SYMBIOSIS LAW SCHOOL, PUNE

SYMBIOSIS INTERNATIONAL UNIVERSITY

1st INTERNAL ASSIGNMENT

LABOUR LAW
REPORT ON GUEST LECTURE ON ILO

ANMOL XESS
18010122016
2nd Year LL. B
2018-2021

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INTRODUCTION
Prof. Shirish Kulkarni had organized a guest lecture on ILO – In Indian context for the
students of Labour Laws in SVC Auditorium on 10th August, 2019. The speaker of the
lecture was none other JUSTICE RAVINDRA VITHALRAO GHUGE, Hon’ble Judge,
Bombay High Court. Sir joined the Bar in 1990 and started practice in the Bombay High
Court and Labour Courts, representing unions and workers in about 2000 cases. Further he
has conducted cases for about 250 industries which include Wipro Ltd., Johnson & Johnson,
Hindustan Lever, Bajaj Hospital, Bar Council of India, etc. He has also acted as contributory
professor for the LL.M Course at Marathwada University and has delivered numerous
lectures on Industrial, Labour and Service Laws at various sessions. Sir has also served as the
President of the Bar Association of Industrial Lawyers, Aurangabad.
Sir was elevated as Judge of the Bombay High Court on 21st June, 2013.

In his lecture Justice Ghuge discussed in detail the history of Labour Laws in India and
instances which increased the importance of India in ILO. Sir also introduced to the students
many exclusive examples and challenges which India faced before it actually became part of
ILO. Sir also talked about various legislations in India with regards to Labour and Trade
Union from before independence till date and western influence on the formation of trade
unions and legislations in India. Sir shared his own experiences of his time as a lawyer in
Labour Courts.

INTRODUCTION TO ILO
The Constitution of India (“Constitution”) provides the jural basis for laws regulating
employment and labour in India (which are collectively also referred to as ‘industrial laws’ or
‘labour laws’). The fundamental rights enshrined in the Constitution provide inter alia for
equality before the law and for prohibition of discrimination on the basis of religion, caste,
sex, etc. Similarly, the ‘Directive Principles of State Policy’ laid down in Part IV of the
Constitution adjure the State to inter alia ensure that all citizens have an adequate means of
livelihood, right to education, and just and humane conditions of work, and to further ensure
participation of workers in the management of industries.
The Constitution hence places emphasis on the concept of social justice as one of the
fundamental objects of State policy, and these protective provisions edify the spirit of Indian
industrial laws.

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Labour welfare1, “trade union; industrial and labour disputes”2 and factories3 are items found
in the Concurrent List of the Constitution. This means that subject to certain conditions, both
the Parliament of India as well as the individual State legislatures has the power to enact laws
on these matters.
International Labour Organization (ILO) was formed, with the goal to improve the conditions
of Labour around the world in 1919. The primary objective is to set International Labour
standards that should be followed by the member nations. ILO sets out this goal in form of
Guidelines and Resolutions. Resolutions become binding on the nations ratifying it whereas
Guidelines help in formulating policies, deciding wages etc. Labour Laws as viewed by ILO
is a very broad and even covers social legislations relating to the labour class like maternity
benefits, fixing of minimum wages, reimbursement for accidents etc. 4 It is headquartered in
Geneva and started after the World War I .
The idea of ILO was very euro centric and therefore lot of European countries had problems
with India joining it. It is after years that India gained importance in the organization due to
its continuous efforts. That being said there is no denying that ILO had huge impact on Indian
labour laws.
It was also the time for expansion of small plants, factories and industries in the Indian
subcontinent and new possibilities were generated, resulting in continuous movement of
labour class for work from rural areas to factories and mills in urban areas. During this time
employers were hardly concerned about the need of the workers or their working conditions,
wages were very low and no benefits or concessions were allowed in case of accidents.
However the international movement influenced the workers to form unions to protect their
rights.
Labour legislations enacted post-independence of India have sought to tackle various
problems relating to working conditions, industrial safety, hygiene and welfare, wages, trade
unionism, social security, etc. Laws were also enacted to meet the special needs of specific
industries and commercial establishments, such as mines, plantations, factories, shops and
establishments, etc. With the declaration of a national emergency in 1975, anti-inflationary

1
Entry 24, List III, VII Schedule, Constitution.
2
Entry 22, List III, VII Schedule, Constitution.
3
Entry 36, List III, VII Schedule, Constitution.
4
Anurag Singh, Dr. Amit Kumar Singh, Impact of ILO on India, International Journal of Research in
Management & Business Studies (IJRMBS 2014), Vol. 1 Issue 1 Jan - March 201, (Last viewed – 21st
August, 2019, 5.45pm)

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laws like Payment of Bonus (Amendment) Act, 1975, the Equal Remuneration Ordinance,
1975, etc. were enacted which led to further amelioration of workers in the country.
In the year 1991, the Indian Government adopted a policy of economic liberalisation. The
resultant enhancement of competition in the fast-changing markets raised a new set of
challenges since Indian labour laws (including the social security laws) were traditionally
inclined to be protective of labour and not conducive to competition in the labour markets.
With greater mobility and flexibility in the labour markets becoming the need of the hour,
employers have consistently argued in the last decade or so that the excessively pro-worker
nature of Indian labour laws in the organised sector is a cause for concern.
This has caused the Government to consider reforms in labour laws in India.
Recommendations designed to give the labour markets appropriate flexibility for it to be in a
position to compete in the international markets are under consideration. It can consequently
be said that the Indian job / labour market has started moving away from a ‘protectionist’ and
closed model towards a more competitive and open model.
Moreover laws were drafted in order to protect the rights of the labour class. The ILO
guidelines provided basic principles on which most of the labour laws are based in India. The
achievements of labour laws should be credited to ILO. Majority of the legislations passed
before 1919 have been subsequently amended after the ratification of resolutions made by
ILO. To this date India has ratified 43 conventions including four fundamental conventions-
• Forced Labour Convention, 1930
• Equal Remuneration Convention, 1951
• Abolition of Forced Labour Convention, 1957
• Discrimination (Employment and Occupation) Convention, 1958
Sir also mentioned that ILO has worked well on all its three pillars i.e. Government,
Employers and Workers. India too has greatly benefitted with the standards set by ILO which
has greatly influenced its labour legislation, labour welfare and industrial relations. The
fundamental Rights and Directive Principles of State Policy reflect a close resemblance with
the ILO charter of 1944. The Trade Unions Act, 1926, Workmen Compensations Act, 1923,
Industrial Disputes Act, 1947 are all influenced by the guidelines of ILO. Because India has
been one of the founding members of ILO it has taken active part in its deliberations and
therefore it has resulted in India adopting lot of the principles of ILO. Even the AITUC owes
its origin to ILO. It has created a sense of solidarity amongst the workers and spread
awareness amongst them about their rights. Also the Indian workers organizations were
benefitted from the foreign labour organisations.

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ILO CONTRIBUTION TO INDIAN LEGISLATURE
The Labour Laws in India examines in detail the legal regime which governs and regulates
matters related to employment in the organised sector of the Indian labour market.
Since labour laws form a part of the Concurrent List of the Constitution, both the Central as
well as the various State Governments have legislated very extensively on labour issues.
While the Centre has enacted over 45 (forty five) labour legislations, there are also catenas of
labour legislations enacted by the State Governments. In view of the sheer volume of labour
laws that are in force in India, their applicability to a particular organisation is determined
and affected by a variety of factors.
The applicability of labour legislations is also dependent upon the nature of activity that the
employees are employed in. This in turn will determine whether the organisation is a
“factory”, “industry”, “shop” or “establishment”. The number of employees employed in an
organisation is also a relevant factor for determination of applicability of a particular labour
statute. Additionally, the location of the organisation (i.e. the State in which the organisation
is located) also plays a crucial role in ascertaining the compliances that an employer is
required to observe, since almost all the States in India have enacted State-centric labour
laws, rules and regulations.
The labour laws in India not only deal with industrial relations (i.e. relations between the
employers and employees), but also relate to payment of wages, working conditions, social
security, etc. Additionally, there are several labour laws which regulate service conditions in
specific industries, such as building and construction work, pharmaceuticals, dockyards, and
mines. In addition, these labour laws also provide for various compliances in accordance with
the procedures laid down therein. This chapter provides an insight into the laws and
regulations applicable in India to labour and industrial matters.

Industrial Relations
The first and foremost factor is that the Indian labour and industrial laws make a distinction
between the employees who are “workmen” as defined under the relevant labour laws and the
employees who are not workmen. Generally, employees working mainly in managerial or
administrative capacity do not fall under the definition of employees who are workmen. Such
employees are ordinarily governed by the terms and conditions of their contracts of
employment.
Employees who are workmen are ordinarily afforded a greater degree of legal protection and
benefits under the Indian labour and industrial laws. Under Section 2(s) of the Industrial

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Disputes Act, 1947 (“ID Act”), the definition of the term “workman” includes only persons
(including an apprentice) employed in any industry to do any manual, unskilled, skilled,
technical, operational or clerical work, or persons who are employed to do supervisory work
but are drawing wages that are not exceeding Rs. 1,600 (Rupees one thousand six hundred)
per month. Persons employed mainly in managerial or administrative capacity, or persons
employed in a supervisory capacity but drawing wages in excess of Rs. 1,600 (Rupees one
thousand six hundred) per month, are excluded from the definition of workmen.
The ID Act is the most important law that deals with the subject of industrial relations, i.e. the
relations between the employer and employees. The ID Act is only applicable to workmen
who are employed in any industry. It may be noted in the context of the definition of the term
“workman”, the Courts have interpreted “supervisory” functions to mean supervision over
persons (e.g. grant of leave of absence) as opposed to supervision over things (e.g. store
supervision).
The Courts have also held that mere nomenclature (e.g. title of „Manager‟ or „Supervisor‟) is
not sufficient to determine whether an employee is a workman under the ID Act, and what is
relevant is the actual nature of work performed. If a person performs some managerial work
and other clerical work, the primary or dominant functions will be the determining factor for
ascertaining whether the employee is a workman or a non-workman.
The ID Act and the Rules framed thereunder inter alia regulate matters relating to
retrenchment, lay-off, closure, transfer of undertakings and change in service conditions.
Additionally, where the employer employs 100 (one hundred) or more workmen, prior
permission of the concerned State Government is required for retrenchment, lay-off and
closure.

“Retrenchment” is defined to mean the termination by the employer of the services of a

workman for any reason whatsoever except as a punishment by way of disciplinary action.
However, retrenchment does not include:
(i) voluntary retirement of the workman; or
(ii) retirement on attaining superannuation, if a provision to this effect is stipulated in
the contract of employment; or
(iii) termination as a result of non-renewal of the contract of employment on its expiry
or the contract being terminated pursuant to a stipulation in that behalf contained in
the contract; or
(iv) termination of the services of a workman on grounds of continued ill health.

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The Supreme Court has interpreted the exception to “retrenchment” referred to in item (iii)
above in a restrictive manner in the context of permanent workmen. The Supreme Court has
held that the use of the words “such contract” means that there should be a contract of
employment for a fixed term containing a stipulation that the services can be terminated prior
to the expiry of the fixed term of the contract.5 Where there is no fixed term, the Supreme
Court has held that the benefit of exemption does not apply.

Workmen cannot be retrenched except in accordance with the provisions of the ID Act. In
terms of the ID Act, a workman who has been in “continuous service” for a period of 1 (one)
year preceding the date of his retrenchment, cannot be retrenched unless the following
conditions are satisfied:
(i) a minimum of 1 (one) month’s written notice must be given to the workman
indicating the reasons for the retrenchment or wages for the period of the notice in
lieu of such notice must be paid;
(ii) retrenchment compensation calculated at the rate of 15 (fifteen) days‟ “average
pay” (i.e. average of last 3 (three) months‟ wages in case of monthly paid workmen)
for every year of continuous service or a part thereof in excess of 6 (six) months, must
be paid to the workman at the time of retrenchment (“Retrenchment Compensation”);
and
(iii) notice in the prescribed Form P must be sent by registered post to the appropriate
Government and other prescribed authorities in accordance with the Rules. This
notice must be sent within 3 (three) days from the date on which the notice referred to
in item (ii) above is given to the workman.

A workman is deemed to be in “continuous service” if within a period of 12 (twelve) months

prior to the date of his retrenchment, he has worked for not less than 240 (two hundred forty)
days. If he has worked for 6 (six) months, he will be deemed to be in “continuous service” if
within the 6 (six) months he has worked for not less than 120 (one hundred twenty) days. For
purposes of reckoning the actual number of days worked, Sundays, paid holidays / paid leave,
maternity leave, etc. are to be taken into account.

5
S.M. Nilajkar v. Telecom, District Manager, Karnataka, (2003) 4 SCC 27.

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Trade Unions Act, 1926 (“TU Act”)
The TU Act inter alia provides for registration of a trade union and the rights and liabilities of
a registered trade union. A “trade union” is defined under the TU Act to mean “any
combination, whether temporary or permanent, formed primarily for the purpose of
regulating the relations between workmen and employers or between workmen and workmen,
or between employers and employers, or for imposing restrictive conditions on the conduct of
any trade or business, and includes federation of two or more trade unions”.
A trade union may be registered under the TU Act by any 7 (seven) or more of its members
(being workmen or employees). However, a trade union cannot be registered unless at least
10% (ten per cent) or 100 (one hundred) of the workmen, whichever is less (subject to a
minimum of 7 (seven) workmen), engaged or employed in the establishment or industry with
which it is connected, are members of such trade union as on the date of making of the
registration application.
Additionally, the TU Act provides for certain rights and obligations of a registered trade
union, which inter alia include the following:
(i) A registered trade union may constitute a separate fund from which payments may
be made, for the promotion of the civic and political interest of its members.
(ii) The officers or members of a registered trade union shall not be punishable for the
offence of criminal conspiracy in respect of any agreement made between the
members for the purpose of furthering any such object of the trade union on which the
general funds may be spent.
(iii) No suit or other legal proceeding shall be maintainable in any civil Court against
any registered trade union or its members in respect of any act done in contemplation
or furtherance of a trade dispute to which a member of the trade union is a party.
This protection is available only on the ground that such act induces some other
person to break a contract of employment, or that it is in interference with the trade,
business or employment of some other person or with the right of some other person
to dispose of his capital of his labour as he wills.
(iv) A registered trade union is not liable in any suit or other legal proceeding in any
civil Court in respect of any tortuous act done in contemplation or furtherance of a
trade dispute by an agent of the trade union if it is proved that such person acted
without the knowledge of, or contrary to, express instructions given by the executive
of the trade union. However, the trade union, its office-bearers and the members are
liable for acts of violence or vandalism or any act of deliberate trespass.

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 (v) Subject to any other applicable law, an agreement between the members of a
registered trade union is not void or violable merely because of the fact that any of the
objects of the agreement is in restraint of trade.
(vi) The Fifth Schedule to the ID Act (dealing with Unfair Labour Practices) prevents
the employers from dominating, interfering with or contributing support, financial or
otherwise, to any trade union; establishing employer-sponsored trade unions; and
encouraging or discouraging membership in any trade union by discriminating against
any workman.
(vii) A trade union has the right to go on strike provided the strike is legal under the
provisions of the ID Act (i.e. after giving of a statutory notice).
(viii) A workman who is a party to an industrial dispute is entitled to be represented in
any proceeding under the ID Act by any member of the executive or other office-
bearer of a registered trade union of which he is a member.
(ix) Any official of a registered trade union (authorised in writing to act on behalf of
the employee) may apply to the appropriate Government appointed under the MW
Act, to hear and decide all claims arising out of a payment of less than the minimum
rates of wages or in respect of the payment of remuneration for days of rest or for
work done on such days or of wages at the overtime rates to the employees.
(x) A registered trade union is empowered to appear or make an application before the
Commissioner appointed under the WC Act for workmen’s compensation.
(xi) While an employer is not legally bound to recognise a trade union or encourage
collective bargaining, a registered trade union can enter into collective bargaining
agreements with the employer for better wage and service conditions.

Payment of Wages Act, 1936 (“Wages Act”) and the Rules framed thereunder
The Wages Act regulates the mode and method of payment of “wages”6 to certain employees,
namely, those employees to whom the wages payable for a wage period does not exceed Rs.

6
The term “wages” has been defined to mean “all remuneration (whether by way of salary, allowances, or
otherwise) expressed in terms of money or capable of being so expressed which would, if the terms of
employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment
or of work done in such employment, and includes:
(a) any remuneration payable under any award or settlement between the parties or order of a Court;
(b) any remuneration to which the person employed is entitled in respect of overtime work or holidays or any
leave period;

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6,500 (Rupees six thousand five hundred) per month, and employed in any factory, and
industrial or other establishments. The Wages Act does not apply where the wages payable to
an employee is Rs. 6,500 (Rupees six thousand five hundred) per month or more. The Wages
Act also regulates the date of the payment of wages and specifies the deductions that may
lawfully be made from the wages.
As per the Wages Act, the person responsible for payment of wages is required to fix periods
in respect of which wages shall be payable (“Wage Period”). Such Wage Period must not
exceed 1 (one) month. If the number of person employed in a factory or an industrial
establishment, including daily-rated workers, is less than 1000 (one thousand), the wages
must be paid before the expiry of the 7th (seventh) day after the last day of the Wage Period.
In other cases, the wages have to be paid before the expiry of the 10th (tenth) day after the
last day of the Wage Period.
Wages have to be paid in cash. An employer may also, with the written authorisation from his
employee, pay the wages either by cheque or by crediting the wages to the bank account of
the employee.
The Wages Act provides that the wages of an employee must be paid without deductions of
any kind, except the deductions which are authorised by or under the Wages Act. Some of the
deductions permitted under the Wages Act are set forth below:
(i) fines;
(ii) deductions for absence from duty;
(iii) deductions in case of sit-down or stay-in strikes;

(c) any additional remuneration payable under the terms of employment (whether called a bonus or by any other
name);
(d) any sum which by reason of the termination of employment of the person employed is payable under any
law, contract or instrument which provides for the payment of such sum, whether with or without deductions,
but does not provide for the time within which the payment is to be made;
(e) any sum to which the person employed is entitled under any scheme framed under any law for the time being
in force,
but does not include-
(1) any bonus (whether under a scheme of profit sharing or otherwise) which does not form part of the
remuneration payable under the terms of employment or which is not payable under any award or settlement
between the parties or order of a Court;
(2) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity
or of any service excluded from the computation of wages by a general or special order of the State
Government;
(3) any contribution paid by the employer to any pension or provident fund, and the interest which may have
accrued thereon;
(4) any travelling allowance or the value of any travelling concession;
(5) any sum paid to the employed person to defray special expenses entailed on him by the nature of his
employment; or
(6) any gratuity payable on the termination of employment in cases other than those specified in sub-clause (d).”

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(iv) deductions for damage to or loss of goods entrusted to the employee for custody or for
loss of money for which he is required to account, where such damage or loss is directly
attributable to his neglect or default;
(v) deductions for house accommodation, amenities and services provided / supplied by the
employer;
(vi) deductions for recovery of advances or for adjustment of overpayment of wages;
(vii) deductions for recovery of house loans;
(viii) deductions of income tax payable by the employee;
(ix) deductions for subscriptions to and for payment of advances from any provident fund;
and
(x) deductions for contributions to any insurance scheme framed by the Central Government
for the benefit of its employees.

Where the services of an employee are terminated, the wages earned by him are required to
be paid before the expiry of the 2nd (second) working day from the date on which his
employment is terminated.
Every employer to which the Wages Act applies must maintain certain registers and records
in the prescribed form, containing inter alia the particulars of the persons employed by him,
the work performed by such persons, wages paid to them, deductions made from their wages,
receipts given by them and such other particulars as may be prescribed. Such registers and
records should be available for inspection and be preserved for a period of 3 (three) years
after the date of last entry made therein.

Minimum Wages Act, 1948 (“MW Act”) and the Rules framed thereunder
The MW Act provides for payment of minimum rates of wages to specified employees. The
MW Act defines the term “employee” to mean inter alia, “any person who is employed for
hire or reward to do any work, skilled or unskilled, manual or clerical, in a Scheduled
Employment in respect of which minimum rates of wages have been fixed” and also includes
“an employee declared to be an employee by the appropriate Government”.
The MW Act requires the appropriate Government (Central or State as the case may be) to fix
and revise, within a specified time, minimum rates of wages payable to employees in respect
of employments listed out in Part I and Part II of the Schedule to the MW Act (and as notified
from time to time by the various State Governments) (“Scheduled Employment”). The

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Scheduled Employments inter alia include employment on the construction and maintenance
of roads or in building operations, employment in an oil mill, employment in tanneries and
leather manufactory, etc. It may also be noted that the list of Scheduled Employment is not
exhaustive and the State Governments are empowered to add more employments to the
Schedule.
If the total number of employees in any particular Scheduled Employment specified in the
Schedule is less than 1000 (one thousand) in the whole of the State, it is not necessary for the
appropriate State Government to fix any minimum wage for such employment. Where the
Government is required to fix minimum wages for any Scheduled Employment, it may fix:
(i) minimum time rate for time work;
(ii) minimum piece rate for piece work;
(iii) guaranteed time rate for employees employed on piece work for the purpose of
securing to such employees a minimum rate of wages on a time work basis; and
(iv) overtime rate in respect of any overtime work performed by the employees.

Once minimum wages have been fixed, an employer is required to pay to every employee
engaged in a Scheduled Employment under him, wages at a rate which is not less than the
minimum rate of wages fixed by the concerned State Government for that class of employees.
Employers are required to maintain registers and records giving particulars of the employees
employed by him in any Scheduled Employment, the work performed by them, the wages
paid to them, the receipts given by them, etc. in such forms as may be prescribed.

ANALYSIS
Sir started the lecture with discussing the history of labour laws in India. He mentioned that
during 1200 AD – 1700 AD India saw the invasion of many rulers and was a battleground.
Labour class was not recognized in its true essence as majority of the people were part of the
army and were fighting battles for their respective rulers or were involved in farming. It
started to change the growth of textile industries in Bombay. After farming Labourers were
attracted to textile industries. It was the influence of Colonial rule that Trade Unions were
beginning to form with Communist Ideology. Sir briefly touched upon Girni Kamagar, the
oldest textile workers trade union in Bombay, formed in 1928. In 1929 the authorities
arrested many important figures of this trade union to supress them. It tried to revive itself in
1930 and did play an important role in that year but it became functional again only in 1951

12
with the other socialist trade union Mil Majdur Sabha and merged into a bigger group which
came to be known as Bombay Union of Factory Workers. This later became part of All India
Trades Union Congress.
It was during the World War I that farmers and labourers serving for British Army were
attracted towards the idea of Labour union. They realized the importance of labour strike as a
means of getting higher wages, concessions and better working conditions. These led to many
strikes in the country for the rights of labour class and were successful. This eventually led to
the formation of many unions across the country.

The All India Trades Union Congress was set up in 1920 with the aim of representing the
worker’s interests, to coordinate the activities of all the labour organizations and spread the
message for the need for large union movement. The ILO was established in 1919 and India
was one of the founding members.
Sir also mentioned that Mr. Naval Tata, a very prominent Indian Industrialist was part of ILO
for 40 years and had worked actively towards increasing the importance of India in ILO. He
held a very good position in ILO and that has improved the position of India in ILO
drastically. The address by Late Mr. Rajiv Gandhi in ILO is also important in Indian context.
Sir also highlighted the importance of ILO with regards to other social legislations which
strive towards achieving social justice for all working class including women. It also becomes
important as it give rise to lot of gender justice legislations which has immensely helped in
improving the working conditions for women immensely.

Sir then went on to explain the plight of these workers taking us all back once again to the
pre-independence period where the workers used to work on a daily wage basis. There were
weekly and monthly wage workers as well. He explained how this concept came way before
the ILO also came into existence. It came from a concept which called the ‘hourly associate’.
These workers are those who bear the biggest brunt of exploitation by the employers as they
have to live their entire lives in ambiguity; not knowing if and when they will get work next.
Thus, it will be safe to say that all the labour legislation that was to emerge, emerged under
the backdrop of having job security. He also shed light upon the fact that all the class IV
labourers are stuck in the same occupational cycle as they are not able to improve their living
conditions with the kind of wages they get which further disables their children to break out
of the same cycle as most of them cannot even afford to give them education. They as a class
are then deprived of any opportunity to improve the living conditions for themselves.

13
Through this we were able to understand that the ILO is not meant for the industrialists. It is
meant to uplift these people. It is meant for ensuring there is a right to live life with dignity
and have some job security for such labourers.

Justice Ravindra went on to talk about the difference between ‘contract of service’ and
‘contract for service’. Contract for service enshrines the conditions under which these
daily/weekly/monthly workers had to work in. it essentially is a contract meant for doing a
particular job of a particular nature and for a particular time period. There was no security of
any sort in such an arrangement. This security existed in the contract for service. India lacked
this concept of contract for service as well as the security attached. He elaborated that this
came about only after legislations like Payment of Wages Act, 1936 were enacted which was
amended later to ensure that the workers are paid through a bank transfer so as to minimise
exploitation of the worker.
• Factories Act, 1948 brought about the concept of payment for overtime work
• Minimum Wages Act, 1948 brought about the concept of a living wage
• The concept of contract of service brought about job security
• Factories Act, 1948 brought about life security with its provisions for ‘hazardous
processes’

Sir then went on to address certain pressing issues that the country still faces today and the
ILO needs to consider urgently. These are child labour and improvement of work condition
for women. There is an urgent need for the creation of security for them, especially looking
into the legal aspects of the same. He went on to talk about the concept of ‘compassionate
appointment’ which furthers the aim of social justice. Another aspect of the same is the
amendment of the position of ‘occupier’ in the Factories Act, 1948 whereby now the Director
of the Board of the company has to be made the occupier so that the provision is not misused
by the company and complete justice can be down in the true sense.

CONCLUSION AND FINDINGS

In the current Indian economic environment, which is marked by globalised economy,
liberalisation in trade, enhanced competition and on-going technological advancement,
rationalisation of manpower is one of the most effective keys to the efficiency of any
organisation. Rationalisation of manpower does not merely mean reduction / retrenchment of

14
employees. What it really means is reorganisation of the existing manpower such that their
utilisation and output can be optimised. Hence, we have had companies approach us in the
last few months for assistance not only in connection with retrenchment of employees and
closure of certain offices, but also for: transfer of employees pursuant to transfer of business
as a ‘going concern’; offer of relocation options to employees on account of closure of a
business unit or cessation of a line of business at a particular location; redefining of
responsibilities pursuant to new business opportunities; identifying groups to undergo
technical training to keep up with and implement new innovations; etc. While carrying out
any of the aforesaid rationalisation options, it is imperative that the organisation balances
commercial requirements with the legal framework.
deals with the salient features and trends of employment prevailing in India, and the major
issues to be considered by an employer in India, depending on the nature, size and location of
the business as well as the nature of the employees‟ duties and responsibilities.
Special attention should be given to these matters as they could result in liabilities not only
for the employer but also, in cases where the employer is a company, for officers / directors
of the company.
The influence of ILO is huge on Indian trade unions and legislations. The ILO has acted as
guiding light for Indian labour laws and all its achievement is owed to the ILO. But at the
same time India has worked closely with ILO since it inception and helped it grow. After this
lecture I found lot more about ILO and its contribution to Indian Labour laws. The kind of
impact it has on the labour movements and the industries in India is huge and important to
study for any student of labour laws. The additional social legislations apart from basic
labour laws like maternity relief, compensations acts etc becomes equally important and
relevant in today’s times. It is important to note that the additional guideline has helped India
immensely in developing better conditions for its working class. Moreover I also learnt the
contribution of Mr Naval Tata and Rajeev Gandhi which helped India to gain importance in
ILO.
I also found out that India still needs to adopt the concept of fair wage as till date it only has
the concept of minimum wage.
Most of the labour legislations in India are before Independence. The fundamental rights of
the constitution for providing safeguards to labours. Although most of the pre-constitutional
labour legislations have been revoked or curtailed following the doctrine of severability and
doctrine of eclipse, but not a lot of changes had been made to the labour legislation which
came before the adoption of constitution. The achievement of these labour laws must be

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credited to ILO. The ILO guidelines basically provided basic principles on which most of
labour legislations were drawn. By observation on various amendments and enactments in
labour laws it can be easily seen that the ILO have a countless impact on the Indian labour
laws.
Most of the labour legislations in India are before independence. The Fundamental Rights of
the Constitution for providing safeguards to labours. Although most of the pre –
constitutional labour legislations have been revoked or curtailed following the Doctrine of
Severability and Doctrine of Eclipse, but not a lot of changes had been made to the labour
legislation which were came before the adoption of Constitution. The achievement of these
labour laws must be credited to the ILO. The ILO guidelines provided basic principles on
which most of labour legislations were drawn. By observation on various amendments and
enactments in labour laws it can be easily seen that the ILO have a countless impact on
labour laws.
And lastly, we were honoured to have Justice Ghughe, such wise man to deliver us such a
good and knowledgeable lecture. He opened our brains towards the learning of new concepts
and also analysing the situations and the law from a very different angle where a common
man cannot even think of. India being the founder member of ILO must implement
legislations regarding the labour laws in an appropriate manner which best suits the interests
of the public.
Lastly, I want to thank our Professor Shirish Kulkarni for organizing such an important
lecture which highlighted each and every aspect of ILO with regards to Indian context and its
importance for Indian Labour Laws.

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