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An overview of labour law in India, including the relationship between workers, trade unions, and the government. It discusses the objectives of labour law, such as safeguarding the rights of workers and promoting harmonious industrial relations. The document also covers collective bargaining, the master-servant relationship, and international labour standards set up by the International Labour Organization (ILO).
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~J. Jerry Bastin^1 & Krishnardhula Saruyu^2 ABSTRACT: Labour law is the field of law that connotes the relationship amongst a worker, trade union and government at large. It plays an important role in safe guarding the rights of labour, trade unions, wages of the employees, and furthermore constructing a link amid the government and workers. It is a defensive code for the parties of an industry or a concerned establishment, i.e., laborers, workers, and employees, to create awareness of their rights and also, to incorporate a standard law in regard with labour related practice. Labour law focuses on establishing a labour-relations framework which delivers harmonious industrial relations among the employees and organized workers. Keywords: Labour Law, Employers, Employees, Industrial Relations, Laissez Faire, Collective Bargaining, ILO INDUSTRIAL RELATIONS: “Industry” & “Relations” – Productive activity by an individual or group is engaged & relation between employer and workmen, relation b/w employees and management, also known as union-employer relation, Dunlop’s Definition- The complex interrelations among the managers. Workers and agencies of the government. Objectives: To safeguard the interest of labour and management (mutual understanding and good- will among ) To avoid industrial conflict or strike and develop harmonious relations (productivity of workers and the industrial progress of a country ) To raise productivity to a higher level To establish and promote the growth of an industrial democracy based on labor partnership (sharing of profits and of managerial decisions=benefit of the industry and of the country as well) (^1) III BA LLB (Hons.), School of Law, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India (^2) III BA LLB (Hons.), School of Law, Sathyabama Institute of Science and Technology, Chennai, Tamil Nadu, India
To eliminate or minimize the number of strikes, lockouts (by providing reasonable wages, improved living and working conditions, said fringe benefits.) To improve the economic conditions of workers (in the existing state of industrial managements and political government.) Labour Legislations: Objectives (JOWIELEABSH): Hindustan Antibiotics v. The Workmen To promote economic Justice To provide equal opportunities at employment To protect the weaker sections in the community Promote Industrial Peace Creation of conditions for economic growth Improvise labour standards To protect the workers against exploitation To form Association or Unions To ensure Collective bargaining as rights, State Interference, HR and Dignity Principles of Labour Legislation: Social justice: = Providing an opportunity to reach their full potential = Realise their fundamental freedoms, and = Pursue their goals equally, such as education, health care, etc. Social equality: = Equal opportunities for education and employment, Social security: = State shall provide basic amenities to those who can’t afford Social welfare: = The state shall provide relief to any citizen who might face a calamity or someone who has some illness or disability. Master Servant Relation: Servant works for Master with or without pay, acts under the direction and control of the master, no authority to act in his or her employer’s place.
o Protect the interests of both employers and employees. o Wage boards, labour courts, tribunals o Requirements of the Welfare State envisaged in the Constitution of India are the major reason for State intervention in employer-employee relations. Laissez Faire: “Political Ideology that rejects the practice of government intervention in an economy” Term originated in 18th^ CE during Industrial Relation Advocates government non-intervention Purpose- Promote a free and competitive market that demands the natural state of liberty that humans emerged from. “The optimal functioning of markets needed minimal government intervention” ~Adam Smith Benefits of Laissez Faire: Autonomy o Free from Govt’s rules and regulations o More viable for companies to take risks and invest in the economy o Greater incentive to try and maximize profits. Innovation o To provide the products with more market advantage, companies are compelled to be more creative and innovative. o Leads to technological advancement and economic growth. Absence of Taxes o Greater spending power o Discourages corruption Collective Bargaining: “An agreement between a single employer or an association of employers on the one hand and labour union on the other, which regulates the terms and conditions of employment” ~Luidwig Teller
The word 'collective' is used because representatives of both the employer and the employees meet and discuss in order to arrive at a settlement. The word 'bargaining' is used because during the process of negotiations, certain proposals and counter proposals are made from either side. Technique used for compromising the conflicting interests. Involves discussion and negotiation between the workers and the management on work, pay, and working conditions. The Collective bargaining refers to a process by which employers and representatives of employees attempt to arrive at agreements covering the working conditions of employees. Characteristics of Collective Bargaining (AMFOCD): Group Activity, Mutual, flexibility, ongoing and continuous activity, Democratic Process Objectives of Collective Bargaining: Promotes a democratic approach for solving work related problems. Avoids the need for a third party intervention. Better employer - employee relationship Unilateral action on the part of the management Trade unions are given their due recognition Helps to arrive at a mutually beneficial settlement Kinds of Collective Bargaining: Negotiation o Settling the differences Face to Face o No third party intervention Mediation and o When Negotiation fails, third party, Mediator, will assist in resolving the issue. o Not a Judge, only assist the parties to reach a Mutually beneficial agreement Arbitration (Voluntary or Compulsory) o In failure of Mediation, Arbitration process is approached. o Third Party, Arbitrator, will decide upon the matter in a judicial way by passing an Award, which is binding on both the parties.
o Investment in vocational training can result in a better trained workforce and higher employment levels. o Safety standards can reduce costly accidents o Unemployment schemes o Active labour market policies ……….makes economic liberalization and privatization sustainable and more acceptable to the public. A safety net in times of economic crisis o Social protection systems (health insurance) o Active labour market policies A strategy for reducing poverty o The extension of social protection, o The improvement of occupational safety and health, o The development of vocational training o Reducing poverty and bringing workers into the formal economy. How International Labour Standards are useful? Models and targets for labor law Sources of international law applied at the national level Guidelines for social policy Corporate social responsibility (CSR) – the promotion of inclusive, responsible and sustainable practices in the workplace Free trade agreement