Basic principles of labour laws and their reforms lies in the Preamble
of theConstitution of India and Directive Principles of State Policy enshrined
therein. We the people of India in the Constituent Assembly on 26th
Day of November, 1949 have solemnly resolved inter alia to secure all its
citizens “JUSTICE, social, economic and political”. Directive Principles of
State Policy enshrined in Part IV of the Constitution of India have guided the Governments
to follow the principles in making its policies for maximum welfare of itscitizines.
Few relevant are hereinafter discussed in brief:
Article 38(2):
The State shall,
in particular, strive to minimise the inequalities in income, and endeavour to
eliminate inequalities in status, facilities and opportunities, not only
amongst individuals but also amongst groups of people residing in different
areas or engaged in different vocations.]
Article 39:
The State shall,
in particular, direct its policy towards securing— (a) that the citizens, men
and women equally, have the right to an adequate means of livelihood; (d) that
there is equal pay for equal work for both men and women; (e) that the health
and strength of workers, men and women, and the tender age of children are not
abused and that citizens are not forced by economic necessity to enter
avocations unsuited to their age or strength;
(f) that children are given opportunities and facilities to develop in a
healthy manner and in conditions of freedom and dignity and that childhood and
youth are protected against exploitation and against moral and material
abandonment.
Article 42:
The State shall
make provision for securing just and humane conditions of work and for
maternity relief.
Article 43:
The State shall
endeavour to secure, by suitable legislation or economic organisation or in any
other way, to all workers, agricultural, industrial or otherwise, work, a
living wage, conditions of work ensuring a decent standard of life and full
enjoyment of leisure and social and cultural opportunities
Article 43A:
The State shall
take steps, by suitable legislation or in any other way, to secure the
participation of workers in the management of undertakings, establishments or
other organisations engaged in any industry.
Legislative
Framework requiring Compliance ofLabour Laws
To achieve the above, Central Government and State Governments have
framed various legislations. There is plethora of laws applicable to different
industries based on employee strength/nature of business/location etc. Few
relevant to most of the industries/establishments/employees are summarized
below:
Dealing with
Industrial Relation matters:
The Industrial Disputes Act, 1947
The Industrial Employment (Standing Orders) Act, 1946
The Trade Unions Act, 1926
Dealing with
Industrial Safety and Health matters:
The Factories Act, 1948
The Mines Act, 1952
Dealing with Child
and Women Labour matters:
The Child and Adolescent Labour (Prohibition &
Regulation) Act, 1986
Equal Remuneration Act, 1976
Dealing with Social
Security matters:
The Payment of Gratuity Act, 1972
The Personal Injuries (Emergency) Provisions Act,
1962
The Personal Injuries (Compensation Insurance) Act,
1963
The Maternity Benefit Act, 1961
Employees liability act 1938
The Employees’ Provident Fund & Miscellaneous
Provisions (Amendment) Act, 1996
The Employees State Insurance Act, 1948
The Employees Compensation Act, 1923
Dealing with Wages
Matters:
The Payment of Wages Act, 1936
The Payment of Bonus Act, 1965
The Minimum Wages Act, 1948
Dealing with Labour
Welfare Matters:
The Bonded Labour System
(Abolition) Act, 1976
The Unorganised Workers Social Security Act 2008
The Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979
The Contract Labour (Regulation & Abolition) Act,
1970
Dealing with Labour welfare and Training Matters:
The Employment Exchanges (Compulsory Notification of
Vacancies) Act, 1959
LegilativeLabour Law Reforms/Inititatives
Government
of India has from time to time framed the relevant laws, rules for
implementation and amended the legislations in line with the needs of the
economy,to generate employment and to facilitate ease of doing business.
Presently Government is in process to bring in to place following new
legislations:
1.
SOCIAL SECURITY CODE,
2019: When enacted, 1. the Employees‘ 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; 5. The Payment of Gratuity Act, 1972; 6. The Cine Workers
Welfare Fund Act, 1981; 7. The Building and Other Construction Workers Cess
Act, 1996; and 8. The Unorganized Workers‘ Social Security Act, 2008 shall stand
repealed.
2.
THE OCCUPATIONAL SAFETY,
HEALTH AND WORKING CONDITIONS CODE, 2019: This is
to replace (a) The Factories Act, 1948; (b) The Mines Act, 1952; (c) The Dock
Workers (Safety, Health and Welfare) Act, 1986; (d) The Building and Other
Construction Workers (Regulation of Employment and Conditions of Service) Act,
1996; (e) The Plantations Labour Act, 1951; (f) The Contract Labour (Regulation
and Abolition) Act, 1970; (g) The Inter-State Migrant workmen (Regulation of
Employment and Conditions of Service) Act, 1979; (h) The Working Journalist and
other News Paper Employees (Conditions of Service and Miscellaneous Provision)
Act, 1955; (i) The Working Journalist (Fixation of rates of wages) Act, 1958;
(j) The Motor Transport Workers Act, 1961; (k) The Sales Promotion Employees
(Conditions of Service) Act, 1976; (l) The Beedi and Cigar Workers (Conditions
of Employment) Act, 1966; (m) The Cine Workers and Cinema Theatre Workers Act,
1981.
3.
THE CODE ON WAGES, 2019:The Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the
Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976 shall stand
repealed by this Code.
It
is clear that approximately twenty four legislations are being re-codified.
This historical change shall not only repeal the old laws but also make them
contemporary, relevant to present economy needs and instrumental in protecting
interest of labourand at the same time will result in ease of doing business&
compliance.
Need
of Labour Law Audit
As
understanding and implementing of various laws requires expert knowledge,
interpretation skills and legal acumen,it is always difficult for a layman to
execute the laws in the organization in letter and spirit. Any instance of non
compliance, may attract avoidable litigation on organization & its Officers
besides attracting penalties and bad fame. To achive harmonious industrial
relations, organization reputation, build & maintain sound
employer-employee relations, minimize idle time in resolving industrial
disputes, minimize employee resentments & separations, to implement long
term growth policies, to retain the talent & skilled manpower,
organizations should adopt Labour Law audit voluntarily. Labour Law audit if
implemented in line with internal audits may be more instrumental in achieving
its objectives. In the beginning, such audit reports should be placed as
consultative function before the Board of Directors and thereafter may be
implemented mandatorilyphasewie. .
Opportunity
for Company Secretaries:
Similar
to Company law, compliance of labour laws also needs dedicated professional to
ensure the Compliances of the labour laws. Concept of Labour Law officer in the
organizations having threshold manpower may be introduced.Here opportunity lies
with the Company Secretaries. At the ICSI level Labour Law Auditing Standards
may be issued as recommendatory initially. Compliance List of different actions
of each applicable law may be prepared. Company Secretaries may be trained and
specialized with practical aspects of such laws on case study basis. Labour Law
audit would also becritical for the Secretarial Audit when the Practising
Company Secretary has to certify in Secretarial Audit Report that the “Company
has complied with all applicable laws”.Company Secretaries being well
conversant with various labour, industrial and corporate laws in its academics,
are best suited to take up these challenges before others start thinking on it.
Besides, new labour law reforms may also offer opportunities for mediation and
conciliation of labour disputes.
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Source/referenc:https://labour.gov.in/
Different other websites and basic understanding.