In India, after independence, the primary concern is social justice which
includes factories and laborers which have a bulk population that cherishes both
social and economic justice. The Universal Declaration of Human Rights also
recognizes social security, economic, and cultural rights, and also freedom and
free development of society for every member of the society.
The economic and social-cultural conditions have mainly influenced Indian labour
legislation which mainly regulates the different number of hours of work, wages,
social security, and facilities provided. Labor legislation has been
comprehensively discussed such as The Employee's Compensation Act 2017, The
Payment of Wages Act 2017, and the Equal Remuneration Act which prevails in
In the globalizing world Industrial relations are changing promptly, and the
disturbance in relations causes problems such as strikes, and lockouts set
ablaze. It is imperative to have collaboration between management and labors.
There must be harmony between them for social, economic, and political
development. The mutual relationship between labor and employees leads to the
success of an industry.
Understanding Labour Legislation in India
In India, at present, there are more than 40 existing enactments that regulate
the social security and rights of the workers/employees. The courts also
reiterated the legislative principles and laid down principles for labor conduct
in India. The intrinsic objective is the growth of labor legislation.
Well-established legislation is the backbone of the industrial sector which
provides smooth functioning of the labour industry Some of them are as
The Industrial Disputes Act of 1947 is a basic law that governs industrial
relations. The statute provides protection of interest of employers as well as
employees. The economic justice has been ensured. A justiciable wage structure
and timely payment has been ensured. This act also supports collective
bargaining. The industrial disputes are dealt with by referring to the
appropriate government by labor cum Conciliation officer in the form of a
failure report The adjudication is referred to a Labour court or labor tribunal.
This act creates a balance between employer and employees
The Trade Union Act,1926. This act intends to unite the workmen and protect
their service conditions and interests. There is an antiquity in events such as
in 1890 the association formed like a trade union but did not strictly adhere to
it. After the First World War problems started emerging such as hikes in prices,
and political upsurges this led to strikes which resulted in the strengthening
of trade unions and then eventuated the establishment of the International
Labour Organisation. India after independence saw the development of the Trade
Union Act. The rule of collective bargaining also given place in the Industrial
The Employees Compensation Act 1923 provides economic security in case of
misshape to workmen. The dependents get compensation after the death of the
laborer. The problem of labor-management relations became substantial to have
social insurance. The act intends to provide compensation in case of any injury
during working hours that may occur due to increased use of machinery. This
protects the labourers in times of hardship
The Payment of Wages Act 1936 This legislation provides imposition of fines by
employers on workers and even deduction. The Royal Commission on Labour in India
made some valuable recommendations. The present act follows regarding fines for
essential deductions Factories Act 1948 ensures good health, canteen, rest, etc.
for better lives of workmen This act states provisions such as employment of
children above 14 years and women are prohibited to work overtime after 6 AM to
7 PM. It also abolishes the distinction between seasonal and nonseason
The Payment of Bonus Act,1965 This act rewards a sincere employee for the profit
of the industry. It is not an ex gratia payment. This act applies to all
factories and every establishment where twenty or more workmen are working, it
provides a minimum bonus of 8.33percent of
The Maternity Benefit Act of 1972 this act was passed with respect to women to
recognize their hardship properly during and after pregnancy. Women are entitled
to wages in their maternity leave. Thus act has changed the status of a victim
lady into a lady of free
The retired workmen get their reward for continuous service in the Payment of
Gratuity Act, of 1972 , This act helped to form and regulate the gratuity and it
is not pension.
The Employee's Provident Funds And Miscellaneous Provisions Act 1952 provides
pension funds, and deposit-linked insurance funds for employees in the
factories. It is a provident fund scheme where the employer and employees share
the fund the amounts gets deducted from the wages
The Child Labor (Prohibition and Regulation) Act 1986 is a law that prohibits
child labor. The Geneva Declaration pertaining to the rights of children has
been adopted in this law. The preamble of the declaration expresses the concern
of the international community about child welfare. The Equal Remuneration Act
1976 provides equal wages to permanent employees providing the duties to be
same. Article 39 of the Constitution principle of equal pay for an equal place.
Employee State Insurance Act, 1948 which provides social insurance in order to
secure financially.it is a medical security to the insured person and the family
members. This act is applicable where in any institution more than 10 employees
earn a minimum of Rs 15,000.It provides benefits such as unemployment allowance,
death benefit, maternity benefit, medical benefit, sickness benefit, benefits
for dependents, and disability benefits.
The sexual harassment of Women at Workplace (Prevention, Prohibition and
Redressal) act 2013 (POSH ) This act deals with any sexual harassment of women
and also acts such as physical touch, contact, sexual advances, a demand or
request favors, making the sexually colored remark, showing pornography and
other non-verbal or verbal conduct of sexual nature is covered. In accordance
with the only company law all employees whether regularly, temporarily,
contractually on an ad hoc or daily wages, women employees, interns, and
principal employees can seek redressal
It also defines the workplace beyond the traditional approach It also includes
telecommuting and places visited by employees for work . It applies to the
private and public sector
The complaint mechanism includes (ICC )Internal Complaints Committee where women
can file formal complaints. It has to be headed by women. This act also mandates
having a Local Committee( LC) at the district level Employees such as domestic
workers, and home-based workers can also file their complaints.
The government provides a Department of Administrative Reform and Public
Grievance for providing citizens to redress their grievances through the website
The Ministry of Labor and Employment (MOLE) has a Nodal Public Grievance Cell in
the Ministry which forwards and overlooks all the grievances. It can be done
both through online and offline modes. These grievances are dealt with and
reviewed by the Ministry at the highest level of secretary /additional secretary
(L &E) on a regular basis.
Any person having a grievance The various organizations of the Ministry such as
EPFO, ESIC, AND Chief Labour Commissioner ministry or any organization can file
either online or offline to the CPGRAMS portal.
The dissatisfaction among the management and labours, and insecurity in them is
the root cause of the breakdown of Industrial relations. The major reason behind
it is a communication gap between employees and employers. In India as a poor
state wages are a means of livelihood, and laborer wages are everything.
One-fourth of strikes are caused due to low wage rates, instances such as
illegal wage cuts are also resented by the workers. Collective bargaining is the
one mechanism where workers represent themselves.
The concept of minimum wage is
flexible in India and very dynamic, fixation and frequent changes are not enough
its enforcement must be effective to benefit laborers. Social security against
common risks such as life, employment injury, occupational diseases widowhood,
old age, orphanhood, etc It is necessary to provide security because without it
an average citizen can never live or rather, die peacefully because such risks
are not only numerous but their incidence is also fairly high and complex.
There could be a useful measure for bringing out good results for harmonious
industrial relations between management and employees both counterparts are
necessary like the example of a sound mind in a sound body, both counterparts
are necessary for each other. The welfare of one part affects another.
management is working well, the wisdom of employees is also expected same.
Likewise, if the employees are satisfied with good conditions then will support
the management. True management should have a welfare approach to give due care, fair,justful steps.
The manager's role should be balanced and complete adopting
fair and just methods They should identify steps before taking steps to decide
on goals, the course of action to be adopted lastly emergency steps to be
thought in advance, A Good atmosphere industry must be created between employees
and employers. On the other hand, employees also should not use strikes as a
weapon .Industrial Relations are crucial and complex. In brief faith is needed
on both sides for functioning
- Understanding Labour Laws in India - S.S. Rana & Co. (2023, June 26). S.S. Rana & Co.
- Code on Wages Ministry of Labour & Employment|Government of India. (n.d.)
- 2013 - Regulations And Implementations. Lexology.