Indian labour law
Indian labour law refers to laws regulating employment in India. There are over fifty national laws and many more state-level laws.
Traditionally Indian governments at federal and state level have sought to ensure a high degree of protection for workers. So for instance, a permanent worker can be terminated only for proven misconduct or for habitual absence.[1] In Uttam Nakate case, the Bombay High Court held that dismissing an employee for repeated sleeping on the factory floor was illegal - a decision which was overturned by the Supreme Court of India. Moreover, it took two decades to complete the legal process. In 2008, the World Bank has criticised the complexity, lack of modernisation and flexibility in Indian regulations.[2][3] India can boast of a quarter of the world's workforce by 2025, provided the country harnesses the potential of its young and productive population. However, the demographic dividend would become a disaster if India does not radically overhaul the labour ecosystem to enhance the productivity of the growing workforce. If reforms are not initiated, it is expected that much of the country's demographic dividend would occur in states with backward labour market ecosystems. It also ranked that states on the basis of improvement in their labour ecosystems in terms of state efforts in various areas like education and training, infrastructure, governance and the legal/regulatory structure.[4]
Collective labour law
- The Industrial Disputes Act (1947) requires companies employing more than 100 workers to seek government approval before they can fire employees or close down.[5] In practice, permissions for firing employees are rarely granted.[5]
- Trade Unions Act 1926
- Provisions of the Factories Act, 1948
Individual labour law
All India Organisation of Employers points out that there are more than 55 central labour laws and over 100 state labour laws.[1]
- The Contract Labour Act (1970) prohibits companies from hiring temporary workers.[5] Women are not permitted to work night shifts.[5]
- Minimum Wages Act 1948
- Weekly Holidays Act 1942
- Beedi and Cigar Workers Act 1966
- The Payment of Wages Act, 1936
- The Workmen’s Compensation Act, 1923
- The Factories Act, 1948
Criticism
Many observers have argued that India's labour laws should be reformed.[6][7][8][9][10][11][2][12][5][13] The laws have constrained the growth of the formal manufacturing sector.[2] According to a World Bank report in 2008, heavy reform would be desirable. The executive summary stated,
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India’s labor regulations - among the most restrictive and complex in the world - have constrained the growth of the formal manufacturing sector where these laws have their widest application. Better designed labor regulations can attract more labor- intensive investment and create jobs for India’s unemployed millions and those trapped in poor quality jobs. Given the country’s momentum of growth, the window of opportunity must not be lost for improving the job prospects for the 80 million new entrants who are expected to join the work force over the next decade.[14] |
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Prime Minister Manmohan Singh has said that new labour laws are needed.[15]
See also
Notes
- ^ a b Parul Sharma (February 2007). "Split Legal Regime in India‘s Labour Laws". http://www.southasiaexperts.se/pdf/Indian%20Labour%20Law%20PDF.pdf.
- ^ a b c "India Country Overview 2008". World Bank. 2008. http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:20195738~menuPK:295591~pagePK:141137~piPK:141127~theSitePK:295584,00.html.
- ^ "World Bank criticizes India's labor laws". http://www.siliconindia.com/shownews/World_Bank_criticizes_India%E2%80%99s_labor_laws_-nid-29498.html.
- ^ "India may boast of 25% of world's workforce by 2025: Survey". The Times Of India. 21 June 2010. http://economictimes.indiatimes.com/news/news-by-industry/jobs/India-may-boast-of-25-of-worlds-workforce-by-2025-Survey/articleshow/6075470.cms.
- ^ a b c d e Aditya Gupta. "How wrong has the Indian Left been about economic reforms?". http://www.ccsindia.org/interns2006/How%20Wrong%20is%20left%20about%20ecoonimic%20reforms%20in%20India%20-%20Aditya.pdf.
- ^ "IMF calls for urgent reform in Indian labour laws". http://news.indiainfo.com/2006/04/20/2004imf-labour-laws.html.
- ^ Kaushik Basu, Gary S. Fields, and Shub Debgupta. "Retrenchment, Labor Laws and Government Policy: An Analysis with Special Reference to India". World Bank. http://www.worldbank.org/html/prdph/downsize/docs/india.pdf.
- ^ "Foreign Labor Trends Report: India 2006". U.S. Department of Labor. http://www.state.gov/g/drl/rls/77593.htm#4.
- ^ R. C. Datta / Milly Sil. "Contemporary Issues on Labour Law Reform in India". http://atlmri.googlepages.com/RCD_MILI.pdf.
- ^ "Economic survey of India 2007: Policy Brief". Organisation for Economic Co-operation and Development. http://www.oecd.org/dataoecd/17/52/39452196.pdf.
- ^ Basu, Kaushik (27 June 2005). "Why India needs labour law reform". BBC. http://news.bbc.co.uk/2/hi/south_asia/4103554.stm.
- ^ "A special report on India: An elephant, not a tiger". The Economist. 11 December 2008. http://www.economist.com/specialreports/displayStory.cfm?story_id=12749735.
- ^ Gurcharan Das (July/August 2006). "The India Model". Foreign Affairs. http://www.foreignaffairs.org/20060701faessay85401-p0/gurcharan-das/the-india-model.html.
- ^ World Bank, India Country Overview 2008
- ^ "New labour laws needed, says Manmohan". The Hindu (Chennai, India). 10 December 2005. http://www.hindu.com/2005/12/10/stories/2005121011760100.htm.
References
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