A SCRUTINY OF LABOUR LAW REFORMS IN INDIA

B.K Sahu1

Abstract
Labour laws in India fall under the concurrent list and therefore, are governed by numerous
Central and State legislations on plethora of topics. Due to overlapping of so many laws, the
implementation, which should be the main focus for any law, becomes difficult as a result the
ultimate beneficiary face the brunt of it and suffer. The laws were made keeping in mind the
benefit of workers, but unfortunately the desired result isn’t achieved. To overcome this
problem, 29 labour legislations have been amalgamated into 4 Codes. Along with, the
consolidation of laws this chapter also discusses about other labour law reforms such as
including the Migrant workers in the postal voting policy as they are unable to cast their vote
and thereby exercise their right due to frequent change in their working locations.

1. INTRODUCTION
Labour market in India is defined by an array of labour laws. Labour figures in the
Concurrent list of the Constitution of India. By implication, both the Central and State
Governments can legislate in this area. As a result, there were about 44 labour laws enacted
by the Central Government which were implemented by the Central or State Governments or
both as defined in the respective statutes. Besides, there were over 90 labour laws enacted and
implemented by the concerned State Governments in their respective jurisdictions. Both the
Central and State labour laws cover various broad labour-related areas like wages, social
security, labour welfare, occupational safety and health, industrial relations etc.

Even though each law has been enacted with a purpose aiming at promoting workers’
benefits, the general perception was that the plethora of labour laws would be difficult to
implement. Maintenance of a number of registers and records, furnishing of various returns
and consequently multiple inspections by different law-enforcing agencies might be over-
bearing. So, the major concerns relating to labour laws and regulations in India are
highlighted below:

• Too many labour laws cause definitional overlaps and difficulty in implementation.

1 Mr. B.K Sahu, Former Insurance Commissioner, ESIC, Ministry of Labour, Communication Adviser to
Insurance Regulatory and Development Authority, IRDA
 • Labour market in India is characterized by structural dualism i.e., existence of formal
and informal sectors catering to about 10 and 90 percent of workers, respectively.
However, labour laws are mostly formal sector-centric, leading to exclusion of a large
segment of the workforce from their ambit. Hence universalization of benefits,
especially of social security, is called for.

• The effectiveness of labour laws become less pronounced due to weak administrative
enforcement mechanisms.

• In the context of globalization, in order to face volatile global and domestic markets
and for improving productivity, it is necessary to provide certain degree of operational
flexibility to employers and social security to workers, including facilities for training
and retraining.

These deficiencies are expected to be overcome through labour reform, also called as labour
law reform or labour market reform. Labour reform is a continuous process and has been
carried out through amendment of labour laws over time. What was considered relevant,
however, was to undertake a review of labour laws and carry out their simplification,
rationalization and codification, as recommended by the Second National Commission of
Labour (NCL:2002).

Accordingly, out of 44 Central Labour laws, 29 have been amalgamated into 4 Labour Codes
and notified. 12 laws have been repealed. 1 [Labour Laws (Exemption from Furnishing
Returns and Maintaining Registers by Certain Establishments) Act, 1988] is awaiting repeal.
2 [Child & Adolescent Labour (Prohibition & Regulation) Act, 1986 and Bonded Labour
System (Abolition) Act,1976], would remain on stand-alone basis. The names of 29 Acts and
4 Codes in which these are incorporated are given below:

Sl. Name of the Act Code

No

1 Payment of Wages Act, 1936 W

2 Minimum Wages Act, 1948 W

3 Equal Remuneration Act, 1976 W

4 Payment of Bonus Act, 1965 W

5 Trade Unions Act, 1965 IR

6 Industrial Disputes Act, 1947 IR

7 Industrial Employment (Standing Orders) Act, 1946 IR

8 Employees Compensation Act, 1923 SS

9 Maternity Benefit Act, 1961 SS

10 Employees State Insurance Act, 1948 SS

11 Payment of Gratuity Act, 1972 SS

12 Employees Provident Fund and Misc. Prov. Act, 1952 SS

13 Employment Exchange (Comp. Not. Of Vacancies) SS

Act,1959

14 Unorganised Workers Social Security Act, 2008 SS

15 Cine Workers Welfare Fund Act, 1981 SS

16 Building & other Construction Workers Cess Act, SS

1996

17 Working Journalists and Other Newspaper Employees OSH

(Condition of Service and Misc. Prov.) Act, 1955

18 Factories Act, 1948 OSH

19 Mines Act, 1952 OSH

20 Contract Labour (Regulation and Abolition Act) Act, OSH

1970

21 Plantation Labour Act, 1951 OSH

22 Beedi & Cigar Workers (Cond, of Employment) Act, OSH

1966
 23 Inter-State Migrant Workmen OSH
(Regulation of
Employment and Conditions of Service) Act, 1973
24 Building & Other Construction Workers (Regulation OSH
of Employment & Conditions of Service) Act, 1996

25 Child & Adolescent Labour (Prohibition & Reg.) Act, OSH

1986

26 Motor transport Workers Act,1961 OSH

27 Sales Promotion Employees Act, 1976 OSH

28 Cine and Cinema Theatre Workers (Regulation of OSH

Employment) Act, 1981

29 Dock Workers (Safety, Health and Welfare) Act, OSH

1986

NB: W= Labour Code on Wages (No. of Acts Incorporated: 4)

IR= Labour Code on Industrial Relations (No. of Acts Incorporated: 3)

SS= Labour Code on Social Security (No. of Acts Incorporated:9)

OSH= Labour Code on Occupational Safety & Health (No. of Acts

Incorporated: 13)
Once the Rules are finalized and notified, the Codes will be implemented.
2. A REALITY CHECK INVOLVING LABOUR LAWS IN INDIA
With Plethora of labour laws since Independence which are supposed to be simplified for
“Ease of doing Business” through four labour codes as described above. However, it is
disturbing to find all such labour laws mostly restricted to organized workers in India which
constitute hardly 10% of the total workforce which is about 500 million. Thus, the vast
majority of the of workforce- namely informal contract unorganised workers which constitute
above 90% of total workforce still remain out of purview of such labour laws.

In fact, the recent lockdown due to covid-19 brought out the grim reality of Theory visa- A-
vis practice of labour laws in India when millions of migrant workers engaged in
industries/small businesses where suddenly thrown out of employment- leading to
deprivation of life & livelihood.

The existing labour laws could not protect any of these contingencies. The reforms should be
done by keeping in focus that 40 million informal workers have to be incorporated within the
new code.

3. IMPORTANT TAKEAWAYS & SUMMARY OF CONCLUSIONS OF WEBINAR

ON MIGRANT WORKERS HELD ON 13TH JULY 2020
1.National Register Data of Migrant workers (State Wise)
2.Compulsarory Registration of their job trade etc. (both at Host & Home states)
3.One Nation One Ration Card for eligibility of food subsidy etc.
4.Portability of Benefits available under various welfare schemes both of central and state
governments

5.Voting Rights for Migrant workers

4. BRIEF RECORD NOTE OF IGFP DISCUSSION DATED 14-12-2020

ON OCCUPATIONAL SAFETY, HEALTH AND WORKING
CONDITIONS CODE, 2020 DRAFT RULES -PARTICIPANTS

Points proposed for inclusion in the draft Occupational Safety, Health and
Working Conditions (Central) Rules, 2020 (Enclosure –I)
Sl Relevant Details of the rule Suggestion of IGFP Clarification
No section in which need to be in support of
as given in the
the draft included in the final the proposed
rules draft notification suggestion
01 Section 6- Every employer of Every employer of Pre-medical
Annual factory, dock, factory, dock, mine examination
mine and building and building or other before
Health
or other construction work deployment
Examinatio
construction work shall arrange and
n of
employees shall arrange to to conduct free of subsequent
conduct free of cost, medical annual
under
examination
clause (c) cost, medical examination for shall reveal
of examination for every worker before the health
status of the
subsection every worker his first employment
employee,
(1) of annually i.e., and thereafter once which shall
Section within 120 days annually. Special reveal the
status of
from the examination shall be occupationa
6.
commencement of conducted for l disease if
any.
every calendar deployment in
year who has hazardous locations.
completed 45 The medical
years of age. The examination shall be
medical conducted by a
examination shall qualified medical
be conducted by a practitioner as per
qualified medical proforma in the
practitioner as per Form-V. The
proforma in the Medical Certificate
shall be submitted
Form-V. The
by the qualified
Medical
medical practitioner
Certificate shall to the concerned
be submitted by employer and
the qualified employee.
medical
practitioner to the
concerned
employer and

employee.
02 Section (2) Where at any (2) Where at any First-hand
8Notice of place in an place in an information
establishment about any
accidents which is factory, establishment which incident
and dock work, mines, is factory, dock shall be
building or other helpful for
dangerous work, mines,
construction work, the statutory
occurrences an accident occurs building or other agencies to
under which results in construction work, reveal the
bodily injury by exact cause
subsection reason of which an accident occurs of the
(1) Section the person injured which results in incident and
is prevented from to take
10 and bodily injury, the
working for a emergency
Section period of forty employer or actions to
eight hours or occupier or manager prevent its
11
more immediately spread and
of the establishment
following the quick
accident, the shall forthwith mitigation
employer or intimate about the measures.
occupier or
manager of the incident
establishment electronically to the
shall forthwith
send a notice in Inspector-cum-
Form-VI within
Facilitator and by
twelve hours after
reason of which the
person injured is
prevented from
working for a period
of forty eight hours
or more
immediately
following the
the completion of accident, the
forty eight hours, employer or
electronically to occupier or manager
the Inspectorcum- of the establishment
Facilitator. (3) shall forthwith send
Wherein an a notice in Form-VI
establishment within twelve hours
there is any after the completion
dangerous of forty eight hours,
occurrence as electronically to the
specified in the Inspector-cum-
schedule annexed Facilitator.
hereto, whether (3) Wherein an
causing any establishment there
is any dangerous
bodily injury or
occurrence as
disability or not, a specified in the
notice in Form-VI schedule annexed
hereto, whether
shall within causing any bodily
twelve hours be injury or disability
or not, the employer
sent to:
or occupier or
(a) The manager of the
establishment shall
Inspectorcum-
forthwith intimate
facilitator; (b) about the incident
District electronically to the

Magistrate or
Subdivisional
Officer; Provided
that if in the case
of an accident or
dangerous Inspector-
occurrence, death
cumFacilitator and
occurs to any
person injured by a notice in Form-
such accident or VI shall within
dangerous
twelve hours be
occurrence after
the notices and sent to: (a) The
reports referred to Inspectorcum-
in the foregoing
sub-rules have facilitator; (b)
been sent, the District
employer or
occupier or Magistrate or
manager of the Subdivisional
establishment Officer; Provided
shall forthwith that if in the case of
send a notice an accident or
thereof by dangerous
telephone and occurrence, death
electronically to occurs to any person
the authorities and injured by such
persons accident or
mentioned in sub- dangerous
rules (1) and (2) occurrence after the
and also have this notices and reports
information referred to in the
confirmed in foregoing sub-rules
have been sent, the
employer or
occupier or manager
of the establishment
shall forthwith send
 writing within 12 a notice thereof by
hours of the death. telephone and
electronically to the
authorities and
persons mentioned
in sub-rules (1) and
(2) and also have
this information
confirmed in writing
within 12 hours of
the death.

03 Section 9 - A notice in the A notice in the The list in

Notice of following format following format Third
disease
shall be sent shall be sent Schedule
under
subsection forthwith forthwith needs to be
(1) and (2) expanded in
electronically, to electronically, to the
of Section
12 the Inspector-Cum Inspector-Cum line with

Facilitator or Chief Internationa

Facilitator or
Chief Inspector-cum- l Labour
Inspectorcum- Organizatio
facilitator, by the facilitator, by the
employer or employer or n (ILO)
occupier or occupier or manager which has
manager of an of an establishment
identified
establishment in in which there
which there occurs any disease 106+
occurs any disease as notified under the
Occupationa
as notified under amended Third
l diseases.
the Third Schedule of the

Schedule of the Code.

Code.
(2) If any (2) If any qualified Onus on
qualified medical medical practitioner Physician to
inform
practitioner attends on a person
DISH is not
attends on a who is or has been practicable
person who is or employed in an since the
Physician is
has been establishment and employed
employed in an who is or is believed by the
factory and
establishment and by the qualified
he/she will
who is or is medical practitioner have job
believed by the to be suffering from security
issues.
qualified medical any disease
practitioner to be specified in the
suffering from any Third Schedule, the
disease specified employer or
in the Third occupier or manager
Schedule, the of the establishment
qualified medical shall without delay
practitioner shall send a report in
without delay writing to the office
send a report in of the Chief
writing to the Inspector-cum-
office of the Chief facilitator stating-
Inspector-cum- (a) the name and
facilitator stating- full postal address
(a) the name and of the patient,
full postal address
(b) the disease from
 of the patient, which he believes
(b) the disease the patient to be
from which he suffering, and (c)
believes the the name and
patient to be address of the
suffering, and (c) establishment in
the name and which the patient is
address of the or was last
establishment in employed.
which the patient
is or was last
employed.

04 Section 12 (1) the members (1) the members of It shall

-
of the National the National Board include
National
Board as specified as specified in President /
OSH
in Section Section 16(2)(g), (j), Representati
Advisory
Board 16(2)(g), (j), (k), (k), (l), (m) and (n) ve of Indian

(l), (m) and (n) shall be nominated Association

shall be and approved by the of

nominated and Central Occupationa

Government. l Health.
approved by the

Central
Government.

05 Section 18 The employer The employer shall It will be

Collection shall submit the submit forthwith the easier to
of statistics details of details of ensure
and portal occupational occupational safety compliance
 for safety and health and health statistics in case time
interState statistics electronically on limit is
migrant electronically on web portal fixed.
workers web portal designated for the
under designated for the purpose.
subsections purpose.
(1) and (2)
of Section
21

06 Section 19 - (1) Every (1) Every

Safety establishment establishment
employing 500 or employing 250 or
Committee
more workers more workers except
and Safety
except for the for the establishment
officers
establishment prescribed under
under
prescribed under sub-section (1) of
Section 22
sub-section (1) of Section 22 shall
Section 22 shall constitute a safety
constitute a safety committee
committee consisting of
consisting of representatives of
representatives of employers and
employers and workers. Provided
workers. establishments
involving hazardous
processes,
employing 100 or

more workers shall

constitute a safety
committee.
(2) The tenure of (2) The tenure of the
the safety safety committee
committee shall
be for three years. shall be for three
The safety years. The safety
committee shall
committee shall
meet at least once
in every quarter. meet at least once in
In case of mines, every month.
the safety
committee shall
meet at least once
in a month.

(3) The (3) The

representative of representative of the
the workers shall workers shall be
be chosen by the chosen by the
registered trade registered trade
Union. In case Union. However,
where there is no care shall be given
registered trade for equal
union the representation from
members may be each
chosen by the departments/section.
workers of the In case where there
 establishment. is no registered
Provided that trade union the
there shall be members may be
adequate chosen by the
representation of workers of the
the women establishment.
workers in the Provided that there
committee. shall be adequate
representation of the
women workers in
the committee.

07 Section 20 (1) The (1) The Employer or

- representatives of representatives of occupier or
Compositio the management manager of
n of Safety on Safety the management on the
Committee Committee, Safety Committee, establishme
except in mine, nt has the
except in mine, shall
shall consist of ultimate
(a) A senior consist of control over
official, who by all the
(The employer or
his position in the affairs of
organization can occupier or manager the
contribute of the establishment establishme
effectively to the nt and hence
functioning of the and a senior official, his presence
Committee, shall who by his position shall ensure
be the Chairman; prompt
in the organization
compliance.
can contribute
effectively to the
functioning of the

Committee;
08 Section 24 - Safety Officer for Safety Officer for The word
Safety Dock Works and factories, Dock “factories”
Officer Works and Building shall be
Building or Other
added.
Construction or Other
Works. - (1) A
Construction Works.
person shall not be
- (1) A person shall
eligible for
not be eligible for
appointment as a
appointment as a
safety officer
safety officer
relating to dock
relating to factories,
work or building
dock work or
or other
building or other
construction work
construction work
unless he possesses
unless he possesses
-
Provided for the
establishments
involving hazardous
processes, safety
officers shall be
deployed @ one
officer for 100
employees.

09 Section 25 - Duties of Safety Duties of Safety The word

Duties of Officers in case of Officers in case of “factories”
Safety Dock Works factories, Dock shall be
Officers added.
Works and Building
or Other

Construction Works
10 Section 28 (2) the period of (2) the period of Spread over
work of a worker work of a worker up to 12
shall be so hours will
arranged that shall be so arranged develop
inclusive of his that inclusive of his fatigue
intervals for rest, among the
intervals for rest,
shall not spread workers,
over for more than shall not spread over which in
twelve hours in a for more than ten turn will
day. lead to
and half hours in a accidents.
day.

11 Section 56 (4) the spread (4) the spread over Without

over for the for the workers, spread over
inclusive of time limit,
workers shall intervals for rest, the worker
exceed twelve shall not exceed may be
thirteen hours in any forced to
hours in any one
one day under the work for 24
day under the following works and hours on
following works circumstances in any date
factories, dock subject to
and circumstances works, mines and the
in factories, dock building or other limitation of
construction, overtime
works, mines and
namely; … limit in any
building or other Provided that no quarter.
construction, worker shall be
allowed to work
namely; … … overtime exceeding
Provided that no
worker shall be
allowed to work
overtime

exceeding one fifty hours in any

hundred quarter of a year.
twentyfive hours
in any quarter of a
year.
12 Section 65 The Medical Every establishment Number of
Appointme Officer shall be a involving hazardous medical
medical process and officers
nt of
Medical practitioner who employing 100 or needs to be

officer possesses any more employees, defined.

under recognized shall deploy medical Fresh

subsection medical officer.

MBBS
(1) of qualification as
Provided for without
Section defined in the diploma in
nonhazardous
National Medical AFIH shall
42 establishments, not
Commission Act, deployment of accurately
2019(30 OF 2019) diagnose
medical officer shall
and who is occupationa
enrolled on an be one @ 500 l diseases.
Indian Medical employees.
Register as
defined in clause The Medical Officer
(e) and on a State shall be a medical
Medical Register
as defined in practitioner who
clause (l) of possesses any
section 35, 36, 37
recognized medical
and 40 of the Act.
qualification as
defined in the
National Medical

Commission Act,
2019(30 OF 2019)
 and who is enrolled
on an Indian
Medical Register as
defined in clause (e)
and on a State
Medical Register as
defined in clause (l)
of section 35, 36, 37
and 40 of the Act
and having a
diploma in AFIH.

13 Section 67 (1) (c) adequate (1) (c) adequate

- transportation transportation
Employme facilities shall be facilities along with
nt of provided to security measures
women employee shall be provided to
Women in
to pick-up and women employee to
establishme
drop such pick-up and drop
nt under
employee at her such employee at
Section 43
residence; her residence;

14 Section 75 (3) The security (3) The security This will

Renewal of deposit and the deposit and the fee ensure
license fee chargeable for safety at
under renewal of the chargeable for work.
Section 48 license shall be renewal of the
the same as for the
license shall be the
grant of license
under rule 74. same as for the
grant of license
under rule

74.
 Provided that if Provided that if the
the application for application for
renewal is not renewal is not
received within received within the
the time specified time specified in
in sub-rule (2), an sub-rule (2), an
additional fee of additional fee of
twenty-five per twenty-five per cent, 5. POSTAL
cent, shall be shall be payable for VOTING
payable for such such renewal. RIGHT TO
renewal. Provided that if any MIGRANT
fatal/serious
accident results in
the preceding year,
an additional fee of
hundred per cent,
shall be charged for
such renewal.
License shall be
blacklisted and not
renewed in case of
at least one
fatality/serious
accident
consecutively for
three years.

WORKERS IN INDIA
In recent years due to Covid- 19 the plight of the migrant workers has been highlighted in
various forums bring out the extent of their distress.

Our organization, Indo German Focal Point (IGFP), has been actively taking various steps
and discussing with experts in this field to find out ways and means of preventing the
suffering of these workers. IGFP basically works on “activities on occupational safety and
health in India with the expertise of German partners, viz., DGUV having MOU with DG
FASLI, Ministry of Labour and Employment. Recently, we held a Webinar on migrant
workers chaired by Dr. Ajay Dua, former Secretary to Government of India. That Seminar
came out with various recommendations to improve the working conditions of the migrant
workers and one of those suggestions being that migrants’ workers should be given voting
right to be exercised away from home.

Migrant workers in our country are of sizable magnitude. The member was 335 million
persons in 2001 which is now over 400 million or so, at present. Interstate migration takes
place mostly from the States of Utter Pradesh, Odisha, Rajasthan, Uttarakhand, West Bengal,
Jharkhand and North Eastern States. The major destinations are Delhi, Maharashtra, Tamil
Nadu, Gujarat, Karnataka, Andhra Pradesh, Punjab and Kerala. Most of them move with their
families from the villages. The net result is, at the time of election either of the State
Assembly or of the Parliament, this sizable chunk of voters is left out as they do not enjoy the
privilege of postal voting. According to Election Commission’s present policy the following
categories are entitled to postal voting: -

• Personnel in Armed forces Including para-military forces

• People working in Govt and posted abroad
• People engaged in election duty

Thus, the category of migrant labour is now not eligible for postal voting but looking at the
size of the migrant population spread over various parts of the country, there seems to be a
need for making them eligible for postal voting to ensure their participation in democratic
processes of the nation. It will be fulfilling the dictum of inclusive democracy which can
hardly be overlooked now keeping the example available in other democracies. Briefly
speaking, if we look around the globe, we get the following procedures being in vogue which
add to our presentation.

In Australia, any voter living at a distance of 24km or more are eligible for postal ballot
system since 1866. In Austria, anyone can opt for postal voting. In Canada, this facility is
available to all the citizens since 2007.USA citizens have exercised this facility in the
recently held Presidential election. In Germany, about 29% of the eligible citizens use this
facility. In UK also this facility is available liberally for all eligible citizens. In the birthplace
of democracy.ie UK, Postal voting does not require a reason.

By giving migrant labourers the right to cast their vote through postal ballot, the Election
Commission of India would be taking a step towards a more inclusive democracy, ensuring
that every segment of the adult and eligible Indian population gets to cast their vote and is not
excluded for reasons of exigencies of their profession. More importantly, it appears, we
should like to be in line with more liberal procedures available in other distinguished
democracies of the World.