LABOUR ENVIRONMENT

BY:
AKSHAY GUPTA
(12/IME/042)

(12/IME/009)

UPENDRA KUMAR SHARMA

SHIVAMDEEP RAJPUT
(12/IME/072)

(12IME/012)

JAGDISH PRASAD SHARMA

ANUBHAV SRIVASTAV

(12/IME/019)

MAYANK CHAUDHARY (12/IME/021)

CONTENTS
Labour Legislation
What is Labour legislation?
Labour Legislation in India
Classification of Labour Legislation
Unorganized sector Legislations

Labour Welfare and Security

Labour Welfare
Regulating Bodies
Social Security
Legislative Enactments for Social Security
Industrial Relation & Disputes
Causes of Disputes
Prevention of Disputes
Settlement of Disputes

LABOUR
LEGISLATION
Labour law mediates the relationship between workers (employees),

employers,trade unionsand the government.

Employment standardsare social norms for the minimum socially acceptable

conditions under which employees or contractors are allowed to work.

Labour law arose in parallel with theIndustrial Revolutionas the relationship

between worker and employer changed from small-scale production studios to

large-scale factories.
The term Labour Law denotes the body of laws which deals with both

Employment and non

employment and non-employment wages.

International
Symbol for Co-op
Activism

LEGISLATION IN
INDIA
A simple restraint on child labour in 1881 is official record for labour law in the

country.
Indian Labour Law is closely relation to the Indian Independence movement.
Trade Unions were an active part of the freedom movement.
theConstitution of Indiaof 1950 embedded a series of fundamental labour rights in the

constitution, particularly:
the right to join and take action in a trade union
the principle of equality at work
the aspiration of creating a living wage with decent working conditions.

In theConstitution of Indiafrom 1950, articles 14-16, 19(1)(c), 23-24, 38, and

41-43A directly concernlabour rights.

LEGISLATION IN
INDIA
The Directive Principles in the Constitution places responsibility on the State in

respect to labour.
Article 42 requires the state to make provision for securing just and humane

conditions for work.

Article 43 (Magna carta of Indian worker) upon the state the obligation to secure

all workers a living wage, conditions of work ensuring a decent standard of life.
Labour is included in the Concurrent List in the constitution.

NLC Logo

CLASSIFICATION OF
LABOUR LEGISLATION
Labour
Legislation

Laws
Relating to
Weaker
Sections

Laws
Relating to
Specific
Industries

Laws
Relating to
Specific
Matters

Trade
Unions and
Industrial
Laws

CLASSIFICATION OF
LABOUR LEGISLATION

Laws Relating to Weaker sections

Children
Women

Laws Relating to Specific Industries

Factories and workshops
Mines and minerals
Plantations
Transport
Shops and commercial establishments
Contract Workers
Construction Workers

CLASSIFICATION OF
LABOUR LEGISLATION
Laws Relating to Specific Matters
Wages
Indebtedness
Social Security
Bonus
Forced labour

Trade Union and Industrial Relations

CLASSIFICATION OF LABOUR LEGISLATION

Laws Relating to Weaker sections
Provisions for protection of women workers are largely inspired by the ILO Conventions on:

Maternity Protection, 1919

Night Work, 1919

Underground Work, 1919

Equal Remuneration, 1951

Discrimination (Employment and Occupation), 1958.

For legislation on the childrens working condition following Acts are considered as the

framework:

Factories Act, 1948

Mines Act, 1952

Employment of children Act, 1938

Plantation Labour Act, 1951

The provision for minimum working age is stated in Factories Act, 1948 and is 18 years.

CLASSIFICATION OF LABOUR LEGISLATION

Laws Relating to Specific Industries
Factories and workshops:
The Factories Act, 1948 provides for the licensing, registration and inspection of factories.
The Industrial Employment Act, 1946, defines the rights and obligations of the employer and

the workers in respect of recruitment, discharge, disciplinary action, holiday, leave., etc.

Mines and Minerals:

The Mines Act, 1959 prohibits the employment of persons in a mine when its owner fails to

comply with notice of Mines Inspectorate.

The Coal Mines Act, 1952, authorizes the central Government to take necessary steps for

safety in coal mines and for conservation of coal.

Iron Ore Mines labour Welfare Cess Act, 1961, Coal mines Labour Fund Act, 1947, and

Coal Mines Provident fund and Bonus Schemes Act, 1948 are some other important laws.

CLASSIFICATION OF LABOUR LEGISLATION

Laws Relating to Specific Industries
Plantations:
The Plantation Labour Act, 1951, regulates the conditions of work of plantation workers.

Transport:
Indian Railways Act, 1930
The Indian Merchant Shipping Act, 1973
The Indian dock Labourers Act, 1934
The Dock Workers(Regulation of Employment) Act, 1984
Marketing of Heavy Packages Act, 1951
Motor Transport Workers Act, 1961

CLASSIFICATION OF LABOUR LEGISLATION

Laws Relating to Specific Industries
Shops And Commercial Establishments:
State Acts on shops and establishments broadly cover wages earners employed this area.

Contract Labour:
The Contract Labour (Regulations and Prohibitions) Act, 1970 seeks to abolish contract

labour and regulates where this cannot be abolished.

Construction Labour
Workmens Compensation Act, 1948
Employee state Insurance Act, 1948

CLASSIFICATION OF LABOUR LEGISLATION

Laws Relating to Specific Matters
Wages:
The Payment of Wages Act, 1936
The Minimum wages Act, 1948

Bonus:
The Payment of Bonus Act, 1965

Bonded Labour:
The Bonded Labour System (abolition) Act, 1976

Laws Relating to Trade Unions and Industrial Labour

The Trade Unions Act, 1926
The Industrial Disputes Act, 1947

UNORGANIZED
SECTOR
Unorganized Labour is defined as workers who haveEmployment
not been able to organize

themselves to persue their common interest.

Organized Sector; 6%
The total Indian workforce is 465 million (2010-11).
28 million in organized sector.

437 million in unorganized sector.

Unorganized sector; 94%
90% in unorganized sector deprived of welfare schemes.
The Minimum wages Act, 1923.
The Workmens compensation Act, 1970.
The Inter-State Migrant Workmen Act, 1979
Set up welfare funds for workers.

LABOUR WELFARE
ILO defines Labour Welfare as such services, facilities and amenities as adequate

canteens, rest and recreation facilities, arrangements for travel to and from their
houses, and such other services amenities as contribute to improvements in the
conditions under workers are employed.
Government of India divide the entire range of Labour Welfare activities in three

groups:

Welfare
Welfare
within
outside
establishment
establishment
Welfare
WelfareSocial
within
outside
establishment
establishment
Social Security
Security

LABOUR WELFARE
Welfare within Establishment:
Latrines and urinals
Washing and bathing facilities
Creches
Rest shelters and canteens
Arrangements for drinking water
Arrangements for prevention of fatigue
Health services including occupational safety

Factories Act,1948, the Plantation Labour Act, 1951, and the Mines Act,

1952 regulates the activities within establishment.

LABOUR WELFARE
Welfare Outside the Establishment
Maternity benefits
Housing facilities
Education facilities including adult education
Holiday homes and leave travel facilities
Transport to and from work
Vocational training for dependents of workers
Medical facilities
Benevolent funds

LABOUR WELFARE
Regulating Bodies:
Central Board for Workers Education

(CBWE): Set up in 1958 to promote worker

education.
V.V.

Giri National Labour Institute:

Established 1974, is engaged in research
pertaining to labour and training of labour.

National Safety Council:

Set up 1966,
conducts seminars, organize films in work
places on subject of safety.

V .V Giri National Labour

Institute

LABOUR WELFARE
Social Security:
A concept stating that the society should help each person to develop and to make most

of all offered advantages.

Responsibility of the government to make enough and effective provisions for cultural

and economic safety of the society.

The Constitution of India lays down that the State shall, within the limits of its

economic capacity and development, make effective provisions for securing public
assistance in the event of unemployment, old age, sickness, and disablement.

The concept enshrined in Article 22 of Universal Declaration of Human Rights

LABOUR WELFARE
Legislative Enactments:
The enactments can be classified into two categories:

Acts that provide

security in case of
employment injury,
maternity and
sickness.

Acts that cover the

risks of old age and
unemployment

The workmens
compensation Act,1923.

The Industrial Dispute

Act,1947

The Maternity Benefits

Act,1961

The payment of Gratuity

Act,1972

The Employees Insurance

Act,1948

The Employees provident

Fund and Miscellaneous
provision Act,1952

LABOUR WELFARE
Legislative Enactments:
Workmen's Compensation Act:
Compensation to employee in case of Industrial accident- disability, death and Occupational

diseases causing death.

Maternity Benefits Act:

Payment of cash maternity benefit for certain periods before and after confinement and grant of

leave to women employees.

Employee's state insurance Act:

Provide Medical facility and unemployment Insurance to industrial worker during their sickness.

LABOUR WELFARE
Legislative Enactments:
Payment of Gratuity Act:
On completion of five years service, the employees are entitled to payment of gratuity @15 days

wages for every completed year of service or part thereof in excess of six months subject to a
maximum of Rs.3.50 lakh

Employees Provident Funds & Miscellaneous Provisions Act:

Institution of compulsory contributory Provident Funds, Pension and Insurance for employees.

Presently the following three Schemes are in operation under the Act through the Employees'
Provident Fund Organization:
Employees Provident Funds Scheme, 1952
Employees Deposit Linked Insurance Scheme, 1976
Employees' Pension Scheme, 1995

INDUSTRIAL
DISPUTES
According to Industrial Disputes Act, 1947 any dispute or difference between

employers and employers, or between employers and workmen, or between

workmen and workmen or with the conditions of labour, of any person is termed
as industrial dispute.
Year/Sector

Public Sector

Private Sector

2009

1.73

1.56

2010

15.88

21.56

Total

17.61

23.12

Manhours lost due to

strikes and lock outs
(Figures in millions)

INDUSTRIAL
DISPUTES
Causes of Industrial Disputes
Conflict of Interest
Economic Causes
Wages
Bonus
Economic Insecurity

Labour Welfare
Psychological Factors
Internal Factors

INDUSTRIAL
DISPUTES
Prevention of Industrial Disputes
Employer-Employee Relations
Participation of labour in management.
Proper discharge of responsibilities.

Tripartite Mahinery
Various bodies composed of representatives of employers,

employees and the Government.

Indian labour Conference: promotion of uniformity in

labour laws.
Committee on Conventions: examine ILO conventions.
Standing Labour Committee: all matters referred by ILC.

Logo of ILC,
1955

INDUSTRIAL
DISPUTES
Prevention of Industrial Disputes
Code of Discipline and Industrial Truce Relations:
Central Organizations of Employers and Workers adopted Code of Discipline in 1958.
No strike or lock-out without notice.
No unilateral action shall be taken in connection with any industrial matter.
Neither party will have recourse to coercion, intimidation and lock-out.
No deliberate damage shall be done to plant and machinery.
Award and agreements should be speedily implemented.
Any action which disturbs cordial industrial relation should be avoided.

INDUSTRIAL
DISPUTES
Settlement of Disputes:
Machinery for settlement for disputes has been provided by the Industrial Disputes Act,

1947.
Grievance Settlement Authority:
The I. D Act provides every industrial establishment ( employees>50) to establish Grievance

Settlement Authority (GSA).

GSA is the apex body in case of disputes within the industry.

Board of Conciliation:
Formed by the Government to promote the settlement of an industrial dispute.
Consist of Chairman and two or four other members.
Chairman is independent person an other members represent parties of dispute in equal

number.

INDUSTRIAL
DISPUTES
Settlement of Disputes:
Courts of Inquiry:
Constituted by the Government to inquire into any matter appearing to be connected with or

relevant to an industrial dispute.

Shall inquire into matters referred and report to appropriated authority within a period of six

months.

Tribunal:
Related to matters mentioned in Third Schedule. (wages, bonus, allowances, discipline, working

conditions.)

National Tribunals:
For disputes that could affect the national economy or social justice.
One independent member apoointed by ental Government.

INDUSTRIAL
DISPUTES
Reference and Awards:
Government may refer the dispute or any matter to any concerned authority.
When referred, the Government may prohibit the continuance of any strike or lock-out.
The award of concerned authority should be in writing and shall be published within 30

days of its receipt in manner as the Government thinks appropriate.

The award shall become enforceable on the expiry of 30 days.
An order can be made within 90 days of publishing the award to modify or reject the

decision.

REFERENCES
Business Environment Text and Cases: Francis Cherunilam
http://clc.gov.in/Acts/shtm/faq.php4
http://www.arthapedia.in/index.php?title=Indian_Labour_Conference_(ILC)
ncib.in/pdf/ncib_pdf/Labour%20Act.pdf
https://india.gov.in/topics/labour-employment

THANK YOU