Introduction
Labour is the backbone of any nation. They work and contribute to building a country’s economy. Even in hard times, Labourers work effortlessly for the industry and their employer. The law of the nation decides the working hours and wages of Labour.
In India, the British introduced Labour laws after industrialization. After independence, the Indian government formulated other Labour laws. They are in consonance with the Indian Constitution.
However, the recent COVID lockdown changed the whole idea of Labour laws. States were free to make any law for industrial workers. Labour laws were relaxed. As a result, the protection they offered also faded away. Let’s find out the provisions of Labour law ordinances of different states.
Meaning and context
Employees
Those who work in an industry, for someone else.
Employer
Employees work for him. He owns the industry.
Industry
Manufacturers/producers indulge in the primary activity of production of goods and services. The place of such production is industry.
Labour laws
The laws relating to the right and responsibilities of Labour and the relationship between employer and employee.
7th schedule of the Indian Constitution
It enumerates 3 types of lists, containing different subjects under the state and central government’s jurisdiction.
Union List
Matter over which Central government makes laws.
State List
Matter over which State governments make laws.
Concurrent List
Matter over which both state and central government make laws. The subject of Labour falls under the Concurrent List. Therefore, both the Parliament and state legislatures can legislate on it.
The center has formulated laws like the Factories Act, Payment of Wages Act, Equal Remuneration Act, etc. The states have their own laws but they should be in line with central laws. If there is a conflict between them, central laws prevail. State laws can prevail if the President assents to them.
COVID times
These were challenging times when the government locked down everything everywhere. Even industries were closed. Workers working in different cities had to migrate back to their native villages. Industries required the Labour force to initiate work and put the economy back on track.
But given the Labour laws and their protection of Labours, this wasn’t easy to achieve. Hence, states decided to amend and repeal some laws for the time being. The employer could dictate their work and make workers work according to industrial needs.
Ordinances
The states did this with the help of ordinances. They have the same force as law, but it is an administrative/executive power to legislate.
The governor of an Indian state can make law as given under Article 213 of the Constitution. He can do so when the legislature is not in session. It becomes necessary for him to take immediate action. An ordinance remains in force for a brief period and the state legislative assembly decides its fate.
Changes in Labour law
Central and state governments have introduced reforms to Labour laws during the lockdown. The aim is to attract investment and make money to stabilize the economy. Major changes are regarding working hours and wages that Labourers get.
International Labour laws
The International Labour Organization lays down international standards for Labour laws. Nation states signing its conventions are bound to incorporate its provisions into their national laws.
Working hours
The 1st ILO Convention mentioned working hours to be 8 hours per day and 48 hours per week.
Wages
Remuneration or payment made to workers for the work they did.
Minimum wages
The minimum amount of salary that an employer gives to employees for the time they worked.
Living wages
Amount of money that an employee gets for basic subsistence. It helps a Labourer to afford adequate shelter, food, clothing, water, healthcare, etc. for his family. This lets the workers live their lives in a better way and reduces poverty.
Indian Labour laws
Previously, working hours were 8 hours/day but the state increased it to 12 hours/day.
The concept of living wages is nowhere found in India. In fact, a lot of Labours even get below minimum wages. There are some who work for free because they are illiterate and unaware of their rights.
Indian Constitution
Right against Exploitation
Article 23
It is the responsibility of the state to prohibit forced Labour. Not giving minimum wages to a Labourer is also forcing a worker to work.
Article 24
No employer can employ any child below 14 yrs. of age in any factory/mine or hazardous employment.
Directive Principles of State Policy
Article 39
It provides for:
- Men and women have equal rights to adequate means of livelihood
- Distribution of material resources of the community for common good
- No concentration of wealth and means of production
- Equal remuneration for men and women for equal work
- Not to abuse the health and strength of workers of any gender or age
- Children get the opportunity to develop in a healthy manner
UP Government
Uttar Pradesh Temporary Exemption from Certain Labour Laws Ordinances, 2020- It made all Labour laws inapplicable except the following:
- Building and Other Construction Workers Act
- Workmen Compensation Act
- Bonded Labour System Abolition Act
- Payment of Wages Act (Section 5)
Acts that are not applicable:
- Factories Act- Now employers can increase work hours from 8 to 12.
- Industrial Disputes Act- Now employers do not need to give notice before retrenching workers.
The ordinance seeks to exempt establishments from Labour laws for 3 years.
MP Government
Madhya Pradesh Labour Laws (Amendment) Ordinance, 2020- It seeks to amend the following
- Madhya Pradesh Industrial Employment (Standing Orders) Act, 1961
- Madhya Pradesh Shram Kalyan Nidhi Adhiniyam, 1982
The 1962 Act will no longer apply to establishments having less than 100 workers. It also allows the state government to exempt any establishment from the provisions of the Act. Provisions like strikes, lockouts, trade unions, and industrial dispute resolution will not apply. It increased working hours to 12/day and to 72/week.
There will be less delay in registering and getting a license to establish a new industry. It exempts industrial inspection for 3 months or for a firm with less than 50 workers. The duration of this ordinance was 33 months.
Gujarat Government
It circulated a notification whereby similar changes were made, but only for 1200 days. It increased the working hours, stopped inspections, and banned trade unions. New establishments were exempted from Labour laws except:
- Minimum Wages Act
- Industrial Safety Rules
- Employees’ Compensation Act
Rajasthan, Punjab, Haryana, Assam, Goa, Karnataka, Uttarakhand, etc. made similar changes. Consequently, employers could:
- hire and fire you as he wants,
- deprive employees of essential necessities at the workplace
- not pay employees for overtime
- ban/remove trade unions and so on
Is it legally correct?
The UP Ordinance faced challenges in the High Court but the government withdrew the Ordinance. It took back the provision of increasing working hours because it was against basic guarantees to Labour. Similarly, the Karnataka and Rajasthan governments also withdrew their respective ordinances.
Conclusion
Labour is a significant contributor to the country’s economy. They selflessly work for the growth of the industry and the nation. Hence, it is the nation’s responsibility to treat them with respect. Governments should not strip off their basic necessities, even in testing times like COVID pandemic.
If still doubts persist, consult legal experts at https://www.aapkaconsultant.com/legal-opinion-legal-shots
