The term ‘labour’ means productive work especially physical work done for wages. Labour law also
known as employment law is the body of laws, administrative rulings, and precedents which address
the legal rights of, and restrictions on, working people and their organizations. There are two broad
categories of labour law. First, collective labour law relates to the tripartite relationship between
employee, employer and union. Second, individual labour law concerns employees' rights at work
and through the contract for work.
The law relating to labour and employment in India is primarily known under the
broad category of "Industrial Law".
The prevailing social and economic conditions have been largely
influential in shaping the Indian labour legislation, which regulate various aspects of work such as
the number of hours of work, wages, social security and facilities provided.
Purpose of labour legislation:
Labour legislation that is adapted to the economic and social challenges of the modern world of
work fulfils three crucial roles:
- It establishes a legal system that facilitates productive individual and collective employment
relationships, and therefore a productive economy;
- by providing a framework within which employers, workers and their representatives can
interact with regard to work-related issues, it serves as an important vehicle for achieving
harmonious industrial relations based on workplace democracy;
- it provides a clear and constant reminder and guarantee of fundamental principles and
rights at work which have received broad social acceptance and establishes the processes
through which these principles and rights can be implemented and enforced.
The legislations can be categorized as follows:
- Labour laws enacted by the Central Government, where the Central Government has the
sole responsibility for enforcement.
- Labour laws enacted by Central Government and enforced both by Central and State
Governments. - Labour laws enacted by Central Government and enforced by the State Governments.
- Labour laws enacted and enforced by the various State Governments which apply to
respective States.
Directive Principles of State Policy:
The Constitution of India provides detailed provisions for the rights of the citizens and also lays down
the Directive Principles of State Policy which set an aim to which the activities of the state are to be
guided.
- For securing the health and strength of employees, men and women;
- That the tender age of children are not abused;
- That citizens are not forced by economic necessity to enter avocations unsuited to their age or strength;
- Just and humane conditions of work and maternity relief are provided;
- That the Government shall take steps, by suitable legislation or in any other way, to secure
the participation of employee in the management of undertakings, establishments or other
organisations engaged in any industry.
Labour Policy of India:
- Creative measures to attract public and private investment.
- Creating new jobs
- New Social security schemes for workers in the unorganized sector.
- Social security cards for workers.
- Unified and beneficial management of funds of Welfare Boards.
- Reprioritization of allocation of funds to benefit vulnerable workers.
- Model employee-employer relationships.
- Long term settlements based on productivity.
- Vital industries and establishments declared as `public utilities`.
- Special conciliation mechanism for projects with investments of Rs.150 crores or more.
- Industrial Relations committees in more sectors.
- Labour Law reforms in tune with the times. Empowered body of experts to suggest required
changes. - Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary.
- Amendments to Industrial Disputes Act in tune with the times.
- Efficient functioning of Labour Department.
- More labour sectors under Minimum Wages Act.
- Child labour act to be aggressively enforced.
- Modern medical facilities for workers.
- Rehabilitation packages for displaced workers.
- Restructuring in functioning of employment exchanges. Computerization and updating of
data base. - Revamping of curriculum and course content in industrial training.
- Joint cell of labour department and industries department to study changes in laws and
rules.