

1. Adoption of International Labor Standards

• ILO Conventions and Recommendations: These are the primary instruments

through which the ILO establishes standards.

o Conventions are binding legal instruments once ratified by member states.

They create legally enforceable obligations on the countries that ratify
them.

o Recommendations are non-binding guidelines that help shape national

labor policies but do not have legal force.

• India’s Approach: India has ratified 41 ILO conventions so far, showing a

commitment to aligning national labor laws with international standards. However,
India ratifies conventions only after ensuring that its national laws and practices are
in conformity with the provisions of those conventions.

2. Social and Labor Problem Resolution

• The ILO assists member states in addressing social and labor problems, such as
inadequate working conditions, employment issues, and labor rights violations.

• It provides technical expertise to countries in reforming labor laws and improving

workplace safety.
3. Advocacy for Human Rights

• The ILO works to protect workers’ rights globally and has an advocacy role in
promoting social justice and human rights, especially in the context of vulnerable
and marginalized worker groups.

• It plays a key role in the eradication of child labor and forced labor, as well as in
the promotion of gender equality in the workplace.

4. Research and Publication

• The ILO is responsible for conducting in-depth research into global labor market
trends, working conditions, and employment issues.

• It produces reports and publications to inform policy decisions in member states

and global policy debates about labor rights and employment standards.

5. Supervision of ILO Conventions

• The ILO monitors the implementation of conventions ratified by its member states
through:

o Committee of Experts: This body reviews reports submitted by member

states on how they have implemented ILO conventions.

o Tripartite Committee: Composed of representatives from governments,

employers, and workers, this committee discusses issues of non-compliance
and works towards resolving discrepancies.

6. Registration of Complaints

• The ILO registers complaints against member states or organizations that fail to
comply with international labor standards. However, the ILO does not have the
authority to impose sanctions but works on resolving issues diplomatically.
International Labour Standards – ILO Conventions

• The International Labour Standards created by the ILO are crucial in shaping
national labor laws across the globe. These standards are generally ratified by
member states to align their domestic laws with international norms.

• The ratification of ILO conventions creates legally binding obligations for the
states that ratify them. These conventions are regularly reviewed to ensure they
reflect the evolving dynamics of labor and employment.

ILO’s Global Commission on the Future of Work

The ILO Global Commission on the Future of Work was established as part of the
Future of Work Initiative to explore challenges in the world of work due to technological
changes, demographic shifts, and climate change. It envisions a human-centered agenda
focusing on:

• Investing in people’s capabilities.

• Decent and sustainable work.

• A global response to disruptions in the world of work.

This commission aims to guide the ILO’s future strategies to ensure work remains inclusive
and sustainable in an ever-changing global economy.

India’s Role in the ILO

India is a founding member of the ILO and has actively contributed to its work since its
establishment. India plays a prominent role in the ILO through:

• Tripartite delegations in the International Labour Conference.

• Holding seats on the Governing Body.

• Actively participating in technical cooperation and policy development.

 • Promoting labor laws and worker’s rights in line with ILO standards.

India has always shown a positive approach toward ratifying ILO conventions, although
it takes care to ensure national laws are in alignment before formal ratification. India's
contribution to the ILO’s work reflects its commitment to improving labor standards both
domestically and globally.
Module 2: Introduction to Industrial Relations Code

The Industrial Relations Code, 2020 (IRC 2020) is a crucial piece of legislation
introduced as part of the consolidation of India’s labor laws. This Code was created in
alignment with the recommendations of the Second National Commission on Labour
(2002) and aims to streamline industrial relations in India. It was passed after consolidating
various labor laws relating to trade unions, industrial disputes, conditions of employment,
and the promotion of industrial harmony.

The IRC 2020 seeks to amend and consolidate the provisions of multiple existing labor
laws such as the Trade Unions Act, 1926, Industrial Disputes Act, 1947, and Industrial
Employment (Standing Orders) Act, 1946.

The IRC 2020 is part of the broader Labour Code reforms under the Ministry of Labour
and Employment, which aims to consolidate 44 central labor laws into four major labor
codes:

1. The Industrial Relations Code, 2020 – Regulates trade unions, industrial disputes,
and the conditions of employment.

2. The Code on Wages, 2019 – Deals with the payment of wages, bonus, and equal
remuneration.

3. The Code on Social Security, 2020 – Provides for social security schemes for
workers.

4. The Occupational Safety, Health, and Working Conditions Code, 2020 –

Ensures safety, health, and welfare standards in workplaces.
Salient Features of the Industrial Relations Code, 2020

The IRC 2020 contains several significant provisions aimed at modernizing industrial
relations in India. Below are some key features of the Code:

1. Definition of "Worker" Expanded

• The definition of a “worker” has been broadened. It now includes:

o Working journalists (under the Working Journalists and Other Newspaper

Employees (Conditions of Service) and Miscellaneous Provisions Act,
1955).

o Sales Promotion Employees (as defined in the Sales Promotion Employees

(Terms of Service) Act, 1976).

o Supervisory employees earning less than ₹18,000 per month (or an amount
as notified by the Central Government).

This broadening ensures that a greater number of employees, particularly in emerging

sectors, are covered under industrial relations provisions.

2. Fixed-Term Employment

• Fixed-term employment is now a legal concept under the Code, providing more
flexibility for employers to hire employees based on the supply and demand in their
respective industries.

• Fixed-term employees are entitled to pro-rata benefits after serving a one-year

contract, and they enjoy equal working conditions, wages, allowances, and benefits
compared to permanent employees.
3. Threshold for Applicability of Industrial Disputes Provisions

• The threshold for the application of provisions under the Industrial Disputes
Act has been raised from 100 to 300 employees for industrial establishments,
making it applicable to larger establishments.

• Additionally, the appropriate government (either Central or State) has the

authority to exempt any industrial establishment or class thereof from some or all
provisions of the Code.

4. Trade Union Recognition and Bargaining

• The Code mandates that where there are multiple trade unions in an industrial
establishment, the union with 51% membership will be recognized as the sole
bargaining agent.

• A significant reduction from the previous requirement of 75% membership needed

for recognition under earlier legislation.

• If no union meets the 51% membership criterion, a bargaining council will be

established, with representatives from unions having at least 20% membership.

5. Provisions Regarding Layoffs and Retrenchment

• The Code specifies that:

o Establishments employing 50 or more employees will require prior

government permission for layoffs, retrenchment, or closure of the
establishment.

o The government can prescribe a higher threshold for these provisions.

6. Prohibition of Strikes and Lockouts

• The Code prohibits strikes and lockouts in all industrial establishments, except
under certain conditions. Specifically, strikes are not allowed:

o 60 days before a strike or the expiry of the date mentioned in the strike
notice.

o During mediation proceedings or pending before a labor court.

o Within 7 days after the conclusion of mediation, or after proceedings are

concluded by the court.

• This provision is designed to ensure industrial harmony and prevent disruptive labor
unrest.

7. Employee Welfare Provisions

• Employee welfare is a primary focus under the Code, which provides for:

o The establishment of works committees for promoting harmonious

relations between employees and employers.

o Standing orders to be framed by employers concerning conditions of

employment and dispute resolution processes.

8. Closure of Industrial Establishments

• Provisions regarding the closure of an industrial establishment also exist in the

Code. If an industrial establishment employs more than 300 workers, it must
obtain prior government approval before closure can proceed.
Scope and Applicability of the Industrial Relations Code, 2020

The Industrial Relations Code, 2020 regulates the following areas:

1. Registration of Trade Unions:

o The Code provides a procedure for the registration of trade unions and the
cancellation of their registration.

o It specifies requirements for the formation and recognition of trade unions,

as well as the rights of unions to negotiate on behalf of workers.

2. Alteration of Name of Trade Union:

o The Code allows trade unions to alter their names, subject to the approval
of the appropriate authorities.

3. Formation of Work Committees:

o The Code mandates the formation of work committees to facilitate

cooperative industrial relations and dispute resolution.

4. Negotiation and Standing Orders:

o It prescribes the procedure for the recognition of bargaining unions, the

formation of standing orders, and the procedure for retirement,
reemployment, and compensation for workers in case of establishment
closure.

5. Illegal Strikes and Lockouts:

o The Code defines and prohibits illegal strikes and lockouts, specifying
conditions under which they are deemed unlawful.

6. Retrenchment and Re-employment Procedures:

o The IRC specifies the procedure for retrenchment, and when retrenched
workers should be re-employed in case of establishment revival.
7. Closure of Industrial Establishments:

o The Code provides clear provisions for the closure of industrial

establishments, including the requirements for approval from the
government when the establishment employs a certain number of workers.