The legal framework of
Industrial Relations
Role of State in IR
NCL (1969):
• The concern of the State in Labour matters emanates as much from its obligations to safeguard the interest of the workers and employers as to ensure to the community the availability of their joint product/services at a reasonable price.
Basic Influencers• Philosophy of Governance
– Emphasis on Human values and Rights of Individuals– Establishment of a Just Social & Economic Order
• Stage of Economic Development– Strategies for growth and human development
• Social Policies– Policies for Employment generation– Policies for Community health and social security– Policies for promoting Social Harmony
1. Community prescriptions
1. Constitutional prescriptions
1. 5-year Plan prescriptions
1. Legal/Judicial prescriptions
The Labour Policy – How it evolved?
1. Prevent Exploitation of Labour -
Strengthen the Bargaining position of workers
Law Trade Unions Act, 1926
Indirect recognition of “Right to Strike”
Community Prescriptions
Community Prescriptions
2. Maintain peace and harmonious
living in the
society
Law Industrial disputes Act, 1947
Regulation of Industrial Disputes
Work place coordination – works
committee
Community Prescriptions
3. Define conditions of work/employment
Law-> Industrial Employment (Standing orders) Act,
1946
Employer must state the terms of employment clearly
Employee must get to know the term before he works
The Indian Constitution
• The Fundamental Rights
• The Directive Principles of State Policy
• The Division of Powers – 7th Schedule
• Right to Equality:• Equal employment opportunity• Equal wages for equal work
• Right to Freedom:• Protection of Life (Livelihood)• Freedom to form association• Freedom of speech and expression
• Right against exploitation:• Prohibition of forced / bonded labour• Protection against Child labour
The Fundamental Rights
IR Objectives of Plans:
1. Promote welfare of the working class
To create an environment conducive to labour management cooperation and harmonious relations through adoption of suitable institutional frame-work.
• Ensure economic stability and progress of India
To prevent Industrial Disputes and Create machinery for settlement of industrial disputes
Labour Policy in 5 – Year Plans
• State to empower itself through suitable legislations and administrative action to promote IR harmony
• Labour inspection machinery for Law enforcement
• Workers rights to organize and form associations for collective bargaining
• Workers can resort to Strike (non-disruptive)
• Wage Board machinery for Living Wages
• Central Labour Institute – training & productivity research
1st Plan (1951 – 56)
2nd Plan (1956 – 61)
• To implement Industrial Policy Resolution, 1956
• Stress on Discipline, Production &
Productivity– Code of Discipline in Industry(1958)
• Emphasis on bipartite negotiation,
conciliation, voluntary arbitration
• Standing joint consultative machinery
• Labour tribunals
• Restriction on union office-bearers
composition
3rd Plan (1961– 66)
• To consolidate gains of 2nd Plan
implementation
• Code of Discipline
• Industrial Truce Resolution (1962)
• Voluntary Arbitration preferred over
Adjudication
• Workers Participation in Management
– Copartnership, narrowing status gap, Worker-
Managers
• Intensive programme on Workers education
• Union leadership development from within
4th Plan (1969– 74)
• To consolidate gains of 3nd Plan
implementation
• Positive trade unionism
• Emphasis shifted to Collective bargaining
• Workers Participation in Management
– Productivity, Labour-Management cooperation
• Employment generation programmes
– Investments in Rural Infrastructure, Power, Roads,
Water
5th Plan (1974– 79)
• To strengthen IR and Conciliation machinery
• Better enforcement of labour laws
• Curb inter-union strife / integration of
movement
• Training of Labour Officers
• Research on Labour statistics and Lab.
Relations
• Wages and productivity improvements
• Stress on Professionalism in Management
6th Plan (1980– 85)
• Emphasised on 3-dimensional aspects of IR
• Recognised Community as a important party
• Industrial Harmony held indispensable for
Nation
• National wage policies to plug differntials
• Minimum wage and Bonus – basic issues to
address
• Speedy justice for Labour – No of Courts
increased
• Simplification of Dispute settlement procedure
• Improve labour-management relations to achieve the Development objectives of Plan
• Avoid inter-union & intra-union rivalry
• Define responsibilities of Unions and Management
• Protection of labour from industrial sick-ness
• Asset utilisation, technology upgradation and modernisation
7th Plan (1985– 90)
• Attention to working conditions, welfare & social security
• Enforcement of labour laws for women, children and workers in un-organised sector
• Ensure quality of employment
• Encouragement of worker’s participation in management
• Training and skill development of workers
• Flexibility to adjust to technology upgradation
8th Plan (1992– 97)
• Generation of productive employment
• Review of labour laws to weed out redundancy
• Review of regulations/administrative orders
• Extension of social assistance
• Creation of conditions for improving labour
productivity with social security
9th Plan (1997– 02)
The Legal Prescriptions
• Laws dealing with Rights of Workers
• Laws dealing with Welfare of Workers
• Laws dealing with Social Security
• Law dealing with Industrial Relations
Laws enforcing Workers Rights
• Trade Union Act, 1926
• Payment of Wages Act, 1936
• Industrial Employment Standing Orders Act, 1946
• Minimum Wages Act, 1948
• Payment of Bonus Act, 1965
• Contract Labour (R&A) Act,1970
• Equal Remuneration Act, 1976
Laws enforcing welfare of Workers
• Factories Act, 1948
• The Plantations Labour Act, 1951
• Mines Act, 1952
• Shops and Commercial Establishment Acts
Laws enforcing Social security
• Workmen’s Compensation Act, 1923
• Employees State Insurance Act, 1948
• Employee Provident Fund & Misc Act, 1952
• The Maternity Benefit Act, 1961
• The Payment of Gratuity Act, 1972
• Child Labour (Prohibition & Regulation Act, 1986
Laws governing Industrial Relations
• The Trade Unions Act, 1926
• The Payment of Wages Act, 1936
• The Industrial Disputes Act, 1947
• The Factories Act, 1948
• Industrial Employment Standing Orders Act, 1948
• The Payment of Bonus Act, 1965
• Contract Labour (Regulation & Abolition) Act, 1970
Eight-hour working day
Free medical aid
Estt. of Welfare Department
Formation of works committees for handling complaints concerning service conditions and grievances
Leave with pay
Employees’ Provident Fund Scheme
1912
1915
1917
1919
1920
1920
Provision of LawTisco
TISCO Prescriptions – Labour Laws
Factories Act
Emp State Ins Act
Factories Act
Industrial Disputes Act
Factories Act
Employees’ Provi- dent Fund Act
Title of Law
1948
1948
1948
1947
1948
1952
Law
Workmen’s Accident Compensation Scheme
Technical Institute for apprentices, craftsmen and engineering graduates
Maternity benefit
Profit sharing bonus
Retiring gratuity
Workmen’s Compensation Act
Apprentices Act
Maternity Benefit Act
Payment of Bonus Act
Payment of Gratuity
Act
1923
1961
1946
1965
1972
1920
1921
1928
1934
1937
Provision of LawTitle of Law LawTisco
TISCO Prescriptions – Labour Laws
Hours of Work (Industry)
Night Work (Women)
Minimum Age (Industry)
Right of Association
Weekly Rest (Industry)
Factories Act, 1948
Mines Act, 1952
-do-
Employment of children Act, 1938
Trade Union Act, 1926
Fact-1948/Mines-1952
Motor Transport
Workers Act, 1961
1921
1921
1955
1923
1923
1/1919
4/1919
5/1919
11/1921
14/1921
Provision of ConventionTitle of Law INDIA
Rat/Yr
ILO
Con/Yr
I.L.O. Prescriptions – Labour Laws
Workmen’s compensation (Occupational diseases)
Equality of Treatment (Accident Compensation)
Minimum Wage Fixing Machinery
Protection against Accidents (Dockers)Underground Work (Women)
Labour Inspection
W.Comp. Act, 1923
E.S.I Act, 1948
-do-
Min.Wages Act, 1948
Indian Dock Labourers Act, 1934
Mines Act, 1952
Factories/Mines/Wage
Shops/Transport Acts
1964
1927
1955
1947
19381949
18/1934
19/1925
26/1928
32/1932
45/193581/1947
Provision of ConventionTitle of Law INDIA
Rat/Yr
ILO
Con/Yr
I.L.O. Prescriptions – Labour Laws
Equal Remuneration
Minimum Wage (Under Ground) Work
Protection against hazards
of poison (Benzene)
Workers Organization
Labour statistics
Equal Rem.Act, 1976
Mines Act, 1952
Factories Act, 1948
Trade Union Act, 1926
Collection of Statistics
Act, 1953
1958
1975
1991
1977
1992
100/1951
123/1965
136/1971
141/1975
160/1985
Provision of ConventionTitle of Law INDIA
Rat/Yr
ILO
Con/Yr
I.L.O. Prescriptions – Labour Laws