20bba045 20bba050 Labour Law 1
20bba045 20bba050 Labour Law 1
SUBMITTED BY:
Shoubhik Bose (20/BBA/045)
Sujal Swain (20/BBA/050)
6th Semester
B.B.A.L.L.B.(Hons)
Of
NATIONAL LAW UNIVERSITY, ODISHA
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I. TABLE OF CONTENTS
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“SHOPS AND COMMERCIAL ESTABLISHMENTS ACT (OF RESPECTIVE
STATES)” ........................................................................................................................ 16
“CONTRACT LABOUR (REGULATION & ABOLITION) ACT, 1970” .................... 16
“THE EMPLOYEE'S COMPENSATION ACT, 1923 (FORMALLY KNOWN AS THE
WORKMEN COMPENSATION ACT, 1923)” ............................................................... 16
“INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENTAND
CONDITIONS OF SERVICE) ACT, 1979” .................................................................... 16
“WEEKLY HOLIDAY ACT, 1942”................................................................................ 16
XII. LAWS RELATING TO EQUALITY AND EMPOWERMENT OF WOMEN .......... 17
“EQUAL REMUNERATION ACT, 1976” ..................................................................... 17
“MATERNITY BENEFIT ACT, 1961” ........................................................................... 17
“SEXUAL HARASSMENT AT WORKPLACE (PROHIBITION, PREVENTION AND
REDRESSAL) ACT, 2013” ............................................................................................. 17
XIII. JUDICIAL TRENDS IN STATE INTERVENTION IN LABOUR RELATIONS ..... 18
XIV. CONCLUSION & SUGGESTIONS ............................................................................ 19
XV. ANNOTATED BIBLIOGRAPHY ............................................................................... 20
AUTHORITIES ................................................................................................................ 20
CASES .............................................................................................................................. 20
BOOKS ............................................................................................................................. 21
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II. ACKNOWLEDGEMENT
I would like to thank Mr. Dipanwita Mitra for guiding me throughout the project and
clarifying doubts whenever it was required. I also thank the University administration for
providing me facilities that helped me complete this project successfully and timely.
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III. TABLE OF CASES
Air India Ltd. & Ors. vs. United Labour Union & Ors. (1997) ............................................... 18
Bangalore Water Supply and Sewerage Board vs. Rajappa (1978)......................................... 18
Hindustan Antibiotics Ltd. vs. Workmen (1967)..................................................................... 18
Steel Authority of India vs. National Union Waterfront Workers & Ors. (2001) ................... 18
Uttar Pradesh State Road Transport Corporation vs. State of UP & Ors. (2006) .................... 18
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V. RESEARCH METHODOLOGY
The research will be conducted using a qualitative approach. Data will be collected through a
literature review of academic articles, books, government reports, and other relevant sources.
OBJECTIVE
The objective of this research is to examine the role of state intervention in labour law and its
impact on the labour market. The research aims to identify the reasons for state intervention
in labour law and the types of intervention that are used. It also aims to explore the challenges
faced by state intervention and the criticisms it receives.
RESEARCH QUESTIONS
The research will focus on state intervention in labour law and its impact on the labour
market. It will cover the historical development of state intervention in labour law, the types
of intervention used, the reasons for state intervention, and the challenges faced by state
intervention. The research will also cover criticisms of state intervention in labour law.
The research will not cover the quantitative analysis of the impact of state intervention in
labour law. The research will also be limited to the current state of labour laws and will not
cover the prospects of state intervention in labour law.
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VI. INTRODUCTION
Religious
Sector
Industrial
Political Economic
Relations System
System
System
Social
System
1
Rosalía Cortés and Adriana Marshall, ‘State social intervention and labour regulation’ , (1993)17
Cambridge Journal of Economics <https://www.jstor.org/stable/23599792#metadata_info_tab_contents>
accessed 05th March 2023.
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INDUSTRIAL RELATIONS
Employee
Employer
Industrial Government
Relations
Trade Union
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VII. STATE INTERVENTION IN LABOUR LAW
TYPES: -
State intervention in labour law can take many forms, depending on the needs of the labour
market and the society in question. There are several types of state intervention in labour law
that aim to protect the rights of workers, promote economic growth, and maintain industrial
harmony.
One of the most common types of state intervention is the establishment of minimum wage
laws. These laws establish a minimum wage rate that employers must pay to their employees.
The aim is to ensure that workers are paid a fair wage that allows them to meet their basic
needs, such as food, shelter, and clothing. Minimum wage laws also help to reduce poverty
and promote economic growth by increasing the purchasing power of workers.
Collective bargaining is another type of state intervention that allows workers to negotiate
with employers for better wages, working conditions, and other benefits. Collective
bargaining helps to ensure that workers have a say in the decisions that affect their working
lives and that their interests are protected. This process also helps to maintain industrial
harmony by preventing disputes and strikes.2
Health and safety regulations are designed to ensure that workplaces are safe and healthy for
employees. These regulations cover areas such as workplace hazards, protective equipment,
and accident prevention measures. Health and safety regulations help to reduce the risk of
workplace injuries and illnesses, which can result in significant costs for both workers and
employers.
Social security benefits are another type of state intervention that provides a safety net for
workers who are unable to work due to illness, injury, or unemployment. These benefits help
to ensure that workers are able to meet their basic needs, even if they are unable to work.
Social security benefits can also reduce poverty and promote social stability by providing a
safety net for vulnerable workers.
2
“Neetha N, “Misconstrued Notions and Misplaced Interventions: An Assessment of State Policy on Domestic
Work in India - The Indian Journal of Labour Economics” (SpringerLink, August 9, 2021)
https://link.springer.com/article/10.1007/s41027-021-00334-w”
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Labour standards set minimum requirements for working hours, overtime pay, and other
employment conditions. They help to ensure that workers are not exploited by employers and
are treated fairly. Labour standards also help to maintain a level playing field in the labour
market by preventing employers from undercutting each other on wages and working
conditions.
Overall, state intervention in labour law is aimed at balancing the interests of employers and
employees and ensuring that workers are treated fairly and have access to essential social and
economic benefits. 3
REASONS: -
There are several reasons why states intervene in labour law to protect the rights of workers
and ensure that they are treated fairly. Here are some of the key reasons:
1. Market failure: In some cases, the labour market may fail to provide fair wages,
decent working conditions, or social protections for workers. This can happen due to
factors such as information asymmetry, power imbalances between employers and
workers, or externalities that affect the well-being of workers. State intervention can
help to correct these market failures and ensure that workers are not exploited or left
without adequate social protections.
2. Public interest: States may intervene in labour law to protect the public interest by
promoting social stability, reducing poverty, and promoting economic growth. For
example, minimum wage laws can help to reduce poverty and stimulate economic
activity by increasing the purchasing power of workers. Health and safety regulations
can help to reduce the risk of workplace accidents and illnesses, which can have
significant costs for society as a whole.
3. Social justice: States may intervene in labour law to promote social justice by
ensuring that workers are treated fairly and have access to essential social protections.
Social security benefits, for example, can help to reduce inequality and ensure that
vulnerable workers are not left without support in times of need.
3
“Taher MdA, “Debating State Intervention in Industrial Relations” (The Financial Express)
https://thefinancialexpress.com.bd/views/analysis/debating-state-intervention-in-industrial-relations-
1632506295”
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4. Collective bargaining: States may facilitate collective bargaining between workers
and employers to promote industrial harmony and ensure that workers have a say in
the decisions that affect their working lives. Collective bargaining can help to reduce
the risk of disputes and strikes, which can have significant costs for both workers and
employers.
Overall, state intervention in labour law is motivated by a desire to protect the rights and
interests of workers, promote social stability, and ensure that the labour market functions
fairly and efficiently. 4
CRITICISM: -
While state intervention in labour law has many benefits, it has also been subject to criticism.
Here are some of the key criticisms of state intervention in labour law:
1. Reduced competitiveness: One criticism of state intervention is that it can reduce the
competitiveness of firms by increasing their labour costs. For example, minimum
wage laws can increase the cost of labour for employers, making it more difficult for
them to compete in the global marketplace. Critics argue that this can lead to job
losses and reduced economic growth.
2. Reduced flexibility: Another criticism of state intervention is that it can reduce the
flexibility of the labour market. For example, strict employment regulations can make
it more difficult for employers to adjust their workforce in response to changing
economic conditions. This can lead to a mismatch between labour supply and
demand, which can result in higher unemployment.
3. Increased bureaucracy: State intervention in labour law can also lead to increased
bureaucracy and administrative costs. For example, enforcing health and safety
regulations may require additional inspections and paperwork, which can be time-
consuming and costly for employers. Critics argue that this can create a burden for
small businesses and reduce their competitiveness.
4. Unintended consequences: State intervention in labour law can also have unintended
consequences. For example, minimum wage laws may increase the cost of labour for
4
““State Intervention and Labour Market in India: Issues and Options Munich Personal RePEc Archive” (State
intervention and labour market in India: issues and options Munich Personal RePEc Archive)
https://mpra.ub.uni-muenchen.de/12821/\”
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employers, but they may also lead to reduced hours or job losses for some workers.
Similarly, social security benefits may discourage some workers from seeking
employment, leading to a reduction in labour supply. 5
Overall, critics argue that state intervention in labour law can lead to unintended
consequences, reduced competitiveness, and increased bureaucracy. However, supporters
argue that these concerns can be addressed through careful policy design and
implementation.6
CHALLENGES: -
State intervention in labour law faces several challenges, which can make it difficult to
achieve its intended goals. Here are some of the key challenges:
5
““Labour Laws in India - iPleaders” (iPleaders, September 19, 2022) https://blog.ipleaders.in/labour-laws-in-
india-2/”
6
“K.R. Shyam Sundar, Labour Law Reforms in India: All in the Name of Jobs? (Cambridge University Press
2019).”
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the rise of the gig economy has created new challenges for labour law, as traditional
labour protections may not apply to workers in these industries. 7
Overall, state intervention in labour law faces several challenges, including political
opposition, implementation challenges, economic constraints, globalisation, and
technological change. Addressing these challenges requires careful policy design and
effective implementation strategies.8
7
““Https://Ideas.Repec.Org/p/Pra/Mprapa/4874.Html” https://ideas.repec.org/p/pra/mprapa/4874.html”
8
“Raka Ray, The State and Working-Class Movements in India (Cambridge University Press 2012).”
9
“Industrial Disputes Act, 1947”
10
““Acts Administered by the IR/PL Section 186 | Ministry of Labour & Employment” (Acts administered by
the IR/PL Section 186 | Ministry of Labour & Employment, March 12, 2023) https://labour.gov.in/acts-
administered-irpl-section-186”
11
“Trade Unions Act, 1926”
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IX. LAWS RELATING TO WAGES
12
“Minimum Wages Act, 1948”
13
““Minimum Wages Regulations - India” (WageIndicator Foundation) <https://wageindicator.org/labour-
laws/labour-law-around-the-world/minimum-wages-regulations/minimum-wages-regulations-india>
14
“Payment of Bonus Act, 1965””
15
“Employees Provident Fund and Miscellaneous Provisions Act, 1952”
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to medical assistance, monetary support, paid maternity leave, pensions for the heirs of
workers who pass away, and reimbursement for serious or fatal illnesses and injuries.16
16
“Employees’ State Insurance Act, 1948”
17
“Payment of Gratuity Act, 1972”
18
“Factories Act, 1948”
19
“Industrial Employment (Standing Orders) Act, 1946”
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“SHOPS AND COMMERCIAL ESTABLISHMENTS ACT (OF RESPECTIVE
STATES)”
Broadly speaking, provisions pertaining to business registration, workhours, overtime,
absence, privileged leave, notice pay, employment conditions for female employees, etc. are
found in the Shops and Commercial Establishments Act(s) of the relevant States.
20
“Contract Labour (Regulations & Abolition) Act, 1970”
21
“The Employee’s Compensation Act, 1923 (Formally known as The Workmen Compensation Act, 1923”
22
“Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979”
23
“Weekly Holiday Act, 1942”
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XII. LAWS RELATING TO EQUALITY AND EMPOWERMENT OF WOMEN
24
“Equal Remuneration Act, 1976”
25
“Maternity Benefit Act, 1961”
26
“Sexual Harassment at Workplace (Prohibition, Prevention and Redressal) Act, 2013”
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XIII. JUDICIAL TRENDS IN STATE INTERVENTION IN LABOUR RELATIONS27
• “Air India Ltd. & Ors. vs. United Labour Union & Ors. (1997)”28
This case dealt with the issue of whether the government could intervene in the dispute
between Air India and its employees. The Supreme Court held that the government had the
power to refer the dispute to arbitration under the Industrial Disputes Act, 1947.
• “Bangalore Water Supply and Sewerage Board vs. Rajappa (1978)”29
This case dealt with the issue of whether contract labourers were entitled to the same wages
and benefits as regular employees. The Supreme Court held that contract labourers were
entitled to the same wages and benefits as regular employees under the Contract Labour
(Regulation and Abolition) Act, 1970.
• “Steel Authority of India vs. National Union Waterfront Workers & Ors.
(2001)”30
This case dealt with the issue of whether the government could intervene in the dispute
between Steel Authority of India and its employees. The Supreme Court held that the
government had the power to refer the dispute to arbitration under the Industrial Disputes
Act, 1947.
• “Uttar Pradesh State Road Transport Corporation vs. State of UP & Ors.
(2006)”31
This case dealt with the issue of whether the government could impose a ban on strike by
employees of the Uttar Pradesh State Road Transport Corporation. The Supreme Court held
that the government had the power to impose a ban on strike in the public interest under the
Industrial Disputes Act, 1947.
• “Hindustan Antibiotics Ltd. vs. Workmen (1967)”32
This case dealt with the issue of whether the government could intervene in the dispute
between Hindustan Antibiotics Ltd. and its employees. The Supreme Court held that the
government had the power to refer the dispute to arbitration under the Industrial Disputes
Act, 1947.
27
“Sarbeswar Sahoo, State, Society and Labour in India (Routledge 2015).”
28
“Air India Ltd. & Ors. vs. United Labour Union & Ors. (1997) 3 SCC 724”
29
“Bangalore Water Supply and Sewerage Board vs. Rajappa (1978) 2 SCC 213”
30
“Steel Authority of India vs. National Union Waterfront Workers & Ors. (2001) 7 SCC 1”
31
“Uttar Pradesh State Road Transport Corporation vs. State of UP & Ors. (2006) 5 SCC 446”
32
“Hindustan Antibiotics Ltd. vs. Workmen (1967) 2 SCR 352”
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XIV. CONCLUSION & SUGGESTIONS
Dignified importance and proper rights in a workplace should be the prior importance and
here state and local government should ensure it is being applied. Instead of raising the
minimum standards of a worker in a workplace the government should face the challenges
and sort it at a grass root level. Decent wages should be given importance and it can be
maintained by helping the members to negotiate by help of Union. This will ensure that voice
of workers is being heard as India is a democratic county which can be done by mobilizing
the turnout of votes. Things state should focus mainly in developing certain things such as:
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XV. ANNOTATED BIBLIOGRAPHY
AUTHORITIES
CASES
➢ Air India Ltd. & Ors. vs. United Labour Union & Ors. (1997) 3 SCC 724.
This case dealt with the issue of whether the government could intervene in the dispute
between Air India and its employees. The Supreme Court held that the government had the
power to refer the dispute to arbitration under the Industrial Disputes Act, 1947.
➢ Bangalore Water Supply and Sewerage Board vs. Rajappa (1978) 2 SCC 213.
This case dealt with the issue of whether contract labourers were entitled to the same wages
and benefits as regular employees. The Supreme Court held that contract labourers were
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entitled to the same wages and benefits as regular employees under the Contract Labour
(Regulation and Abolition) Act, 1970.
➢ Steel Authority of India vs. National Union Waterfront Workers & Ors. (2001) 7
SCC 1.
This case dealt with the issue of whether the government could intervene in the dispute
between Steel Authority of India and its employees. The Supreme Court held that the
government had the power to refer the dispute to arbitration under the Industrial Disputes
Act, 1947.
➢ Uttar Pradesh State Road Transport Corporation vs. State of UP & Ors. (2006) 5
SCC 446.
This case dealt with the issue of whether the government could impose a ban on strike by
employees of the Uttar Pradesh State Road Transport Corporation. The Supreme Court held
that the government had the power to impose a ban on strike in the public interest under the
Industrial Disputes Act, 1947.
➢ K.R. Shyam Sundar, Labour Law Reforms in India: All in the Name of Jobs?
(Cambridge University Press 2019)
This book provides an in-depth analysis of the recent labour law reforms in India, their
impact on workers and the labour market, and the challenges faced by labour law in the
country.
➢ Raka Ray, The State and Working-Class Movements in India (Cambridge
University Press 2012)
This book explores the role of the state in shaping working-class movements in India, with a
focus on how the state has responded to labour unrest and demands for workers' rights.
➢ Sarbeswar Sahoo, State, Society and Labour in India (Routledge 2015)
This book analyzes the relationship between the state, society, and labour in India, with a
focus on the informal sector and the role of the state in shaping labour relations in this sector.
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