CHAPTER-I

INTRODUCTION

Labour law (also known as labour law or employment law) mediates the relationship between
workers, employing entities, trade unions and the government. Collective labour law relates to
the tripartite relationship between employee, employer and union. Individual labour law
concerns employees' rights at work and through the contract for work. Employment
standards are social norms (in some cases also technical standards) for the minimum socially
acceptable conditions under which employees or contractors are allowed to work. Government
agencies (such as the former US Employment Standards Administration) enforce labour law
(legislative, regulatory, or judicial).
Labour law arose in parallel with the Industrial Revolution as the relationship between worker
and employer changed from small-scale production studios to large-scale factories. Workers
sought better conditions and the right to join (or avoid joining) a labour union, while employers
sought a more predictable, flexible and less costly workforce. The state of labour law at any
one time is therefore both the product of, and a component of struggles between various social
forces.
As England was the first country to industrialize, it was also the first to face the often appalling
consequences of industrial revolution in a less regulated economic framework. Over the course
of the late 18th and early to mid-19th century the foundation for modern labour law was slowly
laid, as some of the more egregious aspects of working conditions were steadily ameliorated
through legislation. This was largely achieved through the concerted pressure from social
reformers, notably Anthony Ashley-Cooper, 7th Earl of Shaftesbury, and others.

Working conditions
These early efforts were principally aimed at limiting child labour. From the mid-19th century,
attention was first paid to the plight of working conditions for the workforce in general. In
1850, systematic reporting of fatal accidents was made compulsory, and basic safeguards for
health, life and limb in the mines were put in place from 1855. Further regulations, relating to
ventilation, fencing of disused shafts, signalling standards, and proper gauges and valves for
steam-boilers and related machinery were also set down.
A series of further Acts, in 1860 and 1872 extended the legal provisions and strengthened safety
provisions. Steady development of the coal industry, increasing association among miners, and
increased scientific knowledge paved the way for the Coal Mines Act of 1872, which extended
the legislation to similar industries. The same Act included the first comprehensive code of
regulation to govern legal safeguards for health, life and limb. The presence of a more certified
and competent management and increased levels of inspection were also provided for.
By the end of the century, a comprehensive set of regulations was in place in England that
affected all industries. A similar system (with certain national differences) was implemented
in other industrializing countries in the latter part of the 19th century and the early 20th century.

Minimum wage
Many jurisdictions define the minimum amount that a worker can be paid per hour. Australia,
Belgium, Brazil, Canada, China, France, Greece, Hungary, India, Ireland, Japan, South Korea,
Luxembourg, the Netherlands, New Zealand, Paraguay, Portugal, Poland, Romania,
Spain,Taiwan, the United Kingdom, the United States, Vietnam, Germany (in 2015) and others
have laws of this kind. The minimum wage is set usually higher than the lowest wage as
determined by the forces of supply and demand in a free market and therefore acts as a price
floor. Each country sets its own minimum wage laws and regulations, and while a majority of
industrialized countries has a minimum wage, many developing countries do not.
Minimum wages are regulated and stipulated in some countries that lack explicit laws. In
Sweden minimum wages are negotiated between the labour market parties (unions and
employer organizations) through collective agreements that also cover non-union workers and
non-organized employers.
National minimum wage laws were first introduced in the United States in 1938, Brazil in
1940 India in 1948, France in 1950 and in the United Kingdom in 1998. In the European
Union, 18 out of 28 member states have national minimum wages as of 2011.

Living wage
The living wage is higher than the minimum wage and is designed that a full-time worker
would be able to support themselves and a small family at that wage.
Wages payment received by an employee in exchange for labor. It may be in goods or services
but is customarily in money. The term in a broad sense refers to what is received in any way
for labour, but wages usually refer to payments to workers who are paid by the hour, in contrast
to a salary, which implies a more fixed and permanent form of income (e.g., payment by the
month rather than by the hour). In economic theory, wages reckoned in money are called
nominal wages, as distinguished from real wages, i.e., the amount of goods and services that
the money will buy. Real wages depend on the price level, as well as on the nominal or money
wages.
In the United States, wages increased fivefold between 1860 and 1960. Adjusted for inflation
and expressed in 1982 dollars, the typical weekly wage of a U.S. worker increased from $262
in 1960 to $298 in 1970, but increased foreign competition and slower U.S. economic growth
forced weekly wages down to $274 in 1980 and $255 in 1991. In the 1990s, U.S. wages grew
very slowly, to $270 in 1998, despite record economic growth. In the United States and
elsewhere, a "gender gap" often exists, in which women are paid less than men for comparable
positions.
 CHAPTER-II
LEGISLATIVE PROVISION

With the growth of industries in India, problems relating to payment of wages to persons employed
in industry took an ugly turn. The industrial units were riot making payment of wages to their workers
at regular intervals and wages were not uniform. The industrial workers were forced to raise their
heads against their exploitation. In 1926, Government of India wrote to local governments to ascertain
the position with regard to the delays which occurred in the payment of wages to the persons
employed in Industry. Material so collected was placed before the Royal Commission on Labour which
was appointed in 1929. On the report of the Commission, Government of India re-examined the
subject and in February, 1933 the Payment of Wages Bill, 1933, was introduced in the Legislative
Assembly and circulated for the purpose of-eliciting opinions. A motion for the reference of the Bill to
a Select Committee was tabled but the motion could not be passed and the Bill lapsed. In 1935 the
Payment of Wages Bill, based upon the same principles as the earlier Bill of 1933 but thoroughly
revised was introduced in the Legislative Assembly on 15th February, 1935. The Bill was referred to
the Select Committee. The Select Committee presented its report on 2nd September, 1935.
Incorporating the recommendations of the Select Committee, the Payment of Wages Bill, 1935 was
again introduced in the Legislative Assembly.

In 1926 the Government of India addressed local governments with a view to ascertain the
position with regard to the delays which occurred in the payment of wages to persons employed
in industry, and the practice of imposing fines on them. The investigations revealed the
existence of abuses in both directions and the material collected was placed before the Royal
Commission on Labour which was appointed in 1929. The Commission collected further
evidence on the subject and the results of their examination with their recommendations will
be found on pages 216-221 and 236-241 of their Report. The Government of India re-examined
the subject in the light of the Commissions Report and in February, 1933 a Bill embodying
the conclusions then reached was introduced and 10 (4) The Punjab Payment of Wages
(Procedure) Rules, 1965 circulated for the purpose of eliciting opinion. A motion for the
reference of the Bill to a Select Committee was tabled during the Delhi session of 1933-34, but
was not reached, and the Bill lapsed. The present Bill is based upon the same principles as the
original but has been revised throughout in the light of the criticisms received when die original
Bill was circulated.

Relating to the Amendment of 2005 The Payment of Wages Act, 1936 was enacted with a view
to ensuring that wages payable to employed persons covered by the Act were disbursed by the
employers within the prescribed time limit and that no deductions other than those authorised
by law were made by them. The last amendment was made in 10 (4) The Punjab Payment of
Wages (Procedure) Rules, 1965 1982 and several provisions of the Act have become obsolete
over the years. Many proposals have been received by the Government for amending various
provisions which are creating practical difficulties in enforcement of this Act. In order to bring
this law in uniformity with other labour laws as also to make it more effective and practicable,
it is proposed to make, inter alia, the following changes:
(i) Enhancing the wage ceiling of Rs. 1600 per month to Rs. 6500 per month: The then
existing ceiling of Rs. 1000 per month was last revised to Rs, 1600 per month in 1982.
Since then a large number of employed persons have gone out of the purview of the
Act due to successive rise in wages levels resulting from rise in the cost of living. Thus,
with a view to covering more employed persons, it is proposed to enhance the wage
ceiling from Rs. 1600 per month to Rs. 6500 per month.
(ii) To substitute the expressions the Central Government or a State Government by
the expression appropriate Government: In Parliamentary enactments relating to
labour, other than the Payment of Wages Act, 1936, the enforcing authorities are either
the Central Government or the State Governments depending upon the nature of
industry. However, for implementing the Payment of Wages Act, 1936, matters are
referred to the State Governments and quite often action required to be taken by them
is delayed. In order that this law is in conformity with the other labour laws, it is
proposed to introduce the concept of appropriate Government.
(iii) Removing the ambiguities/weakness from the extant provisions of the Act and
prescribing more effective grievance redressal: Over the years, it has been noticed that
certain provisions of the Act have been differently interpreted thus leading fo
administrative difficulties in implementing the same. In order to remove ambiguities,
appropriate changes are being proposed in sections 3, 7, 8 and 15 of the Act which
respectively deal with responsibility for payment of wages, deductions from wages
fines and claims in certain cases.
(iv) Strengthening compensation and penal provisions of the Act: The penal provisions of
the Act have become almost insignificant due to passage of time as well as decrease in
money value since these provisions were last amended in 1982. It is, therefore,
proposed to make the penal provisions 10 (4) The Punjab Payment of Wages
(Procedure) Rules, 1965 more stringent by enhancing the quantum of penalties by
amending section 20 of the Act. 2. The Bill seeks to achieve the above objects.

Payment of undisbursed wages in case of death of employed person

(1) Subject to the other provisions of the Act all amounts payable to an employed person as
wages shall if such amounts could not or cannot be paid on account of his death before payment
or on account of his whereabouts not being known -

(a) Be paid to the person nominated by him in this behalf in accordance with the rules made
under this Act; or

(b) Where no such nomination has been made or where for any reasons such amounts cannot
be paid to the person so nominated be deposited with the prescribed authority who shall deal
with the amounts so deposited in such manner as may be prescribed.

(2) Where in accordance with the provisions of sub-section (1) all amounts payable to an
employed person as wages -

(a) Are paid by the employer to the person nominated by the employer person; or
(b) Are deposited by the employer with the prescribed authority, the employer shall be
discharged of his liability to pay those wages.
 CHAPTER-III
JUDICIAL ANALYSIS
K.T. Rolling Mills (Private), ... vs Meher M.R. And Ors. on 16 February, 1960
Equivalent citations: (1962) IILLJ 667 Bom

The question which falls to be determined in this appeal is, whether it is open to the industrial
tribunal under the Industrial Disputes Act, 1947, to award lay-off compensation to workmen
employed in an "industrial establishment" to which S. 25C of the Act does not apply.

The two appellants are respectively a private limited company carrying on the business of a
steel rolling mill and the managing director of that company. At all material times that
appellants employed on an average per working day less than fifty workmen. The workmen
employed by the appellants raised an industrial dispute claiming that the appellants "shall give
regular work of average of 25 days in a month throughout the year of pay wages and allowances
for the minimum of 25 days in a month with effect from 1956, "

and without prejudice to that demand they also made a claim that, "with effect from 1 April
1956 in case regular work cannot be provided and if the workers are laid off or had to suffer
involuntary unemployment, they shall be given full wages and allowances for the days they are
so laid off or involuntarily unemployed."

Upon this view I answer the question in the negative. The papers will now go back to the
Division Bench for deciding the appeal in accordance with the provisions of S. 98 of the Code
of Civil Procedure.

So far as the hearing before me is concerned, I make no order as to costs.

Kohinoor Saw Mill Co. vs State Of Madras By Secretary, ... on 30 July, 1956
Equivalent citations: (1957) 2 MLJ 87

The petitioner firm operates a timber saw mill at Baliapatam in Malabar District. By its letter,
dated 29th November, 1954 the petitioner firm requested the Government We request you to
kindly give your earnest and sympathetic consideration to our appeal and kindly treat our mill
as intermittently working and exempt us from the provisions of the Act (the Industrial Disputes
Act) regarding payment of compensation to workmen for lay-off and retrenchment.

The provisions exemption from which the petitioner sought were those in Chapter V-A of the
Industrial Disputes Act, 1947, which dealt both with lay-off and retrenchment in Industrial
Establishments. Apparently what the petitioner sought was really exemption from Section 25-
C toSection 25-E of the Industrial Disputes Act, because in its letter, dated 29th November,
1954, the petitioner firm drew the attention of the Government to Section 25-A(2).
 A writ of certiorari will issue to quash the orders of the Government, dated 16th April, 1955
and 23rd May, 1955; to that extent the rule nisi will be made absolute. The writ of mandamus
asked for by the petitioner cannot issue; it is not the duty of the Government to grant an
exemption either under the Industrial Disputes Act or independent of it. There will be no order
as to costs.
 CHAPTER-IV
CONCLUSSION
Many observers have argued that India's labour laws should be reformed. The laws have
constrained the growth of the formal manufacturing sector. According to a World Bank report
in 2008, heavy reform would be desirable. The executive summary stated,

India's labour 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 labour regulations can attract more
labour- 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.

Ex-Prime Minister Manmohan Singh had said that new labour laws are needed.
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 criticised the complexity, lack of modernisation and flexibility in Indian regulations.
 ANEXTURE-I
BIBLOGRAPHY

BOOKS
LABOUR LAW, S.N. MISHRA

WEBSITES
https://en.wikipedia.org/wiki/Indian_labour_law
http://www.ebcwebstore.com/
http://www.citehr.com/