July 18, 2023

LABOUR POLICY AND LEGISLATION

This article has been written by Ms. Saina Parveen, a CS Executive level Student from Institute of Company Secretary of India (ICSI)

INTRODUCTION

LABOUR POLICY AND LEGISLATION:

The Constitution is the fundamental source of law in India and many other countries also follow their own constitution in terms of formulating and implementing any laws in the country and states. Constitution is ancient or supreme law of land which not only defines framework of the political principles but also establishes different government institutions and its procedures, power and duties. 

The constitution is a federal in nature with some unitary features. In India, there are governments at different levels, like Union and States and power to make laws have been suitably distributed among them as per Seven Schedule of the Constitution. Both Union and States follow the Constitution provisions while making laws.

 Any new laws before making first pass in the both of the houses of parliament at the central level and then circulated in the country like wise laws before making in the states level first a bill introduced in the legislative assembly (or Vidhan Sabha) by MLA or Minister then sent the bill to Legislative Council and after vote of majority bill send to the Governor and after his assent bill become law.

Industrial relations affect not merely the interest of labour and management, but also the social and economic goals to which states is committed to materialize. Effective labour laws not only enhance economic growth rate but also guarantees fundamental freedom to the citizens of India.

In all the 3 lists of the Constitution, many entries related to labour laws is presented but the most important ones fall under the Concurrent list. Following are the lists of the concurrent list:

  1. Industrial and labour disputes,
  2. Trade unions,
  3. Employer’s Liability,
  4. Employees Compensation,
  5. Provident Fund,
  6. Old age Pensions,
  7. Maternity benefits etc.
  8. The Industrial Disputes Act,1947
  9. The Minimum Wages Act,1948
  10. The Employees’ State Insurance Act,1948 etc.

Some of the States are free to make amendments of the above Acts to meet the local needs such as The Minimum Wages Act,1948 the States are given power to regulate different amendments in respect of minimum pay scale or wages in the State according to the living expenses. It is clear that whatever be the changes is but such change should always promote the grow of the State and are in favor of the employment.

Further values secured by labour legislation and workmen have been mentioned in Part IV of Directive Principles of the State Policy of the Constitution. States has primarily promote welfare of the people, secure rights to adequate means of livelihood, distribute material resources of the community to serve the common goods, prevents concentration of wealth via the economic system, ”equal pay for equal work” for both men and women, health and strength of workers for men and women both, women and children are not abused, participation of workers in management of industries, just and humane conditions of work and childhood and youth are protected against exploitation and against moral and material abandonment.

The above-mentioned list more directives implemented such as: –

 1) Factories Act,1948,

 2) Employees’ Compensation Act, 1923,

3) Payment of Bonus Act,1965 etc.

                                                      Constitution and Labour Rights

Fundamental Rights are:

Article 14: Equality before law and equal protection of law;

Article 16: Equality of opportunity;

Article 19: Out of 6 one is Right to form associations or union; 

Article 21: Right to life; 

Article 23: Prohibition of trafficking and forced labour;

Article 24: Prohibition of child labour under the age of 14 years; 

Directive Principles of State Policy:

Article 38: State shall strive to promote the welfare of the people;

Article 39: Equal pay for equal work;

Article 41: Right to Work;

Article 42: Provision for just and humane conditions of work;

Article 43: Right to a living wage;

Article 43A: Participation of workers in management;

Social Justice and Industrial Laws:

The concept of Socio-economic justice considers the main objectives of the State in the Preamble of the Constitution.

 Article 38 of the Constitution provides the State to strive to promote the welfare of the people by securing and protecting, as most effective way and a social order made in such a manner that consider justice, social, economic and politic and shall inform all institutions of the national about the laws. Article 39 mandates the State to apply certain principles of social justice in making laws.

(1) “The concept social and economic justice is a living concept of revolutionary import, it gives sustenance to the rule of law, meaning and significance to the ideal of the welfare state.”

In the economic sphere, social justice means opportunities in greater measure to the poor and the needy for the betterment of their social and economic conditions. The State and the citizen both have the responsibility hand to hand for achieving the social justice. The combination of the two responsibilities tend to create an ideal social worthy to live in.

 

CONCEPTS IN DETAILS:

The State cannot make laws inconsistent with the fundamental rights, if it does then contravene the fundamental rights which will be void to the extent of inconstancy. It also known as “doctrine of separability.” Article 32 and 226 provide for remedy to enforce the fundamental rights through Supreme Court and High Court respectively.

Article 14 requires the State not to deny to any person equality before the law or the equal protection of laws. Thus, discriminatory laws or unequal laws are not to be passed to equal or uniform laws are not to be passed to unequal. In the Industrial legislative sphere this protection extends to both the labour and the capital.

 The freedom of assembly, freedom of speech and expression, right to form associations and unions, guaranteed under Article 19(1)(a), (b) and (c) and the prohibition against forced labour and child labour protect some of the vital interest of the workers strengthening their hands in forming trade unions.

(2) “it is thus well established by the decisions of this court that the provisions of Part III and IV are supplementary and complementary to each other and that fundamental rights are but a means to achieve the goal indicated in par IV. It is also held that the fundamental rights must be construed in the light of the directive principles.”

Within the limits above stated and consistent with the distribution of legislative power, Parliament and State legislatures make laws to regulate industrial relations and connected matters. The social security legislations, legislations to provide for retirement benefits, against industrial injuries, child labour, etc. are only resonating with the concept of social justice as highlighted by International Labour Organizations., since its inception in 1919. This has definitely shaped the industrial relations and labour laws of the country.

CONSTITUTIONAL REMEDIES:

The Constitution also provides remedy by Supreme Court under Article 32 against violation fundamental rights against injuries and illegalities etc. Article 32 is itself a fundamental right. Supreme Court have end number of power envisaged by the Constitution such as Writ Petition or jurisdiction, discretionary jurisdiction to entertain appeal by Special leave under Article 136 from decree, sentence or order passed by any court or tribunal in India. The High Court under Article 226 also have power like Supreme Court.

Fundamental Rights of the people are mention under Article 12 to 35. Under Part III essential human rights are guarantees in the Constitution. Fundamental of governance of the country envisages under Directive principle of State Policy in Part IV. Directive Principle of the State is makes State accountable and centralize the citizen of India. The need for safeguarding and protecting interest of labour as human beings has been enshrined in Article 14,16,19,21,23 and 24.

Liberal interpretation of Article 21 by judiciary has led to 2 very spectacular results within the last two decades, viz.:

  1. Directive principles which are active and enforceable are: 
  1. Right to livelihood
  2. Right to live with human dignity
  3. Right to medical care
  4. Health of labour
  5. Sexual harassment
  6. Right to health
  7. Economic Rights

 

  1. The Supreme Court has implemented number Rights from Article 21. The Parliament enacted Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,2013 on December 9,2013 that seeks to protect women from sexual harassment at work places. This enactment came in force by the Vishakha Guidelines.

CONCLUSION

Workers in the enterprise contributed labour and brain and shareholder contributed money and both of this work in such a manner which led to grow the enterprise. Enterprise growth automate the growth of the country. Thus, it is the prima facie duty of the State and country to make laws and policies for the benefit of the worker. 

 Referred CASE LAWS:

  1. Justice Gajendra Gadkar in the State of Mysore v. Workers of Gold Mines.
  2. Unni Krishnan. J. P. V. State of A.P. Jeevan Reddy J.

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