Labour Law Reforms for Socio-Economic Welfare Of Women In Unorganized Sector

Abstract

The female labour force constitutes one third of the rural workers in India. Women workers
face serious problems and constraints related to work such as lack of continuity, insecurity,
wage discrimination, unhealthy job relationship, absence of medical and accident care etc.
The exploitation of female labourers in rural regions happens both horizontally and vertically.
It is time to address the issues and discuss the kind of policy reforms and institutional
changes required for the emancipation and empowerment of rural female labour force.
Empowerment should aim at changing the nature and direction of the power structures which
marginalise the women labourers.

Introduction

The term ‘unorganized labor’ stands for scattered and fragmented workforces working
individually sometimes loosely associated, in various occupations. Unorganized labor is not
formally cohesive in any recognized association and union with defined ideology, goals, and
areas of specialization. In India, women constitute nearly half of the total population and they
play a vital role in the domestic sphere, in the rural field and also in an urban economy. Yet,
their economic status is still low as it reflects from the census data, particularly of those who
are engaged in the informal sector of the urban economy. In many- a –case, they are at a
disadvantage as their work is in people’s private homes, outside the arena of labor inspectors.

Unorganized sector always plays a vital role in terms of providing employment opportunities
to a large segment of the workforce in India. Near about 90% of the total employment in the
Indian economy during the period 2018-2019 was accounted for by the unorganized/informal
sector. A large number of women from rural areas migrate to cities and towns all over India
to work in Unorganized Sector. Most of these women and girls are illiterate and unskilled.
They work in inhumane conditions in cities as their living standard is extremely poor. It is a
recognized fact that there is still no society in the world in which Women in Unorganized
Sector enjoy the same opportunities as men.

Women work mainly for economic independence, for economic necessity, as some women
are qualified enough to work, for a sense of achievement and to provide service to the
society. Most Indian women by and large undertake productive work only under economic
compulsion. This is the reason for high female participation rates in economically under
privileged communities. Usually upper class women are limited to homes. Work participation
rate is found to be higher among rural women (27%) than the urban women (10%).
We will find that women usually go in for temporary and standby jobs because of the
prevalent hesitancy to employ women in regular jobs and providing them with good working
conditions. The main workers are those who work for the major part of the year. Female main
workers constitute 14.65% of the population and men- 50.54%. Female marginal workers
constitute 6.26% of the population, whereas males being only 0.98%. Most of the women are
found to be employed in agricultural activities and in the unorganised sector. The
employment of women is high in the unorganised sector such as part time helpers in
households, construction center, tanneries (setting, parting and drying), match and beedi
industries etc.

An estimate by the World Bank shows that 90% of the women working in the informal sector
are not included in the official statistics and their work is undocumented and considered as
disguised wage work, unskilled, low paying and do not provide benefits to the workers.
Statistics show that vast majority of Indians work in Agriculture where 55% of the population
is female agricultural workers and 30% of the men are labourers and not cultivators.

Problems faced by the female workers

As being the weaker section of the society, women face many challenges. They are as
follows.

 Lack of education: Illiteracy is the biggest problem because they do not get time to
educate themselves. In childhood, they have to start working early which do not allow
them to go to school.
 Insufficient skill & knowledge: Majority of female do not have proper training and
skills aligned to their task. This results in excessive stress and inefficient working.
 The exploitation of female labor: the Female worker is more vulnerable to
exploitation by the employer. They can be easily threatened with their job for indecent
 favors. They are also subjected to severe forms of sexual harassment in the
workplace.
 Insecure job: Absence of strong legislation controlling the unorganized sector makes
the job highly insecure in this sector.
 The non-sympathetic attitude of employer: Temporary nature of employment in this
sector does not allow the bond between the employee and employer to establish and
become strong.
 Extreme work pressure: Female are overworked; they work twice as many hours as
worked by their male counterpart. In the agriculture sector, the condition is the worst.
When measured in terms of the number of tasks performed and the total time spent, it
is greater than men as per one study in the Himalayas which found that on a one-
hectare farm, a pair of bullocks’ works 1064 hours, a man 1212 hours and a woman
3485 hours in a year.
 Irregular wages payment: There is a lack of controlled processes in the unorganized
sector which results in an untimely payment of wages to the workers. When it comes
to payment to female, it is even worst.
 Wage discrimination: Female do not get similar payment to the male for the same
work.
 No Knowledge About the Trade Union or Labour Union:-Not many but most are not
aware of the existence of Trade Union and their rules. The primary purpose of the
establishment of the Trade Union is to settle the dispute that may arise between the
employer and employee. Trade Union means a Trade Union which is for the time
registered under the Trade Unions Act,1926. Trade Union which can be analysed into
the following ingredients.

Trade Union means any combination whether temporary or permanent made to regulate the
relations between workmen and employer, workmen and workmen, employer and employees.

While imposing restrictive conditions on the conduct of any trade or business. But this Act
shall not affect.

1. Any agreement between partners as to their business,

2. Any agreement between an employer and those employed by him as to such
employment,
3. Any agreement in consideration of the sale of the goodwill of a business or
instruction in any profession, trade or handicraft.

 High Level of insecurity is common-Social security means which provide

amenities and assurance to the workers. For instance, the employment of the
agricultural sector is irregular and unassured.  This is due to the availability of
work to them only for about three months and remaining nine months, they are
mostly unemployed and suffer from starvation.
 Seasonal Employment-The workers are employed as a seasonal employer. They
are employed only for a particular season and remain unemployed during the
remaining year. Employment is only for 3-4 months. In India Mahatma Gandhi
National Rural Workers Employment Guarantee Act,2005 aims to provide
employment security by guaranteeing at least 100 days of work in the most
backward districts of the country who can perform manually.
 Women and children are unprotected and get meagre wages: Article 39(d)  of
Constitution of India talks about Equal pay for equal work means that all the
person should get equal wages irrespective of their age, sex if they work for the
same hours. The children are forced to work at hotels, dhaba for low wages.
 Children and women are paid low wages as compared to male despite working for
the same hours. Children and female workers work as household labour at the
house of the people living in the urban area.  Such child labourers are subject
to long working hours and involved in the hazardous sectors such as carpet
weaving, cloth printing, explosives and fireworks, cigarette making, printing and
soldering process in electronic industries.
 Harassment issues at the workplace for women- Sexual Harassment is a big
issue that occurs at the workplace. A safe workplace is women’s legal right, but it
has been neglected. They still experience a wide range of physical and
psychological ailments due to eve-teasing and sexual harassment. In spite of the
Act that was enacted in the year 2013 still, the woman is being assaulted at their
workplace.
 Vulnerable Labour Groups:-The study group on the construction of the First
National Commission on Labour as well Second National Commission
(2002) observed that on quarries, brick-kilns as well as in big construction sites a
 system of bondage exists and get extended from one generation to the next through
labour.
 The bonded labour involves a debtor-creditor relationship in this system, the
creditor advances loan to the labourer and put him in bondage until the loan is
returned. The repayment of debt is so arranged that the servant cannot repay it
during his lifetime before ensuring lifelong service for the master. It is this feature
which differentiates bonded labour from unpaid forced labour.
 Insecurity due to natural disasters:-There are many natural disasters like floods,
droughts, earthquakes, famine etc. which also have a devastating impact on the
informal sectors. Natural disasters do not wipe out the productive base of the
informal sector, but can also affect the limited household assets of the owner.

Social security to unorganised workers

Social security is essential for the welfare and provides certainty to the workers. Social
security measures have manifolds benefits in promoting the workers, increasing the
production level of industry and develop the feeling of surety among the workers. It was also
helpful for eradicating poverty to some extent. Social security is a fundamental human right
(Though not one of the Constitutional Fundamental Right).

The Planning Commission constituted a working group on Social Security during the process

of the 12th Five Year Plan. In India out a total workforce of 45.9 crores, 94% is in the
unorganised sector, and the remaining 6% is in the organised sector.  The workers in the
organised sector are covered under social security legislation like employees Provident
Funds, Miscellaneous Provisions Act,1952 and Employees State Insurance Act,1948. The
working groups of Planning Commission constituted subgroups in its first meeting to discuss
the issues. Taking the benefits of subgroups the working groups have formulated its
recommendations. It is hoped that these recommendations would be useful for the
formulation of the twelfth five-year plan.

Unorganised Social Security Act,2008

In the era of liberalisation, globalisation, and privatisation the country has been a drastic
change in the business environment and nature of employment. These changes created many
issues in social security measures.

In this regard, the issue of social security to the growing sector of unorganised workers draws
more attention in emerging India. The government enacted much social security legislation
for the welfare of unorganised workers also formulated many schemes. Unorganised Workers
Social Security Act 2008 is one of the significant activities which is exclusively for the
protection of unorganised workers.

The mechanism under the Act provides a three-tier system for the implementation of the law.

National social security board

The Union Government constitutes the National Social Security Board with the union
minister for Labour and Employment as Chairperson, members nominated by The Union
Government consisting of seven each representing workers and employers from unorganized
sector, an eminent person from civil society, two members from the House Of the People, one
member from the Rajya Sabha and also five each members representing Ministries from the
Central And the State Governments. It is multiple parties composition who performs the
following functions, as follows.

1. They give a recommendation to the Union Government about suitable schemes for
the unorganised workers.
2. Advise the Union Government on matters arising out of the administration of the
act.
3. To monitor the social security schemes which are formulated for unorganised
workers.
4. Review the registration and issue identity cards to the unorganised workers.
5. Review the record of functions performed by the State Government at the state
level.
6. Review the expenditure from the funds under various schemes.
7. Undertake another work as assigned by the central Government.
State social security board

The State Government at the state level is empowered to constitute the Social Security Board
for the objective of proper implementation of the Act. Function and Composition of State
Social Security are the same as the National Social Security Board. The Social Security
Boards, which are entrusted with the responsibility of implementation of the act, are just
advisory in nature and are not empowered to perform many functions except monitoring and
review.

The Boards are not empowered to take decisions on their own. It is up to the Government to
accept the recommendations of the board or not. For effective Implementation of any Act and
consistent delivery of social security rights to the workers, a well-defined administrative
mechanism is very essential, which is missing in the Unorganized Social Security Act itself.

Workers facilitation centres

The Act also provides for the constitution of “Workers Facilitation Centers” by the State
Governments to disseminate information social security schemes, assist unorganized workers
for the registration and facilitate the enrollment of the registered unorganized workers for
social security schemes, but the Act is silent about at which level these workers facilitation
centres are to be created.

Social security schemes

Subsection 1 of Section 3 of the Act states that Union Government and State Government
shall formulate schemes from time to time covering health and maternity relief, old age
protection, life and disability and another benefit which may be notified by the central
government.

The social security schemes are provided in Schedule 1 of the Act, which is discussed
through ppt.

Role of Indian Judiciary for the protection of the rights of the unorganised worker
Sometimes due to failure of proper implementation of legislations judiciary come forward for
the protection of the rights of unorganised workers. Unorganised workers indeed remain
outside the purview of social security measures.

Indian Judiciary played a pivotal role in the development of modern jurisprudence and made
a significant contribution to the protection of interests of weaker section of society which
could be reflected from several decisions. Judiciary also tried to extend the benefits of labour
welfare measurements such as the Employees Compensation Act, Payment of Gratuity Act,
Employees State Insurance Act, Employees Provident Fund etc.

Judiciary has exclusive responsibility for the protection of interest of a weaker section of
society. Through various judgments, the Supreme Court of India emphasised on Right to
Livelihood as an inherent part of Right to Life.

In the case of Rural Litigation and Entitlement Kendra, Dehradun v. Uttar Pradesh, The
court stated that the right to life under Article 21 of the Constitution of India also includes the
right to livelihood.

In the case of People Union for Democratic Rights v. Union Of India, The court held that
beggar is also a kind of forced labour and it is a violation of the right to live with dignity,
respect and fundamental human rights. If any person is taking the service of any labour and
does not pay the minimum wages, then it is a violation of Article 23 of the Constitution of
India.

In  the case of Sanjit Roy v State Of Rajasthan, It was held that payment of wages lower than
the minimum wage to the person employed on famine relief work is violative of Article 23.
Whenever Any labour or service is taken by the state from any person, who is affected by
drought and scarcity condition the state cannot pay him less wage than the minimum wages
on the ground that it is given help to them to meet famine situation. The state cannot take
advantage of their helplessness.

In the case of Deena vs Union of India, The court held that the labour work that is taken from
the prisoners it without paying sufficient wages is considered forced labour, and it is an
infringement of Article 23 of The Constitution.
The prisoners have the right to claim the reasonable wages for their service rendered, and the
court must enforce the claim of labourers.

In the case of Bandhua Mukti Morcha v. Union Of India, The court held that whenever the
public interest litigation if initiated alleging the practice of bonded labour, the government
needs to accept it as the opportunities and to examine the issues or problem of labour and
make efforts to eradicate the practice of bonded labour and protect the labours. Article 23 of
the Constitution of India, which prohibits the practice of bonded labour protects and helps the
labours to earn for their livelihood.

In the case of Neeraja Chaudhary v. State of Madhya Pradesh, Justice Bhagwati held that it
is not sufficient for the Government to find about the existence of bonded labour, but it is also
necessary that the labourers should be rehabilitated because if they are not rehabilitated, then
they would be driven to despair, poverty and helplessness.

Article 21 states that bonded labour should be identified and efforts need to be made by the
Government to complete rehabilitation of the labourers. Directive Principles of State policy
was enacted as the guidelines for the government. Under DPSP, the State Government needs
to provide a basic human dignity to bonded labour and if it is not fulfilled, then it will result
in the infringement of Article 21 of the Constitution.

Judicial trends concerning economic welfare

In the case of  Daily Rated Casual Labour V. Union Of India, it was held that whenever the
employees are classified into the casual and regular employees.leads to the infringement of
Article 14 and Article 16 of the Constitution. It is also against the spirit of Article 7 of the
International Covenant on Economic, Social And Cultural Rights,1966. When the labourers
are not paid minimum wages as prescribed by the Minimum Wages Act, then it amounts to
exploitation of labour. The court also stated that the Government should be the model
employer and not take advantage of its dominant position.

In the case of  State V. Banwari, The High Court of Allahabad stated that “The person cannot
refuse to render the services merely on the ground that such labours belong to the Scheduled
Caste. This is done to protect the interest of weaker sections of society.
In  the case of Siddheshwar,  Hubli v Employees State Insurance Corporation,

The court has widened the definition of the employee under this act and also states that this
Act applies even to those persons whose services are lent to the principal employer.

In the landmark case M.C  Mehta v State of Tamil Nadu, The Supreme Court of India gave
order to the Government to do a survey and to stop the child labour in the matchstick and
cracker factories. The court also directed that the minimum wage paid by the subcontractors
under Minimum Wages Act should be directly paid and the provisions of section 21 of
the Contract Labour Act, 1970 should be observed.

In the case of Delhi Jal   Board v. National Campaign For Dignity and Rights of Sewerage
and Allied Workers, Neither the lawmakers nor those entrusted with the duty of implementing
laws enacted for the welfare of unorganized workers have put in place appropriate
mechanism for the protection of persons employed by or through contractors to whom service
meant to benefit the public at large are outsourced by state and its agencies for doing
workers, which are inherently hazardous and dangerous to live nor have they made provision
for payment of reasonable, compensation in the event of death. Therefore, Judiciary is active
to take all necessary steps for protection of the rights of unorganised
workers and implementing social security welfare schemes and also extend the advantages of
various labour welfare legislation.

Conclusion

Constitutional rights and duties enumerated in Part III and IV of the Constitution of India are
pivotal to the demand for protection of laws of women workers. There are a few legislations,
which is directly applicable for women workers, such as, The Maternity Benefit Act, The
Equal Remuneration Act, The Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA), etc. Article 14 guarantees equality before the law and equal protection of
laws; Article 15 prohibits discrimination on the ground of sex. The Equal Remuneration Act
guarantees women equal treatment relative to similarly situated men in the workplace. Under
this law, no discrimination is permissible in recruitment and service conditions except where
the employment of women is prohibited or restricted by the law.
Many studies find that women workers earn lower wages than men workers. The wage
differentials between female and male agricultural workers are based on a pre-assumed
gender character. Employers and contractors offer simply lower wages to women, regardless
of their performance of the job. In the given situation of social and economic neglect, women
have no better options. Studies indicate that on average, women’s pay is around 30 percent
lower than that of men across all sectors and fields of employment. Employers divide the
kind of work to be done between men and women and technically evade the provisions of the
Equal Remuneration Act, 1976. The Unorganized Sector Workers Act, 2008 defines
unorganized sector workers as those who are home-based, self-employed or wage workers in
an enterprise with less than 10 employees. This Act mandates the Central government to
formulate a health and maternity benefit scheme for workers covered by it. In reality, this
definition also excludes many women working in the unorganized sector, including
agricultural laborers, seasonal workers, domestic help or construction workers.

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