Constitutional Framework for Labour Laws in India: Comprehensive Study Material

This study material provides an in-depth exploration of the constitutional framework underpinning labour laws in India. It is designed for students, researchers, and professionals seeking a thorough understanding of how the Indian Constitution shapes labour legislation, protections, and rights. The material is structured logically, starting with an introduction, followed by key constitutional provisions, the role of the Seventh Schedule, an overview of major labour laws influenced by the Constitution, and finally, key definitions extracted from the Constitution and relevant acts. Explanations are detailed, with references to judicial interpretations where relevant, to facilitate comprehensive learning. This framework emphasizes social justice, worker welfare, and equitable industrial relations, reflecting India’s commitment to balancing economic growth with human dignity.

Introduction

Labour laws in India are deeply intertwined with the Constitution, which serves as the foundational document for protecting workers’ rights and regulating employment relations. Adopted in 1950, the Constitution recognizes labour as a subject under the Concurrent List in the Seventh Schedule, allowing both the Union (central) and state governments to legislate on matters like trade unions, industrial disputes, welfare of labour, and social security. This dual jurisdiction promotes uniformity through central laws while enabling states to address local needs.

The framework draws from Fundamental Rights (Part III), which are enforceable in courts, and Directive Principles of State Policy (Part IV), which are non-justiciable but guide policy-making. These provisions align with international standards, such as those from the International Labour Organization (ILO), and have evolved through judicial interpretations by the Supreme Court. For instance, the Constitution prohibits exploitation, ensures equality, and mandates humane working conditions, forming the basis for over 40 central labour laws, many of which were consolidated into four Labour Codes in 2019-2020: the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.

Historically, labour laws originated during British colonial rule but were reformed post-independence to embody socialist ideals. Key objectives include preventing exploitation, ensuring fair wages, promoting collective bargaining, and providing social security. The framework categorizes enforcement into models: central-only, joint central-state, state-enforced central laws, or state-only, fostering cooperative federalism.

Fundamental Rights Related to Labour

Fundamental Rights provide enforceable protections against state and private actions, directly impacting labour laws by safeguarding workers from discrimination, exploitation, and unsafe conditions. Below is a table summarizing key articles, their text, implications, and notable judicial interpretations:

Article	Full Text/Provision	Implications for Labour Laws	Judicial Interpretations
Article 14	“The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India.”	Ensures non-discriminatory application of labour laws, such as equal treatment in wages, promotions, and working conditions regardless of caste, gender, or origin.	In cases like State of Kerala v. N.M. Thomas (1976), the Supreme Court upheld affirmative action in employment to achieve substantive equality.
Article 15(3)	“Nothing in this article shall prevent the State from making any special provision for women and children.”	Supports protective legislation, e.g., restrictions on night shifts for women or bans on child labour in hazardous jobs.	Forms the basis for laws like the Maternity Benefit Act, 1961, allowing special provisions without violating equality.
Article 16	“There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State.” Prohibits discrimination on grounds of religion, race, caste, sex, descent, place of birth, or residence.	Promotes fair recruitment and non-discrimination in public and private employment, influencing anti-discrimination clauses in labour codes.	In Indra Sawhney v. Union of India (1992), reservations in promotions were upheld to ensure equal opportunity.
Article 19(1)(c)	“All citizens shall have the right to form associations or unions.” Subject to reasonable restrictions under Clause (4) for sovereignty, public order, or morality.	Enables formation of trade unions for collective bargaining, strikes, and worker representation.	In All India Bank Employees’ Association v. National Industrial Tribunal (1962), the right to unionize was affirmed as essential for industrial democracy.
Article 21	“No person shall be deprived of his life or personal liberty except according to procedure established by law.”	Interpreted broadly to include right to livelihood, dignity, health, shelter, and safe working conditions.	In Olga Tellis v. Bombay Municipal Corporation (1985), the right to livelihood was linked to life; in People’s Union for Democratic Rights v. Union of India (1982), non-payment of minimum wages was held to violate this right, extending to provisions like crèches and medical aid.
Article 23	“Traffic in human beings and begar and other similar forms of forced labour are prohibited and any contravention of this provision shall be an offence punishable in accordance with law.”	Bans bonded labour, human trafficking, and forced work, imposing positive duties on the state to eradicate exploitation.	In People’s Union for Democratic Rights v. Union of India (1982), the Supreme Court expanded “forced labour” to include work below minimum wages or in inhumane conditions.
Article 24	“No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in any other hazardous employment.”	Prohibits child labour in risky sectors, promoting child welfare and education.	In M.C. Mehta v. State of Tamil Nadu (1996), the Court directed rehabilitation funds for child labourers, extending the ban to non-hazardous sectors via later laws.

These rights ensure that labour laws are not merely regulatory but protective, with the Supreme Court often expanding their scope through public interest litigation.

Directive Principles of State Policy Related to Labour

Directive Principles (DPSPs) are guidelines for the state to achieve social and economic justice, influencing labour policy though non-enforceable. They complement Fundamental Rights and have been used to interpret laws progressively.

Article	Full Text/Provision	Implications for Labour Laws
Article 38	“The State shall strive to promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political, shall inform all the institutions of the national life.”	Promotes social justice in labour relations, reducing inequalities in income and opportunities.
Article 39	“The State shall, in particular, direct its policy towards securing—(a) that the citizens, men and women equally, have the right to an adequate means of livelihood; (d) that there is equal pay for equal work for both men and women; (e) that the health and strength of workers, men and women, and the tender age of children are not abused…”	Mandates fair wages, equal pay, and protection from exploitation; basis for Equal Remuneration Act, 1976, and Minimum Wages Act, 1948.
Article 41	“The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement…”	Supports social security schemes like provident funds, insurance, and unemployment benefits.
Article 42	“The State shall make provision for securing just and humane conditions of work and for maternity relief.”	Underpins maternity benefits, safe workplaces, and welfare measures in factories and establishments.
Article 43	“The State shall endeavour to secure, by suitable legislation or economic organisation or in any other way, to all workers…a living wage, conditions of work ensuring a decent standard of life…”	Guides minimum wage fixation and worker participation in management (Article 43A added by 42nd Amendment).
Article 43A	“The State shall take steps, by suitable legislation or in any other way, to secure the participation of workers in the management of undertakings…”	Promotes industrial democracy and cooperative management.
Article 47	“The State shall regard the raising of the level of nutrition and the standard of living of its people and the improvement of public health as among its primary duties…”	Indirectly supports occupational health and safety laws.

In Air India Statutory Corporation v. United Labour Union (1997), the Supreme Court elevated DPSPs to align with UN conventions on development, emphasizing their role in labour reforms.

Role of the Seventh Schedule

The Seventh Schedule divides legislative powers:

Union List (List I): Exclusive central domain, e.g., Entry 55 (regulation of labour in mines and oilfields insofar as declared by Parliament).
State List (List II): Exclusive state domain, but labour is not here.
Concurrent List (List III): Shared, key entries for labour:
Entry 22: Trade unions; industrial and labour disputes.
Entry 23: Social security and social insurance; employment and unemployment.
Entry 24: Welfare of labour including conditions of work, provident funds, employers’ liability, workmen’s compensation, invalidity and old age pensions, and maternity benefits.

This allows central laws like the Industrial Disputes Act, 1947, to set national standards, while states enact supplementary rules (e.g., state-specific Shops and Establishments Acts). In conflicts, central laws prevail (Article 254), ensuring uniformity.

Overview of Major Labour Laws Influenced by the Constitution

The constitutional framework has led to a robust body of laws, consolidated into four codes for simplification:

Code on Wages, 2019: Consolidates Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; Equal Remuneration Act, 1976. Ensures timely wages, minimum rates, and equal pay.
Industrial Relations Code, 2020: Merges Industrial Disputes Act, 1947; Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946. Regulates disputes, unions, and standing orders.
Code on Social Security, 2020: Combines nine laws including Employees’ Provident Funds Act, 1952; Employees’ State Insurance Act, 1948; Maternity Benefit Act, 1961. Provides benefits for retirement, health, and maternity.
Occupational Safety, Health and Working Conditions Code, 2020: Integrates 13 laws like Factories Act, 1948; Contract Labour Act, 1970; Building and Other Construction Workers Act, 1996. Focuses on safety and conditions.

Other key acts include Bonded Labour System (Abolition) Act, 1976; Child and Adolescent Labour (Prohibition and Regulation) Act, 1986; and Beedi and Cigar Workers Act, 1966.

Key Definitions as Mentioned in the Acts

Definitions are crucial for interpreting laws. Below is a compilation from the Constitution and major acts, presented in a table for clarity:

Term	Definition	Source Act/Article	Explanation
Forced Labour	Includes begar (unpaid labour) and other similar forms, prohibited against state or private persons.	Article 23, Constitution	Encompasses work under duress, below minimum wages, or inhumane conditions; basis for Bonded Labour Act, 1976.
Child	Person below 14 years.	Article 24, Constitution; Child Labour Act, 1986	Prohibits employment in hazardous occupations; “adolescent” means 14-18 years in amended Child Labour Act.
Worker/Workman	Person employed in manual, skilled, unskilled, technical, operational, supervisory, or clerical work for hire/reward, excluding managerial roles.	Industrial Disputes Act, 1947 (Section 2(s)); Factories Act, 1948 (Section 2(l))	Includes contract labour; excludes armed forces. In codes, broadened to gig/platform workers.
Employee	Person employed for wages in a factory/establishment, including casual/temporary/contract workers.	Employees’ State Insurance Act, 1948 (Section 2(9)); Payment of Gratuity Act, 1972	Covers those earning up to specified limits; excludes apprentices.
Factory	Premises with 10+ workers using power or 20+ without, in manufacturing processes.	Factories Act, 1948 (Section 2(m))	Includes processes like printing, ship repair; basis for safety regulations.
Wages	All remuneration (salary, allowances) for work, including overtime/bonus, but excluding certain allowances like travel.	Minimum Wages Act, 1948; Code on Wages, 2019	Includes basic pay, dearness allowance; minimum wages fixed considering cost of living (2700 calories/day norm).
Industrial Dispute	Disagreement between employers/employees on employment terms, conditions, or labour matters.	Industrial Disputes Act, 1947 (Section 2(k))	Covers strikes, lockouts, retrenchment; resolved via conciliation/arbitration.
Trade Union	Combination of workers/employers to regulate relations and promote interests.	Trade Unions Act, 1926 (Section 2(h))	Registered unions gain legal status and immunity from certain suits.
Bonded Labour	System of forced labour to repay debt, including child servitude.	Bonded Labour System (Abolition) Act, 1976 (Section 2)	Prohibits advances creating bondage; punishable offence.
Establishment	Office/agency employing 25+ in non-agricultural activities; or shops/hotels.	Employment Exchanges Act, 1959; Shops and Establishments Acts (state-specific)	Regulates hours, holidays, and conditions in commercial spaces.
Gratuity	Lump-sum payment at 15 days’ wages per year of service (after 5 years).	Payment of Gratuity Act, 1972 (Section 4)	For retirement/resignation; cap at ₹20 lakh in current code.
Hazardous Process	Activities involving risks like chemicals, asbestos, or radiation.	Factories Act, 1948 (First Schedule)	Requires special safety measures; prohibits children/adolescents.
Street Vendor	Person vending goods/services in public places using temporary structures.	Street Vendors Act, 2014 (Section 2(l))	Protects livelihood; prioritizes marginalized groups.
Contract Labour	Workers employed through contractors for 20+ in establishments.	Contract Labour Act, 1970 (Section 2)	Regulates conditions; principal employer liable for welfare.
Building and Other Construction Work	Construction, alteration, repair, or demolition of structures like buildings, roads, or installations.	Building and Other Construction Workers Act, 1996 (Section 2(d))	Mandates welfare boards and cess for worker benefits.