Labour Legislation I: Objectives, Principles, Classification and Evolution, the International Labour Organisation, Social Justice and Labour Legislation, the Indian Constitution and Labour Laws, and the Four Labour Codes
1. Objectives, principles and classification
Labour legislation exists because the contract of employment is not a bargain between equals: the individual worker cannot negotiate hours, safety or pay with an employer on equal terms, and the law intervenes to set minimum standards, to protect those who cannot protect themselves, and to provide a framework in which collective bargaining and dispute settlement can work. Its objectives are the protection of workers against exploitation, the promotion of social justice, industrial peace and harmony, the welfare and social security of workers, and economic development through a healthy and productive workforce. The principles usually listed are protection, social justice, regulation, welfare, social security and economic development, with international uniformity as a sixth or seventh, the standards of the ILO making labour conditions comparable across countries so that no country gains a trade advantage by exploiting its workers.
| Class | Examples (legacy Acts) |
|---|---|
| Protective (conditions of work, safety, hours, children, women) | Factories Act 1948, Mines Act 1952, Plantations Labour Act 1951, Child Labour Act 1986, the shops and establishments Acts of the states |
| Regulative (relations between the parties) | Trade Unions Act 1926, Standing Orders Act 1946, Industrial Disputes Act 1947 |
| Wage legislation | Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965, Equal Remuneration Act 1976 |
| Social security | Workmen's (now Employees') Compensation Act 1923, ESI Act 1948, EPF and MP Act 1952, Maternity Benefit Act 1961, Payment of Gratuity Act 1972, Unorganised Workers' Social Security Act 2008 |
| Welfare | Building and Other Construction Workers Act 1996 and its Cess Act, the welfare fund Acts for beedi, mica, iron-ore and cine workers |
| Employment and special groups | Employment Exchanges (Compulsory Notification of Vacancies) Act 1959, Apprentices Act 1961, Contract Labour Act 1970, Inter-State Migrant Workmen Act 1979, Bonded Labour System (Abolition) Act 1976 |
2. The evolution of labour legislation in India
The first labour laws of British India protected employers, not workers. The Workmen's Breach of Contract Act 1859 made a worker's breach of contract, after taking an advance, a criminal offence, and the plantation labour laws of Assam bound indentured workers by penal contracts; the 1859 Act was repealed only in 1925. Protective law began with the Factories Act 1881, prompted in part by Lancashire mill-owners who feared cheap Indian competition, which prohibited the employment of children under seven and limited the hours of children; the Act of 1891 extended protection to women, the Indian Mines Act 1901 regulated mines, and the Factories Act 1911 limited the working day of adult men in textile mills to twelve hours. After India joined the ILO as a founding member in 1919, legislation accelerated: the Factories (Amendment) Act 1922 set a sixty-hour week, the Workmen's Compensation Act 1923 introduced employers' liability for accidents, the Trade Unions Act 1926 and the Trade Disputes Act 1929 followed, and the Royal Commission on Labour (1929–31) produced the Payment of Wages Act 1936 and the Factories Act 1934. Independence brought the great consolidation of 1946–1952 — the Standing Orders, Industrial Disputes, Factories, Minimum Wages, ESI, Plantations, Mines and EPF Acts — and later the Acts on bonus, gratuity, contract labour, equal remuneration, bonded labour, migrant labour, child labour and construction workers.
3. The International Labour Organisation
The ILO was created in 1919 by Part XIII of the Treaty of Versailles, whose preamble declares that "universal and lasting peace can be established only if it is based upon social justice". It became the first specialised agency of the United Nations in 1946 and received the Nobel Peace Prize in 1969. The Declaration of Philadelphia (1944), annexed to its Constitution, restated its aims: labour is not a commodity; freedom of expression and of association are essential to sustained progress; poverty anywhere constitutes a danger to prosperity everywhere. The ILO is uniquely tripartite. The International Labour Conference, meeting every June in Geneva, sends four delegates from each member state (two for the government and one each for employers and workers, each voting independently) and adopts conventions (binding on the states that ratify them) and recommendations (non-binding guidance). The Governing Body, also tripartite, is the executive council; ten of its government seats are held permanently by the states of chief industrial importance, and India is one of them. The International Labour Office in Geneva is the permanent secretariat, headed by the Director-General, Gilbert F. Houngbo since 2022. Supervision is by the Committee of Experts on the Application of Conventions and Recommendations, the Conference Committee on the Application of Standards and the Committee on Freedom of Association (1951). The Decent Work Agenda (1999) has four pillars: employment, rights at work, social protection and social dialogue.
| Fundamental principle (1998 Declaration; fifth added 2022) | Conventions | Ratified by India? |
|---|---|---|
| Freedom of association and collective bargaining | C87 (1948), C98 (1949) | No, neither |
| Elimination of forced labour | C29 (1930), C105 (1957) | Yes, both (1954 and 2000) |
| Abolition of child labour | C138 minimum age (1973), C182 worst forms (1999) | Yes, both, in June 2017 |
| Elimination of discrimination in employment | C100 equal remuneration (1951), C111 discrimination (1958) | Yes, both (1958 and 1960) |
| A safe and healthy working environment | C155 (1981), C187 (2006) | No, neither |
4. Social justice, the Constitution and labour laws
Social justice is the idea that the benefits and burdens of economic life should be fairly distributed, and that the law should correct inequalities of bargaining power; the Preamble promises justice, social, economic and political, and Article 38 directs the state to secure a social order in which justice informs all the institutions of national life. Indian courts read labour laws as beneficial legislation, to be interpreted in favour of the worker where the words allow. The Fundamental Rights relevant to labour are equality before the law and in public employment (Articles 14 to 16), the freedom to form associations and unions (Article 19(1)(c)), the right to life and livelihood (Article 21; Olga Tellis, 1985), the prohibition of traffic in human beings, begar and forced labour (Article 23) — under which the Supreme Court held in People's Union for Democratic Rights v. Union of India (1982), the Asiad workers' case, that paying less than the minimum wage is forced labour — and the prohibition of employing children below fourteen in factories, mines or other hazardous employment (Article 24).
The Directive Principles set the goals of labour policy: Article 39 — adequate means of livelihood for men and women (a), equal pay for equal work for both (d), protection of the health and strength of workers and of the tender age of children (e), and opportunities for children to develop in freedom and dignity (f); Article 39A, equal justice and free legal aid; Article 41, the right to work, to education and to public assistance in unemployment, old age, sickness and disablement; Article 42, just and humane conditions of work and maternity relief; Article 43, a living wage and conditions ensuring a decent standard of life; Article 43A, workers' participation in management (1976); and Article 43B, the promotion of cooperative societies (2011). In Randhir Singh v. Union of India (1982) the Supreme Court read "equal pay for equal work" into Articles 14 and 16 through Article 39(d). Labour is chiefly a Concurrent List subject: entry 22 covers trade unions and industrial and labour disputes, entry 23 social security and social insurance and employment and unemployment, and entry 24 the welfare of labour, including conditions of work, provident funds, employers' liability, workmen's compensation, invalidity and old-age pensions and maternity benefits. The Union List reserves the regulation of labour and safety in mines and oilfields (entry 55) and industrial disputes concerning Union employees (entry 61).
5. The four labour codes
The Second National Commission on Labour (2002) recommended that the central labour laws be grouped into a small number of codes. Parliament enacted the Code on Wages in August 2019 and the Industrial Relations Code, the Code on Social Security and the Occupational Safety, Health and Working Conditions Code in September 2020, together consolidating twenty-nine central laws. The four Codes were brought into force with effect from 21 November 2025, and the Acts they consolidate were repealed from that date, subject to the savings and transitional provisions in each Code. Rules under the Codes, central and state, have been framed and notified in stages, so a rule-level detail (a form, a fee, a register, a time limit, or how a matter begun under an old Act is to be completed) should be checked against the current notification. The Child Labour (Prohibition and Regulation) Act 1986, amended and renamed in 2016, is not among the laws consolidated, and remains a separate Act.
| Code | Acts it consolidates |
|---|---|
| Code on Wages 2019 (4 Acts) | Payment of Wages Act 1936, Minimum Wages Act 1948, Payment of Bonus Act 1965, Equal Remuneration Act 1976 |
| Industrial Relations Code 2020 (3 Acts) | Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947 |
| Code on Social Security 2020 (9 Acts) | Employees' Compensation Act 1923, ESI Act 1948, EPF and MP Act 1952, Employment Exchanges (Compulsory Notification of Vacancies) Act 1959, Maternity Benefit Act 1961, Payment of Gratuity Act 1972, Cine-Workers Welfare Fund Act 1981, Building and Other Construction Workers Welfare Cess Act 1996, Unorganised Workers' Social Security Act 2008 |
| Occupational Safety, Health and Working Conditions Code 2020 (13 Acts) | Factories Act 1948, Plantations Labour Act 1951, Mines Act 1952, the two Working Journalists Acts of 1955 and 1958, Motor Transport Workers Act 1961, Beedi and Cigar Workers Act 1966, Contract Labour Act 1970, Sales Promotion Employees Act 1976, Inter-State Migrant Workmen Act 1979, Cine-Workers and Cinema Theatre Workers Act 1981, Dock Workers Act 1986, Building and Other Construction Workers Act 1996 |
Key takeaways
- Labour law corrects the inequality of the employment contract; its principles are protection, social justice, regulation, welfare, social security, economic development and international uniformity; the Acts are classed as protective, regulative, wage, social security, welfare and employment laws.
- Evolution: the penal Breach of Contract Act 1859 (repealed 1925); the Factories Acts of 1881, 1891, 1911, 1922 and 1934; the Mines Act 1901; Workmen's Compensation 1923; the Royal Commission (1929–31); the consolidation of 1946–52; the codes of 2019–20.
- ILO: 1919, Versailles Part XIII; UN agency 1946; Nobel 1969; Philadelphia 1944 ("labour is not a commodity"); tripartite Conference (2 + 1 + 1 delegates), Governing Body (India a permanent member of chief industrial importance), Office; Decent Work's four pillars; India has ratified six of the ten fundamental conventions — not C87, C98, C155 or C187; C138 and C182 in 2017.
- Constitution: Articles 14–16, 19(1)(c), 21, 23 (PUDR 1982: below-minimum wages are forced labour), 24; Directive Principles 38, 39(a), (d), (e), (f), 39A, 41, 42, 43, 43A, 43B; Concurrent List entries 22, 23 and 24; Union List entries 55 and 61; Randhir Singh (1982) on equal pay.
- The four codes consolidate 29 laws — Wages (4), Industrial Relations (3), Social Security (9), OSH (13) — and came into force on 21 November 2025, with rules notified in stages; the Child and Adolescent Labour Act is not consolidated.
Practice questions (10)
Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.
The International Labour Organisation was established in
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Answer: B — 1919, by the Treaty of Versailles
The ILO was created in 1919 by Part XIII of the Treaty of Versailles. The Declaration of Philadelphia (1944) restated its aims, it became a UN specialised agency in 1946, and it won the Nobel Peace Prize in 1969, its fiftieth year.Which pair of ILO fundamental conventions has India NOT ratified?
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Answer: C — C87 and C98, on freedom of association and collective bargaining
India has not ratified C87 and C98 (nor C155 and C187 on safety and health). It ratified C29 in 1954 and C105 in 2000, C100 in 1958 and C111 in 1960, and both child labour conventions, C138 and C182, in June 2017.In which case did the Supreme Court hold that paying a worker less than the minimum wage amounts to forced labour under Article 23?
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Answer: A — People's Union for Democratic Rights v. Union of India (1982)
In the Asiad workers' case (PUDR, 1982) the Court held that labour for less than the minimum wage is "forced labour" within Article 23, because economic compulsion takes away the choice. Randhir Singh concerned equal pay, Olga Tellis the right to livelihood, and Bangalore Water Supply the definition of industry.Into which Code was the Employment Exchanges (Compulsory Notification of Vacancies) Act 1959 consolidated?
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Answer: B — The Code on Social Security 2020
The Code on Social Security consolidates nine Acts, and the 1959 Employment Exchanges Act is one of them, alongside the ESI, EPF, gratuity, maternity, compensation, cine-workers' fund, construction cess and unorganised workers' Acts. It is a common trap because the Act concerns employment rather than insurance.Which of these subjects are in the Concurrent List of the Constitution? Select all that apply.
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Answer: B — Welfare of labour, including provident funds and maternity benefits; C — Trade unions; industrial and labour disputes; D — Social security and social insurance
Entries 22, 23 and 24 of the Concurrent List cover trade unions and disputes, social security and insurance, and the welfare of labour. The regulation of labour and safety in mines and oilfields is entry 55 of the Union List, which is why the Mines Act is a central law.Assertion (A): The Child Labour (Prohibition and Regulation) Act 1986 is among the Acts consolidated into the Occupational Safety, Health and Working Conditions Code. Reason (R): The 1986 Act was amended in 2016 and renamed the Child and Adolescent Labour (Prohibition and Regulation) Act.
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Answer: D — A is false, but R is true
A is false: the child labour law was not consolidated into any of the four codes and remains a separate Act. R is true: the 2016 amendment prohibited the employment of children below fourteen in all occupations and processes, regulated adolescents, and renamed the Act.Assertion (A): At the International Labour Conference each member state is represented by two government delegates, one employers' delegate and one workers' delegate. Reason (R): India holds one of the ten permanent government seats on the ILO Governing Body reserved for states of chief industrial importance.
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Answer: B — Both A and R are true, but R is not the correct explanation of A
Both statements are true, but R does not explain A. The 2 + 1 + 1 composition of every national delegation to the Conference is the ILO's tripartite rule for all members; India's permanent Governing Body seat is a separate matter of industrial importance."Labour is not a commodity" is a principle stated in
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Answer: A — the Declaration of Philadelphia, 1944
The Declaration of Philadelphia (1944), annexed to the ILO Constitution, opens with the principle that labour is not a commodity, and adds that poverty anywhere is a danger to prosperity everywhere. The Beveridge Report concerned British social security, and the 1998 Declaration named the core labour standards.How many central labour laws did the four labour codes consolidate in all? Type the number.
Numerical answer — type the value.
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Answer: 29
Twenty-nine: four in the Code on Wages, three in the Industrial Relations Code, nine in the Code on Social Security and thirteen in the Occupational Safety, Health and Working Conditions Code (4 + 3 + 9 + 13 = 29).How many delegates does each member state send to the International Labour Conference? Type the number.
Numerical answer — type the value.
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Answer: 4
Four: two government delegates, one employers' delegate and one workers' delegate, each entitled to vote independently. The workers' and employers' delegates are nominated in agreement with the most representative organisations of each.