INDUSTRIAL RELATIONS

AND
LABOUR LAWS

Chapter 05

Labour Administration in India

1

Learning Objectives
After going through this session you will be able to
understand :
The meaning of labour administration.
The labour policy of the Government of India.
The agencies of the central and state Governments
for administration of labour laws.
The functioning of the Ministry of Labour.
Chapter 05

Labour Administration in India

Structure

5.1

Indian Context

5.2

Labour Policy

5.3

Administrative Agencies

5.4

Attached Offices

5.5

Subordinate Offices

5.6

Autonomous Organizations

5.7

Summary

5.8

Self Assessment Questions

Chapter 05

Labour Administration in India

Introduction

Labour administration is a wide term. It is primarily

concerned with labour affairs and administration of
social policy.

The meeting of experts on labour administration held

in Geneva in October 1973 felt that, to deal with the
major
substantive
programmes
of
labour
administration, there should be central specialized
units for each of the five major subjects listed on the
next slide.
Chapter 05

Labour Administration in India

Introduction
1. Labour protection (formulation of standards
relative to working conditions and terms of
employment, including wages);
2. Labour inspection;
3. Labour relations;
4. Employment of manpower, including training; and
possibly
5. Social security.
Labour administration is not simply the responsibility
of the department of labour. Many agencies and
government departments are involved in it.
Chapter 05

Labour Administration in India

Introduction
They are chambers of commerce, factory and mines
inspectorate, social insurance directorate, department
of human resource development and education etc.
In some countries, the organizations of employers and
workers are also involved in the administration of
labour matters. But it is primarily the responsibility of
the department of labour to lay down, develop and
apply sound labour policies, coordinate various
recommendations
received
from
different
departments which have a bearing on labour affairs.
Chapter 05

Labour Administration in India

Introduction
Formulation of policy decisions is based on
consultation with other interests (particularly of
employers and workers organizations) and of
research and field investigation.
Most of the labour policy proposals may emanate
from the minister of labour himself or from his
department. The department of labour is the body
which receives most such proposals and initiates the
preparatory process.
In some cases, labour courts, arbitration bodies and
different ad hoc commissions can be regarded as
forming part of the labour administration machinery.
Chapter 05

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Introduction
These agencies, however, are outside the department
of labour. These bodies are either bipartite or
tripartite in character.
Most of the work done in department of labour is
either professional or technical. The meeting of
experts on labour administration viewed that labour
administration officials in particular services should
have the basic academic qualifications required for
such services (especially in law, economics, sociology,
administrative sciences, psychology, statistics,
actuarial sciences, medicine, engineering and so on).
Each country to determine exact qualifications.
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Introduction

It is a part of the job of labour administrator to give

effect to laws governing employment and conditions
of work.
Labour legislation is a necessary instrument for
governments administration of labour affairs.
Chapter 05

Labour Administration in India

Introduction
Standards established by legislation may be further
developed, complimented or applied through
administrative action. Legislation automatically entails
the prescribing of procedures for enforcement and
imposition of penalties.
A system of law is guarantee for peoples personal
safety, liberties and rights.
To maintain respect for the law in general, the adopted
laws must be strictly applied.
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10

Introduction

Chapter 05

Labour Administration in India

Labour administrators have a fundamental duty to

uphold the rule of law at all times. To inculcate a
respect for law, they must also remember the old
maxim that justice must not only be done, but
manifestly be seen to be done.
Labour law does not consist entirely of laws produced
by law makers. Unwritten customary and case law
deriving from generations of judicial practice also play
a role, particularly with regard to contracts, torts and
the right to receive compensation for damages. There
are countries where entire gamut of labour laws and
administration is codified.
11

Introduction

The greater number of non-statutory legal

requirements in the labour field are derived from the
practice of industrial relations. A highly developed
system of collective bargaining operated by strong
organizations of employers and workers can cut out
much of the need for subsidiary regulations.
There are various ways in which collective agreements
amplify the law and serve as an alternative to
statutory rule making.
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12

Introduction
Two basic principles governing such collective
agreements are :
a} there should be no conflict between the agreement
and the law; and
b} better terms and conditions will prevail;

i.e. an agreement may grant employees conditions

more favourable than the minimum laid down in the
law of the land.
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13

Introduction
It is a basic principle of modern law that, to be valid, a
contract has to involve a consideration, i.e.
something to be given in return for the other party's
performance of the contract; this is usually wages,
rent or purchase price. There are various forms of
contract of service, whether written or oral.
In certain countries, collective agreements are
contract binding on the parties. They would not
supersede the contracts of service of employers and
workers who were not parties to the agreement.
Chapter 05

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14

Introduction
However, in many countries, the legislation now states
that the terms of collective agreements with unions
that enjoy recognized bargaining status shall be
deemed to be legally binding on all persons in the
specified occupations in the industry or service for
which the agreement was made.
In such countries and in such cases the agreements
can be enforced in the courts. Consequently, in the
later case, labour inspectors are also involved in
enforcing these conditions just like the minimum
conditions laid down by the law.
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15

5.1

Indian Context

In the Government of India (Amendment) Act, 1919,

the Central Legislature was given the power to
legislate in respect of practically all labour subjects.
The Provincial Governments were empowered to
legislate only in respect of those labour matters which
were classified as Provincial.
But they were required to take sanction of the
governor general in respect of these subjects also. All
labour legislation was enacted by the Central
Legislature during this period.
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16

5.1

Indian Context

When the Whitley Commission reported in 1931, the

bulk of the labour problems within the jurisdiction of
the Government of India was dealt with by the then
Department of Industries and Labour under the charge
of a Member of the Governor Generals Executive
Council.
Its administrative head was a Secretary to
Government. While Industries and Labour was a sort
title for the department, it dealt with a variety of
subjects, such as Posts and Telegraphs, Public Works,
Civil Aviation, Patents & Copyrights and Broadcasting.
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17

5.1

Indian Context

The department, however, did not cover all labour

within the jurisdiction of the Central Government.
Questions regarding labour in docks and transport by
sea or inland water, were the concern of the
commerce department; matters pertaining to the
railway labour were dealt with by the Chief
Commissioner for Railways.
The Department of Education, Health and Lands
looked after emigrant labour. In the Chief Inspector of
Mines, the Department of Industries and Labour had
an adequate source of advice on all subjects relating
to mining labour.
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18

5.1

Indian Context

No specialist advice was considered necessary on the

conditions of work in factories, workmens
compensation, trade unions and trade disputes.
Administration of legislation as was there on these
matters was the responsibility of the Governments of
Presidencies / Provinces.
In the Provinces, the labour portfolio was handled by a
Member of the Executive Council who was responsible
also for other subjects. Labour problems had acquired
neither the vastness nor the complexity to warrant the
attention of a full time Member.
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19

Chapter 05

Labour Administration in India

5.1 Indian Context

Except in some industrially advanced Provinces which
had their respective Labour Officers for the limited
responsibilities they had to carry, no specialized
agency existed for administration. It is in this context
that the Whitley Commission recommended setting up
of the office of the Labour Commissioner in the
Provinces.
On the introduction of the Provincial autonomy under
the Government of India Act, 1935, labour was
included in the Concurrent List. Accordingly, Central
Legislature was empowered to enact labour legislation
in respect of matters exclusively included in the
Federal List.
20

5.1

Indian Context

Central and Sate Legislatures were given authority to

enact legislation in respect of all other matters.
When popular ministries took over administration
under the Government of India Act, 1935, labour
problems started attracting more attention. The
appointment of the Labour Commissioner in
industrially important provinces as recommended by
Whitley Commission did help labour.
However, problems of coordination still remained.
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21

5.1

Indian Context

The Labour Ministers Conference and the Indian

Labour Conference Standing Labor Committee (I.L.C.
/S.L.C.) which were the products of the forties, partly
met this need.
With the impact of the Second World War, the
machinery for labour administration at the Centre
expanded. According to the Rege Committee, which
reported on the eve of Independence, the institution
of Labour Officers under the Commissioner of Labour
to which workers could represent their grievances,
was well established in most provincial governments.
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22

5.1

Indian Context

The Government of India appointed under its Chief

Labour Commissioner, a number of Regional Labour
Commissioners and Conciliation Officers who were
entrusted with the duties of settling labour disputes.
The Chief Labour Commissioners office also had an
inspectorate for supervising the implementation of
labour laws.
The Government of India appointed labour Welfare
Advisers in its ordnance factories.
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23

5.1

Indian Context

An advisory service was constituted at the Center for

the factory inspectorates in the States which were
operating under the auspices of the State
Governments.

The Labour Bureau was established for collection,

compilation and publication of statistical and other
information regarding employment, wages, earnings,
industrial relations, working conditions and so on. A
network of national Employment Service and Training
Institutes was set up.
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24

5.1

Indian Context

The Five-Year Programme for Labour (1946) had many

elements in it requiring the strengthening of the
administration and intensifying its operations. The
legislative support given to the programme resulted
in:a) The creation of administrative machinery for the
implementation of new enactments and
b) The strengthening of the then existing set-up to
cope up with the additional functions entrusted to
it.
The expanding operations of the tripartite bodies also
added new responsibilities.
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25

5.1

Indian Context

The beginning of World War II in 1939 necessitated the

creation of an adequate and contented labour force in
order to maximize production for meeting the increased
demand of Indian manufactured goods. The Central
Government therefore, assumed wide powers to control
and regulate industrial labour welfare. The labour
department was strengthened and a machinery to deal
with industrial relations was created.
An integrated resettlement organization for demobilized
war personnel was established. For advising the
Government to improve working conditions in factories
a Chief Adviser of Factories was appointed.
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26

5.1

Indian Context

A new Department of Works, Mines and Power was

created and certain subjects which were having only
an indirect bearing on labour were transferred to this
department. This lessened the burden of the Labour
Department.
In pursuance of the decisions of the Provincial Labour
Ministers Conference in 1946 the Central Ministry of
labour chalked out a five year programme of legislative
and administrative measures for improving the health,
efficiency and working conditions of the labourers.
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27

5.1

Indian Context

At present there is a tripartite labour machinery. It

consists of the Indian labour Conference, the Standing
Labour Committee, the Industrial Committees and few
other committees of the tripartite nature. Labour
Ministers Conferences are also associated with it.
There is also a bipartite joint consultative Committee of
the Ministry of Labour and Employment. In addition
there are committees and boards such as Committee on
I.L.O. Conventions, Central Implementation and
Evaluation Committee, Steering Group on Wages, Wage
Board, Central Board for Workers Education, Central
Committee on Labour Research.
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5.1

Indian Context

According to the Constitution of India, the enactment

and administration of Labour laws is the responsibility of
both the Union and State Governments.
There are three lists, viz., the Union List, the Concurrent
List and the State List adopted in the Constitution. Laws
concerning the union, are made both by Parliament and
Legislature of any State and the laws of the State List are
made by States legislatures.
The principal matters of labour interest enumerated in
these three list are provided next.
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29

5.1

Indian Context

Union List
1. Participation in international conferences, associations
and other bodies and implementing decisions made
there.
2. Port quarantine, including hospitals connected
therewith, seamens and marine hospitals.
3. Regulation of labour and safety in mines and oilfields.
4. Industrial disputes concerning union employees.
5. Union agencies and institutions for:
a) professional, vocational or technical training.
b) the promotion of special studies or research.
6. Enquiries, surveys and statistics for the purpose of any
of the matters in this list.
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30

5.1

Indian Context

Concurrent List
1. Economic and social planning.

2. Trade Unions, Industrial and labour disputes.

3. Social security and social insurance; employment and

unemployment.
4. Welfare of labour, including conditions of work,

provident fund, employers liability, workmens

compensation, invalidity and old age pensions and
maternity benefits.
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5.1

Indian Context

Concurrent List
5. Vocational and technical training of labour.
6. Factories; and
Inquiries and statistics for the purpose any of the
matters specified in the concurrent list and the State list.
State List
1. Public order.
2. Public health and sanitation, hospitals
dispensaries.
3. Relief of the disabled and unemployable.
Chapter 05

Labour Administration in India

and

32

5.1

Indian Context

The governments of all the states have established

organizations for the administration and enforcement of
the various labour laws in force in their territories and
for the collection, compilation and dissemination of
statistical and other information relating to labour.
Every state has appointed labour commissioner for the
purpose of administration of labour laws and welfare
activities in their respective areas. These commissioners
are assisted by deputy labour commissioners and / or
assistant labour commissioners.
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33

5.1

Indian Context

Most of the states have also appointed chief inspectors

of factories and chief inspectors of boilers to administer
the Factories Act, 1948 and the Indian Boilers Act, 1923
respectively.
In addition, they have appointed commissioners of
workmens compensation under the Workmens
Compensation Act, 1923 and registrars of trade unions
under Trade Unions Act, 1926 and various other
authorities with a view to discharging labour
administration work in their respective jurisdictions.
Certain States have also special machinery for the
collection of labour statistics.
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34

5.2

Labour Policy

The term Labour Policy evokes a number of

overlapping concepts. Partly these relate to goals of
policy and in part to the means and instruments of
implementation.
There are, however, constraints in setting goals as well
as on means and instruments.
The term Labour Policy includes the treatment of
labour under constitutional, legislative and
administrative acts, rules and practices and various
precepts laid down in the successive five year plans.
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35

5.2

Labour Policy

The Labour Policy of a country is a product of her

history, tradition, political orientation and socioeconomic conditions and is highly influenced by the
development objectives pursued by her government.
It is an on-going process of adjustment corresponding
to different stages of economic development and the
power struggle between the social forces i.e.
government, employers and the trade unions.
Let us now have a look at the philosophy behind the
labour policy.
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36

5.2

Labour Policy

The Labour Policy derives its philosophy and content

from the Directive Principles of State policy as laid
down in the Constitution and has been evolving in
response to the specific needs of the situation and to
suit the requirements of planned economic
development and social justice.
In recognition of its duty to protect the working class
and promote its welfare, a blueprint on labour policy
a five year programme for labour was drawn up in
1946 when the interim National Government came to
power at the Centre.
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37

5.2

Labour Policy

Statutory prescription of
minimum wages in
sweated industries and
occupations in agriculture.

Main features of the

programme

Promotion of fair wage

agreements.

Steps to secure for

workers in plantations a
living wage.

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38

5.2

Labour Policy

Main features of the

programme

Legislation to regulate hours of work, spread over,

weekly rest periods, and holidays with pay for other
classes of workers not now subject to regulation, e.g.
those employed in shops and commercial
undertakings, road transport services, docks and
municipal labour.
Chapter 05 Labour Administration in India
39

5.2

Labour Policy

Main features of the

programme

Overhaul of the Factories Act with a view to

the prescription and enforcement of right
standards in regard to lighting, ventilation,
safety, health and welfare of workers.
Conditions of work are to be improved,
particularly in unorganized industries and
work places, to which the present Factories
Act does not apply.

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40

5.2

Labour Policy

Main features of the

programme

Revision of the Mines Act to

bring about similar improvement
in the working conditions in
mines.

Organization of industrial training and

apprenticeship schemes on a large scale with a
view to improving the productive and earning
capacity of workers and enabling them to qualify
for promotion to higher grades

Chapter 05

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41

5.2

Labour Policy

Main features of the

programme

Provision of adequate housing for

workers to the extent of the resources,
both of manpower and materials, that
can be made available for this service.

Steps to secure for workers in

plantations, mining and other
categories provision of
housing.
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42

5.2

Labour Policy

Main features of the

programme

Organization of the Health Insurance

Scheme, applicable to factory workers to
start with, for provision of medical treatment
and monetary relief during sickness,
maternity benefit on an extended scale,
medical treatment in the case of
disablement and the substitution of
pensions during periods of disablement and
to dependents, in case of death, in place of
the present lump sum payments.

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43

5.2

Labour Policy

Main features of the

programme

Revision of the Workmens

Compensation Act with a view to
extending to other classes of
workers the benefit provided for
under the Health Insurance
Scheme in respect of
disablement and dependent
benefit.
A central law for maternity benefits to secure for other
than factory workers the extended scale of benefits
provided under the health Insurance Scheme.

Chapter 05

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44

5.2

Labour Policy

Main features of the

programme

Extension to other classes of

workers the right, within specified
limits, to leave with allowance
during periods of sickness.

Provision of crches and

canteens.

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45

5.2

Labour Policy

Main features of the

programme

Welfare of the coal mining

labour and welfare of the
mica mining labour.

Strengthening of the
inspection staff and the
inspectorate of mines.

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46

5.2

Labour Policy

As would be seen from subsequent events, many

elements of the programme were given legislative
support in the years 1947 to 1952. The Constituent
Assembly which was set up soon after independence
took note of the Plan and its deliberations. The
Constitution finally adopted, contained several articles
which reflect the general desire of the community to
stand by the working class.
Articles 36 to 51, Part IV of the Indian Constitution,
make provisions regarding the Directive Principles of
State Policy.
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5.2

Labour Policy

They reflect the principal goal of our sovereign

democratic republic and a welfare state. Along with
the chapter on the Fundamental Rights, it constitutes
the essence of the Indian Constitution. These two
chapters are the conscience keepers of our
Constitution.
The directive principles are instructions to various
governmental agencies to be followed in governance
of the country. It shall be the duty of the Government
to treat these principles as guidelines while enacting,
administering and interpreting the laws.
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5.2

Labour Policy

The provisions contained in the Directive Principles

shall not be enforceable by any Court, but they are
nevertheless fundamental in the governance of the
country and it shall be the duty of the State to apply
these principles in making laws.
The Directive Principles, however, differ from
fundamental rights contained in Part III of the
Constitution or the ordinary laws of the land in as
many as four respects as enumerated in the next
slide.
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5.2

Labour Policy

i.

The Directive Principles are not enforceable in the

courts and do not create any justiciable rights in
favour of individuals.
ii. The Directive Principles require to be implemented
by legislation, and so long as there is no law
carrying out the policy laid down in a directive,
neither the State nor an individual can violate any
existing law or legal rights under cover of following
a directive.
iii. The court cannot declare any law as void on the
ground that it contravenes any of the Directive
Principles.
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5.2

Labour Policy

iv. The courts are not competent to compel the

Government to carry out any directive or to make
any law for that purpose.
There are three more broad propositions laid down on
Fundamental Rights : 1. There is no disharmony between the Directive
Principles and the Fundamental Rights, because
they supplement each other in aiming at the same
goal of bringing about a social revolution and the
establishment of a welfare state.
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5.2

Labour Policy

2. Even the conditions for the exercise by each

individual of his Fundamental Rights cannot be
ensured unless and until the Directive Principles
are implemented.

3. Parliament is competent to amend the

Constitution to override any of the Fundamental
Rights in order to enable the State to implement
the Directive Principles, so long as the basic
features of the Constitution are not affected.
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5.2

Labour Policy

The Directive Principles cannot override the

Fundamental Rights. In determining the scope and
ambit of the Fundamental Rights, the Court may not
entirely ignore the Directive Principles and should
adopt the principle of harmonious construction so as
to give effect to both as much as possible.

There are five articles in the Constitution which

contain the Directive Principles of State Policy which
have bearing on labour. They are listed next.
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5.2

Labour Policy

38. (a) 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.
38. (b) The state shall, in particular, strive to minimize
the inequalities in status.

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5.2

Labour Policy

39. The state shall, in particular, direct its policy

towards securing
(a) That citizens, men and women equally, have
the right to an adequate means of livelihood.
(b) That there is equal pay for equal work both
for men and women.
(c) That the operation of the economic system
does not result in the concentration of wealth
and means of production to the common
detriment.
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5.2

Labour Policy

39. The state shall, in particular, direct its policy

towards securing contd.
(d) That the health and strength of workers,
men and women, and the tender age children
are not abused and that citizens are not forced
by economic necessity to enter a vocation
unsuited to their health or age.
(e) That childhood and youth are protected
against exploitation and against moral and
mental abandonment.
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5.2

Labour Policy

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, and in other cases of
undeserved want.
42. The state shall make effective provision for
securing the just and humane conditions of work and
for maternity relief.
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5.2

Labour Policy

43. The state shall endeavour to secure, by suitable

legislation or economic organization or in any other
way, to all workers, agricultural, industrial or
otherwise, work, a living wage, conditions of work
ensuring a decent standard of life and full enjoyment
of leisure and social and cultural opportunities and in
particular, the State shall endeavour to promote
cottage industries on an individual or co-operative
basis in rural areas.
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5.2

Labour Policy

Under the Constitution, the legislative powers in

different fields of Government activity are shared by
the Central and State Governments, in accordance
with the lists which form a part of the Constitution
the Union List, the Concurrent List and the State List.
The Parliament has exclusive powers to make laws on
matters enumerated in the Union List. The State
Legislatures have powers to legislate for the State or
any part thereof on any matter enumerated in the
State List.
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5.2

Labour Policy

Both the Parliament and the State Legislatures have

powers to make laws with respect to matters
enumerated in the Concurrent List. To avoid any
possible conflict, certain safeguards are provided for
subjects on which both Centre and State can legislate
Labour is a subject which is included in the Concurrent
List.
The Legislative support for the programme was given
partly by adopting three methods:Chapter 05

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5.2

Labour Policy

1. Strengthening the then existing legislation through

suitable amendments;
2. Overhauling some of it ; and
3. Supplementing it by new statutes where none had
existed before.

The important pieces of labour legislation which

evolved through all these processes could be divided
into following six main groups.
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5.2

Labour Policy

1. Legislation about employment and training such as

the Dock Workers Regulation of Employment Act ,
1948; the Employment Exchanges (Compulsory
Notification of Vacancies) Act, 1959; the
Apprentices Act, 1961; the Tea District Emigrant
Labour Act, 1932 and so on.
2. Legislation on working conditions. This covers the
Factories Act, 1948; the Plantations Labour Act,
1951; the Mines Act, 1952; the Motor Transport
Workers Act 1961; and legislation related to safety
of workers , like the Indian Dock Labourers Act,
1934.
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5.2

Labour Policy

2. There have been Acts like the Children (Pledging of

Labour) Act, 1933; the Employment of Children
Act, 1938; the madras Bidi Industrial premises
(Regulation of Conditions of Work) Act, 1958; the
Kerala Bidi and Cigar Industrial Premises
(Regulation of Conditions of Work) Act, 1961, so
on.
3. Legislation on labour management relations such
as the Trade Unions Act,1926; the Industrial
Employment (Standing Orders) Act, 1946; the
Industrial Disputes Act, 1947; and legislation
enacted in some states Bombay, MP & UP.
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5.2

Labour Policy

4. Legislation on wages, earning and social security

which covers the Payment of Wages Act, 1935; the
Employees State Insurance Act, 1948; the Coal
Mines Provident Fund and Bonus Act, 1948; the
Minimum Wages Act, 1948; the Employees
Provident Fund Act, 1952; the Assam Tea Plantations
Provident Fund Schemes Act. 1955; Working
Journalists (Conditions of Service and Miscellaneous
Provisions) Act, the Payment of Bonus Act, 1965; the
Workmens Compensation Act, 1923; and the
Maternity Benefits Act, (Central & States)
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5.2

Labour Policy

5. Legislation on welfare like the Mica Mines Labour

Welfare Fund Act, 1946; the Coal Mines Labour
Welfare Fund Act, 1947, the U.P. Sugar and Power
Alcohol

Industries

Labour

Welfare

and

Development Fund Act, 1950; the Bombay Labour

Welfare Fund Act, 1953; the Assam Tea Plantation
Employees Welfare Fund Act, 1959; the Iron Ore
Mines Labour Welfare Cess Act, 1961.
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5.2

Labour Policy

6. Miscellaneous Legislation - the Industrial Statistics

Act, 1942, the Collection of Statistics Act, 1953; the
Industrial Development and Regulation Act, 1951,
the Companies Act, 1954 and so on.

The legislation mentioned above is illustrative and not

exhaustive. It is possible that many State Acts have not
figured in the above list. In addition to this labour
code, voluntary arrangements which evolved in
tripartite discussions have added to the benefits
which are expected to accrue to labour.
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5.2

Labour Policy

In this category fall the recommendations of the

Indian Labour Conference, the Standing Labour
Committee and Industrial Committees. The benefits
which workers received out of the Wage Board awards
so far owe their origin to the tripartite decision that
the unanimous recommendations of the Wage Board
will be given effect to.
The Code of Discipline, which provides for recognition
of unions, setting up of a grievance procedure, has
also been the result of a tripartite agreement.
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5.2

Labour Policy

The arrangements for housing in plantations were

evolved out of an agreement in the Industrial
Committee on Plantations. The introduction of the
workers education scheme, setting up of fair price
shops in industrial establishments and the agreement
on guidelines for introduction of rationalization are
some other important matters which have emerged
out of tripartite agreements.
The evolution of labour policy, during the Five year
Plans, has been based upon and is linked with the
programme of the over-all economic development of
the country.
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5.2

Labour Policy

The Planning Commission sought to provide a

concrete shape to the legitimate needs and aspirations
of the working classes which included fair wages,
suitable working and living conditions, social security
etc. With the acceptance of a socialistic pattern of
society as the legitimate goal of economic
development, there was a corresponding shift in the
labour policy.
This was reflected in the experiment of workers
participation in management through the machinery
of joint consultation.
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5.2

Labour Policy

National Five-Year
Plans

Another important shift in the labour policy was the

emphasis on collective bargaining in the promotion of
healthy industrial relations. The plans also laid stress
on the administrative aspects of the enforcement and
implementation machinery.
Emphasis was also laid on voluntary approach to the
solution of labour problems as witnessed by the
promulgation of the Code of Discipline in Industry,
Code of Conduct, Industrial truce resolution, and the
various recommendations of tripartite bodies like
Indian Labour Conference and the Standing Labour
Committee.
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5.2

Labour Policy

According to the National Commission on Labour the

main postulates of labour policy operating in the
country in the last twenty years could be summed up
as follows:

i. Recognition of the state, the custodian of the

interests of the community, a the catalyst of
change and welfare programmes.

ii. Recognition of the right of workers to peaceful

direct action if justice is denied to them.
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5.2

Labour Policy

iii. Encouragement to mutual settlement, collective

iv.
v.
vi.

vii.

bargaining and voluntary arbitration.

Intervention by the State in favour of the weaker
party to ensure fair treatment to all concerned.
Primacy to maintenance of industrial peace.
Evolving partnership between the employer and
employees in a constructive endeavour to
promote the satisfaction of economic needs of the
community in the best possible manner.
Ensuring fair wage standards and provision of
social security.
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5.2

Labour Policy

viii. Co-operation for augmenting production and

increasing productivity.
ix. Adequate enforcement of legislation.
x. Enhancing the status of the worker in industry.
xi. Tripartite consultation.
The thrust of the recent labour policy is more towards
creating a climate of healthy industrial relations and
promoting an industrial culture conducive to
improvement in efficiency, productivity, and real
wages.
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5.3

Administrative Agencies

The pattern of administrative machinery differs from

state to state depending upon the industrial
development in the state and also the state of
development
of
employers
and
workers
organizations.
The administrative agencies for implementing the
policies adopted by Governments, the laws enacted by
the Parliament / State legislature, and decisions taken
by tripartite bodies at the Centre / State have been
built up by four organizations. They are:Chapter 05

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5.3

Administrative Agencies

1.
2.
3.
4.

The Central Government.

State Governments.
Local Bodies and
Statutory Corporation Boards.

The authority to set up an agency will depend upon

the statute to be administered or agreement to be
enforced and the decision taken by Governments and
parties to the agreement as how it should be
administered. Tradition also has played its part in
reaching decisions.
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5.3

Administrative Agencies

Administrative convenience has been stated to be the

main consideration behind the decisions so far. The
fact remains, however, that no uniform basis is
discernible in these decisions. For instance, though the
Central Government lays down standards and
exercises coordinating functions in the matter of
employment and training, the Employment Exchanges
(Compulsory Notification of Vacancies) Act, 1959; and
the Apprentices Act 1961; are administered by the
State Governments. The Dock Workers (Regulation of
Employment) Act, 1948; is administered by a statutory
board.
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5.3

Administrative Agencies

The Centre is responsible for the administration of the

Mines Act, 1952 and the Indian Dock Labourers Act
1934, but other enactments having the same
objective, viz., the factories Act 1948, the Plantations
Labour Act 1951; and the Motor transport Workers
Act, 1961; have been entrusted to the State
Governments for administration.
There is yet a third variation the enactment for
regulating conditions of work in shops and commercial
establishments which is the state legislation, is
administered in some states through local bodies.
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5.3

Administrative Agencies

Legislation of labour management has been, by and

large, the Centres responsibility, but implementation
is with State Governments except in regard to
industries for which the Central Government is
designated as the Appropriate Government. The
Trade Unions Act, 1926; and to a great extent the
Industrial Employment (Standing Orders) Act, 1946,
are administered by the State Governments.
Statutory Corporation administers the Employees
State Insurance Act, 1948.
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5.3

Administrative Agencies

But workmens compensation cases and cases of

maternity benefit not covered by the corporation are
the responsibility of the state governments. The
Employees Provident Fund Act, 1952; and the Coal
Mines provident Fund Scheme, 1948; have statutorily
created by the Central or State Governments, but
administrative departments share this responsibility in
some cases.
Some aspects of labour welfare are a direct charge on
the central / state resources and the respective
departments use appropriations from year to year.
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5.3

Administrative Agencies

Generally, the ownership of the unit, whether public

or private makes no difference central or state to be
entrusted with implementation. Goods or services
which the unit provides and the nature of right / duty
cast on the party, become a criterion for attracting the
jurisdiction of the relevant agency.
In the establishments owned by the Central
Government, the factory inspectorate of state
government enforces the provision of the Factories
Act, 1948.
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5.3

Administrative Agencies

For the departmentally run industrial undertakings of

the Central Government, the industrial relations is the
concern of the Central Government. On the other
hand, industrial relations in central public sector
companies is a responsibility of the State Government
concerned.
Arrangements differ in the case for certification of
standing
orders.
Public
sector
industrial
establishments in which the Central Government has
51% shares or more, get them certified by a machinery
of the Central Government
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5.3

Administrative Agencies

The next agency for administration is local bodies.

Their jurisdiction is limited. ; it is restricted to
providing the inspectorate for implementing the
legislation
about
shops
and
commercial
establishments.
Some local bodies manage transport undertakings;
many others run a host of services in public interest.
But in these functions they are in the position of an
employer and not a third party administering labour
legislation.
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5.3

Administrative Agencies

The differences between the local bodies and their

employees are labour disputes within the purview of
the Industrial Disputes Act.
In considering the responsibility of local bodies as
administrators of labour law, it is only the former
function with reference to shops and commercial
establishments which is important.
With the growing consciousness among the
employees covered by the Acts, as also the increase in
the number of employees in this category, the
implementation arrangements will acquire a measure
of urgency in the years to come.
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5.3

Administrative Agencies

The Government has set up independent corporations

/ boards for administering the benefits under the
welfare and social security legislation enacted by it.
Such corporations / boards have varying degrees of
autonomy according the involvement of public funds
in them.
The policies for the working of these agencies are
settled by tripartite bodies set up for the respective
corporations / boards either under the relevant
statutes or by Government.
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5.3

Administrative Agencies

The Ministry of Labour and Employment of the Central

Government is the main agency for policy formulation
and administration of all labour matters. Within the
Government, the labour Ministry inter alia initiates
action on labour matters. Keeps Parliament informed
and seeks guidance from it.
Further, it advises other Ministries / Departments and
the public sector corporations set up by them, keeps
in touch with the State Governments, holds
discussions
with
employers
and
workers
organizations for settling disputes.
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5.3

Administrative Agencies

It also organizes tripartite conferences, controls the

specialized directorates / agencies set up by it and
generally looks after interest of labour consistent with
the broader economic and social policies of
Government.
Other
Ministries / Departments have the
responsibility of settling their own labour problems.
The labour ministry comes in only in case of difference
of opinion between them.
This is broadly the approach, both in regard to
departmental labour and labour engaged in units
managed by the public sector.
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5.3

Administrative Agencies

The Labour Ministry is the channel of communication

between the Central Government and the
International Labour Organization in all matters of
standard setting at the international level and
administering technical co-operation programmes.

The functions of the Labour ministry have expanded

with the enlarged responsibilities of the Government
as a whole.
This is reflected in the increasing size of the Ministry in
the last thirty years.
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5.3

Administrative Agencies

The Ministry of Labour at the Centre is responsible for

looking after the subjects which appear in the Union and
Concurrent Lists of the Seventh Schedule of the
Constitution of India. These subjects include: Industrial relations.
Wages.
Employment.
Emigration.
Labour welfare; and
Social security measures for which the ministry has to
formulate, review and implement national policies.
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5.3

Administrative Agencies

The Ministry of Labour looks after: Labour policy and registration.

Safety, health and welfare of labour.
Social security of the labour.
Policy relating to special target groups, such as

women and child labour; and

Employment services and vocational training.
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5.3

Administrative Agencies

Its other responsibilities are those relating to

o Enforcement of labour laws, and conciliation of
industrial disputes in the central sphere,
o Constitution and administration of Central
Government industrial tribunals and labour courts
as well as national industrial tribunals,
o Administration of the central labour service,
o And matters relating to employment of labour,
tripartite labour conference and international
labour.
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5.3

Administrative Agencies

Once the national policy is evolved, its implementation

is generally the responsibility of State Governments,
except matters falling exclusively in the central sphere,
e.g. railways, mines, oil fields, major ports, banks,
insurance companies (only in respect of those which
have branches in more that one State) and other
undertakings appearing in the union list and for which
the Central Government has the direct responsibility in
respect of labour relations.
The ministry also implements, through its network of
field offices, various social security and labour welfare
enactments.
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5.3

Administrative Agencies

For imparting training facilities for skills improvement,

the ministry provides facilities for imparting such
skills. The ministry also deals with ILO and ISSA so as
to bring the activities in the labour field to the
international standards.
The work relating to emigration of Indian workers to
overseas employment is managed through the
controller of emigration and his field offices.

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5.4

Attached Offices

The attached offices are responsible for the following

important functions:The Directorate General of Employment and
Training is responsible for laying down the policies,
procedures, standards and overall coordination of
employment services and vocational training
programmes throughout the country.
The Chief Labour Commissioner (Central) is
responsible for Chapter 05

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5.4 Attached Offices

i. Prevention, investigation and settlement of
industrial disputes in the central sphere;
ii. Enforcement of awards and settlements;
iii. Implementation of labour laws in industries and
establishments in respect of which the Central
Government is the appropriate government.
iv. Verification of membership of unions affiliated the
central organization of workers for giving them
representation on national and international
conferences and committees; and
v. Fixation and revision of minimum wages under the
Minimum Wages Act 1948, in the central sphere of
scheduled employments
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5.4

Attached Offices
The Directorate General of Factory Advice Service
and Labour Institutes is concerned with the safety,
health and welfare of workers in factories and
docks. It is responsible for coordinating the
implementation of the factories Act, 1948, by the
State Governments and formulation of model rules
thereunder. It is also concerned with the
administration of the Dock Workers (Safety, Health
and Welfare) Act, 1986. It undertakes research in
industrial safety, occupational health, industrial
hygiene, industrial physiology and psychology.
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5.4

Attached Offices
It provides training mainly in the field of industrial
safety, health including diploma course of one year
duration in industrial safety and certificate course
in industrial health. The diploma is an essential
qualification for appointment as a safety officer and
the certificate course for appointment of medical
officer in factories. Regular training of factory
inspectors is another important training activity.

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5.4

Attached Offices
The Labour Bureau is responsible for collection,
compilation, and publication of statistical and other
information regarding employment, wages,
earnings, industrial relations and working
conditions. It also compiles and publishes the
Consumer Price Index numbers for industrial and
agricultural workers. The Bureau also renders
necessary assistance to the States for conducting
training programmes in labour statistics at state /
district / unit level.
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5.5

Subordinate Offices

These offices are responsible for:(i) The Directorate General of Mines Safety is
entrusted with enforcement of the provisions of the
Mines Act, 1952; and the rules and regulations framed
thereunder. Besides, the Maternity Benefit Rules
framed under the Maternity Benefit Act, 1961; in
respect of mines are also administered by this
Directorate. The provisions of the Indian Electricity
Act, 1910; as applicable to mines and oilfields, are also
enforced by it.
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5.5

Subordinate Offices

These offices are responsible for:(ii) The offices of Welfare Commissioners are
responsible for providing welfare facilities to the
workers employed in mica, lime-stone and dolomite,
iron-ore, manganese and chrome ore mines and the
beedi and cinema industries.
(iii) Industrial Tribunal-cum-Labour Courts have been
set up under the provisions of the Industrial Disputes
Act,1947; for the adjudication of industrial disputes in
which the Central Government is the appropriate
government.
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5.5

Subordinate Offices

These offices are responsible for:(iv) The Board of Arbitration (JCM), set
up under the Scheme for Joint
Consultative Machinery (JCM) and
Compulsory Arbitration, is an institution
for compulsory arbitration of disputes
between the government employees
and the government on pay and
allowances, weekly hours of work, leave
etc.
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5.6

Autonomous Organizations

Six Autonomous Organizations under the Ministry of

Labour and their responsibilities.
1. The Employees State Insurance Corporation
Implementation of the Employees State Insurance
Act , 1948 which provides for medical care and
treatment to members and their families, cash
benefits
during
sickness, maternity and
employment injury and pension to dependents on
death of worker due to employment injury.
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5.6

Autonomous Organizations

Six Autonomous Organizations under the Ministry of

Labour and their responsibilities.
2. The Employees Provident Fund Organization
Implementation of provident fund rules, family
pension and deposit linked insurance scheme under
the Employees Provident Fund and Miscellaneous
Provisions Act, 1952.

3. The National Safety Council

Promotion of safety consciousness among workers
through publicity and propaganda including audio
visual aids.
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5.6

Autonomous Organizations

Six Autonomous Organizations under the Ministry of

Labour and their responsibilities.

4. The Central Board of Workers Education

The schemes of training workers in the techniques
of trade unionism and in bringing about
consciousness among workers about their rights,
duties and responsibilities..
The programmes for rural workers education and
functional adult education.
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5.6

Autonomous Organizations

Six Autonomous Organizations under the Ministry of

Labour and their responsibilities.

5. The National Labour Institute

Action oriented research and provision of training
to grass root workers in the trade union movement,
both in urban and rural areas, and also to officers
dealing with industrial relations, personnel
management and labour welfare.
6. The national Council for Safety
Enhancing safety consciousness among miners.
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5.6

Autonomous Organizations

At the secretariat level, the functions of the

department are more or less similar to those of the
Central ministry but confined to industries for which
the State Government is the appropriate government.
While the state labour secretary is in overall charge
both of policy and administration, the Commissioner
of Labour in the State is the operative arm for the
implementation of labour laws.
In all states, the functions of the Registrar of Trade
Unions are performed by the Commissioner.
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5.6

Autonomous Organizations

While the Commissioner exercises jurisdiction over the

administration of labour laws, the adjudicatory
functions vest either with industrial tribunals or
industrial courts as the case may be.
Dealing with complaints about non-implementation of
agreements /
awards is, by and large, the
responsibility of labour courts.
Settlement of the claims under the Employees
Compensation Act, 1923; and the payment of Wages
Act, 1936; and similar statutes are dealt by judicial
authorities.
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5.6

Autonomous Organizations

However, in some states like Haryana and Rajasthan,

officers of the labour department hear the cases. The
inspectorate for this purpose is provided by the
Commissioners Office.
In states where no separate authority exists for labour
welfare, the Commissioner is expected to supervise
these activities also.
The Commissioner is thus the kingpin of labour
administration at the state level. That is the reason
that in some states he has been an ex-officio
secretarial status.
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5.7

Summary

Labour administration refers to those parts of the

government machinery, and to those public
authorities, which are directly concerned with the
social and labour policy of a country.

It also includes certain boards, institutes, centres or

other bodies which are not an integral part of
government machinery but to which the government
has delegated certain specific areas of labour and
social policy.
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5.7

Summary

Labour administration systems in the third world are

changing rapidly.

It used to be a government tool mainly for the

preparation and implementation of labour legislation
and for the settlement of labour disputes.
It gradually evolved into something much broader,
extending its concern to employment policy, training,
the special problems of the unorganized, the
expansion of social security schemes and other
matters.
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5.8

Self Assessment Questions

1. What is the historical perspective

behind the labour policy of the
Government of India?
2. What are the landmarks of
labour administration in India?

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With this we come to an end of this session on

Labour Administration in India

Chapter 5

Good Luck !
111