Introduction
Labour
laws or Industrial laws are those set of regulations or precedents that define
the rights and obligations of working people and their organizations. It
mediates various aspects of the relationship between employers and employees
ensuring that the workplaces are safe, industrial relations are maintained and
most importantly, the employment standards or wages are not exploitative.
Labour laws can be categorized into two categories. First, collective labour
laws that relate to the tripartite relationship between employer, employee, and
union. Second, individual labour laws that concern an individual employee’s
rights at work. The labour laws in India came along with British colonialism.
The competition that the British textile industry brought, pressurized the Indians
to make the Indian labour costlier because of which the Factories Act was
introduced in 1833. This was the first labour law in India. Following this various
other labour laws have been passed for the protection of the rights of labours.
Under the Constitution of India, labour is a
subject in the concurrent list. As a result, a number of labour laws have been
passed by both the Centre and the State governments. The Constitution of India
in Chapter-III (Article 16, 19, 23, and 24) and Chapter IV (Articles 39, 41,
42, 43A, and 54) protects the dignity and interests of labours. Besides these,
the labour laws in India have also been influenced by the various conventions
and standards of the United Nation. All these labour laws and policies include
the right to work of one’s choice, protection of wages, social security, right
to organize and form trade unions, redress of grievances, and participation in
management. With all these laws, the constitution provides detailed provisions
for the rights of labours and also lays down the Directive Principles of State
Policy that guides the activities of the State. Some of these Directive
Principles provide that: the tender age of children is not abused; humane
conditions of work and maternity relief are provided and that the citizens are not
forced by economic necessity to work in places unsuited to their strength or
age.
India,
over the years, has had a multitude of labour laws owing to the changing
economic and cultural circumstances. Considering this large amount of labour
laws, the Indian government in 2020 has subsumed over 29 Central and State laws
into four major Labour Codes to simplify, modernize and restructure the current
business structure in India. The four Labour Codes are the Code on Wages, 2019;
the Occupational Safety, Health and Working Conditions Code, 2020; the
Industrial Relations Code, 2020; and the Code on Social Security, 2020. The
introduction of these codes has brought some key changes like a uniform
definition of wages across all codes and recognition of the concept of
Fixed-term employment in statutes. The labour laws in India are indeed changing
effectively with the times to protect the labours from any kind of
exploitation.
Objectives
of Labour laws
- The labour legislations that are enacted aim to fulfill three crucial roles:
- It creates a legal system that facilitates a positive and productive relationship between the employer and employee, thereby, creating a productive economy.
- It provides a framework within which the workers and their employers can freely interact about work-related issues which helps in creating a harmonious industry with workplace democracy.
- It acts as a constant reminder and guarantees the rights of workers at workplaces that motivates and gives confidence to the labours.
Landmark
judgments of Labour Laws
1 Workmen of Firestone Tyre and Rubber Co. of India v. The Management and Ors.[1]
Facts:
The
respondent company manufactured tyres in Bombay with a distribution office in
Delhi. The workmen of the company had a dispute with its employer because of
the termination of its workmen based on a Domestic enquiry finding. While the
case was pending, The Industrial Tribunal Act was amended in 1971, and Section
11 A that conferred the powers of Appellate authority to the Industrial
Tribunal over domestic enquiry decision was inserted. The Industrial tribunal disregarded
this amended provision of Section 11 A and ruled the judgement in favor of the
employer. This decision was then appealed to the Supreme Court. The counsel for
the petitioners argued that Section 11A applies not only to cases after
15-12-1971 (the date the act was passed) but also on all pending cases till
then since the wordings of the act considerably point towards the same. The
respondents on the other hand argued that the amendment must not be allowed in
the present case since it was meant for all cases that would arise in the future.
Both the parties also interpreted Section 11A in varied forms.
Key
Issues:
The
key issues in this case were:
· The
proper interpretation of Section 11A of the Industrial Disputes Act
· If
the amended act had a retrospective application, that is, if it was applicable
on the cases that were pending before it was passed
Decision of the court:
The court after interpreting Section 11A, dismissed the appeal and
stated that Section 11A would apply only to cases that have come before the
court after the amendment was passed, that is after 15-12-1971.
Final Ratio:
The
court observed that the right to decide upon the degree of punishment or to
take a disciplinary action are managerial functions. However, if a matter is
referred to the tribunal, the tribunal has the authority to check and if needed
intervene in the employer’s actions. The only requirements are that it should
be done in good faith, there should be victimization of labour and there is a
violation of natural justice. Hence, if an enquiry has not been conducted or if
the enquiry is unfair, the court or the tribunal has the right to interfere in
the employer’s decisions according to Section 11A of the Industrial Tribunal
Act. The court also held that if misconduct is proved, the punishment imposed
by the employer cannot be interfered with by the tribunal or the court unless
it is extremely harsh. It also stated that the tribunal has the jurisdiction to
consider the evidence of an enquiry only if no enquiry has been committed or of
the employer is found to be defective in his justifications of action. Hence,
the court clarified the interpretation of Section 11A and clarified the aim
behind the section. It said that the objective of the section was not to
interfere in the relationship of an employer and employee but to ensure that an
employer is not biased or unfair in his actions. It said that “the section has
the effect of altering the law by abridging the rights of the employer as much
as it gives power to the Tribunal for the first time to differ both on a
finding of misconduct arrived at by an employer as well as the punishment
imposed by him.” Furthermore, it held that Section 11A applies only the
disputes that have occurred after the section has come into force, that is,
after 15-12-1971, since the proviso says, “in any proceeding under the
section.” It observed that a proceeding under a section can only occur after
the section has been enacted. The appeal was thus dismissed.
Personal Observation:
In my opinion, this judgement is important when it comes to labour laws
primarily because of the reasoning the judges give while interpreting Section
11A. The judges make the aim of Labour laws clear through their reasoning. They
direct the interpretation of the section majorly to the benefit of the
employee. Hence, the interpretation of Section 11A not only clarified the
intention behind that section, but behind Labour laws. This according to me is
the base of any judgement that will be adjudicated in future, making this case
important. Also, it set a strong precedent for the other courts with regards to
the scope of Section 11A and its interpretation.
[1] Workmen
of Firestone Tyre and Rubber Co. of India v. The Management and Ors., (1973)
SCR (3) 587.
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