INDIAN CONSTITUTION AND LABOUR POLICY

RESEARCH PROJECT SUBMITTED ON PART AND FULFILMENT FOR THE COURSE

LABOUR LAWS-II

SUBMITTED BY :
PRASENJIT TRIPATHI
ROLL NO. 1748, 5TH SEMESTER, B.A.LL.B.(HONS.)

SUBMITTED TO :
DR. PALLAVI SHANKAR
ASSISTANT PROFESSOR OF LAW

FOR ATTAINING THE DEGREEE

B.A.LLB (HONS.)

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR, MITHAPUR

PATNA, 800001

AUGUST, 2019

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 DECLARATION BY THE CANDIDATE

I hereby declare that the work reported in the B.A. LL.B (Hons.) Project Report entitled
“INDIAN CONSTITUTION AND LABOUR POLICY” submitted at Chanakya National Law
University, Patna is an authentic record of my work carried out under the supervision of Prof.
Dr. Manoranjan Kumar. I have not submitted this work elsewhere for any other degree or
diploma. I am fully responsible for the contents of my Project Report.

(Signature of the Candidate)

PRASENJIT TRIPATHI

Chanakya National Law University, Patna

05/09/2019

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 ACKNOWLEDGEMENT

“IF YOU WANT TO WALK FAST GO ALONE

IF YOU WANT TO WALK FAR GO TOGETHER”

A project is a joint endeavor which is to be accomplished with utmost compassion, diligence and
with support of all. Gratitude is a noble response of one’s soul to kindness or help generously
rendered by another and its acknowledgement is the duty and joyance. I am overwhelmed in all
humbleness and gratefulness to acknowledge from the bottom of my heart to all those who have
helped me to put these ideas, well above the level of simplicity and into something concrete
effectively and moreover on time.
This project would not have been completed without combined effort of my revered
Jurisprudence Prof. Dr. Manoranjan Kumar whose support and guidance was the driving force to
successfully complete this project. I express my heartfelt gratitude to him. Thanks are also due to
my parents, family, siblings, my dear friends and all those who helped me in this project in any
way. Last but not the least; I would like to express my sincere gratitude to our Constitutional
Law Prof. for providing us with such a golden opportunity to showcase our talents. Also this
project was instrumental in making me know more about the constitution of India. This project
played an important role in making me understand more about the rights against exploitation. It
was truly an endeavor which enabled me to embark on a journey which redefined my
intelligentsia, induced my mind to discover the various provisions and acts enacted for ensuring
rights against any exploitation.

Moreover, thanks to all those who helped me in any way be it words, presence,

Encouragement or blessings...

PRASENJIT TRIPATHI
5TH Semester B.A.Ll.B.

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 TABLE OF CONTENTS

1. Introduction..............................................................................................................................4

2. Labour Legislation in India......................................................................................................6

I. Social Equity:........................................................................................................................6

II. Social Justice:.......................................................................................................................7

III. International Uniformity:......................................................................................................7

IV. National Economy:................................................................................................................7

3. Development of Labour Policy................................................................................................9

4. Labour laws and the Constitution...........................................................................................13

Labour laws in Fundamental Rights..............................................................................13

Relevancy of Part IV (Article 36 – 51) on Labor Laws.................................................15

5. Conclusion..............................................................................................................................17

BIBILIOGRAPHY........................................................................................................................18

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 1. Introduction

Labour has a vital role in increasing productivity and management has to help create conditions
in which workers can make their maximum contribution towards this 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 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.1

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.

The National Commission on Labour, however, preferred to describe its approach as one in quest
of industrial harmony rather than industrial peace as according to it the concept of industrial
peace is somewhat negative and restrictive. It emphasises absence of strife and struggle.

A quest for industrial harmony is indispensable when a country plans to make economic
progress. It may sound platitudinous but it is nevertheless true that no nation can hope to survive
in the modern technological age, much less become strong, great and prosperous, unless it is
wedded to industrial development and technological advance.2

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.

1
Labour Law Reporter (Monthly Journal)” by H L Kumar and H L Kumar

2
A.S. Oberai, A Sivananthiran and C.S. Venkata Ratnam, Perspectives on Unorganized Labour (2000).
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The Constitution of India is the touchstone for any Act passed in our country. The Constitution of
India is the largest written constitution of the world. Each and every act which was in force
before the enactment of our constitution were either amended or nullified after its enforcement.
Our constitution plays an important part in the changes and growth in labour laws in India. The
Fundamental Rights and Directive Principles of State Policy enshrined in Part III and Part IV
mentions working class related benchmark laws.

HYPOTHESIS:
The researcher tends to believe that the labour policy in India is based on certain principles
which sets up the path for the welfare of the labourers and the industry. Even the Constitution of
Indian has encorporated some provisions under fundamental rights and Directive Principles of
State Policy.

AIMS AND OBJECTIVE:

1. To understand the provisions under the Constitution
2. To understand the evolution of labour policy under five years plan
3. To under basic principles on which lanour policy is based

RESEARCH METHODOLOGY:
This research is based on the doctrinal method of reseach.

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 2. Labour Legislation in India
Labour legislation is based on certain fundamental principles:

I. Social Equity:

Another principle on which labour legislation is based on social equity. Legislation based on
social justice fixes a definite standard for adoption for the future, taking into consideration the
events and circumstances of the past and the present. But with the change of circumstances and
ideas there may be a need for the change in the law. 3 This power of changing the law is taken by
the Government by making provisions for rule making powers in the Acts in regard to certain
specified matters.

II. Social Justice:

In an industrial set up, social justice means an equitable distribution of profits and benefits
accruing from industry between industrialists and workers and affording protection to the
workers against harmful effect to their health, safety and morality.

III. International Uniformity:

International uniformity is another principle on which labour laws are based. The important role
played the International Labour Organisation (I.L.O) is praiseworthy. The main aims of the
I.L.O. are to remove injustice, hardship and privation of large masses of toiling people all over
the world and to improve their living and working conditions and thus establish universal and
lasting peace based upon social justice.4

3
A.S. Oberai, A Sivananthiran and C.S. Venkata Ratnam, Perspectives on Unorganized Labour (2000).

4
Anil Kumar, Labour Welfare and Social Security (2003).

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The basic principles of the Labour Policy of I.L.O. are as follows:

(a) Labour is not a commodity.

(b) Freedom of expression and of association is essential to continued progress.

(c) Poverty anywhere constitutes a danger to prosperity everywhere.

(d) War against want requires to be carried on with unending vigour within each nation and by
continuous effort is which the representatives of workers and employers enjoying equal status
with those of Governments; join with them in free discussion and democratic decisions with a
view to promoting of common welfare.

IV. National Economy:

In enacting labour legislation, the general economic situation of the country has to be borne in
mind lest the very objective of the legislation be defeated. The state of national economy is an
important factor in influencing labour legislation in the country.

Legislation is essential to safeguard the interests of the labouring classes. In the absence of
legislation, factory worker is bound to be exploited by the employer. Labour legislation provides
essential safeguard to workers in matters of conditions of work, hours of work, safety in the
factories, minimum wages, bonus, and equal wages for men and women for the same work.

The first enactment to be framed was Apprentices Act 1850. The object of this Act was to better
enable children, especially orphans and poor children brought up by public charity, to learn
trades, crafts, and employment, by apprenticing them to livelihood.

However, at that time the policy of the Government was to protect workers from the social
system, and so legislation was acted in 1859 and 1860 making workmen liable to criminal
penalties for branches of contract.

Public attention was drawn to the unsatisfactory working conditions in Indian factories and the
need for regulating or by law them the first time in 1874, when Major Moore, the Chief Inspector
of Bombay Cotton Department, pointed out in his report, that in Bombay Cotton factories
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women and children were employed in large numbers, that many of the children were hardly
eight years old, all of them had to work from sunrise to sun set with only half an hour’s recess
and they had no periodically recurring day of rest.

Labour policy in India derives its philosophy and content from the Directive Principles of the
Constitution and has been evolving in response to specific needs of the situation to suit
requirements of planned economic development and social justice.

It has been envisaged that growth of the economy would not only increase production but also
absorb the backlog of unemployment and under-employment and a substantial proportion of
additional labour force. Seventh Plan laid emphasis on harnessing country’s abundant human
resources and improving their capabilities for development.

3. Development of Labour Policy

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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.5

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.6

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
Anil Kumar, Labour Welfare and Social Security (2003).

6
Ibid.
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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 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.7

Fourth Five Year Plan:

The labour policy in the Fourth Five Year Plan was evolved with reference to two basic concepts:

(1) The relationship between workers and employers is one of partnership.

(2) The employees are under obligation to protect the well-living of employees. Greater
emphasis was placed on collective bargaining.

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.

Sixth and Seventh Five Year Plan:

The labour policy adopted in the Sixth Plan was oriented towards the achievement of the
following objectives:

(i) To establish harmonious relations between employers and workers.

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https://www.livemint.com/Politics/N1mjTKT2rB10yq90uCN3WN/Occupier-liability-more-clarity-now.html
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(ii) To accelerate the rate of industrial development and to create expanding opportunities for
employment.

(iii) 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”.

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.

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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.

4. Labour laws and the Constitution

Labour laws in Fundamental Rights

Part III of the Constitution of India is the benchmark for labor laws in India. Also, Part III
(Article 12 to 35) of the Constitution covers the fundamental rights of its citizens which includes
Equality before the law, Religion, Sex, caste, place of birth, the abolition of untouchability,
freedom of speech and expression and prohibition of employment of children in factories.

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 1. Article 14

Equality before the law which is interpreted in labor laws as “Equal pay for Equal work”. It does
not mean that article 14 is absolute. There are a few exceptions in it regarding labor laws such as
physical ability, unskilled and skilled labors shall receive payment according to their merit.

In the case of Randhir Singh vs Union of India, the Supreme Court said that “Even though the
principle of ‘Equal pay for Equal work’ is not defined in the Constitution of India, it is a goal
which is to be achieved through Article 14,16 and 39 (c) of the Constitution of India.

2. Article 19 (1) (C)

Constitution guarantees citizens to form a union or association. The Trade Union Act, 1926
works through this Article of the Constitution. It allows workers to form trade unions.

Trade Unions provide the power to raise voice against atrocities done to the workers.
Unionization brings power to the laborers. Trade Unions discuss various labor-related problems
with the employers, they conduct strikes, etc.

3. Article 23

Constitution prohibits forced labor. When the Britishers ruled over India, forced labor was
prevalent all over India. They were made to work against their will and weren’t paid according to
their work. The Government at that time were infamous for forced labor and the landlords were
also involved in forced labor.

In current times, forced or bonded labor is an offense which is punishable under the law. The
Bonded Labor (Abolition) Act, 1976 prohibits all kinds of bonded labor and is declared illegal.
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 4. Article 24

Constitution prohibits all forms of child labor. Nobody can employ a child under the age of 14 to
work. Child labor was a massive problem of our country in the earlier times and it still is
happening but at a lower scale. The penalization of article 24 is severe.

Relevancy of Part IV (Article 36 – 51) on Labor Laws

Part IV of the Constitution of India, which is also known as the “Directive Principles of State
Policy” aims to work toward the welfare of its citizens. DPSP cannot be enforced in the court of
law, but it provides a guideline to the legislature for making labor laws in India.

5. Article 39 (a)

“The State shall, in particular, direct its policy towards securing; That the citizens, men and
women equally, have the right to an adequate means of livelihood. It means that every citizen of

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the country has the right to earn a livelihood without getting discriminated on the basis of their
sex.

6. Article 39 (d)

Constitution says that “The State shall, in particular, direct its policy towards securing; that there
is equal pay for equal work for both men and women. Wages will not be determined on the basis
of sex rather it will be according to the amount of work done by the worker.

7. Article 41

Constitution provides “ Right to Work” which means that every citizen of the country has the
right to work and the state with the best of its abilities will secure the right to work and
education.

8. Article 42

Provides for the upliftment of the working conditions for workers. It talks about creating a
suitable and Humane workplace. This article also talks about maternity relief, i.e leave provided
to women when they are pregnant.

9. Article 43

Talks about the “living wage” for its citizens. Living wage not only includes the “bare necessities
of life” but also the social and cultural upliftment of the person. It also includes education and
insurances for a person.

The State shall constantly try to create opportunities in the fields of Agriculture and Industries
with special reference to cottage industries.

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 5. Conclusion

Constitution of India is the base for all laws in our country. The labor laws are also made
according to the constitution and any violation of constitutional laws result in the abolition of
that particular law. The Directive Principles of the State policy play a major role in the making of
new labor laws in India.

List of major Labor law Acts in India

The Minimum Wages Act, 1948

The Payment of Wages Act, 1936

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 The Trade Unions Act, 1926

The Industrial Disputes Act, 1947

The Factories Act, 1948

BIBILIOGRAPHY
The Labour Laws (Simplification of Procedure for Furnishing Returns and Maintaining Registers
by Certain Establishments)” by Current Publications

Labour Law Reporter (Monthly Journal)” by H L Kumar and H L Kumar

Industrial Relations and Labour Laws” by Dr Sita Ram Singh

Labour Regulation in Indian Industry in 10 Vols 2009: Institute for Studies in Industrial
Development” by T S Papola

A.N. Agarwala, Indian Labour Problems (1997).

A.S. Oberai, A Sivananthiran and C.S. Venkata Ratnam, Perspectives on Unorganized Labour
(2000).
A.S. Oberai, A Sivananthiran, C.S. Venkata Ratnam, Perspectives On Unorganised Labour
(2001).
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Agarwal, R.N., Indian National Movement, 1985-1949 (1971).
Aiyar, Alladi Krishnaswamy, The Constitution and Fundamental Rights (1955).
Anil Kumar, Labour Welfare and Social Security (2003).

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