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Before we discuss Labour Laws in India, we must ask, “Who is a labour?” A labourer is a person who does unskilled manual work for a wage. The labour is law is applicable to all employees both skilled and unskilled, however, it’s primary focus is on the unskilled workers that does manual work. Further, the Labour Laws in India is implemented by both the central and state government, with some overlap in the use of their power.
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Need for Labour Laws
To put it simply, Labour Laws are needed to ensure that the workers in an organization are not exploited. It acts as a safety net for the weakest segment of society. Hence, the objective of the Labour Laws is to protect the employees and hold the employers accountable for their actions. Thus, these laws are only enforcible in the work environment. The main goal of the said labour law is to create a good atmosphere in the workplace so that people can be productive and can be ensured of their security, both physical and mental. If a company or organisation doesn’t comply with the Labour Laws, punitive actions can be taken against them, i.e. they can be punished.
What are Labour Laws?
Labour law is a vast field of law that is applicable to things such as employment, workplace conditions, industrial relations, trade unions, providing services, etc. The Labour Laws serve as an instrument for promoting worker empowerment and protection of the workers. Labour Laws govern the relationship between the employees, unions and employers. They set the standard employment conditions, i.e. the minimum work conditions that need to be followed.
There are 44 Labour Laws in India. In 2019 and 2020, the Parliament of India passed 4 labour codes to make the Labour Laws even stronger.
The Objective of the Labour Laws
Labour Laws aim to correct the power disbalance between the employees and employers. It provides the employees with security so that they can’t be unjustly dismissed. Therefore, They give the employees the power to negotiate and ensure a good working conditions. The most important factors that the Labour Laws aim to work on are,
- Productive Work & Adequate Earning
- Proper Working Hours
- Security to The Employees
- Work-Life Balance
- Secure Working Environment
- Sickness and Accident benefits to the employees
- Social Security
- Fair Treatment in the Workplace
- Prevention of Children at Work
- Forced Labour
Labour Laws in India
Out of the 44 Labour Laws in India, the most prominent three are,
- Building and Other Construction Workers Act, 1996.
| Objective | Application |
| The main objective is to collect a tax from the construction work so that they can use it for the welfare of the workers. | It is applicable to an organisation that has 10 or more workers directly contracted to them in a construction site. |
- Minimum Wage Act, 1948.
| Objective | Application |
| The main objective is to provide a minimum wage to the workers in an organization, so they they can survive on it. It allows the government to step in and fix the minimum wage for the workers. | It is applicable through entire India. It’s applied to any organization that has employed 1000 or more employees. |
- Contract Labour Act, 1970.
| Objective | Application |
| The main objective is to control the working conditions of a contract labour. | It is applicable to an organization that has employed 20 workers as contract labour within 12 months. |
Further, to name a few of the others among 44 Labour Laws that are applicable in India,
- Trade Unions Act, 1926
- Industrial Employment(Standing Orders) Act, 1946
- Industrial Disputes Act, 1947
- Payment of Wages Act, 1936
- Payment of Bonus Act, 1965
- Working Journalist(Fixation of Wages) Act, 1958
- Plantations Labour Act, 1951
- Sales and promotion Employees(Conditions of Service) Act, 1976
- Factories Act, 1948
- Mines Act, 1952
- Motor Transport Workers Act, 1961
- Merchant Shipping Act, 1958
- Private Security Agency(Regulation) Act, 2005
- Maternity Benefit Act, 1961
- Employer’s Liability Act, 1938
- Payment of Gratuity Act, 1972
Amendments to the Labour Laws
The Indian Government made the four codes by combining 29 Central Laws and corresponding State Laws. The aim of establishing these codes was to simplify, modernise and restructure the current system so that the organisation can conduct their business much more smoothly.
Labour Codes implemented in India
The government of India has established four labour codes,
- The Code of Wages, 2019 (Wage Code)
| Aim | Benefits |
| Wage Code primarily focus on the minimum wage, payment of wage, applicability of deductions, statutory bonus and equivalent remunerations to employees. | The wage code looks after the different aspects of wages that is payable to the employee. |
- The Industrial Relations Code, 2020 (IRC)
| Aim | Benefits |
| IRC primarily focuses on working conditions of the employee, the lack of employment, industrial disputes and collective bargain. | The IRC has helped provide more benefits to the employees and has encouraged industries to expand operations. |
- The Occupational Safety, Health and Working Conditions Code, 2020 (OSHWC Code)
| Aim | Benefits |
| OSHWC code focuses on the regulatory frame work that is applicable on the provisions for factories, mines, plantations, contract labour and construction establishments. | OSHWC is helping to create a work environment that is safe to work in and is meeting the minimum requirements. |
- The Code on Social Security, 2020 (SS Code)
| Aim | Benefits |
| SS Code focuses primarily on the social welfare of the employee. | It’s helping to create a well though out social security system to tackle problems with maternity, retirement, disability, health, etc. |
Conclusion
The Labour Laws help to manage and protect the interests of the employees. Further, It deals with many of the issues that have plagued the modern work environment and helps create a much more fair and inclusive environment for all the employees. Thus, helping to make life much easier for the workers and providing them with a safety net. Further, giving them a chance to fight back and make a claim for the rights that the government is providing them with. This ultimately gives them empowerment and gives them much more freedom. In conclusion, Labour Laws help bring security and empowerment to the employees in India.
