Labour & Industrial Law I

Module I
Importance and Purpose of Labour Laws

What is Labour Law ?

What are the purpose of labour Laws ?

What are the Principles of labour Laws ?

What are the Classification of Labour Laws ?

 Meaning of Labour Laws

Labour Legislations are Social Legislations in which Individual is a

Labourer in Industrialised Society

There is existence of Workers and Employees,

Employers and

Trade Unions

Industrial Society is governed by Industrial Relations

Indian labour law refers to law regulating labour in India.

Definition of Labour Laws

Labour law also known as employment law is the body of laws, administrative rulings,
and. precedents which address the legal rights of, and restrictions on, working people and
their. organizations. As such, it mediates many aspects of the relationship between trade
unions, employers and employees and Appropriate Government

Labor law is legislation specifying responsibilities and rights in employment, particularly the
responsibilities of the employer and the rights of the employee. (United States)

Laws differ among jurisdictions; the abouve definition pertains to labor law within the United States.
Protective Labour Legislations

-Factories Act,1948
-The Mines Act,1952
-The Plantations Labour Act,1951
-The Motor Transport Workers Act,1961
-The Beedi and Cigar Workers Act 1966
- The Contract Labour ( Regulation and Abolition ) Act ,1970
- The Minimum Wages Act , 1948
- The Payment of Wages Act, 1936
Regulative Labour Legislations

• The Trade Unions Act, 1926

The Industrial Disputes Act,1947 .

Industrial Employment (Standing Orders) Act, 1946.

Social Security Legislations
- The Workmen's Compensation Act, 1923

- The Employees' State Insurance Act, 1948

- The Coal Mines Provident Fund and Misc. Provisions Act, 1948.

-The Employees Provident Fund and Misc. Provisions Act, 1952

-The Maternity Benefit Act, 1961

- Payment of Gratuity Act, 1972

- Unorganised Workers Social Security, 2008

 Welfare Legislations
Limestone and Dolomite Mines Labour Welfare Fund Act, 1972.

The Mica Mines Welfare Fund Act, 1946

The Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines
Welfare Funds Act, 1976 ]

The Cine Workers Welfare Fund Act, 1981.

Beedi Workers Welfare Fund Act, 1976

Purpose of Labour Legislations
Bentham on Purpose of the Civil Law

(a) to provide subsistence,

(b) to aim at abundance,

(c) to encourage equality, and

(d) to maintain security

Code on wages, 2019

Payment of Wages Act, 1936

Minimum Wages Act, 1948
Payment of Bonus Act, 1965
Equal Remuneration Act, 1976
Occupational safety, health and working conditions code, 2020

The Mines Act, 1952

The Factories Act, 1948
The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
The Dock Workers (Safety, Health and Welfare) Act, 1986
The Cine Workers and Cinema Theatre Workers Act, 1981
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
Sales Promotion Employees (Condition of Service) Act, 1976
The Motor Transport Workers Act, 1961
The Working Journalist (Fixation of Rates of Wages) Act, 1958
The Working Journalists and Other News Paper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
The Contract Labour (Regulation and Abolition) Act, 1970
The Plantations Labour Act, 1951
 Industrial relations code, 2020

I
Trade Unions Act, 1926
Industrial Employment (Standing Orders) Act, 1946
Industrial Disputes Act, 1947
 Code on social security, 2020

Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

Employees' State Insurance Act, 1948
Employees' Compensation Act, 1923
Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
Maternity Benefit Act, 1961
Payment of Gratuity Act, 1972
Cine Workers' Welfare Fund Act, 1981
Building and Other Construction Workers' Welfare Cess Act, 1996
Unorganised Workers Social Security Act, 2008
Principles of Labour Laws
Labour Legislations contain the principles of social justice, social equity, social
security and national economy in their concept.
Social justice implies two things. First, equitable distribution of profits and other
benefits of industry between owner and workers.Second, providing protection to
workers against harmful effect to their health, safety and morality.
Social equality provides the flexibility in labour legislations to adjust to the' need
of the industrial society.
Social security envisages collective action against social risks which constitute
the crux of the labour legislation.
National Economy provides the standards to be set for the labour legislations.
Human Rights principles and human dignity postulates provide the broader base
for the concept of labour legislations. Thus, these principles are the fundamentals
for understanding the concept of Labour jurisprudence.
 Objectives of the Labour Legislations
Labour legislation in India has sought to achieve the following objectives:

(1) Establishment of justice- Social, Political and Economic

(2) Provision of opportunities to all workers, irrespective of caste, creed, religion, beliefs, for the development of their
personality.

(3) Protection of weaker section in the community.

(4) Maintenance of Industrial Peace.

(5) Creation of conditons for economic growth.

(6) Protection and improvement of labour standards.

(7) Protect workers from exploitation:

(8) Guarantee right of workmen to combine and form association or unions.

(9) Ensure right of workmen to bargain collectively for the betterment of their service conditons

.(10) Make state interfere as protector of social well being than to remain an onlooker.

(11) Ensure human rights and human dignity

Industrial Jurisprudence
Industrial jurisprudence refers to the development of law and legislation related to industries. It is a distinct
branch of civil law focusing on employer-employee relationship in factories and industries, and social and welfare
related issues concerning workmen.

Schools of Industrial Jurisprudence. ( Phases of Industrial Jurisprudence )

- Bentham’s Individualism : Absolute Freedom of Contract, Non -Interference of State in Industrial Relations ,

: Lassaisez Faire Principle

- Collectivism : Collective Bargaining , Role of Trade Unions

- Socialism ; Role of State in Industrial Relation for improvement of condition of labour
- Welfarism : State to ensure Justice : Social, Economic and Political
- Globalisation, Privatisation and Liberalisation ; Law guarantees Social Justice , Social Equality and Welfarism
and fair treatment of labour
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Industrial jurisprudence are based on certain fundamental principles like

- Social Justice,
- Social Equity,
- International Uniformity and
- National Economy.
Sources of Industrial Jurisprudence
Definition of Labour Laws : Labour law also known as employment law is the body of laws, administrative rulings, and. precedents which
address the legal rights of, and restrictions on, working people and their. organizations. As such, it mediates many aspects of the relationship
between trade unions, employers and employees and Appropriate Government

The term Labor or Industrial Jurisprudence refers to a bass of literature regarding knowledge of Law with respect to labor and Industry, derived
from Labor legislation, constitutional framework, and the judicial lawmaking in the country

Sources of Industrial Jurisprudence:

- Principles of Constitutional Law concerning employment of Labour

-Principles of Union and State Legislatures , Rules , Administrative Orders,

- Principles under Precedent : Judgements of the Courts

- Conventions; ILO Conventions ( Standards) and Protocols

- Postulates of the Labour Policy

- Report of the Labour Commissions and Committes

-Jurist’s Opinion :

- Principles of Customs
Postulates of Labour Policy
The main elements of Labour Policy are as follows:

1. Emergence of state as the most prominent player as the custodian of the interests of the working community, as also
the catalyst of change and welfare programmes

2. Recognition of right of direct action, if justice is denied to the working class

3. Encouragement of mutual settlement, collective bargaining and voluntary arbitration

4. Intervention by the state in favour of the weaker party to ensure fair treatment and all concerned

5. Primacy to maintenance of industrial peace

6. Involving partnership between the employer and the employee in a constructive endeavour to promote the satisfaction
of economic needs of the community in the best possible manner

7. Ensuring fair standards and provisions of social security

8. Cooperation for augmenting "production" and increasing "Productivity"

9. Adequate enforcement of Legislations

10. Enhancing the interests of workers in industry

11. Tripartite consultations

 Definitions of Industrial Relations
Industrial relations refer to the complex , dynamic and progressive relationship
between employers, employees, and the government within the context of the
workplace. It involves the study and management of various aspects, including the
interactions, conflicts, and cooperation between these parties.
Definition of Industrial Relations :
According to International Labour Organization (ILO), ” Industrial Relations deal
with either the relationship between the state and employers and workers
organizations or the relation between the occupational organizations themselves”.
According to Dale Yoder__” Industrial Relation is a relationship between
management and employees or among employees and their organization that
characterizes and grows out of employment”.
According to Armstrong __” IR is concerned with the systems and procedures used
by unions and employers to determine the reward for effort and other conditions of
employment, to protect the interests of the employed and their employers and to
regulate the ways in which employers treat their employees”
Meaning of Industrial Relations
Industrial relations is that field of study which analyzes the relationship among the
management and the employees of an organization at the workplace and also provides a
mechanism to settle down the various industrial disputes.
Proper regulation of employee-employer relationship is a condition precedent for planned,
progressive and purposeful development of any Industrialised society.
The objective of labour legislation is a developing concept and require ceaseless efforts
to achieve the meaningful Industrial Relations on continuous basis.
In its landmark judgement in Hindustan Antibiotics v. The Workmen (A.I.R. 1967, S.C. 948;
(1967) 1, Lab.L.J.114) the Supreme Court of India made a significant observation. The
object of the Industrial law, said the Court, was to bring in improvements in the service
conditions of industrial labour by providing them the normal amenities of life which would
lead to industrial peace. This would accelerate the productive activities of the nation,
bringing prosperity to all and further improving the conditions of labour.
 Characteristics of Industrial Relations
The relationship between management and employees within the organisation ( within the
organisational settings ) is defined by industrial relations.

Characteristics of Industrial Relation

Following are the significant features of industrial relations:

● Industrial relations are the result of employment relationships in industrial enterprises.

● Industrial relations introduced the concept and method of balancing of Conficts and
cooperating.
● Industrial relations formulate rules and regulations to maintain harmonious relations.
● The intervention of the Government to shape the industrial relation is made through
laws, agreements, rules, charters, etc.
● Industrial relations incorporate both individual relations and collective relations.
● Several parties play a role in industrial relations. The main parties are employees and
their organisation, employers and their association, and government.
Objectives of Industrial Relation

To establish industrial peace.

● To safeguard the interests of both workers and management.
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● To avoid industrial disputes.
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● To raise the production capacity.
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● To establish industrial democracy.
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● To minimise the labour turnover rate and absenteeism
● .
● To safeguard the workers economic and social interests.
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● To contribute to the economic development of the country through productivity.
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● To establish a full employment situation.
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● To minimise strikes, lockout, etc., by providing good working conditions and fair wages
to the workers.
 Factors affecting Industrial Relations
The industrial relations system of an organisation is influenced by a variety of factors.
They are:--
1. Institutional factors ;
Under institutional factors are included items like state policy, labour laws, voluntary codes, collective
bargaining agreements, labour unions, employers’and employees organisations / federations etc

2. Economic factors : Type of economic organisations: socialist, communist, capitalist

type of ownership; individual, company — whether domestic or MNC, Government, cooperative ownership

nature and composition of the workforce, the source of labour supply, labour market relative status, disparity of
wages between groups, level of unemployment, economic cycle.

3. Social factors
social group like caste or joint family, creed, social values, norms, social status (high or low) , haves or have-nots

4. Technological factors
e work methods, type of technology used, rate of technological change, R&D activities, ability to cope with emerging
trends, etc.
Continued
5. Psychological Factors:
owners’ attitude, perception of workforce, workers’ attitude towards work, their motivation, morale, interest, alienation;
dissatisfaction and boredom resulting from man-machine interface.

6. Political Factors:
political institutions, system of government, political philosophy, attitude of government, ruling elite and opposition towards labour
problems, Affiliation of the trade unions with political parties.

7. Enterprise-Related Factors:
style of management prevailing in the enterprise, its philosophy and value system, organisational climate, organisational health,
extent of competition, adaptability to change and the various human resources management policies.

8. Global Factors:
international relations, global conflicts, dominant economic-political ideologies, global cultural milieu, economic and trading policies of
power blocks, international trade agreements and relations, international labour agreements (role of ILO)

These interrelated and interdependent factors determine the texture of industrial relations in any setting. In
fact, they act, interact, and reinforce one another in the course of developing the industrial relations.
 Functions of Industrial Relations
● To establish communication between workers and management to maintain the sound relationship between the two.
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● To establish support between managers and employees.
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● To ensure the creative contribution of trade unions to avoid industrial conflicts.
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● To safeguard the interests of workers and the management,
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● To avoid an unhealthy and unethical atmosphere in an industry.
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● To formulate such considerations that may promote understanding, creativity, and cooperativeness to enhance
industrial productivity.
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● To ensure better workers’ participation.
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●

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● Perspectives of the Labour of Industrial Relations are
● Ensuring social and economic justice for workers
● Promoting the welfare of workers and their families
● Protecting workers from exploitation and abuse
● Ensuring safe and healthy working conditions
● Encouraging collective bargaining and the formation of trade unions
● }
●
Importance of Industrial Relations
● Promotes Democracy: Industrial relations means employing collective bargaining to resolve issues faced by
workers. This collective bargaining is generally employed through cooperation and mutual agreement amongst
all the affected parties, i.e., democracy, management, and employees unions. This enables an organisation to
establish industrial democracy, which eventually motivates the workers to perform their best to the growth and
prosperity of the organisation.
● Contract Interpretation: Industrial relations emphasizes on providing proper training to the
supervisors and the managers on the labour law contracts to clarify any misunderstanding.
● Employees’ Rights Protection: Under industrial relations, various acts and associations were
formed to safeguard the rights and interests of the employees.
● High Morale: Good industrial relations enhance the morale of the employees and motivate the workers to work
more efficiently. It emphasizes on transforming the way of thinking of both the management and
the workers. The employer must value the worker’s contribution towards the organization and the
employees must respect the authority of the management
● Avoid Conflicts Between Management And Union: Industrial relations minimise issues between unions and
management. This is because industrial relations incorporate setting up machinery to resolve issues faced by
management and employees through mutual agreement to which both these parties are bound. This results in
ignoring any unfair practices that could lead to major conflicts between employers and trade unions.
● Minimises Wastage: Satisfactory Industrial relations are maintained on the basis of co-operation and
recognition of each other in the department. It helps to minimise wastage of material, manpower, and costs.
● Economic Growth And Development: Good and harmonious industrial relations result in increased efficiency
and hence prosperity, which in turn minimise turnover and other tangible benefits to the organisation. This
promotes economic growth and development.