India’s New Labour Codes – Changing Landscape of Employment Litigation

Background For an empowered, affluent, and Aatmanirbhar India, workers must have more influence. Even after 73 years of independence, 90% of employees are still employed in the unorganized sector, where they are not eligible for all social security benefits. Over 50 crores of people are employed in both the formal and unorganized sectors combined. For the first time, a government is taking care of employees and their families in both the organized and unorganized sectors. India, a country where employment is not at will, has seen its fair share of job-related lawsuits, many of which involved allegations of unfair labour practices and wrongful termination. Although mainly restricted to the industrial sectors, labour unions have continued to be active throughout the nation. The new labour laws in India have not yet gone into force. 29 federal labour statutes are replaced by the four labour codes. Once put into effect, it will significantly alter our labour law system. Defining Labour Laws in India Labour law, often known as employment law, is the set of laws, administrative judgements, and precedents that address the legal rights and constraints of workers and their organizations. As a result, it mediates a number of relationship-related issues between trade unions, both employers and workers. In other words, labour law outlines the duties and responsibilities of employees, union members, and employers. In general, labour law addresses: Industrial relations include union certification, labour-management interactions, collective bargaining, and unfair labour practices. Occupational health and safety; Employment requirements, such as severance compensation, minimum salary, layoff processes, general holidays, yearly leave, and working hours. In the past, the Indian government at the federal and state levels strove to guarantee that employees had a high level of protection, but in reality, this has changed because of the structure of government and since labour is a topic on the concurrent list of the Indian Constitution. The Minimum Wages Act of 1948 mandates that businesses pay the government-set minimum wage and cap workweeks at 40 hours (9 hours a day including an hour of break). Since the reward for overtime is 100% of the overall salary, it is strongly discouraged. The Payment of Wages Act of 1936 requires that wages be paid promptly by bank transfer or postal service on the last working day of each month. The Payment of Wages Act of 1936 requires that wages be paid promptly by bank transfer or postal service on the last working day of each month. Each employee is required to take 15 working days of fully paid vacation time each year, in addition to an extra 7 completely paid sick days, under the Factories Act of 1948 and the Shops and Establishments Act of 1960. Every company’s female employees are now entitled to 6 months of fully compensated maternity leave thanks to the Maternity Benefit (Amendment) Act of 2017. Additionally, it offers 6 weeks of paid time off in the event of a miscarriage or medical termination of pregnancy. Workers can access the essential social security for retirement benefits, medical care, and unemployment benefits through the Employees’ Provident Fund Organization and the Employees’ State Insurance, all of which are controlled by statutes. Employees who qualify for Employees’ State Insurance coverage (those making less than Rs. 21000/month) are also eligible for 90 days of paid medical leave. It is always possible to include more rights in an employment contract than the bare minimum required by law. Four labour regulations were adopted by the Indian parliament in the 2019 and 2020 sessions. The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code 2020, and The Code on Wages 2019 will combine 44 current labour laws. History of Labour laws The need for improved working conditions, the right to organize, and employer demands to limit employee rights in numerous groups and keep labour costs down led to the development of labour law. Therefore, the situation of labour legislation at any one moment is both a result of and an element of conflicts between various interests in society. One of the earliest organizations to address labour concerns was the International Labour Organization (ILO). Following the signing of the Treaty of Versailles, which brought an end to World War I, the League of Nations formed the ILO as an agency. During and soon after the war, several countries focused on post-war rebuilding and the preservation of labour unions. Workers who wanted improved working conditions, as well as trade unions that objected by going on strike, were routinely and violently suppressed. Following the achievement of independence in 1947, a number of fundamental labour rights—including the ability to join and participate in unions, the idea of workplace equality, and the desire to establish a living wage and respectable working conditions—were incorporated into the Indian Constitution of 1950. Constitutional Provisions under Labour laws Articles 14–16, 19(1)(c), 23–24, 38, and 41–43A of the 1950 Indian Constitution specifically address labour rights. Everyone shall be treated equally under the law, according to article 14, and discrimination against citizens is prohibited under article 15. Article 16 also grants the right to “equality of opportunity” for employment or other state-related appointments. Everyone has the special right “to organize groups or unions,” according to Article 19(1)(c). Articles 23 and 24 forbid child labour under the age of 14 in factories, mines, or “any other dangerous occupation,” respectively. Article 23 also outlaws all forms of trafficking and forced labour. According to the Indian Constitution, labour is a concurrent topic, meaning that both the Union and the state governments have the authority to enact and enforce labour laws. The majority of significant pieces of legislation have been passed by the Parliament. The following categories apply to the laws: 1) Central Government-enacted labour legislation, whose exclusive enforcement rests with the Central Government. 2) Central government-enacted labour rules that are upheld by both the federal and state governments. 3) State governments implement federal labour rules that the federal government enacts. 4) The different State GovernmentsRead More

Education’s role in preventing child labour in India

Introduction Children are viewed as the personification of innocence in a human form. Children are the most pristine manifestations of humanity because they are unaffected by materialistic concerns. It is true that a nation’s fate can be effectively predicted by the state of its women and children. However, when kids are compelled to work and earn a living, their childhood purity, innocence, and morals are taken from them. India, home to the greatest youth population in the world, has one of the oldest and most significant issues with child labour. Despite the fact that the country’s politicians have passed numerous laws, child labour is still pervasive in many places, particularly in rural India. Child labour is a widespread issue that is not specific to any one nation. The use of children in any type of manual labour is referred to as “child labour.” A “child” is defined as a person under the Child Labour (Prohibition and Regulation) Act, 1986 as someone who is under the age of 14. A child is compelled to labour and provide for his or her family at a young age when they should be expected to develop, enjoy childhood to the fullest, pursue education, and develop strong moral principles. Article 23 of the Indian Constitution prohibits all forms of forced labour. Article 24 stipulates that no child under the age of 14 may be employed to conduct hazardous employment. Similarly, Article 39 specifies that “the health and vigour of workers, men and women, as well as children’s tender age, are not mistreated.” Similarly, the Child Labour Act (Prohibition and Regulation) 1986 forbids children under the age of 14 from working in hazardous industries or procedures. The Child Labour (Prohibition & Regulation) Amendment Act 2016 outlaws the employment of children under the age of 14 in all occupations and processes, as well as the employment of adolescents (14-18 years) in scheduled hazardous activities and processes. Children’s participation in the informal economy and home-based jobs is increasing. Children work in agricultural, manual, domestic, and hazardous industries, such as matchbox, rag-picking, brick kilns, beedi-rolling, and so on. The most heinous kinds of child labour entail children being exploited, separated from their families, subjected to dangerous risks and illnesses, and often left to fend for themselves on the streets of major cities at a young age. Slavery, Child Trafficking, Debt Bondage, Serfdom, Forced Labour, and begar are the worst forms of child labour, according to the International Labour Organization. Education is an essential component as well as one of the most significant tools of social advancement. A country’s growth might be praised or devalued based on its literacy rate. Civil upheaval and other social calamities lead to a shortage of knowledge. Child labour is one of the effects that bring our social behaviour about the country’s destiny into question. Every aspect of civilization, even this one, has been devastated by the worldwide pandemic. Working from home and taking online classes may appeal to a specific demographic. It has been a catastrophe for the remaining impoverished. The situation worsened for the children who had been exposed to the virus, and the struggle for the comfort of the fortunate intensified. As a diverse country with different civilizations, India conforms to legal boundaries that are equally tolerant of other traditions. Education allows us to make distinctions between good and bad norms. Educational cultures should be regarded as the cornerstone of advancement among distinct civilizations. The research examines all of the various aspects of child labour, as well as the role of education in eradicating it. It is difficult to oppose social taboos without schooling a country’s people, but it is much more difficult to combat social taboos with educated individuals who are not socially conscious. Importance of Education Education is the component that contributes to human resource development, which includes a better and more sustainable natural upbringing for everybody. The major goal of the educational system is to give knowledge skills while also transmitting some key values. Economically, the final education package will differ between countries and cultures. In another dimension, it has been observed that the limited number of schools, their absence, the clash of school time and agricultural operations, the cost of schooling, and the limited nature of providing jobs opportunities to enter the labour market facilitate the route of children belonging to the state class. Children are eager to learn, but only with the proper authorization of their owners and parents. They are particularly concerned about the cost of higher education and other expenses, therefore they want it to be free and close to their house. More than 86 million rural children in the age range of 5-14 years have not been enrolled in the school register, out of 140 million. In rural areas, approximately 62% of children do not attend primary school. Whereas Article 45 (Directive Principles of State Policy) specifies that “the state should attempt to offer” free and obligatory education for all children till the age of 14 years within a period of ten years from the start of this constitution.” However, compulsory schooling for children as an assimilation technique has been proved to be misleading. As a result, the phenomenon of child labour is the result of such apathy toward education. As a result of this disregard for education, the issue of child labour has emerged. It not only helps children gain vital skills but also allows them to have a respectable life in the future. Education and training are essential drivers of social, economic, and democratic advancement. The elimination of all educational expenditures will result in the education of a huge portion of society. A strategy based on educating children and dragging them out of poverty will lessen the amount of child labour cases we now confront. No one has the ability to reject education as a fundamental right. It helps to change people’s perspectives on life and makes them better people. Education is a lifelong endeavour. It commences when we are bornRead More

Worker Strikes

INTRODUCTION The world is undergoing significant changes and developments right now, particularly in the commercial sector, which has seen the establishment of numerous industries, companies, and organizations. In order to raise their concerns or demand any kind of adjustment in their respective company or industry, employers must have some kind of process or activity available to the employees. Strikes and lockouts serve this exact purpose. This status or power imbued by the employer may result in specific issues or points of conflict with the employee or worker. While strikes and lockouts are the most common or well-known methods used by workers, they are not the only options accessible to them. Strikes and lockouts can be seen as a weapon that employees have against their employers. INDUSTRIAL DISPUTES ACT, 1947 The Industrial Disputes Act, which went into effect on April 1, 1947, gave the right to strike, legal protection in India. Employer & Workmen Conflicts Act, 1869, Trade Disputes Act, 1929, and Rule 81A of the Defence of India Rules were India’s first industrial disputes laws before the Industrial Disputes Act, 1947. Experiences with the Employer & Workmen Disputes Act of 1869 show that this law was largely in the workers’ favour. A special provision for strikes was included in the Trade Disputes Act of 1929, however, due to strike-related issues and ongoing disputes, this legislation was unable to bring about peace in the industries. During the Second World War, Rule 81A of the defence rule was introduced to further combat this. The Industrial Disputes Act of 1947 was created to resolve disputes in industries after World War II. The entirety of India is included in its scope of application. It applies to active industries, not to dormant ones. STANDARD VACUUM OIL COMPANY OF MADRAS v. GUNASEELAM The case’s facts are as follows: in the present, a group of employees from a particular company wanted to take a day off to celebrate “May Day.” Since they were choosing to take a day off, the group of employees was even willing to make up for the company’s losses for the day of “May Day” by working extra hours and thus, asked their employer to declare it a holiday. However, the workers’ demands and cries for help were all met with a stone wall. As a result, the workers purposefully requested time off because their employer had forgotten to designate May Day as a holiday. Employees’ requests for unscheduled leave were ruled not to constitute a strike because there was no “cessation of work” or organized refusal to work. UNDERSTANDING STRIKES A strike is a potent tool used by trade unions, other organizations, or workers to express their demands or complaints against employers or industry management. In a different sense, it is the interruption of labour brought on by widespread protests. By refusing to report to work until their demands have been met, employees put pressure on their employers. Strikes may benefit the welfare of the workforce or they may result in economic losses for the nation. VARIOUS TYPES OF STRIKES Based on the global phenomenon of strikes, several types of strikes have been experienced, including economic strikes, sympathy strikes, general strikes, sit-down strikes, slow-motion strikes, hunger strikes, and wildcat strikes. Economic Strike: This type of strike is brought on by demands for increased wages and benefits including bonus payments, housing rent allowances, and transportation allowances. Sympathy Strikes: During these strikes, unions or employees in one industry join strikes that have already been supported by other unions or employees. General strikes are actions taken by all unions or members in a state or region to put more political pressure on the government. Sit-down strikes: In this scenario, employees stage walkouts at their places of employment, refusing to report for duty until their demands are met. Slow down strike: When employees or unions pressure the industry to meet their demands by limiting or cutting output, they are not going on a complete strike. Hunger strike: A difficult form is in which workers go on strike without access to food or water to voice their concerns. In protest of past-due salaries spanning several months, Kingfisher Airlines staff went on a hunger strike. Wildcat strikes occur when workers go on strike without the approval of their union or higher authority. In 2004, attorneys staged a wildcat strike at Bangalore’s civil courts in response to reportedly disparaging comments made by an assistant commissioner. According to Section 2 (q) of the Industrial Dispute Act, a strike is “a cessation of work by a body of individuals employed in any industry acting jointly, or a concerted refusal, or an unwillingness, under a common understanding, of any group of people who are or have been so employed to carry on working or to accept employment.” In Cox and Kings Limited v. Their Employees, the court determined that a strike can be justified if it is related to a present labour dispute or is intended to protest an unfair labour practice by the employer. One of the most essential tools at the disposal of workers and their organizations to advance their economic and social objectives is strike action. In the event of a labour dispute, it is the most prominent and divisive type of collective action, and it is frequently seen as the final recourse of workers’ organizations in pursuing their goals. Strikes, however, should not be seen separately from the entire field of industrial relations. They are costly and disruptive for employees, companies, and society at large, and when they happen, it is because collective bargaining efforts to improve working conditions failed. THE REQUIREMENTS OF EXERCISING A STRIKE The right to strike is frequently subjected to several requirements that must be satisfied by employees and their organizations. However, given the risk that these circumstances could restrict how freely workers and their organizations can plan their actions and develop their programmes, they shouldn’t unnecessarily preclude the use of strikes to protect workers’ interests. In this regard, the following clauses are frequentlyRead More

Social Security for Workmen

Introduction Social Security is defined as the protection or security that is provided by a community to its members, ensuring that they have proper access to healthcare and a surety of a steady and regular income, especially during unemployment or post-retirement phases. It is classified as a basic human right by the United Nations. It is a benefaction-based system that supports sureties in case of unemployment, health issues, and pensions. Since the beginning of civilization, humans have faced numerous economic breakdowns due to pandemics, natural disasters, and even unemployment. These breakdowns are a big threat to the economy even in the 21st century. Through time we have seen that economic breakdowns have been predicted before they occurred, and hence the community as a whole started to create securities in form of food, finances, and even cattle, to be able to provide themselves with the security of a basic rightful living. With the advancement of times, and a formal specification of human rights, kingdoms and governments started to support the social security of their people, for ensuring a rightful living. Types of Securities Traditional- Securities that are provided through friends and relatives, assets, work, or donation-driven charities are traditional securities or sureties. Modern- With the advancement in socio-economic status and development of cities, different organizations came up to provide their members with various economic sureties. Organizations, governments, and so on are modern types of security providers. Beginning of ‘Social Security‘ With the discovery of the Americas, the English colonialists in the early 1600s brought with them their laws to set up a suitable system of governance. These laws were mostly based on providing support for the poor based on the taxes collected. But with the rise in slavery at the same time as they arrived, the lawmakers discriminated against the poor slaves from the poor whites. The slaves were regarded as undeserving of any support. During this era, the support that was provided was done in the most appalling way to discourage people from using it. People who used these services had their assets confiscated, and lost their voting and free movement privileges. With the end of the American Civil War and after the confederacy surrendered and joined the Union, the then U.S. Government introduced a pension for the disabled Union veterans of the war, widows, and children of the soldiers who died during the war, on the other hand, the Confederate soldiers created and funded their own pension system. The pension for the Union soldiers depended upon the type of disability and their military rank, the lowest pension was $8 per month for a totally disabled private (lowest rank in the military). With the passage of the Dependent and Disability Pension Act in 1890 by the U.S. Congress, the earlier pension system was changed, and the veteran and other eligible people for pension received a lump sum amount of pension for the time between leaving the military and applying for a pension. Therefore, the Civil War Pensions can be classified as the first official Social Security system introduced. International Labour Convention on Social Security 1952 In 1952, the International Labour Convention, an agency under the United Nations, stipulated the minimum standards of social security that should be provided. It is the only international instrument that supports basic social security support. These nine basic supports are- Medical Care Sickness Benefits Unemployment Benefits Old Age Benefits Employment Injury Benefits Family Benefits Maternity Benefits Invalidism Benefits Survivor’s Benefits. Social Security in India The Indian social security system has been developed using the western example and systems that prevailed in modern industries. With the pressure and urges from social reformers, business leaders, and welfare organizations, social security was introduced in India and became the responsibility of the state to provide for the social security of the citizens of the country, as per Article 43 of the Indian Constitution. Numerous schemes and programs prevail through various laws and regulations in India, yet only a smaller section of the Indian masses receive the security provided by the government. Policy for Social Security in India National Provident Funds Universal Social Security Schemes Employers Liability Schemes Insurance based on Resources and Beneficiaries Pooling Risks Benefits to Workmen in India 1. Pension – In India, there are provisions for provident funds for employees engaged in corporations and are overseen by the Employees’ Provident Fund Organization, established within the Ministry of Labour and Employment. Schemes under the provident fund organization apply to all businesses with over 20 employees, and contribution to these funds is mandatory to be followed by the firms as well as the employees if they make INR 15,000 a month, while it is voluntary if they make more than that amount. Schemes provided under the Employees’ Provident Fund Organizations- The Employees’ Provident Fund Scheme, 1952– This is contributed by the employer and the employee. The employer contributes from 1.63% up to 3.67%, whereas the employee contributed from 10% to 12%. The Employees’ Pension Scheme, 1955– This is contributed by the employer and the government. The employer contributes 8.33%, whereas the government contributes 1.16%. The Employees’ Deposit Linked Insurance Scheme, 1976– Under this scheme, only the employer contributes 0.5%. Neither the employee nor the government contributes any amount. The pensions that are offered are- 1) Pension for Disability or Superannuation, 2) Pension for Military Widows, 3) Pension for Children and 4) Pension for Orphans. 2. Medical Benefit and Insurance – With the lack of universal healthcare in India, i.e., no free healthcare for the Indian masses and to provide the funds to ensure proper medical care to employees and their families; the government implemented the Employees’ State Insurance Act 1948. It also made available monthly cash benefits in phases of sicknesses, pregnancy, and in cases of deaths or injuries to employees in organizations with at least 10 employees. The monthly coverage was extended to all employees that made less than INR 21,000 a month under the Employees’ State Insurance (Central) Amendment Act, 2016. Maternity benefits were alsoRead More

Trade Union and its Significance in Indian Scenario

The present article has been written by Sanjana Suman, a student of Amity Law School, Ranchi. Introduction The labour movement was the driving force behind the transformation of despair and misery into hope and progress. The economic and social transformation gave rise to unemployment insurance, old-age pensions, government assistance for the poor, and, most importantly, new pay levels that meant more than just survival but a liveable life. The industrialists did not lead this shift; instead, they fought it until they were defeated. When the tide of union organisation crests over the nation in the 1930s, it carries not only itself but the entire society to safe shores. Trade unions are an important part of any country’s modern industrial relations system, with each having its own set of objectives or goals to attain in accordance with its constitution, as well as its own strategy for achieving those goals. A trade union is a group of workers who band together to protect their interests and better their working circumstances. It is a continuing organisation of wage earners whose goal is to keep and improve working conditions (Dankert, 1948). The right to organise a union and bargain collectively protects workers in developing nations from exploitative and abusive working conditions and puts pressure on companies to share productivity gains with their workers. In order for the working population in emerging countries to realise the advantages of economic growth, basic worker and human rights must be protected (Ghosh & to, 2007). Why Trade Unions? There is no definitive response to this question, owing to the fact that each worker’s reasons for joining trade unions are unique. Workers don’t join unions only to receive higher income or better working conditions, according to studies, though these are crucial criteria. According to recent research, the average income for union members was 781 dollars, while the average income for non-union workers was 612 dollars. They also get additional vacation days, sick days, unpaid time off, insurance coverage, and other perks that non-union workers do not. According to studies, the major reasons why workers join unions are employer unfairness and the union’s clout. The final line is that the desire to join a labour union is frequently motivated by a belief held by workers. They believe that the only way to protect themselves against management is to band together. In practice, low morale, fear of losing one’s job, and arbitrary management decisions all contribute to the growth of unions. A poll of nurses, for example, indicated that trade unions are founded when employees are treated unfairly, as well as being underpaid, hazardous, and unappreciated. To Employees: The wages of union members are generally higher than those of non-unionised workers. In some cases, trade unions can serve as legal advocates for workers. Employees’ rights are now more safeguarded. They cannot, for example, be fired without cause. To Employers: Workers are more motivated because their individual rights are more safeguarded and represented. Higher levels of efficiency and production result as a result of this. Importance of Trade unions- The origins of labour unions can be traced back to the 18th century when the fast expansion of industrial civilisation drew in significant numbers of women, children, and immigrants. Toward the close of the nineteenth century, the Catholic Church also encouraged trade unions. Industrial peace necessitates the existence of a powerful and well-recognised trade union. The decisions reached through collective bargaining and talks between employers and unions have a greater impact. Trade unions play a crucial role in facilitating effective communication between workers and management. They offer guidance and help to ensure that disagreements do not escalate into serious disputes. A trade union’s main purpose is to represent individuals at work. They do, however, play a larger role in safeguarding their own interests. They also serve as key educational institutions, hosting classes for their members on a variety of topics. A key component of union activity is the pursuit of a healthy and safe working environment. By helping in the recruitment and selection of workers. By inculcating discipline among the workforce By enabling settlement of industrial disputes in a rational manner By helping social adjustments. Workers have to adjust themselves to the new working conditions, the new rules, and policies. Workers from various backgrounds may become disorganized, dissatisfied, and frustrated as a result of their work environment. Unions assist them in making such adjustments. Objectives of Trade Union: (1) To improve employees’ economic circumstances by achieving higher wages. (2) To provide improved working conditions for employees. (3) To ensure that the workers receive a bonus from the company’s revenues. (4) To provide workers with steady employment and to oppose management practices that restrict job prospects. (5) To provide legal help to workers in the event of a labour dispute or wage payment issue. (6) To preserve labour positions from retrenchment and layoffs, among other things. (7) To ensure that workers get provident funds, pensions, and other benefits in accordance with the rules. (8) To ensure that workers’ safety and health are better protected. (9) To ensure that workers are involved in management. (10) To instill in workers discipline, self-respect, and dignity. Advantages of Trade Union  Working with a union saves time in pay discussions when compared to dealing with individuals. This is especially important in the case of supervisors and managers, as it aids in the promotion of appropriate remuneration plans and the avoidance of inequity and probable resentment. Employees can more easily be provided a picture of the organisation’s problems and so gain a better grasp of them through meetings with shop stewards and local union leaders when there is mutual respect, that is when morale is high. As a result, better labour relations should emerge. Workers recognise the value of unionisation and are able to engage in constructive talks about working practices, disciplinary measures, and other issues with the help of union representatives. Worker dissidents are often contained by the majority of workers when relations are excellent. Working together withRead More

Trade Unionism in India

This article is written by Kalyani Gupta, a Master’s in Law student from Amity University, Noida. This article discusses the evolution of trade unionism in India and the challenges faced by these unions. INTRODUCTION The labour movement was the primary power that converted misery and hopelessness into hope and development. Out of its courageous battles, economic and social transformation gave birth to unemployment insurance, old-age pensions, government aid for the needy and, above all, fresh wage levels that intended not mere existence but a bearable life. The leaders of the industry did not take the lead of this transformation; they avoided it until they were conquered. When in the mid-thirties the wave of union organization crested over the country, it carried to safeguard the whole society. Trade Unions surfaced because of the Industrial Revolution which can be traced back to the 18th century when the Industrial Revolution started in Britain. The Industrial Revolution is described by the aligning up of large-scale factories, fresh lines of mass production, mechanization, and quick economic expansion. It is normal that when many factories are set up, there is a requirement for labour. Therefore, the need for unskilled and skilled labour increased. At the time, the industries were not appropriately organized, and the employers focused on boosting profits which headed to exploitation of the labour class who were uneducated and poor. We can say that it guided to the creation of two classes in the industrial sector: Employer Class – This included those who were profit-oriented and it did not really concern them about the working situations of the labour. Labour Class – It includes those who were illiterate and had no knowledge or understanding of their rights and were also in need of income. Primarily, the labourers thought that their requirement for money is larger and that their employers can simply switch them if they objected to the unfair terms and wages imposed by their employers. But gradually the labour class understood that if one specific labour protests for the unfair terms of his employee, it will not have any effect on the industrial organization but if workers form themselves into a group or “Union” then more influence will be wielded on their employer lords. Creating labourers into Unions also provided them the power to collectively bargain. Hence, this idea led to the establishment of Trade Unions.  Trade Unionism in India The Britishers started inhabiting the Indian sub-continent in the 1600s and began to set up factories and mills in India exactly similar to the Industrial Revolution in Britain. The major rationale why the British found it appropriate to start development in India was that India had a profusion of inexpensive and poor labour along with organic resources and land for establishing the industries.  The cotton mill was formed in 1851 in Bombay and the first ever jute mill was created in 1855 in Bengal. Exactly like Britain, the circumstances of labour in India were harsher. The unfair and pitiful working conditions such as working hours, wages and sacking policies made the laborers join up hands and come together and protest. One of the first turmoil among labourers can be seen back to the year 1877 when due to unexpected decrease in wages the labourers of Empress Mill, Nagpur prepared a strike.  Since such unionism was a modern trend there was no law to enact and control these new labour unions. With increasing dissatisfaction and unrest amongst the labour class and constant dispute with the employer class, few measures were taken to investigate and solve the situation.  ‘Factories Commissions and Factories legislations’ triggered no progress in the working circumstances of the labour class in India. In 1885 all the laborers of India had also signed a document with their employers to give them basic modicum working environments. Still, the situation did not get better. The preliminary attempt by labourers was humanistic in nature under the backdrop of the setting up of Indian National Congress and non-violence movement instigated by Mahatma Gandhi.  Post World War- I Period When World War I broke out, a rapid change of all resources to accommodate war requirements and the employers were reliant on the labourers. It then the labourers understood that the employers want them as much as they want their employers. This gave them a “bargaining position”. Trade unions began to get established in India, but the procedure was gradual due to the direction of socialist reformers. But many Trade unions began to get prepared. The first main trade union which was formed was the ‘Madras Labour Union in 1918’ under the presidency of Mr B.P. Wadia. This was followed by the creation of the ‘All-India Trade Union Congress in 1920’. With the creation of Trade Unions, the workers started to arrange strikes and protests to affirm their demands such as reducing working hours, minimum essential wages. The Buckingham Mill Case The creation of Trade Unions and the association of strikes and protests by the workers were not accepted by the employers. To put an end to the actions of the recently established trade unions and beyond to bar creation of Trade Unions the employers sought after legal recourse. One of the highly significant cases filed was against Mr B.P. Wadia who was the “President of the Madras Labour Union” that he colluded with laborers and went on walkout and was restricting trade. The Employers asked for an injunction to stop the protests and actions performed by the Trade Union. Contentions raised by the Employers The strike is unlawful and illegal because it sums up to a restriction of trade under Section 27 – Indian Contract Act.  The strike created a criminal conspiracy under Section 120A – Indian Penal Code 1860.  The strike also created a civil conspiracy under the civil law.  The Hon’ble Madras High Court based on these contentions granted the injunction to stay the strike on the following grounds: There was a legitimate reason for action in favour of the employers.  There was aRead More

The Overtime Work under Labor Laws

This article is written by Kalyani Gupta, a Master’s in Law student from Amity University, Noida. This article discusses the overtime work policies and laws in accordance with the Labour Law. INTRODUCTION Overtime implies as the time spent working more than the normal or regular working hours which, in India, is supposed to be 8 – 9 hours per day and 48 – 50 hours per week, which depends upon the organization a person is employed with. If an individual works for longer than the normal hours of working, that person will be eligible to obtain and receive remuneration for the excess working hours, which will be twice the normal wage of that individual. Several statutes in India regulate overtime and overtime payment laws. Also, various legal acts do provide for individually distinct periods of hours of working. Though, the working hours which are mentioned and prescribed under the Factories Act, is carried as a standard period of working hours. Section 51 of the Factories Act, 1948 states that employees are not intended to work for more than 48 hours in a one week, and according to section 59, employees are not intended to work for not more than 9 hours in a day. The time worked by an individual which is in excess of these 48 hours per week and 9 hours in a day will be considered as overtime work under the Act and will involve the employer to pay the workers twice the normal wage. Provision under Labour Laws for Working Overtime Factories Act, 1948: Section 51 of the Factories Act, 1948 states that employees are not intended to work for more than 48 hours in a one week, and according to section 59, employees are not intended to work for not more than 9 hours in a day. The time worked by an individual which is more than 48 hours per week and 9 hours in a day will be considered as overtime work under the Act and will involve the employer to pay the workers twice the normal wage. Mines Act, 1952: Sections 28 to 30 of this Act states that no individual who is working in a mine is permitted to work for more than 10 hours per day, which is inclusive of overtime. Minimum Wages Act, 1948:  Section 33 of the Act states that the overtime wages must be twice the individuals normal wage rate. This implies that the employer can take up to a total of 9 hours of work in 12 hours shift in a day. But the employer must pay double for an hour or a part of an hour of the authentic work in excess of 9 hours or more than 48 hours in a week. Section 14 specifies that any employee or worker whose minimum rate of wage is set according to the time periods, such as hour, days or a week, and if that individual works more than the normal number of hours, it is then deemed to be overtime work. If the number of hours that represent a normal working day surpasses the required limit, then the employer must pay him the overtime rate for every such hour or part of an hour in which he has worked. Beedi and Cigar Workers Act, 1966: Sections 17 and 18 of this Act are related to the working hours. It is stipulated that working hours inclusive of the overtime work, should not surpass 10 hours a day and 54 hours a week. Contract Labour (Regulation & Abolition) Act, 1970: Rule 79 of this Act states that it is compulsory for every contractor to retain and form a register of overtime work covering all information concerning the calculation of the overtime work, total number of hours of extra work done, the name of the worker etc. Building and Other Construction Workers (Regulation of Employment Service) Act, 1996: Sections 28 and 29 of this Act implies that workers who work overtime will be given overtime wages at a rate which is twice the existing wage rate. Working Journalist (Conditions of Service) and Miscellaneous Provisions Act, 1955: Rule 10 of the Act implies that a journalist who works during the day for more than 6 hours per day and more than 5 and a half hours at night shall be compensated with rest hours which will be equal to the hours that person has worked overtime. Plantation Labour Act, 1951: Section 19 of the Act states that where an adult worker works in any of the plantation during the day more than the number of hours that establish a normal working day or for more than 48 hours in a week, that person shall be permitted to twice the rate of ordinary wages for such overtime work. Providing that no such individual is allowed to work in a day for more than 9 hours and more than 54 hours a week. Overtime Laws for Women and Children The Factories Act, 1948 has restricted the working hours for women between 7:00 pm to 6:00 am, which can be eased by the Chief Inspector of those factories in some instances. If this kind of easing of specified hours of working surpasses the standard period of working hours, the employees will be entitled to receive compensation for that overtime work. Also, this respite is still very time sensitive, which means that women cannot be compelled to work between the time period of 10:00 pm to 05:00 am. Section 75 of the same Act states that no child who is below 14 years of age can be hired or employed in any factory. A child who is above 14 years of age is eligible for employment in a factory, but cannot be permitted to work for more than 4 and half hours per day and cannot work between the time period of 10:00 pm and 6:00 am. Furthermore, a female child is not permitted to work in any of the factory, with the exceptionRead More