ASSIGNMENT ON LABOUR AND INDUSTRIAL LAW 2018

Dr. SHAKUNTALA MISRA NATIONAL REHABILITATION

UNIVERSITY LUCKNOW

A Project on

Labour Policy in India

UNDER THE SUPERVISION OF

VIPIN SHAH

SUBMITTED TO: SUBMITTED BY:

VIPIN SHAH M B Khan

ASSISTANT PROFESSOR Roll No: 18, 9thSem.

DSMNRU, Lucknow Bcom.LL.B (Hons.)

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TABLE OF CONTENTS
1. Introduction…………………………………..…………………………………….3
2. Labour Policy in India and Labour Legislation………..………………………….4-6
3. Relevant Provisions as regards welfare of Labour……………...…………………6-8
4. Different Plan Periods & Development of Labour Policy………………………..8-15
5. Conclusion……………………………………………………………………...…..16

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I. INTRODUCTION
Capital has been exploiting the labour to their own maximum benefit for they have
better economic footing and power and further stand in better position to dictate their
terms. It is generally expected that solving labour problems is the major responsibility
of the Government of any country and the Government is vested with powers to enact
and implement labour laws for solving problems not only of labours but also of
managements. The experience however has been made that labour laws themselves
cannot solve labour problems.
After the independence, the cost of living has considerably increased. The increase in
the cost of living and countrywide political up surge found its way in economic
discontent among the masses, particularly in the industries. The industrial unrest and
economic discontent led to number of strikes and labour trouble.
Workers were generally illiterate and poor and unaware about their rights. Workers
are weak in negotiating with the employer for employment and wages. The employer
dictated their own terms and conditions regarding wages and the employment. The
workers being in weaker position have no choice but to accept such terms for
employment because employment was the only means to earn their livelihood and
feed their family.
On the other hand, without considering the paying capacity of the management there
is a constant demand from labourers, for revision oi wages and allowances, even
though concern may not be in a position to fulfill workers reasonable expectations
about the wages, working conditions and welfare facilities.
Labour welfare is one of the major aspects of the national programmes towards
bettering the majority of labour and cheating a life hit and work environment of direct
comfort for the class of population. The term "welfare" is very flexible as well as
comprehensive. It includes welfare of labour as well as his family members. The
Government has made various rules, regulations and acts for the betterment of
labours life.1

1
S.P.Jain & Simmi Agrawal, Industrial & Labour Laws, [9th edn. 2002 Dhanpatrai & Company (P) Ltd].

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II. Labour Policy in India and Labour Legislation

Labour has a vital role in increasing productivity and management has to help create
conditions in which workers can make their maximum contribution towards tliis
objective. In free India, the labour movement and trade unions should be in a position
to assume larger responsibilities in the context of new scenario and challenges which
are coming up in the IT' century. One of die main tasks in the Five Year Plans is to
evolve practical ways in which they can make an increasing contribution to national
development and national policy. The growth of the public sector provides
opportunities for working out new concepts of labour relations and the association of
labour in management in industry. Economic progress of a country is bound up with
industrial peace. Industrial relations are, therefore, not a matter between employers
and employees alone, but vital concern of community which may be expressed in
measures for the protection of its larger interests.2
The National Commission on Labour, however, preferred to describe its approach as
one in quest of industrial harmony rather than industrial peace. It emphasizes absence
of strife and struggle. The concept of industrial harmony is positive and
comprehensive and it postulates the existence of understanding, cooperation and a
sense of partnership between the employers and employees. A quest for industrial
harmony is indispensable when a country plans to make economic progress. It may
sound platitudinous but is nevertheless that no nation can hope to survive in the
modem the technological age, much less become strong, great and prosperous, unless
it is wedded to industrial development and technological advance. Economic progress
is bound up with industrial harmony for the simple reason that industrial harmony
inevitably leads to more cooperation between employers and employees, which
results in more productivity and thereby contributes to all round prosperity of the
country. Healthy industrial relations, on which industrial harmony is founded, cannot
therefore, be regarded, as a matter in which only the employers and employees are
concerned; it is of vital significance to the community as a whole. That is how the
concept of industrial involves the cooperation not only of the employers and
employees but also of the community at large. This cooperation stipulates that
employees and employers recognize that though they are fully justified ir
safeguarding their respective rights and interests, they must also bear in mind the
interests of the community. If this be the true scope of the concept of industrial
harmony, it follows that industrial harmony should and ought to emphasize the
importance or raising productivity but the resulting accelerated rate of growth will
lead to the good of the community as a whole. Thus industrial prosperity of a country
depends to a very great extent on the efficiency of industrial labour. Labour
Legislation, trade unions and capital labour disputes are other very important issues
which receive our attention. The term Labour Law is used to denote that body of

2
S C Srivastava, Industrial Relations and Labour Laws, 26 [6th edn. Vikas Publishing House Pvt. Ltd., Noida, U.P]

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laws which deal with employment and non- employment, wages, working conditions,
industrial relations, social security and labour welfare of industrially employed,
persons. The Government has made following Acts for the betterment of labours life:
1. The Factories Act 1948
2. The Payment of Wages Act 1936
3. The Industrial Employment Act (Standing Orders) 1946
4. The Workmen’s Compensation Act 1923
5. The Trade Union Act 1926
6. The Minimum Wages Act 1948
7. The Employees State Insurance Act 1948
8. The Employees Provident Funds Family Pension Fund and Deposit-linked
Insurance Fund Act, 1952.
Though the Government has made these Acts for the betterment of workers. The
implementation of Labour Welfare and security schemes is not satisfactory. Many
provisions and the Sections of the Act are contradictory and do not provide clear
meaning of the Act. The aims of all these Act is to provide reasonable wages and
work condition to the worker at work place and facilities like education, recreation,
medical etc. However, the implementation of this all Acts become very difficult,
some of the workers are ignorant about their rights, risk about hazardous job. In many
Acts workers rights to be away from hazardous operation remains overlooked or
unnoticed.
Employer’s expenditure on the repairs and maintenance of the machinery,
modernization, automation and computerization goes on increasing at the cost of
health and security of the workers. The workers do not get effective medicines and
proper medicare from the doctors because of improper implementation of Employees
State Insurance Scheme. (ESIS).
It is also found that the system of determination of minimum wages is not scientific
and minimum wages determined by such Act is not able to provide reasonable and
adequate wages to the workers or the wages provided by Minimum Wages Act 1948
is inadequate to serve the basic need of the employee.
Wages paid to the labour in small scale industries and labour in unorganized sector is
very low. Their wages are not sufficient to provide them food, clothes and shelter, i.e.
Roti, Kapda Aur Makan. It is very essential to revise and reformulate minimum
wages legislation after every five years. However, only committees were appointed to
review the minimum wages. These Committees took long time to review and find out
changed conditions. The Committees have right to make recommendations regarding
wages, and these recommendations are not followed by the appropriate Government.
Same time there may not be major changes in the recommendation made by the
committee and so that ultimate object or purpose is not achieved.
Some time the recommendations are opposed by 'big' managements and there is a
retreat on the part of Government to management. Strategies for revision of
allowances rather than basic wages. When Government appoints pay commission for
deciding the minimum and maximum levels of wages, different issues are considered
and it creates controversial points regarding the minimum and maximum wages.
Wages should be determined in the light of per capita national income and the wages
should be increased according to the cost of living of the workers or rate of inflation.

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It has been observed that instead of formulating a long term wage policy on national
basis, state or region wage policy was formulated and adhoc measures like increases
in dearness allowances, house rent allowances, increase in management contributions
are used for. In recent years, agreement between employer and employees are being
made.
III. Relevant Provisions as regards welfare of Labour:
India adopted her own Constitution and declared herself as an Independent Sovereign
Republic. The constitution established system of Government. The aim of
constitution is to provide welfare to all its citizens and ensure guarantee of their
fundamental rights. Labour being an integral part of the society found prominent
position in the constitutional provisions with regard to their protection of rights.The
constitution provides adequate safeguards for minority, backward, and tribal areas,
and depressed and other backward classes. The protection of the interest of the
Working Class was paramount in the mind of the makers of the Indian Constitution.
In a Welfare State all are assured of adequate help is case of need due to illness, old
age physical or mental incapacity, unemployment or lack of economic power. State
assistance is given as a right and not as a charity and no stigma or pauperization is
attached to those who receive it.
The Fundamental Rights incorporated in the constitution relate to the political
democracy on the citizen and the directive principles deal with social, economic and
cultural democracy. The Fundamental Rights are the basic principles on which the
democratic sovereign is founded and give direction to the state action in clear terms.
When these principles are translated into practice, it leads to the development of a
welfare state. The Directive Principles of state policy of the constitution may be
stated as below:3
 Article 38 of the constitution declares that the state shall strive to promote the
welfare of the people by securing and protecting as effectively as it may a
social order in which justice - social, economic and political and shall inform
all the institution of the national life.
 Article 41 states that State shall within the limits of economic capacity and
development, make provisions for securing the right to work, to education and
public assistance in case of unserved want.' (Such as unemployment, old age,
sickness and disablement)
 Article 42 provides for securing just and human conditions of work and for
maternity relief. No child below 14 shall, be employed to work in Factory,
Mine or engaged in any other hazardous employment.
 Article 43, imposes upon the state obligations (either by suitable legislations
or economic organization or any other way) to secure 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 and in particular the State shall endeavor to promote
cottage industries on individual and cooperative basis in rural areas.
 Article 43A states the state shall take steps by suitable legislations or in any
other way to secure the participation of workers in the management of

3
The Constitution of India, Provisions in Directive Principles for Labour Welfare

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undertaking establishment or other organizations engaged in any Industry

provided to the working class for achieving a decent living condition and also
opportunity to progress.
The labour legislation is based on these principles and attempted incorporate this
spirit of constitution in different enactments. As the directive principles of state
policy has entrusted the responsibility of implementing the programmes and
policies laid down in the constitution as announced in the Constituent Assembly a
series of Labour Legislations were enacted. The legislations enacted to safeguard
and promote the interest of labour covering several aspects as fair wages and
regular payments, working conditions, holidays and leave, safety and health,
conditions of works, labour welfare, social security industrial relations, protection
of interest of women and child labour, labour indebtedness, housing, recruitment
and training. The legislations cover all workers engaged in factories mines,
plantations, railways, motor-transport, shops, etc.
The Constitution of India has given clear direction to the Centre and State
Government to ensure all-round development of labour in every walk of life and
they should not lag behind either in social or in political life. The labour
legislations enacted after the introduction of constitution aims at achieving this
end. With the adoption of the policy of 'Socialist Pattern of Society' in 1954, the
labour policy was also changed. Therefore, establishment of industrial democracy
became the precondition for the establishment of a Social Society. Labour
legislations and enforcement machinery set up for its implementation can provide
a broad frame - work to maintain industrial peace mutual agreements are the best
policy. The workers' participation in management has been recognized as a
method to introduce industrial democracy. For this purpose workers education
and strong Trade Unions are important. During the Plan period several
legislations enacted not only to improve the working conditions but also to
maintain industrial peace in the industrial sector. Regarding industrial relations,
efforts must continue to minimize the areas of disagreement among the parties
concerned and acceptable improvement in law and machinery affected need not
be held over and should further be carried out. It is also suggested that workers
participation in management should be an integral part of Industrial Relations
System. It is also suggested that more welfare and social securities measures and
improvement in working and safety conditions should be the aim of policy.
The Government of India has adopted the policy of Welfare State after the
Independence under the leadership of Pandit Jawaharlal Nehru. So that up to 1991
providing social security i.e. employment, welfare of people, Basic needs were
considered as the important responsibility of the Nation.
The following are the important characteristics of the Indian Population:
i. More than 30% people are living below the poverty line.
ii. An unorganized worker working in private organization is not getting
adequate wages which will provide them an acceptable minimum level of
living.
iii. Only 3% of labour force gets secured employment.
Considering the above points the Government has decided that the attempts at
providing social security are targeted at the poor through special employment

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generation programmes on the one hand and provision at free or heavily

subsidized basic needs like health, nutrition, housing, education on the other
hand. Though 20% of the plan and non-plan expenditure at the State and
Central Government is directed towards the creation and maintenance of
social infrastructure the gap between what is needed and what can be made
available within the available resources at Government is too large.4
IV. Different Plan Periods & Development of Labour Policy:
In the First Five Year Plan, the approach to labour problems rested on two
considerations namely the welfare of the working class and the country’s economic
stability and progress, workers’ right to form association, organisation and collective
bargaining were recognised. In order to govern relations between employers and
workers, the Planning Commissions recommended for certain norms, and standards.
Works Committees were recommended for the settlement of differences. During
Second Five Year Plan, a code of discipline in industry was accepted voluntarily by
all the organisation of employers and workers which has been in operation since the
middle of 1958.
The code has laid down specific obligations for the management and workers with the
object of promoting constructive cooperation between their representatives all levels.
As a result of this new concept of such far-reaching aims, there has been considerable
improvement in the sphere of industrial relations.The number of man-days lost
declined significantly from 47 lacks during Jan-June 1958 to 19 lacks during July-
December 1960. Besides, the inter-union rivalry has been mitigated to some extent by
the code of conduct which was drawn up and accepted by the representatives of
worker’s organisation. The code provides that every employee shall have the freedom
and right awards to join a union of his own choice.
During Second Five Year Plan, two significant steps were undertaken. Firstly a form
of workers’ participation in management was evolved. Joint management councils
were established on experimental basic. The Council has to bring about mutual
consultation between employers and workers over many important issues which
affect industrial relations.
Secondly a scheme of workers’ education has been implemented. The scheme
comprises training of teacher- administration and worker teachers. This scheme has
helped to raise the self-confidence of workers and has increased their ability to take
advantage of protective labour laws.5
i. Third Five Year Plan:
Under the Third Five Year Plan, labour policy was designed according to
immediate and long term need of a planned economy. India’s present labour
policy is directed towards that attainment of full employment and assisting
standard of living of the people. The concept of socialist society was kept in
mind. Hence, as pointed out in the Third Five Year Plan, the fruits of progress
should be shared in an equitable manner.
The surplus that are generated a social product to which neither the employer
not the working class can lay an exclusive claim, their distribution has to be

4
Labour Welfare Schemes in India and Labour Policy of the Government, 78.
5
S. Mathur, Labour Policy and Industrial Relations in India, 78 [Ram Prasad and Sons, Agra, 1968].

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according to the worth of the contribution of each, subject to the requirements

of further development and his interest of all the sections of society, in
particular, the satisfaction of the basic needs of all its members.
ii. Fourth Five Year Plan:
The labour policy in the Fourth Five Year Plan was evolved with reference to
two basic concepts:
a) The relationship between workers and employers is one of partnership.
b) The employees are under obligation to protect the well-living of
employees. Greater emphasis was placed on collective bargaining.
iii. Fifth Five Year Plan:
The labour supply projections contained in the Fifth Plan imply an increase in
the labour force about 18.26 million Hence the plan is oriented towards
substantial employment opportunities.
iv. Sixth and Seventh Five Year Plan:
The labour policy adopted in the Sixth Plan was oriented towards the
achievement of the following objectives:
a. To establish harmonious relations between employers and workers.
b. To accelerate the rate of industrial development and to create
expanding opportunities for employment.
c. To rise the living standard of workers in general and the weaker
section in particular.
From time to time, suggestions have been made to review the working of
labour policy. Since independence the industrial scene has undergone
radical changes. The structure of working class has changed in several
respects. Important changes are likely to take place in the future and
composition of labour movement in the years to come.
Having regard to those considerations in December 1966, the Government
of India set up a National Commission on Labour to study and make
recommendations on various aspects of labour including wages, working
conditions, welfare, trade union development and labour-management
relations. The Commission submitted its report in August 1969. It made
300 recommendations. The Government accepted 200 recommendations
out of 300 made by the Commission.
A Tripartite Committee constituted under the scheme- Workers
Participation in Management and comprising representatives of some
Central Ministries/State Governments, major public sector undertakings
and Central Trade Union Organisations, reviews progress of the scheme
from time to time and suggests remedial measures.
So far, 8 meetings of this committee have been held. A monitoring cell has
also been created in the Ministry of Labour to assist the Committee. Out of
203 Operational Central Public Sector Enterprises, 109 have implemented
the 1983 scheme at shop floor/plant levels.
As the Third Plan stated, “Labour policy in India has been evolving in
response to the specific needs of the situation in relation to industry and
the working class and has to suit the requirements of a planned economy”.

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As a result of consultation between the representatives of the Government,

the employers and employees, a body of principles and practices has
grown up and the legislation and other measures adopted by the
Government in this field represent the consensus of opinion of the parties
vitally concerned and thus acquire the strength and character of a national
policy.
In the formulation of policies and in their implementation, the
Government has set up joint committees consisting of the representatives
of the Government, the employers and the employees and at the apex of
this tripartite machinery is the Labour Conference.
v. Recent Developments of Labour Legislation:
The structure of industrial relations has been designed to secure industrial
peace in industry, promote production and labour productivity and give a fair
deal to the workers. Conciliation of disputes and adjudication through
tribunals has been tried.
The system has helped in reducing industrial unrest and promoting security to
working classes but it has also created the spirit of litigation among the parties
concerned. During the Second Plan, the Government tried a new approach,
viz. the Code of Discipline voluntarily accepted by the parties concerned.
The stress was on the prevention of unrest by timely action in the appropriate
stages. Besides, the Code of Discipline makes it obligatory on the
management and labour to promote constructive co-operation between them,
to avoid litigation, settle disputes and grievances by mutual negotiations,
conciliation and voluntary arbitration, facilitate free growth of trade unions
and eliminate all forms of coercion and violence in industrial relations. This
new concept of industrial relations with such far-reaching aims will take some
time to be fully implemented in practice.
Two aspects of labour policy evolved during the Second Plan deserve special
mention, because they hold great promise for the future. One was the workers’
participation in management which was meant to give the workers a sense of
belonging and to stimulate their interest in higher productivity. This was done
in an experimental fashion in 23 industries in the form of Joint Management
Councils.6
Its main function was to bring about mutual consultation between employers
and employees over many important issues which affect industrial relations.
The second was the programme of workers’ education which was widely
welcomed. The scheme was to train teacher-administrators and worker-
teachers. The latter, when they return to their industrial establishments, would
start unit-level classes for the rank and file of the workers.
vi. Labour Policy and Third Plan:
Industrial relations during the Third Plan were based on the Code of
Discipline which was evolved during the Second Plan. The Third Plan aims at
extending an awareness of the Code to all constituents of the Central
Employers’ and Employees’ organisations, so that the Code would become

6
S. Mishra, Modern Labour Laws and Industrial Relations, [Deep and Deep Publications, NewDelhi, 1992].

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more and more of a living force in the day-to-day conduct of industrial

relations.
The sanctions on which the Code of Discipline is based were reinforced,
relying on the consent of the parties concerned. The Third Plan also aimed at
increased application of the principles of voluntary arbitration in resolving
differences between workers and employers.
vii. Policy Regarding Trade Unions:
Trade unions have to be accepted as an essential part of the apparatus of the
industrial and economic administration of the country. For this, there has to be
considerable re-adaptation in the outlook, functions and practices of trade
unions according to the changed conditions and circumstances in which India
is placed now. The Government looks that at present trade unions are
handicapped by insufficient resources and a non-progressive leadership.
According to the Code of Discipline, a trade union will have to be recognised
by the management, provided the former has at least 15 per cent of the
workers engaged in the establishment enrolled as members for a continuous
period of six months. In case there are several unions, the union with the
largest membership will be recognised. Once a union is recognised as such,
there should be no change in its position for a period of two years.7
viii. Policy Regarding Wages:
A just or even an economically sound wage policy should encourage increase
of national income and secure to the wage earner a legitimate share in that
increase. The purpose of the Government’s wage policy, as clearly stated by
the Second Plan, is “to bring wages into conformity with the expectations of
the working class in the future pattern of society.”
The First Plan: The First Plan stated that all wage adjustments should conform
to the broad principles of social policy and the disparities of income should be
reduced to the utmost extent. The immediate aim was to restore the pre-war
real wage level, as the first step towards the living wage.
The First Plan insisted on avoiding any wage rise which would raise the cost
of production and set in motion wage-price spiral; for in such a case, gains to
the workers would prove illusory since they would, in all probability, get
cancelled by a rise in the price level.
But soon after Independence, the Government assumed responsibility for
securing a minimum wage for certain sections of workers—both in industry
and in agriculture—who were economically weak and who stood in need of
protection. Towards this end, the Minimum Wages Act was passed in 1948 to
provide for the fixation and revision of wage rates in certain occupations. But
the Government was aware that the Act was not effective in many cases.
The Second Plan: The Second Plan proposed to give labours a fair wage. Fair
wage was distinguished from minimum and living wage. For instance,
minimum wage must provide to the worker and his family not only sustenance
but also something more to preserve his efficiency. Living wage should enable
the worker to provide for himself and for his family not only the bare
essentials of food, clothing and housing but also a measure of comfort, etc.
7
S.N. Mishra, Labour and Industrial Laws, 178 [26th edn. 2011 Central Law Publications, Allahabad]

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On the other hand, fair wage was somewhere midway between the minimum
and the living wage and it would be determined with reference to the capacity
of the industry to pay the wage and the prevailing rate of wages in the same or
similar industry. Government’s policy was to link the wage-rise with the rise
in productivity. The Second Plan specifically stated: “Earnings beyond the
minimum wage should be necessarily related to results.”
Third Five Year Plan: The Government is continuing the wage policy as
enunciated by the Second Plan. The Third Plan has accepted the system of
wage boards and also proposes that the unanimous recommendations of a
wage board in an industry should be implemented fully. In the determination
of wages, the need-based minimum wage should be used.
Apart from the minimum wages, adequate incentives should be provided for
the acquisition and development- of skills and for improvements in output and
quality. The Third Plan proposed to appoint a Commission to study the
problems connected with bonus claims and to evolve guiding principles and
norms for the payment of bonus.8
ix. Working Conditions Safety and Welfare:
The Government has evolved a comprehensive code to ensure satisfactory
working conditions, safety of persons and the provision of a variety of
facilities to promote the welfare of the workers. But the implementation of the
statutory provisions has not been effective.
The Third Plan calls upon all State Governments to strengthen the
inspectorates provided for the administration of factory laws. Emphasis is
placed on the safety of persons in factories and mines and appropriate
machinery is being devised. Special Welfare funds are being constituted for
financing welfare measures for workers in coal and other mines.
The Government is interested in encouraging workers’ cooperatives in the
field of credit, housing, distribution of consumer goods, etc. The Government
feels that trade unions and voluntary organisations should take initiative and
evince interest in starting and running such cooperatives.
The Third Plan points out that despite the operation of the subsidised
Industrial Housing Scheme, for some years, housing of industrial workers has
not made much progress and in many cases it has actually deteriorated. The
Third Plan calls for a new approach to the problem of industrial housing so
that workers would have decent living conditions within a reasonable period
of time.
x. Employment and Training Schemes:
In a developing economy, the demand for skilled workers would increase
continuously and the Government has various schemes to meet such demand.
By the end of the Second Plan, there were 166 industrial training institutes
with 42,000 training seats. The Third Plan has proposed to increase the
number of these institutes to a total of 318 with an additional 58,000 training
seats.
The annual training capacity would be raised to 1 lakh. The Government has
also made adequate provisions for “in-plant training” facilities. It has also
8
http://www.economicsdiscussion.net, [Last visited on 23/10/2018]

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introduced a voluntary apprentice training scheme; the Third Plan has

proposed to convert this voluntary scheme into a compulsory one.
The Third Plan has set a target of 14,000 seats for apprentice training scheme.
It has also set a target of 15,000 seats in the programme of evening classes for
industrial workers. One hundred employment exchanges would be set up
during the Third Plan period and the objective is to open one employment
exchange in each district.
Some Important features of Ninth Five Year Plan is as follows9
a. Administrative and legal infrastructure :
The Government has made efforts to provide guarantee of social
security through a set of laws and regulations regarding employment
but such legal measures can tackle only the economic and social
situation and that too to the extend the measures are enforceable but
this protection gets only organized workers and its also depends upon
the proper implementation and administration of legislation.The
administrative and legal infrastructure cannot secure for all those in the
organised work force what the laws seek to provide for them.
b. Reward To The Workers :
Where the provision of social security encounters fiscal constraints
and administrative limits to the enforcement of laws, the only feasible
approach to reach social security to the population is by creating
conditions. Wherein the "Economically active" segment of population
get a reward for its labour, which efforts a reasonable level of basic
needs.
c. Poverty Alleviation Scheme :
The Government has introduced poverty alleviation schenne for the
unorganized workers where the working conditions of labour is below
poverty line and where agricultural productivity per capita income
level and minimum wage is low and not satisfactory to provide the
basic needs of the workers. The working conditions of labour in those
parts of the country where productivity is high and where the per
capita income levels in general are high are by and large satisfactory.
In this part, the market wage is well above the statutory minimum
wage. At some the locations it is difficult to find the beneficiaries
eligible to get benefit under poverty alleviation scheme because there
were few house holders identifiable as below poverty line. The
policies that enable high growth in output to reduce the burden on the
direct planning process of providing social security.
d. The Employees State Insurance Scheme for Medical Care :
The Scheme is applicable in only power using factories employing
more than 20 persons. The scheme is framed under the employees
State Insurance Act 1948 provides for medical care and treatment,
cash benefits during sickness, maternity, employment injury and
pension for dependents on the death of the insured worker due to
employment injury. The Scheme also provides for the expenditure on
9
exim.indiamart.com, Provisions of some important Laws affecting Labour

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the funeral of an insured person. But the Scheme is not applicable

where power is not used for production and where the numbers of
employed persons are below than 20 persons.
e. Proper Health Care Arrangement For Poor:
In case of unorganized workers he cannot sustain himself, unless the
work is available and he is fit for work his earning gets directly
affected. So health aspect is very important for an average worker who
is poor. In this situation proper health care arrangement for the worker
should be made.
f. Risk at the Work Place :
The health, hygiene and industrial safety set up, which has so far
remained confined mainly to manufacturing sector and should allocate
a substantial part of each resources to providing services to agricultural
sector, which constitute majority of work force.
The agricultural labour is exposed to mainly potential risk at the work
location. The hospital gets a large number of cases of accident at work
in the field. But in agriculture sector there is no provision for the
health and safety for labourers. Provisions are made to provide social
security to agricultural labour in ninth plan.
g. Active Involvement of Employer :
Any welfare scheme which is beneficial for the working population in
the unorganized sector has to be employed properly. The
implementation of such scheme largely depends upon the active
involvement and economic support of the employer. Because
identification of beneficiary is possible, when employer supports the
scheme. So the stress has to be given on the active involvement of that
employer.
h. Insurance Scheme for Landless Agriculture Labourers :
The Government of Kerala, Karnataka, Gujarat and Madhya Pradesh
have insurance scheme for the landless agricultural labourers. This is
needed to be extended for the whole country. The welfare boards of
Beedi and Cigar workers, mine workers are financed by the cess levied
on these commodities. In the Ninth Plan, a strong research and
development effort will be mounted to facilitate the extension of social
protection to all sections of the working classes.
i. Welfare Scheme for Worker In the Unorganized Sector :
The existing welfare schemes of the unorganized sector which are
widely scattered and fragmented will be integrated properly. This
scheme of social security for the unorganized rural labour would be
designed to provide for protection during the stoppage or diminution
of income. Some institutions are engaged in providing group insurance
to the rural poor people.
j. Country Wide-Scheme at Social Security :
The benefit of uniform countrywide scheme can not reach effectively
in all the locations. The requirements of the working population and
resources that can be pooled from the workers the employers and the

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state or national level institutions differ from place to place. As far as

possible, new scheme are introduced considering the regional needs.
k. Old Age Pension Scheme :
A few states namely, Karnataka, Kerala and Tamil Nadu demonstrated
the viability and potential of old age Pension Scheme. These states
have provided some form of social assistance to the workers in the
organised sector. However, the social security are not given to the
informal worker, migrated worker, child and women workers. There
are multiple social assistance scheme introduced by the state. But these
schemes are not effective, so there is considerable scope for
improvement in most of the promotional and protective social
securities programme in efficient utilization of funds through better
administration.
l. Social Security For Urban Informal Worker :
Urban informal sector is a sector where mostly migrant workers are
found. They are landless poor workers who came to the cities and find
themselves in a difficult situation. Staying in most unhygienic
conditions. They do not have support of the trade unions. There is need
to provide adequate social security to such workers.
m. Provision in Eighth Plan :
An effort of providing social security to the poor was initiated in the
eighth plan period in the form of a National Social Assistance
Programme.
The Programme comprises :
i. Old Age Pension
ii. Maternity Benefits
iii. Family Benefits for the Girl Childs
This has been implemented mainly as a programme for the poor under
the broad head poverty alleviation in rural areas.

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V. CONCLUSION
In free India, the labour movement and trade unions should be in a position to assume larger
responsibilities in the context of new scenario and challenges which are coming up on the advent
of 21st century. One of the main tasks in the Five Year Plans is to evolved practical ways in
which they can make an increasing contribution to national development and national policy.
Economic progress of a country is bound up with industrial place. Industrial relations are,
therefore, not a matter between employers and employees alone, but a vital concern of the
community which may be expressed in measures for the protection of its larger interests.

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