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