MODULE 2

LABOUR LEGISLATIONS AND WELFARE

12 HOURS

 Labor legislation in India

 Social security and welfare legislations - Concept of social security, various

aspects of labor legislations,

 Objectives and activities of ILO,

 The impact of ILO on Indian labor organizations,

 The obstacles in adoptions of conventions and recommendations, Labor

Welfare in India.
LABOR LEGISLATION IN INDIA & VARIOUS ASPECTS OF
LABOR LEGISLATIONS

‘Labour legislation’ is a body of law formed for the working class of people to
provide them with legal rights, and also restrict them with rules and regulations. It
defines the rights and obligations of the working class. Labour law covers several
areas-
• Certification of Labour Unions
• Collective Bargaining
• Labour-Management Relations
• Workplace health and safety
• Employment standards
HISTORY AND DEVELOPMENT OF LABOUR LEGISLATION
 The roots of labour legislation lie in the relentless struggle faced by the workers at their master’s work.
There was inequality between two classes of people. The contract between labour and capital could never be
struck on equitable terms. Such practices required a change, and this need became the basis for the
formation of labour laws.

 The Industrial Revolution was an epoch-making event. It transformed the agricultural-based society into an
industrial and materialistic one. It gave a great opportunity to the masters to get the best work from their
workers. They exploited them excessively for larger profits and greater outcomes.

 At that time the laws were of no relief for the workers. Most of the contracts were made verbally and in case
of breach, the workers were severely punished and imprisoned. Exploitation was at a large-scale long hour
of duty, extremely low wages, ill-treatment, and no safety or welfare provisions. The State never interfered
in these matters, so the employers took the most advantage of it and exploited the workers vigorously
 The Industrial Revolution indeed made a great shift in society but it created political and economic gaps,
and it became the responsibility of the society to fill those gaps. It took the help of social devices to take
care of the gaps which resulted in the formation of labour laws.
Labour legislation could be called the natural children of the Industrial Revolution.

 The labour legislation is the product of the Industrial Revolution. It was made to stabilise the abnormality
caused due to some circumstances. Unlike other laws, it was made to rectify specific labour conditions,
therefore they are specific and not general in orientation, philosophy and concept.
PRINCIPLES OF LABOUR LEGISLATION

There are various principles of labour legislation-

• Principle of Social Justice

• Social Equity
• International Uniformity
• National Economy
• Social Security
OBJECTIVES OF LABOUR LEGISLATION

 Establishment of all kinds of justice for the working people – social, economic, and political.

 The availability of equal opportunities to all workers, irrespective of caste, creed, religion and beliefs for their
overall personality development.

 Protection of weaker sections of workers who are not financially well off to protect themselves.

 Maintenance of industrial peace.

 Protection and improvement of living standards of the labourers.

 Protection of workers from all sorts of exploitation – mentally or physically and creating a better working
environment.

 Grant rights to workmen to unite and form their unions so that they could bargain collectively with their owners for
the betterment of their livelihood.

 Keep checks on the government about their active participation in the working areas for social well-being.

 Ensures human rights and human dignity.

LABOUR LAWS IN INDIA
. PPRENTICES ACT, 1961
A

The main aim of the Act is to provide practical training to skilled workers under the supervision of their instructors. It

promotes new skilled manpower. It is also for engineers and diploma holders

Obligations of the employer

 If the employer himself is not qualified in his work field he must ensure that the apprentice gets a well-qualified

trainer for his learning experience.

 The employer must provide adequate instructional staff who would give him both practical and theoretical knowledge

to learn about the work.

 The employer could only hire apprentices in prescribed ratios in his different work fields.

 Employers will pay prescribed stipends to the apprentices.

 The Employer will make proper arrangements for practical training of the apprentice.
FACTORIES ACT, 1948

The main aim of the Act is to formulate safety measures and promote the health and welfare of the workers
working at the factories. It also keeps a check on the hazardous growth of the factories by overall checking
before the establishment of any factory.

Applicability of the Act

 It is applicable to the whole of India including Jammu and Kashmir.

 It is applicable to all manufacturing units that fall under the definition of ‘factory”.
• It is applicable to all the factories that use power or employ 10 or more workers, and if not using power,
employ 20 or more workers on any day of the year
WORKMEN’S COMPENSATION ACT, 1923

The main aim of this Act is to provide workmen or their family some relief in case of an accident that may
occur during the course of their employment and cause death or disablement of workmen.

Employer’s liability for compensation

 If the worker gets injured during the course of his employment which may cause death, permanent total
disability, permanent partial disability or temporary disability

 If the worker gets any disease which occurred due to his occupation.
The Trade Unions Act, 1926

• This Act provides for registration of trade unions in a lawful manner so that they can initiate collective
bargaining. The Act applies to the whole of India and applies to all kinds of associations of workers, and
employers.

• A trade union is a group formation between workmen and employers or between workmen and workmen or
between employers and employers who work to regularise and improve labour management relations.
Child Labour (Prohibition and Regulation) Act, 1986

This Act was formulated to prohibit children below fourteen years of age into factories, mines or any hazardous
workstations.

Provisions of the Act

 No child should be pushed to work for an excessive number of hours. He shall work for a fixed period each day
which shall not be more than 3 hours and it should also be made sure that he has taken proper rest.

 Children should be made to work in safer environments.

 Children should be provided with a weekly holiday.

 They should not be made to work in construction areas of railways, slaughterhouses, automobile workshops,
mines, plastic units and fibreglass workshops, beedi-making, and several others which are mentioned in part A
of the Schedule.

 Ban on employment of children as domestic servants at hotels, restaurants, resorts, spas, motels, and tea shops.

 A toll-free number 1098 is available for children in distress and to help them with any sort of problem they
might be facing.
Maternity Benefit Act, 1961

This Act ensures that no woman should worry about their rights, income and job while they are looking after
their child and spending quality time with them.

 A woman must be working in an establishment for about 80 days in the past 12 months to ask for maternity
benefits.

 Under Section 11A, a creche facility must be present in establishments which have more than 50 employees.

 Women are allowed to visit the creche four times a day which also includes an interval for her to rest.

 The creches should be within 500m from the workplace.

 Creches are mandatory for firms, companies and consultant companies.

Payment Of Gratuity Act, 1972

This Act provided gratuity to workers engaged in mines, factories, oilfields, plantations and other establishments.
‘Gratuity’ is payment for long service, as a statutory retiral benefit. If an employee has given his contribution to his
service for 5 or more than 5 years, then he is entitled to receive gratuity irrespective of his wage. Gratuity is given in the
following cases:

• On his superannuation

 On his resignation or retirement

 The maximum amount of gratuity provided could be Rs. 20,00,000.

 In case of death or disablement due to an accident or disease, the employer will have to pay the amount to his
nominee or his legal heir.

 An eligible employee must apply for his gratuity before 30 days from his payable date.

 An employer cannot reject an application for gratuity even if it is applied after 30 days for a valid reason.

 If an employee feels that he has received less amount of gratuity than he deserved then he can file a complaint case.
Minimum Wages Act, 1948

The main aim of this Act is to fix minimum rates of wages in certain occupations. The provision of minimum
rate of wages is prescribed by the Government which means the owner must pay his workers’ wages as fixed by
the Government.

 Wages should be paid in cash.

 For fixation of wages, that occupation must be mentioned in the schedule originally or should get added to
the schedule.

 Every employer should maintain a register of wages at the workplace specifying the minimum rate of wages
payable, the number of days overworked by the worker, the gross wages, and the date of the payment.
Recent amendments to the Labour laws in India

Codes On Wages, 2019:The Code on Wages got passed in the year 2019. Its main aim was to amend and make
the previous laws related to wages stronger. It replaced the laws like the Minimum Wages Act, 1948,
the Equal Remuneration Act, 1976, the Payment of Wages Act, 1936 and the Payment of Bonus Act, 1965

Code On Occupational Safety, Health and Working Conditions, 2020:This Act received Presidential assent
in September 2020 which replaced 13 central Labour Laws. Its main aim is to amend and consolidate the laws
relating to occupational health, and working conditions of persons employed in different work sectors.

Invisible labour :When someone works with all their might and completes their everyday work but is unpaid
and unrecognised, then it is called Invisible Labour. Jobs like household work, childcare, and looking after the
elder members of a family are unpaid and are a form of Invisible Labour. Women form the biggest part about 90
percent of this Invisible Labour. It goes unnoticed and unrecognised due to which no regulations are present for
such kinds of works. No new laws talk about this zone, which has the most tedious work profile, with no
weekend offs, no limited working hours, and no vacations. The worst part is, it owns no recognition and does
not get any thankful chores
SOCIAL SECURITY AND WELFARE LEGISLATIONS &
CONCEPT OF SOCIAL SECURITY
Social Security in India:

The evolution of social security measures in India has been rather slow, and on a more or less selective basis. In our
country social security programmes have been in existence since times immemorial. Joint families, gram panchayats,
community development centres and charitable trusts have contributed to provide assistance to the needy for various
risks and contingencies. In those days, the main objective was collective security of life and property, freedom from
misery, and security against common risks. The modern concept and organised social security measures in statutory
form are only of recent origin. The Indian Constitution guarantees social security as follows:

The State shall, in particular, direct its policy towards securing:

• a) right to an adequate means of livelihood (Article 39(a));

• b) the State shall within the limits of its economic capacity and development, old-age, sickness, disablement and
other cases of undeserved want (Article 41);

• c) the State shall endeavour to secure to all workers agricultural, industrial or otherwise, work, a living wage,
conditions of work ensuring a decent standard of life (Article 43).
SOCIAL SECURITY LEGISLATION IN INDIA

• Social security is a dynamic concept, which has been considered most essential for the industrial workers and with the
development of the idea of welfare state, its scope now includes all sections of society. As the State exists for the
general well-being of people, it is a proper function of the State to promote social security.

• Social security is the security that society furnishes, through appropriate organisation, against certain risks to which
its members are exposed. These risks are essentially contingencies against which the individuals of small means, or
the worker, cannot effectively provide for by his own ability or fore-sight alone or even in private combination with
his fellows
Social security legislation in India in the industrial sector consists of the enactments:

• (1) The workmen’s Compensation Act, 1923;

• (2) The Employees State Insurance Act, 1948;

• (3) The Employees' Provident Funds and Miscellaneous Provisions Act, 1952;

• (4) The Maternity Benefit Act, 1961; and

• (5) The Payment of Gratuity Act, 1970.

SOCIAL SECURITY ENACTMENTS:
In India, the significant enactments with regard to the provision of social security are the following:

1) Workmen's Compensation Act, 1923:

This Act was passed in the year 1923 to provide employment injury compensation to industrial workers. The
compensation is related to the extent of the injury or death, but the employer is not responsible if a workman
sustains his injuries under the influence of drugs, drinks etc. It is administered by a commissioner, appointed by
the government.

2) The Employees State Insurance Act, 1948:

Under the scheme medical facilities and unemployment insurance are provided during illness to industrial
workers. The Scheme is administered by the ESI Corporation, an autonomous body consisting of representatives
of the Central and State Governments, employers, employees, medical professionals and also members of
parliament. The scheme operates on a contributory basis and it offers five major benefits - medical, sickness,
maternity, disablement and dependent's benefits.
3) Employees Provident Fund Act, 1952:

The EPF scheme framed under the Act is administered by a tripartite central board, consisting of representatives of
employers, employees, Central and State Governments. The PF is refunded with interest in the event of death,
permanent disablement, superannuation, retrenchment, migration or on leaving service. All PF accumulations are
invested in government and other guaranteed securities, according to the pattern specified by the Central
Government.

4) Maternity Benefit Act, 1961:

The general maternity benefit Act, 1961 applies to women in factories, mines and other establishments. It does not
apply to those covered by the ESI scheme. It is administered by the Factories Inspectorates of State Governments in
respect of factories, the Welfare Commissioner in coal mines and the Director General (safety) in other mines.

5) Payment of Gratuity Act, 1972:

The Payment of Gratuity Act, 1972 applies to all factories, mines, oilfields, plantations, ports, railways, shops and
such other establishments as specified by a Central Government notification. The Act provides that for every year's
continuance in service, an employee should get 15 days wages and the total gratuity payable shall not be more than
20 months wages. Gratuity is payable on termination of employment after rendering continuous service for at least 5
years unless termination is because of death or disablement
SOCIAL WELFARE LEGISLATION
Legislation is one of the many institutions which controls and directs individual action into desirable channels.
Others being social customs, traditions, religious prescription, etc. Law is a vast subject having many branches.
In a broad sense, all laws are social in character, in a narrow sense only those laws that are enacted for the
purpose of social welfare are categorized as social legislation. There are several types of legislation such as
taxation, corporate, civil, criminal, commercial, etc.

The objective of Social Welfare Legislation

1. Removal of discrimination on the grounds of Gender, religion, caste, class etc. and promotion of equality to
all.

2. Safeguard the rights of the weaker section such as women, children, elderly, widows, destitute (extremely
poor), and the backward classes.

3. Eradication of traditional malpractices and social evils such as untouchability, dowry, child marriage, female
infanticide etc.
Social Legislation in a Welfare State:

State Intervention is required to safe guard mutual rights & duties. Social Legislation especially in a adjustable instrument,
stratifying the requirement of an ever changing society.

Definition:

According to Oliver Wendell, “Legislation of today is to meet the social needs of yesterday.”

Nature of Legislation in Welfare State:

1. Women welfare

2. Child welfare

3. Schedule caste development

4. Welfare of OBC

5. Welfare of disable person

6. Labour welfare

7. Housing welfare
INTRODUCTION OF ILO

• Labour mobility across the nations has been in practice for long times. In course of time, this has
led to international labour problems for various reasons and also underlined the need for
understanding the problems of international labour. In 1919, the ILO came into existence as a
solution to this problem.

• The ILO was born as a result of the peace conference at the end of World War I at Versailles on
April 19, 1919. Being an original signatory of the treaty of peace, India became member of ILO in
1919 Itself In fact, ILO is the only international organisation that survived the Second World War
even after dissolution of its parent body ‘the League of Nations’. Its main concern is to make the
world know that world peace is subject to be affected by unjust conditions of its labour. Thus, ILO
deals with international labour problems.
The ILO was established as an agency for the League of Nations following World War I.

 It was established by the Treaty of Versailles in 1919.

 Its founders had made great strides (decisive step) in social thought and action before the establishment of
the organization itself.
 It became the first specialised agency of the United Nations (UN) in the year 1946.
 The ILO has played a significant role in promoting labour and human rights. It had held a significant
position during the Great Depression (1930s) for ensuring labour rights.
 It played a key role in the decolonization process and in the victory over apartheid (racism) in South Africa.
• The organization got the Nobel Peace Prize in 1969, for its efforts to improve peace amongst the classes, and
for promoting justice and fair work for the workers
OBJECTIVES OF ILO
The main objectives of ILO contained in the preamble to its constitution are to:

• 1. Provide social justice to workers.

• 2. Avoid injustice, depravation (making anything bad) and exploitation of labour.

• 3. Build up human working conditions to the labour

• 4. To promote and realize standards and fundamental principles and rights at work

• 5. To create greater opportunities for women and men to secure decent employment.

• 6. To enhance the coverage and effectiveness of social protection for all.

• 7. To strengthen tripartism and social dialogue.

THE ACTIVITIES/FUNCTIONS OF THE ILO

 Creation of coordinated policies and programs, directed at solving social and labour issues.

 Adoption of international labour standards in the form of conventions and recommendations and control
over their implementation.

 Assistance to member-states in solving social and labour problems.

 Human rights protection (the right to work, freedom of association, collective negotiations, protection
against forced labour, protection against discrimination, etc.).

• Research and publication of works on social and labour issues

THE IMPACT OF ILO ON INDIAN LABOR ORGANIZATIONS
The ILO currently has 187 of the United Nations' 193 member states as members .The emphasis on tripartism, which aims to
ensure that any dialogue on labour-related issues involves the three main stakeholders, namely employers, workers, and states,
is a fundamental aspect of the ILO's functioning.

The International Labour Organization (ILO) achieves its goals through three main bodies made up of the aforementioned
stakeholders, which are as follows:
1. The International Labour Conference
It is an annual gathering of governments, workers, and employers from ILO member countries. The conference's goal is to
discuss the organization's broad policies, establish and adopt international labour standards, and elect the governing body.

2. Governing Body
It is the ILO's executive body, responsible for policy decisions, setting the agenda for the International Labour
Conference, adopting a budget, and electing the Director-General. It is made up of 56 titular members, of which 28 are
held by governments and 14 by employers and workers, respectively. Ten of the titular government seats are non-elected,
permanent seats held by states with the greatest industrial importance; India is one of these nations.

3. International Labour Office

It is the International Labour Organization's permanent secretariat, and it is in charge of the organization's administration
as well as the implementation of technical cooperation activities, as well as programmes for awareness, advocacy, and
information sharing.
ILO Governing Body has identified eight conventions that it considers fundamental in terms of the subjects they
address, which are as follows:

• Freedom of Association and Protection of the right to Organise Convention (1948)

• Right to organise and collective bargaining convention (1949)
• Forced Labour Convention (1930) and its Protocol (2014)
• Abolition of Forced Labour Convention (1957)
• Minimum Age convention (1973)
• Worst forms of child labour convention (1999)
• Equal remuneration convention (1951)
• Discrimination (employment and occupation) convention (1958)
The following are the governance/priority conventions

• Labour Inspection Convention, 1947

• Employment Policy Convention, 1964
• Labour Inspection (Agriculture) Convention, 1969
• Tripartite Consultation (International Labour Standards) Convention, 1976
• Where India Stands?

India has ratified only four of the eight core conventions, which are as follows:

 Forced Labour Convention, 1930, No 29

 Equal Remuneration Convention, 1951, No 100

 Discrimination (Employment and Occupation) Convention, 1958, No 111

 Abolition of Forced Labour Convention, 1957, No 105

RECOMMENDATIONS OF ILO

• International labour standards are legal instruments drawn up by the ILO's constituents (governments,
employers and workers) and setting out basic principles and rights at work. They are either Conventions (or
Protocols), which are legally binding international treaties that may be ratified by member states,
or Recommendations, which serve as non-binding guidelines. In many cases, a Convention lays down the
basic principles to be implemented by ratifying countries, while a related Recommendation supplements the
Convention by providing more detailed guidelines on how it could be applied. Recommendations can also be
autonomous, i.e., not linked to a Convention.
• Conventions and Recommendations are drawn up by representatives of governments, employers and
workers and are adopted at the annual International Labour Conference. Once a standard is adopted, member
states are required under article 19(6) of the ILO Constitution, to submit it to their competent authority
(normally Parliament) within a period of twelve months for consideration. In the case of Conventions, this
means consideration for ratification. If it is ratified, a Convention generally comes into force for that country
one year after the date of ratification. Ratifying countries undertake to apply the Convention in national law
and practice and to report on its application at regular intervals. Technical assistance is provided by the ILO,
if necessary. In addition, representation and complaint procedures can be initiated against countries for
violations of a Convention that they have ratified
RECOMMENDATIONS OF ILO
 In June of each year, after considerable preparatory work, representatives of governments, and employers' and
workers' organizations of all member countries meet in the International Labour Conference in Geneva, to adopt
or revise those standards which will become international labour Conventions or Recommendations. These
international instruments deal with people and their work. The Conventions are binding for countries which
ratify them.
 Built up a system of international standards in all work-related matters, such as the abolition of forced labour,
freedom of association, equality of treatment and opportunity, employment promotion and vocational training,
social security, conditions of work, maternity protection, minimum age for entering the labour market, and
protection of migrants and categories of workers such as seafarers.
 Conventions and Recommendations, composed of some twenty independent, eminent figures in either the legal
or social field and who are also specialists in labour matters. The Committee submits an annual report to the
International Labour Conference, which is closely examined by a tripartite committee composed of government,
employer and worker members.
 Employers' and workers' organizations can lodge representations with the International Labour Office on a
member State's non-compliance with a Convention it has ratified
 Moreover, any member country can lodge a complaint with the International Labour Office against another
member country which, in its opinion, has not ensured in a satisfactory manner the implementation of a
Convention which both of them have ratified
• The Commission of Inquiry formulates recommendations on measures to be taken, if necessary. The
governments concerned then have three months to accept these recommendations. If they do not, they may
submit the case to the International Court of Justice.
• If a member State does not comply with the recommendations of the Commission of Inquiry or with the
decision of the International Court of Justice, within the stipulated time, the Governing Body may
"recommend to the Conference such action as it may deem wise and expedient to secure compliance
therewith
• The Recommendations are not subject to ratification. They therefore do not carry the legal requirements of
Conventions. They are often adopted at the same time as Conventions dealing with the same subject, which
they complement in more detail. Recommendations are aimed at member countries and their goal is to
stimulate and guide national programmes in given areas. They have also left their mark on law and practice in
countries around the world.
OBSTACLES OF ILO

Critiques of the ILO focuses on its:

 Declining standard setting role
 Low ratification rates of its conventions
 Perceived non-representativeness
 Overambitious mandate
THE OBSTACLES IN ADOPTIONS OF CONVENTIONS AND
RECOMMENDATIONS
OBSTACLES IN ADOPTION OF CONVENTIONS AND RECOMMEDNATIONS
 Freedom of association- Since Association has complete freedom to give their consent
in ratifying the agreements, sometimes association may have different opinions in
ratifying the conventions or recommendations.
 Collective bargaining – Since all the decisions are collectively derived few
conventions and recommendations will be excluded.
 Tripartite consultation – May not be accepted by State, National or International
Participants since it is based on all the three-level acceptance from their member
countries.
 And Others
LABOR WELFARE IN INDIA.

• Labour welfare relates to taking care of the well-being of workers by employers, trade unions, governmental
and non-governmental institutions and agencies. Welfare includes anything that is done for the comfort and
improvement of employees and is provided over and above the wages.

• Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for
longer duration. Employee welfare includes monitoring of working conditions, creation of industrial harmony
through infrastructure for health, industrial relations and insurance against disease, accident and
unemployment for the workers and their families.

DEFINITION

• According to Industrial Labor Organization (ILO), “Labor welfare may be understood and including such
services facilities and amenities which may be established in vicinity of undertaking to perform their work in
healthy and congenial environment and to avail of facilities which improve their health and bring high
morale.”
From various studies, the summarized objectives are to:

• (a) Provides social comfort to employees.

• (b) Support overall improvement of employees.

• (c) Provide financial support indirectly to the employees.

• (d) Contribute in developing sense of responsibility and belongingness among employees.

• (e) Improve working conditions at the workplace for employees.

• (f) Maintain and retain the existing workforce.

• (g) Reduce rate of absenteeism from work and labour turnover from job.

• (h) Improve lives of employees comfortable and happy.

• (i) Improve productivity and efficiency of employees at workplace.

• (j) Provide healthy and proper working conditions.

• (k) Ensure betterment of employees and families and society as a whole