Unit – 2: Regulatory framework and key legislations
Constitutional Provisions relating to labour laws in India
The Constitution of India is the supreme law of the land, and all laws are based on it. To this effect, the Constitution guarantees its citizens a ‘Socialistic Pattern of Society’ and carries on to assert that there would be the creation or formation of the welfare state. The Indian labour laws have been greatly shaped by the interpretation of the Preamble, Fundamental Rights, Directive Principles of State Policy, and judicial wisdom.Seventh Schedule of the Indian Constitution
The Seventh Schedule of the Constitution outlines the distribution of legislative powers between central and state legislatures on different matters. List III (Concurrent List) covers most of the labour-related issues. These include topics such as maternity benefits, liability of employers, workmen’s compensation, invalidity, and old age pensions; social security and social insurance; employment and unemployment; labour unions; industrial and labour disputes; and provident funds. Parliament has legislated labour laws in most of these fields since the majority of issues related to labour are found on the Concurrent List.Directive Principles of State Policy in India
The constitution emphasises the significance of socio-economic justice as a fundamental right. The framers of the Constitution thought that in a developing country like India, without economic democracy, political democracy would be meaningless, and hence they incorporated certain Articles in the Constitution to improve the socio-economic conditions of the common man. These Articles are known as the Directive Principles of State Policy (DPSP), which are provided under Part IV of the Constitution. The main purpose of these principles Is to ensure the socio-economic objectives that the government must pursue to strengthen and advance the social and economic democracy of the country. When it comes to the law relating to labour, Articles 38, 39, 41, 42, and 43 are very important as they serve as the ‘Magna Carta’ of industrial law. These articles impose an obligation on the central and state governments to ensure social order and living wages as per the economic and political circumstances of the nation. It is also important to note that while DPSPs are not legally enforceable by the courts, they are still considered a fundamental part of the Constitution. They serve as the guiding principles for the government while framing policies and enacting laws that promote the welfare of the people. Article 38 of the Indian Constitution
The concept of social justice has been provided under Article 38 of the Constitution, which states that “the state shall strive to promote the welfare of the people by securing and protecting, as effectively as it can, social order where justice, social, economic, and political, shall inform all institutions of national life.” This principle reaffirms what has been stated in the Preamble to the Constitution, i.e., that the function of the Republic is to ensure social, economic, and political justice. Further, Article 39 mandates the state to incorporate specific principles relating to social justice in its legislative process. Justice Gajendragadkar, in the case of State of Mysore v. Workers of Gold Mines, 1958, stated that “the idea of social and economic justice is a living idea of revolutionary import that upholds the rule of law and gives the welfare state ideal meaning and significance.”Article 39 of the Indian Constitution
According to the Supreme Court’s interpretation of Article 39(a), the right to livelihood has been incorporated under Article 21 of the Constitution. In Olga Tellis v. Bombay Municipal Corporation (1986), the Supreme Court stated, “If the state has an obligation to secure to its citizens an adequate means of livelihood and the right to work, it would be sheer pedantry to exclude the right to livelihood from the content of the right to life.”Articles 39(b) and (c) are important constitutional provisions as they have an impact on the entire economic system of India. Socialism seeks to distribute the community’s material resources in a way that promotes the welfare of all. According to Article 39(b), socialism requires distributive justice. Article 39(d) provides for ‘equal pay for equal work. Under this Article, the parliament has enacted the Equal Remuneration Act, 1976. The Act prohibits discrimination based on gender and requires that both men and women be paid equally for performing the same or similar work. The Supreme Court, in many of its decisions, has drawn the general principle of equal pay for equal work from the combined reading of Articles 14, 16, and 39(d). The Supreme Court in Randhir Singh v. Union of India (1982), has identified that even though the idea of ‘equal pay for equal work’ is not a fundamental right, it is unquestionably a constitutional objective that can be upheld through constitutional remedies under Article 32 of the Constitution. Articles 42 and 43 of the Indian Constitution
Article 42 mandates the state to make provisions relating to just and humane conditions of work and maternity relief. Article 43, on the other hand, provides for a living wage for the workers. These Articles signify a groundbreaking concept, asserting that specific benefits are inherently owed to employees as a matter of right.In many cases, the Supreme Court has emphasised that the Constitution expresses strong concerns with respect to the welfare of workers under Articles 42 and 43. It has given a broad interpretation to Article 21, including the right to live with human dignity, by combining it with several Directive principles, including Article 42. Fundamental Rights (Part III of the Indian Constitution)
Part III of the Constitution provides for fundamental rights. The freedoms and rights that are mentioned in Part III are intended to be protected against the arbitrary actions of the state.Article 14 of the Indian Constitution
Article 14 states that “the State shall not deny to any person within the territory of India equality before the law or equal protection of the laws.” There are two aspects of equality under Article 14, i.e., equality before the law and equal protection of the law. Equality before the law is a negative concept, and it strictly prohibits discrimination. Whereas the concept of equal protection of laws is a positive one, it states that to achieve equality among all, the state has to provide special treatment to people under certain circumstances. Article 16 of the Indian Constitution
Article 16 provides for equality of opportunity in matters of public employment. It states that no citizen shall be discriminated against on the grounds of religion, race, caste, sex, descent, place of birth, residence or any of them. The state, under this Article, is also empowered to make special provisions for the underprivileged classes. Article 19 of the Indian Constitution
Article 19 provides the bundle of rights; it protects ‘the right to free speech and expression, the right to peaceful assembly without arms, the right to assemble in unions or associations, the right to practise any profession, and the right to engage in any occupation, trade, or business.’ Under the purview of labour laws, these constitutional guarantees, including minimum standard legislation, play a significant role. The ability of lawmakers to decide and choose which businesses or industries should adhere to the minimum standard is constrained by equal protection. The freedom to practise any trade, profession or business eliminates the burden that legislation might place on businesses for the sake of workers. These provisions protect workers’ rights to free speech, assembly, and association, as well as unionisation, which facilitates their efforts to organise themselves through picketing or by going on strike to advance personal interests. Article 21 of the Indian Constitution
Article 21 protects the right to life and personal liberty of every person. The interpretation of the term ‘life’ by the Supreme Court has evolved significantly to include in its ambit various rights that contribute to the personal liberty of the individual. Further, the term personal liberty has been construed broadly to include a wide range of rights. These rights must adhere to a proper legal process that is fair, just, and reasonable. Thus, this broad interpretation reflects the developing notion of human rights, elabourating on significant parts of human life within the borders determined by constitutional protection.Articles 23 and 24 of the Indian Constitution
Article 23 prohibits trafficking in human beings and forced labour. It states that trafficking in human beings, and begar and other similar forms of forced labour is prohibited, and any contravention of this provision is punishable by law. The Supreme Court has interpreted the term life under Article 21 to include livelihood, and it has held in several cases that any employment below minimum wage levels is illegal as it amounts to slavery. Further, the employment of children below the age of 14 in any factory, mine, or other hazardous occupation is prohibited under Article 24.
