UNIT 1

 Workers’ Rights as Human Rights – Constitutional Edifice

The recognition of workers’ rights as human rights is rooted in the fundamental values of
dignity, equality, and freedom. Work is not merely a means of earning livelihood—it is a
central aspect of human identity and self-realization. The Indian Constitution, inspired by the
ideals of justice and socio-economic democracy, provides a robust framework to safeguard the
rights of workers. This constitutional edifice integrates workers’ rights within the broader
architecture of human rights, ensuring their protection through both enforceable Fundamental
Rights and guiding Directive Principles of State Policy.

1. Constitutional Foundations: Preamble and the Human Rights Approach

The Preamble to the Indian Constitution enshrines the ideals of justice (social, economic and
political), equality of status and opportunity, and dignity of the individual. These ideals
form the philosophical foundation for recognizing workers’ rights as inherent human rights.
The Preamble affirms that the goal of the Indian State is not only political democracy but also
social and economic justice, which directly links to ensuring decent working conditions, equal
pay, non-exploitation, and the right to livelihood.

2. Fundamental Rights and Workers’ Rights

Several Fundamental Rights directly or indirectly protect and promote the rights of workers.
These rights are enforceable by courts and serve as powerful tools against exploitation and
discrimination:
 Article 14 – Equality before law and equal protection of laws: Prevents discriminatory
treatment of workers on grounds such as caste, gender, religion, or place of birth.

 Article 15 and 16 – Prohibit discrimination and guarantee equality of opportunity in

public employment, ensuring fair access to jobs and services.

 Article 19(1)(c) – Guarantees the right to form associations and unions, which includes
trade unions. In All India Bank Employees' Association v. National Industrial Tribunal,
AIR 1962 SC 171, the Supreme Court acknowledged the right of workers to form
associations as essential to industrial democracy.

 Article 21 – Protection of life and personal liberty: Interpreted expansively to include

the right to livelihood, health, safe working conditions, and humane conditions of
work. In Olga Tellis v. Bombay Municipal Corporation, AIR 1986 SC 180, the right to
livelihood was held to be an integral part of the right to life.

3. Directive Principles of State Policy (DPSPs)

The Directive Principles, though non-justiciable, are fundamental in governance and provide
essential guidance for the development of labour laws and policies. They reflect international
human rights standards in many respects.
  Article 38 – Mandates the State to promote the welfare of the people by securing a
social order in which justice—social, economic, and political—shall inform all
institutions.

 Article 39 – Ensures adequate means of livelihood, equal pay for equal work, and
prevention of concentration of wealth.

 Article 41 – Right to work, to education, and to public assistance in cases of

unemployment, old age, sickness, and disablement.

 Article 42 – Provides for just and humane conditions of work and maternity relief. This
provision has been central to laws like the Maternity Benefit Act.

 Article 43 – Living wage, decent standard of life, and full enjoyment of leisure and
social and cultural opportunities.

Though not enforceable in courts, DPSPs have shaped several welfare legislations like the
Factories Act, Minimum Wages Act, Employees' State Insurance Act, and Maternity Benefit
Act.

4. Judicial Interpretation and Expansion of Workers’ Rights

The judiciary has played a pivotal role in transforming the constitutional text into a living
document that upholds workers' human rights:

 In Bandhua Mukti Morcha v. Union of India, AIR 1984 SC 802, the Supreme Court
held that the right to live with dignity includes the right against bonded labour and
inhuman working conditions.

 In People’s Union for Democratic Rights v. Union of India (Asiad Workers case), AIR
1982 SC 1473, it was held that non-payment of minimum wages amounts to forced
labour under Article 23, which prohibits human trafficking and forced labour.

 In M.C. Mehta v. State of Tamil Nadu (Child Labour Case), AIR 1997 SC 699, the
Court recognized the right of children to be protected from hazardous employment,
reinforcing the link between child labour laws and the right to life and dignity.

These judgments have interpreted the Constitution progressively to ensure that workers’ rights
are not viewed in isolation but as integral to the human rights framework.
  REFLECTIONS OF I.L.O. STANDARDS IN THE INDIAN LEGAL SYSTEM.

The International Labour Organization (ILO) lays down international labour standards
through conventions and recommendations aimed at promoting decent work, fair wages,
occupational safety, and the elimination of forced and child labour. As a founding member,
India has actively participated in the formulation and adoption of these standards, many of
which have been reflected in the Constitution, labour legislation, and judicial decisions.

1. Constitutional Reflection of ILO Standards

The Constitution of India embodies several ILO principles:

 Article 23: Prohibits forced labour, aligning with ILO Convention No. 29 on Forced
Labour.
 Article 24: Prohibits child labour in hazardous employment, echoing ILO Convention
No. 138 and 182.
 Article 39(e) & (f): Directs the State to ensure that workers are not abused or forced
into unsuitable conditions, consistent with ILO standards on working conditions.
 Article 43: Advocates for living wages and decent working conditions, which reflects
the ILO concept of “Decent Work.”

2. Legislative Provisions Reflecting ILO Standards

a) Minimum Wages Act, 1948

 Relevant ILO Convention: ILO Convention No. 131 – Minimum Wage Fixing
Convention, 1970
 Indian Provision:
o Section 3(1)(a): “The appropriate government shall fix the minimum rates of
wages payable to employees employed in an employment specified in the
Schedule.”
 Reflection: Ensures that no worker is paid below the minimum wage, reinforcing the
ILO’s goal of securing fair remuneration for all.

b) Equal Remuneration Act, 1976

 Relevant ILO Convention: ILO Convention No. 100 – Equal Remuneration

Convention, 1951
 Indian Provision:
o Section 4(1): “No employer shall pay to any worker employed by him in an
establishment or employment... remuneration... at rates less favourable than
those paid to men workers for the same work or work of a similar nature.”
 Reflection: Prohibits gender-based wage discrimination, mirroring ILO’s commitment
to pay equity.

c) Bonded Labour System (Abolition) Act, 1976

 Relevant ILO Convention: ILO Convention No. 29 – Forced Labour Convention,

1930
  Indian Provision:
o Section 4: “On the commencement of this Act, the bonded labour system shall
stand abolished and every bonded labourer shall be freed and discharged from
any obligation to render bonded labour.”
 Reflection: Abolishes all forms of forced and bonded labour, fulfilling obligations
under ILO’s foundational convention.

d) Child Labour (Prohibition and Regulation) Act, 1986 (as amended in 2016)

 Relevant ILO Conventions:

o Convention No. 138 – Minimum Age Convention, 1973
o Convention No. 182 – Worst Forms of Child Labour Convention, 1999
 Indian Provision:
o Section 3: “No child (below 14 years) shall be employed or permitted to work
in any occupation or process.”
 Reflection: Aligns with ILO's minimum age and worst forms of child labour standards
by prohibiting child labour in all occupations.

e) Factories Act, 1948

 Relevant ILO Convention: ILO Convention No. 155 – Occupational Safety and
Health Convention, 1981
 Indian Provision:
o Section 21(1): “In every factory, effective measures shall be taken to secure
and maintain in every workroom... safe means of access and safe working
conditions.”
 Reflection: Establishes employer responsibility to provide a safe working environment,
consistent with ILO occupational safety norms.

f) Industrial Disputes Act, 1947

 Relevant ILO Convention: ILO Convention No. 87 – Freedom of Association, and

Convention No. 98 – Right to Organize and Collective Bargaining (not ratified, but
principles reflected)
 Indian Provision:
o Section 2(k) and Chapter V: Provide definitions and procedures for resolving
industrial disputes and protecting collective bargaining rights.
 Reflection: Even without ratification, India recognizes trade unions and collective
bargaining mechanisms in line with ILO standards.

3. Relevant Case Laws

(a) People’s Union for Democratic Rights v. Union of India (1982) AIR 1982 SC 1473

 Issue: Exploitation of labourers employed in the construction of Asiad Games facilities.

 Judgment: The Supreme Court held that non-payment of minimum wages amounts
to forced labour, thus violating Article 23. The Court emphasized that such practices
violate both domestic law and India's international obligations under ILO Convention
No. 29.
  Significance: Recognized that international labour standards can inform constitutional
interpretation.

(b) Bandhua Mukti Morcha v. Union of India (1984) AIR 1984 SC 802

 Issue: Bonded labour practices in stone quarries in Haryana.

 Judgment: The Court held that bonded labour violates the right to life with dignity
under Article 21, and also contravenes ILO’s Forced Labour Convention.
 Significance: The Court reinforced the obligation of the State to eradicate bonded
labour in line with ILO standards and India's own constitutional guarantees.

Concept of Employment and Non-Employment

1. Concept of Employment

Employment refers to a legal and socio-economic relationship between an employer and an

employee, where the employee performs work or services under agreed conditions (such as
wages, hours, duties) in return for remuneration. It forms the basis of labour law, social
security, and industrial relations.

Key Characteristics of Employment:

 Contractual Relationship: Generally based on a contract (express or implied), where

one party (employee) agrees to perform work for another (employer).
 Control and Supervision: The employer has the right to direct and control how the
work is performed.
 Remuneration: Wages or salary is paid as compensation for services.
 Continuity: Employment can be permanent, temporary, casual, or contractual.

Types of Employment:

 Regular/Permanent Employment: Ongoing work with benefits like provident fund,

gratuity, etc.
 Fixed-Term Employment: Employment for a specific duration, often with similar
rights as regular employees.
 Casual Employment: Irregular and non-permanent work without long-term benefits.
 Self-employment: A person working for oneself rather than for an employer.
 Gig or Platform Work: Emerging form of employment with flexible, tech-enabled
work assignments (e.g., Uber drivers, Swiggy delivery partners).

Legal Basis in India:

 Labour Codes (2020) define employee/workman in various contexts.

 For example, under the Industrial Relations Code, 2020, Section 2(zl) defines
"worker" to include persons employed in any industry to do any manual, unskilled,
skilled, technical, operational or clerical work.

2. Concept of Non-Employment
Non-employment refers to the state or condition where a person is not in gainful employment.
It includes individuals who are capable of working and are either:

 Unemployed (seeking work but unable to find any), or

 Outside the labour force (not seeking work due to various reasons such as education,
disability, or domestic responsibilities).

Types of Non-Employment:

 Voluntary Non-employment: When individuals choose not to work (e.g., students,

homemakers).
 Involuntary Unemployment: When individuals are willing to work and actively
seeking employment but cannot find any. This is most relevant to labour economics
and law.

Legal terms and their definitions as per acts

1. Employment

While the term “employment” is not uniformly defined in all labour laws, it is implied through
definitions of “employee” or “workman”.

a) Employee

 Under the Code on Wages, 2019 – Section 2(k):

“Employee” means any person (other than an apprentice engaged under the
Apprentices Act, 1961) employed on wages by an establishment, either directly or
through a contractor, to do any skilled, semi-skilled, or unskilled, manual, operational,
supervisory, managerial, administrative, technical or clerical work, whether the terms
of employment be express or implied.

b) Worker

 Industrial Relations Code, 2020 – Section 2(zl):

“Worker” means any person (excluding those in managerial or administrative
capacity) employed in any industry to do any manual, skilled, technical, operational,
clerical or supervisory work for hire or reward.

2. Non-Employment

The term "non-employment" is used in relation to industrial disputes, particularly involving

termination or cessation of service. It is not defined per se, but is addressed through associated
terms like retrenchment, lay-off, dismissal, and termination.

3. Retrenchment

 Industrial Disputes Act, 1947 – Section 2(oo):

“Retrenchment” means the termination by the employer of the service of a workman
for any reason whatsoever, otherwise than as a punishment inflicted by way of
 disciplinary action, but does not include—
(a) voluntary retirement;
(b) retirement on reaching age of superannuation;
(bb) non-renewal of contract;
(c) termination on continued ill health.

Note: This definition continues under Section 2(zk) of the Industrial Relations Code, 2020.

4. Lay-off

 Industrial Disputes Act, 1947 – Section 2(kkk):

“Lay-off” means the failure, refusal or inability of an employer on account of shortage
of coal, power, raw materials or accumulation of stock or breakdown of machinery or
natural calamity or any other connected reason to give employment to a workman
whose name is borne on the muster rolls and who has not been retrenched.

Also defined in Industrial Relations Code, 2020 – Section 2(v).

5. Dismissal

There is no single statutory definition of dismissal, but it is interpreted judicially to mean

termination of employment by the employer as a punishment for misconduct or disciplinary
breach.

Dismissal is often discussed in contrast with:

 Discharge (termination without stigma), and

 Retrenchment (termination for redundancy).

Under Industrial Employment (Standing Orders) Act, 1946 (now merged under OSH
Code, 2020):

Dismissal for misconduct is a recognized form of punitive action after an inquiry.

6. Termination of Employment

 Model Standing Orders under Industrial Employment Act / Rules under Labour
Codes:
“Termination” means cessation of service due to resignation, dismissal, discharge,
retirement, expiry of contract, or retrenchment.

Though not always explicitly defined, termination is the broadest term, encompassing:

 Dismissal for misconduct

 Discharge for other reasons
 Resignation
 Retrenchment
 Superannuation, etc.
7. Workman

 Industrial Disputes Act, 1947 – Section 2(s):

“Workman” means any person (including an apprentice) employed in any industry to
do any manual, unskilled, skilled, technical, operational, clerical or supervisory work
for hire or reward... but does not include those employed in managerial or
administrative capacity.

This is one of the most litigated definitions in Indian labour law and is also reflected in the
Industrial Relations Code, 2020 – Section 2(zl).

Summary Table
Term Legal Source Definition Summary

Employment Code on Wages, 2019 – Sec. 2(k) Work done for wages in various capacities

Person doing manual/technical/clerical work,

Workman/Worker ID Act Sec. 2(s) / IRC Sec. 2(zl)
not managerial

Retrenchment ID Act Sec. 2(oo) / IRC Sec. 2(zk) Termination not due to disciplinary action

Inability to give employment due to

Lay-off ID Act Sec. 2(kkk) / IRC Sec. 2(v)
operational issues

Interpreted through case law and

Dismissal Termination due to misconduct
standing orders

Not expressly defined; used

Termination General end of employment
broadly in rules

State of not being employed; legal

Non-employment Not defined, inferred from above
implications in disputes

3. Constitutional and Policy Framework

 Article 41 of the Constitution (DPSP): "The State shall, within the limits of its economic
capacity and development, make effective provision for securing the right to work..."
 National Employment Policy and schemes like MGNREGA aim to combat non-
employment and promote inclusive labour participation.
UNIT 2
TERMS OF EMPLOYMENT AND CONDITIONS OF LABOUR

Terms of Employment and Conditions of Labour: Challenges and Issues (with Case
Laws)

1. Widespread Informality
Over 90% of India’s workforce is in the informal sector, with no written contracts or legal
safeguards. These workers are excluded from protections under labour laws, resulting in denial
of minimum wages, working hours, and welfare benefits. In Bandhua Mukti Morcha v. Union
of India (AIR 1984 SC 802), the Supreme Court held that workers employed without basic
rights like wages and safety work under “forced labour” prohibited by Article 23.

2. Contract and Casual Employment

Employers increasingly use contract and casual employment to evade obligations like
provident fund, gratuity, and social security. These workers are often engaged in core activities
but denied regular employee status. In Steel Authority of India Ltd. v. National Union
Waterfront Workers (2001) 7 SCC 1, the Court ruled that mere long-term engagement doesn’t
guarantee absorption unless illegal outsourcing is proven.

3. Absence of Written Contracts

Many employers avoid giving written contracts, especially in the unorganised sector. This
makes it difficult for workers to prove employment terms or claim legal remedies. While the
law encourages documentation, lack of compliance is widespread. In Dena Nath v. National
Fertilizers Ltd. (1992) 1 SCC 695, the Court emphasised that absence of formal records does
not negate the existence of an employment relationship.

4. Long Working Hours and Exploitation

Excessive working hours without overtime pay are common, especially in construction,
textiles, and domestic work. The OSH Code caps work at 8 hours per day, but violations persist.
In People’s Union for Democratic Rights v. Union of India (AIR 1982 SC 1473), the Court
ruled that paying below minimum wage or overworking labourers amounts to forced labour
under Article 23.

5. Non-compliance with Social Security

Despite laws like EPF, ESIC, and the Code on Social Security, many employers avoid
registration to deny benefits. Workers lack coverage for health, maternity, or old age. In Daily
Rated Casual Labour v. Union of India (1988) 1 SCC 122, the Court held that casual workers
should be extended benefits to uphold dignity under Article 21.

6. Unsafe Working Conditions

Poor safety standards prevail in small factories and hazardous sectors. Lack of protective gear,
ventilation, or emergency facilities endangers workers. In Occupational Health and Safety
Association v. Union of India (2014), the Madras High Court mandated enforcement of safety
norms in fireworks and chemical industries after multiple fatal accidents.

7. Wage-related Exploitation
Underpayment, wage delays, and illegal deductions continue despite the Minimum Wages Act
and the Code on Wages. Workers often accept exploitative wages due to lack of options. The
Supreme Court in Sanjit Roy v. State of Rajasthan (AIR 1983 SC 328) ruled that even workers
on famine relief must be paid minimum wages as a constitutional mandate under Article 21.

8. Gender Inequality
Women face lower wages, job insecurity, and lack of maternity or crèche facilities.
Discrimination continues despite the Equal Remuneration Act, 1976. In Air India v. Nargesh
Meerza (1981) 4 SCC 335, the Court struck down service rules discriminating against air
hostesses on grounds of sex and marital status, affirming equality in employment.

9. Lack of Health and Safety Standards

Cleanliness, sanitation, and safety remain neglected, especially for migrant and daily wage
workers. Despite legal provisions, inspections are rare and penalties are weak. In Consumer
Education and Research Centre v. Union of India (AIR 1995 SC 922), the Court held that safe
working conditions are part of the right to life under Article 21.

10. Inadequate Grievance Redressal Mechanisms

Workers often lack effective forums to report harassment, wage theft, or termination. Internal
Complaints Committees or trade unions are often absent. The Industrial Relations Code
prescribes conciliation and labour courts, but these mechanisms remain inaccessible to
informal workers. Judicial delay and lack of legal aid compound the issue.

LABOUR MANAGEMENT

Labour management refers to the strategic handling and coordination of human resources in an
organisation. It involves planning, organising, directing, and controlling the workforce to
ensure optimum productivity while safeguarding employee rights and welfare. Effective labour
management balances the goals of the employer (such as efficiency and profitability) with those
of the workers (such as fair wages, job security, and safe working conditions).

2. Objectives of Labour Management

The primary objectives of labour management include maintaining industrial peace, promoting
employee engagement, enhancing productivity, ensuring legal compliance with labour laws,
and fostering a culture of mutual respect between employers and employees. It also aims to
reduce labour disputes through negotiations and effective communication channels.

3. Key Components of Labour Management

 Recruitment and Selection: Hiring suitable workers based on skill, experience, and
role requirements.
 Wage and Salary Administration: Ensuring fair and equitable compensation based
on qualifications, market standards, and performance.
 Training and Development: Enhancing worker skills through workshops, upskilling
programs, and on-the-job training.
 Workplace Safety and Health: Complying with occupational health and safety laws
and creating hazard-free environments.
  Industrial Relations: Managing union relationships, collective bargaining, and dispute
resolution.
 Compliance with Labour Laws: Following relevant laws such as the Industrial
Disputes Act, Factories Act, and new Labour Codes.

4. Importance of Labour Management

Effective labour management improves efficiency, reduces absenteeism, boosts morale, and
enhances the overall reputation of the organisation. It is crucial in preventing strikes, lockouts,
and litigation. In the long run, it leads to stable employment relations and sustainable
organisational growth.

5. Legal Framework for Labour Management in India

Labour management in India is governed by a wide range of statutes, including:

 The Industrial Disputes Act, 1947 – for dispute resolution and grievance redressal.
 The Factories Act, 1948 – for health, safety, and welfare of workers.
 The Minimum Wages Act, 1948 – to ensure basic wage protection.
 The Code on Wages, 2019, Industrial Relations Code, 2020, and OSH Code, 2020
– comprehensive reforms under the New Labour Codes to simplify and consolidate
existing laws.

6. Challenges in Labour Management

 Informal Sector Dominance: Over 90% of the Indian workforce is in the informal
sector with limited regulation and legal protections.
 Labour Law Complexity: Although recent codes aim to simplify them, Indian labour
laws remain complex and fragmented in practice.
 Poor Employer Compliance: Many employers evade responsibilities like paying
minimum wages, providing benefits, or ensuring safe work conditions.
 Lack of Union Representation: Especially in private and unorganised sectors, workers
lack bargaining power and access to formal grievance mechanisms.
 Migrant Labour Issues: The management of interstate migrant workers poses
challenges due to lack of social security, documentation, and language barriers.
 Technological Displacement: Automation and digitalisation are reducing traditional
labour demand, requiring new approaches to retraining and redeployment.
RELEVANCE IN 21ST CENTURY

The 21st century has witnessed a dramatic transformation in the nature of employment and
labour conditions, driven by globalisation, technological innovation, the rise of the gig
economy, and evolving legal frameworks. Traditional employer-employee relationships are
increasingly replaced by flexible, remote, or platform-based work models. While these shifts
offer new opportunities, they also challenge long-established labour protections, demanding a
re-examination of employment terms and workers’ rights in modern times.

2. Flexible and Atypical Employment Contracts

Employment today is no longer restricted to permanent, full-time jobs. The rise of part-time,
temporary, freelance, gig, and remote work has introduced flexibility for both employers and
employees. However, this also results in ambiguity regarding legal rights, job security, and
entitlements such as leave, gratuity, and social protection. For instance, gig workers on
platforms like Uber or Swiggy are often classified as independent contractors, excluding them
from traditional benefits.

Relevant Case Law: Uber BV v. Aslam (UKSC 2021) – The UK Supreme Court held that
Uber drivers are "workers," not independent contractors, entitling them to minimum wage and
paid leave.

3. Rise of Remote and Platform Work

Remote work, especially accelerated by the COVID-19 pandemic, has redefined workplace
boundaries. While it offers flexibility, it raises new challenges in monitoring working hours,
ensuring occupational health, and enforcing anti-discrimination laws. Platform work, driven
by apps and algorithms, blurs the line between employment and entrepreneurship.

Indian Context: The Code on Social Security, 2020, recognises “gig” and “platform workers”
for the first time in Indian law and allows for their inclusion in welfare schemes.

4. Informalisation and Precarious Employment

Despite technological progress, the informal sector remains dominant, especially in countries
like India. Workers continue to be hired without contracts, with poor working conditions and
little recourse to legal protection. Casualisation of labour has increased, even in organised
sectors, through third-party contracting and outsourcing.

Case Law: M.C. Mehta v. State of Tamil Nadu (1996) – The Court highlighted the vulnerability
of child labourers in informal industries and the need for stronger enforcement of labour
standards.

5. Evolving Wage and Working Hour Norms

Modern employment models often challenge traditional wage structures and work-hour
regulations. While laws like the Code on Wages, 2019, aim to ensure uniformity and fairness
in wage payment and minimum wages, enforcement in digital or informal workspaces remains
weak. Additionally, global work cycles due to outsourcing lead to irregular or extended work
hours.
Legal Provision: Code on Wages, 2019 – Introduces national minimum wage and universal
applicability across sectors.

6. Health, Safety, and Work-Life Balance

Increased stress, burnout, and mental health issues have emerged as major concerns in the 21st-
century workforce, especially with constant connectivity and digital surveillance. Laws like the
Occupational Safety, Health and Working Conditions Code, 2020, attempt to expand safety
norms, but implementation in remote and informal workspaces is still inadequate.

7. Data Privacy and Workplace Surveillance

With the rise of digital workplaces, surveillance tools, productivity trackers, and AI-driven
evaluation systems are becoming common. This raises serious questions about workers'
privacy, autonomy, and data protection. Clear regulatory standards for digital monitoring are
still evolving globally and are limited in the Indian legal context.

8. Diversity, Inclusion, and Gender Sensitivity

Modern employment terms increasingly emphasise diversity, equity, and inclusion. However,
gender pay gaps, harassment, lack of maternity/paternity benefits, and absence of crèche
facilities remain persistent issues, especially in informal sectors. The Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, provides a legal
mechanism, but its implementation in unorganised sectors is patchy.

Case Law: Vishaka v. State of Rajasthan (1997) – Laid down guidelines for prevention of
sexual harassment at the workplace.

9. Technological Disruption and Skills Mismatch

Automation, AI, and digital platforms are reshaping job profiles and eliminating low-skilled
jobs. This shift has led to a growing demand for upskilling and reskilling. However, many
workers, particularly in rural or informal areas, are left behind in this digital transition,
worsening employment inequality.

10. Labour Law Reforms and the Role of the State

Governments worldwide are under pressure to modernise labour laws to reflect changing
realities. In India, the consolidation of 29 labour laws into four Labour Codes represents a
major reform aimed at simplifying compliance and expanding coverage. Yet, concerns persist
over diluted worker protections, implementation capacity, and consultation with trade unions.
UNIT 3

SOCIAL SECURITY LABOUR LEGISLATIONS

National (Constitutional and Statutory) and International Perspectives

1. Constitutional Basis for Social Security in India

India’s Constitution provides the moral and legal foundation for labour welfare through the
Directive Principles of State Policy (Part IV), which though non-justiciable, are fundamental
in governance.

 Article 38: Obligates the State to promote welfare by securing a social order based on
justice—social, economic, and political—and to minimize inequalities.
 Article 39(e) & (f): Directs that the health and strength of workers and children are not
abused and that citizens are not forced by economic necessity to enter vocations
unsuited to their age or strength.
 Article 41: Envisages the right to work, education, and public assistance in cases of
unemployment, old age, sickness, and disablement.
 Article 42: Provides for just and humane conditions of work and maternity relief.
 Article 43: Encourages the State to secure living wages and decent conditions for
workers.

These articles have led to the enactment of various social security legislations and serve as
guiding principles for courts when interpreting labour laws.

2. Statutory Framework of Social Security in India

India’s labour laws provide a structured framework for workers’ welfare. Key legislations
include:

 Employees’ State Insurance Act, 1948: Ensures health-related benefits such as

medical care, sickness benefit, maternity benefit, and disablement compensation.
 Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: Provides for
retirement savings and pension to employees in the organised sector.
 Maternity Benefit Act, 1961: Grants paid leave (now 26 weeks) to women employees
during maternity.
 Workmen’s Compensation Act, 1923: (now part of the Social Security Code)
Requires employers to compensate workers for injuries sustained during employment.
 Unorganised Workers’ Social Security Act, 2008: Aims to extend social security
benefits to unorganised sector workers through welfare schemes like health insurance
and old age pension.
Most of these have now been consolidated under the Code on Social Security, 2020, which
aims for universal coverage, including gig and platform workers.

3. International Perspective on Social Security

International law views social security as a basic human right. India, being a signatory to
various international instruments, aligns its domestic laws accordingly.

 Universal Declaration of Human Rights (UDHR), 1948

o Article 22: Affirms everyone’s right to social security and realization of
economic, social, and cultural rights.
o Article 25: Recognizes the right to a standard of living adequate for health and
well-being, including security in unemployment, sickness, disability,
widowhood, and old age.
 International Covenant on Economic, Social and Cultural Rights (ICESCR), 1966
o Article 9: Mandates the right to social security.
o Article 11: Ensures the right to an adequate standard of living.

These international norms influence India’s labour jurisprudence and policy-making,

particularly in expanding welfare to informal and marginalised workers.

ILO Norms, Measures and Standards – Its Relevance in the Indian Legal System

1. Introduction to ILO and Its Mandate

The International Labour Organization (ILO), established in 1919 as part of the Treaty of
Versailles and later becoming a specialized UN agency, is responsible for promoting social
justice and internationally recognized human and labour rights. Its unique tripartite
structure includes representation from governments, employers, and workers. The ILO sets
international labour standards through Conventions (binding) and Recommendations (non-
binding).

India has been a founding member of the ILO and has actively participated in its policy-
making and standard-setting roles. The ILO’s principles strongly influence India’s labour
policies and legal framework, especially in the context of social justice, equality, and fair
working conditions.

2. Core Labour Standards of the ILO

The ILO has identified 8 Core Conventions, regarded as fundamental to the rights of human
beings at work. These cover:

 Freedom of association and collective bargaining

 o Convention No. 87 (Freedom of Association)
o Convention No. 98 (Right to Organise and Collective Bargaining)
 Elimination of forced or compulsory labour
o Convention No. 29 (Forced Labour)
o Convention No. 105 (Abolition of Forced Labour)
 Abolition of child labour
o Convention No. 138 (Minimum Age)
o Convention No. 182 (Worst Forms of Child Labour)
 Elimination of discrimination in respect of employment
o Convention No. 100 (Equal Remuneration)
o Convention No. 111 (Discrimination in Employment)

India has ratified 6 out of these 8 Core Conventions, excluding Convention Nos. 87 and 98,
citing concerns related to national security and public order in the context of trade unions for
government employees.

3. Incorporation of ILO Norms in Indian Legislation

Indian labour laws substantially reflect ILO standards, even when conventions are not formally
ratified. Examples include:

 Equal Remuneration Act, 1976, and Code on Wages, 2019 reflect Convention No.
100 (Equal Remuneration) by mandating equal pay for equal work, regardless of
gender.
 Child Labour (Prohibition and Regulation) Act, 1986, amended in 2016,
incorporates provisions from Convention No. 138 and Convention No. 182.
 Bonded Labour System (Abolition) Act, 1976 aligns with Convention No. 29 and
No. 105.
 The Code on Social Security, 2020 and Code on Wages, 2019 have embedded
principles related to decent work, protection against discrimination, and living wages,
in line with the ILO’s Decent Work Agenda.

4. Relevance of ILO Conventions in Indian Constitutional Framework

Several ILO principles resonate with the Indian Constitution:

 Article 14 (Right to Equality) and Article 16 (Equality of Opportunity in

Employment) mirror the objectives of Convention No. 111 on non-discrimination.
 Article 23 (Prohibition of Forced Labour) aligns with Convention Nos. 29 and 105.
 Directive Principles like Article 39, 41, 42, and 43 emphasize worker welfare, living
wages, maternity relief, and humane conditions—consistent with the ILO’s vision.

Even in absence of ratification, Indian courts have often relied on ILO principles to interpret
labour rights as fundamental rights under Part III of the Constitution.
5. Judicial Recognition of ILO Norms

Indian judiciary has recognised ILO conventions as persuasive tools in interpreting domestic
laws and enforcing fundamental rights.

📌 Case 1: Vishaka v. State of Rajasthan (1997) The Supreme Court laid down guidelines
on workplace sexual harassment by referring to CEDAW and ILO recommendations, holding
that international conventions are binding unless contrary to domestic law.

📌 Case 2: People’s Union for Democratic Rights v. Union of India (1982) The court
condemned employment practices that violated minimum wage laws and cited ILO Forced
Labour Convention (No. 29) to hold such labour as forced, violating Article 23.

📌 Case 3: Apparel Export Promotion Council v. A.K. Chopra (1999) SC emphasized

gender equality and dignity at the workplace, reiterating India’s commitment to ILO
conventions on non-discrimination and decent work.

These cases illustrate how ILO standards are used to interpret and expand labour rights in India,
even in the absence of enabling legislation.

Employment Contracts and Labour Management Relations – Trends, Issues and Challenges: A
Critique

1. Meaning of Employment Contracts and Labour Management Relations

An employment contract is a legally binding agreement between employer and employee that
outlines terms of employment, such as duties, compensation, duration, benefits, and
termination conditions. In India, such contracts are governed by laws like the Indian Contract
Act, 1872, Industrial Disputes Act, 1947, and the new Industrial Relations Code, 2020.

Labour management relations refer to the dynamic between employers and workers,
particularly regarding negotiation of wages, working conditions, dispute resolution, and
representation through trade unions. It is a core component of industrial relations and impacts
productivity, workplace harmony, and legal compliance.

2. Recent Trends in Employment Contracts and Labour Management

India has witnessed a significant transformation in employment practices due to economic

liberalisation, globalisation, and digitalisation:

 Contractualisation of labour has increased. Core functions are being outsourced to

contractors, raising questions about the employer’s liability and workers’ rights.
  The gig economy has introduced new categories of workers, such as freelancers,
platform workers, and part-time employees who often operate without formal contracts
or protections.
 The rise of start-ups and IT sector employment has encouraged flexible contracts,
often favouring employers in terms of hire-and-fire policies.
 Remote and hybrid work arrangements post-COVID have changed traditional
labour management structures, with digital tracking, KPIs, and surveillance tools
becoming common.

These trends reflect a shift towards flexibility, individualisation, and informalisation in

employment relationships.

3. Legal Issues and Gaps in Employment Contracts

Despite some legislative reforms, multiple issues plague the enforcement and fairness of
employment contracts:

 Lack of written contracts: A large segment of India’s workforce, especially in the

informal sector, works without written contracts, denying them legal recourse and
entitlements.
 Ambiguity of terms: Many contracts lack clarity on job description, working hours, or
termination process, leading to disputes.
 Exploitation through disguised employment: Workers are shown as independent
contractors or consultants to avoid labour law obligations.
 Unequal bargaining power: Employees, especially low-skilled ones, often have no
say in contract terms, making these agreements a form of “standard form contracts”
with minimal negotiation.

📌 Relevant Case Law: Bangalore Water Supply v. A. Rajappa (1978) – SC held that all
employees working in an establishment that performs systematic activity with cooperation
between employer and employee qualify as “workmen,” expanding the scope of who may be
protected.

4. Challenges in Labour Management Relations

Modern labour management faces multiple challenges:

 Weak unionisation: Decline in trade union density, especially in private and

unorganised sectors, reduces collective bargaining strength.
 Industrial disputes: Growing number of strikes and lockouts, particularly in the
manufacturing sector, indicates unresolved tensions between labour and management.
 Technological disruptions: Automation and AI threaten to displace jobs, leading to
job insecurity and skill mismatches.
 Compliance burden: Employers face difficulties in navigating complex and
overlapping labour laws, although the new labour codes aim to simplify this.
📌 Relevant Case Law: T.K. Rangarajan v. Government of Tamil Nadu (2003) – Supreme
Court held that government employees do not have a fundamental right to strike, reflecting
judicial caution regarding industrial action.

5. Impact of Labour Codes on Employment Contracts and Management

The four Labour Codes (2020) – especially the Industrial Relations Code and Code on
Social Security – attempt to reform the employment contract regime and labour relations.

 Formalisation of employment: Codes mandate issuing of appointment letters, thereby

reducing informality.
 Recognition of gig and platform workers: These new categories are now defined
under the Code on Social Security, offering scope for welfare benefits.
 Easier dispute resolution: New grievance redressal forums and rules for negotiation
unions aim to facilitate better industrial harmony.
 Threshold increase: The increase in thresholds for layoff and retrenchment may reduce
legal protection for workers in smaller establishments.

Critics argue that the codes tilt in favour of employers, weaken collective bargaining, and
dilute existing safeguards such as prior government approval for retrenchment.

6. Judicial Approach to Labour Flexibility and Fairness

Indian courts have attempted to balance flexibility with fairness in employment relations.

📌 Case Law: Steel Authority of India Ltd. v. National Union Waterfront Workers (2001)
The Court held that contract labour can be abolished if the employment is found to be a sham
and camouflage for regular employment, reinforcing the principle that substance must prevail
over form.

📌 Case Law: Dena Nath v. National Fertilizers Ltd. (1992) The Supreme Court clarified
that merely working for a long time does not guarantee regularisation, unless proper
procedure under Contract Labour (Regulation and Abolition) Act is followed.

These judgments highlight the judiciary’s efforts to prevent exploitation while also respecting
employer flexibility.

7. Global Trends and Comparative Perspective

In global practice:

 European countries mandate written contracts and strong social protections even for
part-time workers.
  The US model favours employer flexibility, but at the cost of job security.
 India lies in between, attempting to combine both models under its recent labour law
reforms, though challenges in implementation remain.

The gig economy and remote work have made labour regulation a dynamic and evolving
field, requiring laws to keep pace with reality.

UNIT 4

TRANSNATIONAL TRADE AND LABOUR

a) Impact of Globalisation on Labour Market – Indian Context

Globalisation has significantly transformed the Indian labour market. Since economic
liberalisation in 1991, India has experienced rapid integration with global trade and investment
flows. This shift led to an increase in foreign direct investment (FDI), expansion of
multinational corporations (MNCs), and outsourcing of services, particularly in the IT,
BPO, and manufacturing sectors.

However, this integration has had mixed effects:

 Positive Impacts: Job creation in technology, finance, export-oriented units, and

service sectors. Modernisation of industrial infrastructure and demand for skilled labour
also improved productivity.
 Negative Impacts: Decline of job security, rise of informalisation, stagnation of wages
in labour-intensive sectors, and increase in contractual employment. Labour rights in
export-driven sectors, like garment and electronics, are often compromised to maintain
cost competitiveness.

📌 Relevant Case Example: In Re: International Labour Rights Fund v. Unocal (U.S.
2002) – Though not Indian, it highlighted how MNCs operating in developing countries may
violate labour rights during transnational operations. Similar patterns can be seen in India's
SEZs and industrial corridors.

b) ILO vis-à-vis WTO

The International Labour Organization (ILO) and the World Trade Organization (WTO)
represent different global governance structures: one promotes labour rights, the other
oversees trade liberalisation.

 ILO: Tripartite, promotes social justice, decent work, and protection of workers'
rights through conventions, technical cooperation, and soft-law instruments.
 WTO: Aims at reducing trade barriers, promoting free and fair trade, and settling
trade disputes under legally enforceable mechanisms.

There is tension between the two. WTO members, especially developing countries, argue that
introducing labour standards into trade negotiations could become non-tariff barriers to
exports. Developed countries, on the other hand, push for linking trade with labour rights to
prevent "race to the bottom" practices.

📌 Key Event: At the Singapore Ministerial Conference (1996), WTO members agreed that
the ILO, not WTO, is the competent body to set and deal with labour standards, effectively
excluding labour issues from WTO’s mandate.

c) Developing vis-à-vis Developed States

There exists a labour standards divide between developed and developing nations.

 Developed Countries: Typically have high labour standards, stronger unions, social
protection systems, and enforcement mechanisms. They advocate for "social clauses"
in trade agreements, requiring partners to adhere to minimum labour standards.
 Developing Countries: Argue that strict international labour standards might harm
their competitive advantage of cheap labour. They fear trade sanctions or restrictions
if they fail to comply, often citing resource and administrative constraints in
implementing ILO conventions.

This divide leads to global labour governance dilemmas, where economic growth goals and
labour protections clash. However, the ILO's Decent Work Agenda tries to bridge this gap
through capacity building, voluntary compliance, and social dialogue.

📌 Example: India and Bangladesh have faced international scrutiny over working conditions
in textile industries. After the Rana Plaza tragedy in Bangladesh (2013), global retailers
demanded better labour standards, and ILO launched the Accord on Fire and Building Safety
– a multilateral solution involving both developed and developing countries.

Resolution of Labour Management Disputes – Means and Mechanisms

The resolution of disputes between employers and workers is essential for industrial
harmony, productive work environments, and the protection of workers’ rights. Dispute
resolution in India has evolved through legislation, judicial interpretation, and international
influence, notably from the ILO. The Industrial Disputes Act, 1947 (now largely replaced by
the Industrial Relations Code, 2020) provides the foundational legal framework.

🔹 1. Preventive Mechanisms

Preventive mechanisms are aimed at avoiding industrial disputes before they arise.

a) Standing Orders Under the Industrial Employment (Standing Orders) Act, 1946
(merged into the Industrial Relations Code, 2020, Chapter IV), employers are required to
define the terms and conditions of employment clearly, covering working hours, leave,
misconduct, disciplinary actions, etc.
  Purpose: Prevent ambiguity and reduce friction by clearly outlining employee duties
and employer expectations.
 Provision: Section 29 of the Industrial Relations Code, 2020 makes it mandatory for
employers to prepare standing orders for establishments with 300+ workers.

b) Works Committees These are bipartite bodies comprising representatives of employers

and workers, formed under Section 3 of the Industrial Disputes Act, 1947.

 Function: Promote harmonious relations and deal with day-to-day grievances.

 Provision: Chapter II of the Industrial Relations Code (Section 3) retains the concept
of Works Committees in large establishments.

📌 Case Law: M/s. Indian Oxygen Ltd. v. Their Workmen (1965 AIR 1190) – The Supreme
Court stressed that standing orders become part of the contract of employment and must be
adhered to by both employer and employee.

🔹 2. Conciliation and Mediation

When disputes arise, the law provides for conciliation officers, boards of conciliation, and
voluntary mediation.

a) Conciliation Officers Appointed under Section 42 of the Industrial Relations Code, 2020,
their role is to bring disputing parties to the negotiating table and settle matters without
litigation.

b) Voluntary Arbitration Under Section 42(5), employers and workers can refer disputes to
a mutually agreed arbitrator. The award passed by an arbitrator is binding under the law.

📌 Case Law: Brahmaputra Valley Fertilizer Corp. v. Presiding Officer (2005 AIR SC
2978) – The Court held that conciliation is an essential prerequisite before adjudication, unless
the government chooses to refer the dispute directly.

🔹 3. Adjudication

If conciliation fails, disputes may be referred to adjudicatory bodies.

a) Labour Court (Section 44) Deals with individual disputes, such as discharge,
retrenchment, or illegal termination.

b) Industrial Tribunal (Section 45) Handles broader industrial disputes, including wage
fixation, bonus, or working conditions.

c) National Industrial Tribunal (Section 46) Constituted by the Central Government for
matters of national importance or those involving establishments in multiple states.
  Binding Nature: Awards passed by tribunals are enforceable under Section 58, and
they attain the status of civil court judgments.

📌 Case Law: Bangalore Water Supply & Sewerage Board v. A. Rajappa (AIR 1978 SC
548) – This landmark case defined “industry” broadly, thus extending the coverage of dispute
resolution mechanisms to a wide range of establishments, including hospitals and educational
institutions.

📌 Case Law: Workmen of Firestone Tyre and Rubber Co. v. Management (AIR 1973 SC
1227) – The Court ruled that for termination of service, principles of natural justice must be
followed and tribunal intervention is valid.

🔹 4. Grievance Redressal Committees (GRC)

Introduced under Section 4 of the Industrial Relations Code, 2020, every industrial
establishment with 20 or more workers must set up a Grievance Redressal Committee.

 Structure: Equal representation from workers and management.

 Function: Deal with individual grievances such as unfair treatment, misbehaviour, or
working conditions.
 Timeline: Must resolve complaints within 30 days.

This mechanism promotes internal resolution, reducing dependency on external adjudication.

🔹 5. Collective Bargaining

Though not statutorily codified in India, collective bargaining is encouraged through various
provisions, especially:

 Recognition of trade unions under the Trade Unions Act, 1926, and now Chapter
III of the Industrial Relations Code.
 Negotiating Union/Negotiating Council under Section 14, allowing one or more
unions to bargain on behalf of workers.

📌 ILO Convention No. 154 (Collective Bargaining): Although not ratified by India, the
principles of voluntary negotiation and social dialogue are reflected in Indian labour
jurisprudence.

📌 Case Law: Balmer Lawrie & Co. Ltd. v. Workmen (AIR 1964 SC 1295) – The Court
upheld the legitimacy of collective bargaining agreements, stating that negotiated settlements
have binding force and should be encouraged.
 UNIT 5

Law and Policies of Protective Discrimination in Employment Laws

Protective discrimination refers to positive legal interventions and policy measures that
aim to safeguard disadvantaged or vulnerable groups—such as women, children, the
differently-abled, and socially marginalized communities—within the employment
framework. Indian employment laws, supported by constitutional mandates and international
obligations (like ILO conventions), provide a comprehensive legal framework ensuring
social security, workplace safety, and anti-discrimination guarantees.

a) Social Security, Safety, and Welfare at Workplace

Social security and safety are essential components of protective labour legislation. Indian
law ensures this through both statutory provisions and welfare policies.

Relevant Laws:

 Employees’ State Insurance Act, 1948: Provides medical care, sickness benefit,
maternity benefit, and employment injury compensation.
 Employees’ Provident Funds and Miscellaneous Provisions Act, 1952: Offers
post-retirement financial security.
 Code on Social Security, 2020: Consolidates nine social security laws, widening
coverage to gig workers and unorganised sector.

Welfare Provisions:

 Factories Act, 1948 (now merged under the Occupational Safety, Health and
Working Conditions Code, 2020) mandates:
o Clean and safe work environment
o First-aid facilities
o Canteens, crèches, and restrooms for certain establishments

📌 Case Law:
Consumer Education and Research Centre v. Union of India (AIR 1995 SC 922) – The
Supreme Court held that the right to health and medical care is a fundamental right under
Article 21, emphasizing the duty of the state and employers to protect workers.

b) Women, Children, and Differently-Abled

Special provisions are made for vulnerable groups to eliminate discrimination and ensure
equal opportunity with due protection.

Women:
  Maternity Benefit Act, 1961 (also under Code on Social Security, 2020): Grants
paid maternity leave (26 weeks), nursing breaks, and protection against dismissal
during pregnancy.
 Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013: Mandates Internal Complaints Committees and a grievance
mechanism.
 Equal Remuneration Act, 1976 (now under Code on Wages, 2019): Prohibits
discrimination in wages based on gender.

📌 Case Law:
Vishaka v. State of Rajasthan (AIR 1997 SC 3011) – Laid down binding guidelines for the
prevention of sexual harassment at the workplace, later codified in 2013.

Children:

 Child Labour (Prohibition and Regulation) Act, 1986 (amended 2016): Prohibits
employment of children under 14 and regulates conditions for adolescents (14–18).
 Right to Education Act, 2009: Supports constitutional protection under Article 21A
for free and compulsory education.

📌 Case Law:
M.C. Mehta v. State of Tamil Nadu (AIR 1997 SC 699) – The Court directed the abolition
of child labour in hazardous industries and promoted rehabilitation schemes.

Differently-Abled:

 Rights of Persons with Disabilities Act, 2016: Requires at least 4% reservation in

government jobs and provisions for reasonable accommodation.
 Employers are mandated to avoid discriminatory practices and ensure workplace
accessibility.

📌 Case Law:
Jeeja Ghosh v. Union of India (2016 7 SCC 761) – The Supreme Court emphasized dignity
and equality for persons with disabilities, reinforcing the need for inclusive employment.

c) Compensation and Insurance

Workers injured during employment or who suffer due to occupational hazards are entitled to
monetary and social compensation.

Key Legislations:

 Employees’ Compensation Act, 1923: Mandates compensation for death or

disablement caused by workplace injuries.
 Code on Social Security, 2020: Incorporates provisions of the Compensation Act and
introduces insurance schemes for gig workers and informal sector employees.
 Employees' State Insurance Act, 1948: Offers injury compensation, dependants'
benefit, and disablement benefit.
📌 Case Law:
Pratap Narayan Singh Deo v. Shrinivas Sabata (AIR 1976 SC 222) – The Court held that
an employer is strictly liable to pay compensation for employment-related injuries, even
without proof of negligence.

📌 Case Law:
Mackinnon Mackenzie v. Ibrahim Mahmmed Issak (AIR 1969 SC 1906) – Compensation
must be reasonable and proportionate to the loss suffered by the worker or dependents.

d) Wrongful Dismissal and Employment Hazards

Compensation and insurance are integral mechanisms for protecting the interests of workers
who suffer from employment-related injuries, hazards, or wrongful termination. Indian
employment laws ensure that employers are held accountable and that employees or their
dependents receive just and timely remedies.

🔹 1. Compensation for Wrongful Dismissal

Wrongful dismissal occurs when a worker is terminated without proper cause, in violation of
the terms of employment, or in breach of principles of natural justice, especially in public
sector or industrial employment.

Relevant Provisions:

 Industrial Disputes Act, 1947 / Industrial Relations Code, 2020

o Section 78, IR Code: Requires notice and retrenchment compensation for
workers employed in continuous service.
o Section 79: Prohibits termination without prior approval from appropriate
authority in large industrial establishments.
o Section 82: Mandates reinstatement or compensation if dismissal is held
invalid by an industrial tribunal.
 Constitutional Safeguards:
o Article 14: Protection against arbitrary state action.
o Article 311: Applies to civil servants—dismissal must be backed by a formal
inquiry.

📌 Case Law:
Delhi Transport Corporation v. DTC Mazdoor Congress (1991 AIR SC 101)
The Supreme Court ruled that dismissal of permanent employees without inquiry violates the
principles of natural justice and is thus void. The Court emphasized the protection of workers
against arbitrary termination.

📌 Case Law:
Bharat Forge Co. Ltd. v. Uttam Manohar Nakate (2005 AIR SC 947)
The Court upheld the dismissal of a worker after repeated misconduct, affirming that due
process and proper inquiry are prerequisites for termination.
Relief Granted:

 Reinstatement with back wages

 Monetary compensation in lieu of reinstatement
 Damages for loss of future income (especially in breach of contract cases)

🔹 2. Compensation for Employment Hazards

Workers who suffer accidents, injuries, or occupational diseases in the course of

employment are entitled to compensation and insurance coverage under specific welfare
laws.

Key Legislations:

a) Employees’ Compensation Act, 1923

 Provides for compensation in case of death, permanent disability, or temporary

injury arising out of and in the course of employment.
 Compensation is calculated based on wages and age of the worker.
 Employer liability is strict, and negligence is not a prerequisite.

📌 Section 3 – Employer liable for personal injury by accident arising out of employment.
📌 Section 4 – Describes how compensation is to be calculated.

b) Employees' State Insurance Act, 1948 (ESI Act)

 Provides medical care, disablement benefit, dependents’ benefit, and funeral

expenses.
 Applicable to establishments employing 10 or more workers.
 Covers both occupational diseases and workplace injuries.

c) Code on Social Security, 2020

 Consolidates and replaces the Compensation Act and ESI Act.

 Introduces coverage for gig and platform workers.
 Provides for injury insurance, maternity benefits, and survivor pensions.

📌 Case Law:
Pratap Narayan Singh Deo v. Shrinivas Sabata (AIR 1976 SC 222)
Held that the employer’s liability under the Compensation Act is automatic if the injury
arose out of employment. The nature of employment and injury must be directly connected.

📌 Case Law:
Mackinnon Mackenzie & Co. v. Ibrahim Mahmmed Issak (1969 AIR 1906)
The Court emphasized liberal interpretation of compensation laws in favour of injured
employees and held that compensation must be realistic and humane.