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Social Security For Workers in Unorganised Sector With Special Reference

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SOCIAL SECURITY FOR WORKERS IN UNORGANISED

SECTOR WITH SPECIAL REFERENCE TO WOMEN

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WORKERS: PROBLEMS AND PERSPECTIVES

Thesis submitted in partial fulfilment of the


Degree of Doctor of Philosophy (Ph.D) in Law
to The Tamil Nadu Dr. Ambedkar Law University, Chennai
By

P.BALAMURUGAN
Part-time Research Scholar
The Tamil Nadu Dr.Ambedkar Law University
Chennai – 600 028

Under the Supervision and Guidance of

Dr. A. DAVID AMBROSE, B.Sc., M.L., Ph.D (Law)


Professor and Head, Department of Legal Studies
University of Madras
Chennai 600 005.

THE TAMIL NADU DR.AMBEDKAR LAW UNIVERSITY


CHENNAI-600 028

JUNE 2015
ii

UNIVERSITY OF MADRAS
CHEPAUK, CHENNAI- 600 005

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Dr. A. DAVID AMBROSE Ph.D (Law) Department of Legal Studies
Professor and Head Phone: +91-44-25399677
Mobile: +91-9444152826
Email: profambrose@yahoo.co.in

CERTIFICATE

I certify that the Thesis entitled “SOCIAL SECURITY FOR

WORKERS IN UNORGANISED SECTOR WITH SPECIAL

REFERENCE TO WOMEN WORKERS: PROBLEMS AND

PERSPECTIVES” submitted for the Degree of the Doctor of

Philosophy/Doctor of Laws by Mr.P.BALAMURUGAN, is the record of

research work carried out by him during the period July 2007 to

June 2015 under my supervision and guidance, and that this work

has not formed the basis for the award of any degree, diploma,

associateship, fellowship or other titles in this University or any

other University or Institution of Higher Learning.

Place : Dr. A. DAVID AMBROSE


Date : Professor and Head,
Department of Legal Studies
University of Madras,
Chennai – 600 005.
iii

DECLARATION

I declare that the Thesis entitled “SOCIAL SECURITY FOR

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WORKERS IN UNORGANISED SECTOR WITH SPECIAL

REFERENCE TO WOMEN WORKERS: PROBLEMS AND

PERSPECTIVES” submitted by me for the Degree of the Doctor of

Philosophy/Doctor of Laws is the record of work carried out by me

during the period July 2007 to June 2015 under the guidance of

Prof. (Dr.) A. DAVID AMBROSE, Professor and Head, Department of

Legal Studies, University of Madras, Chennai and has not formed the

basis for the award of any degree, diploma, associateship, fellowship

or other titles in this University or any other University or Institution

of Higher Learning.

Place : (P.BALAMURUGAN)

Date :
iv

ACKLOWDEGEMENT

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I express my profound sense of indebtedness to
Prof. (Dr.) A. DAVID AMBROSE, Professor and Head, Department of
Legal studies, Madras University, Chennai for his constant
supervision, scholarly guidance, moral support and never ending
encouragement rendered throughout the period of research. My task
has been facilitated by his good wishes, kind care and patience,
bringing the thesis to its present form.

I would like to extend my heartfelt gratitude to our beloved


Prof. (Dr) P. Vanangamudi, Vice-Chancellor, The Tamil Nadu
Dr.Ambedkar University, Chennai for his unstinting support and
encouragement during pursuit of my research.

I owe my sincere thankfulness to the Prof. (Dr.)


R.Ragunatha Reddy, Dean, Research Studies, The Tamil Nadu Dr.
Ambeddkar University for his constant enquiry and pushing me
ahead in this endeavour of completing research.

I also convey my thanks to Prof. (Dr.) D. Gopal, Director,


U.G Studies, The Tamil Nadu Dr. Ambedkar Law University for his
encouragement in doing my research work.

I extend my acknowledgement to all the Doctoral Committee


members for their valuable suggestions rendered during pre
presentation of my research.

I express my thanks to my friends, whose affection, co-


operation and constant encouragement made this effort worthwhile
and possible.

I also thank all those persons who helped me directly or


indirectly in successfully completing the research.
v

TABLE OF CONTENTS

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CHAPTER NO. TITLE PAGE NO.

CERTIFICATE ii
DECLARATION iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
ABBREVIATIONS xx
LIST OF CASES xxiii

1. INTRODUCTION 1-20
1.1 WOMEN WORKERS IN UNORGANISED
SECTOR 10
1.2 SIGNIFICANCE OF THE STUDY 14
1.3 OBJECTIVES OF THE STUDY 15
1.4 SCOPE AND LIMITATIONS OF THE STUDY 16
1.5 HYPOTHESES FORMULATED 17
1.6 METHODOLOGY ADOPTED 18
1.7 SCHEME OF THE STUDY 18

2. CONCEPT, ORIGIN AND DEVELOPMENT


OF SOCIAL SECURITY 21-68
2.1 CONCEPT OF SOCIAL SECURITY 21
2.2 ANALYSIS OF VARIOUS DEFINITIONS
OF SOCIAL SECURITY 22
2.3 NEED FOR SOCIAL SECURITY 26
2.4 CHARACTERISTICS OF SOCIAL SECURITY 27
vi

CHAPTER NO. TITLE PAGE NO.

2.4.1 Social Assistance 28


2.4.2 Social Insurance 29
2.4.3 Similarities and Differences
between Social Assistance
and Social Insurance 30
2.5 AIM OF SOCIAL SECURITY 31
2.5.1 Compensation 31
2.5.2 Restoration 31
2.5.3 Prevention 32
2.6 SOCIAL SECURITY AND HUMAN RIGHTS 32
2.7 CONSTITUTIONAL STATUS OF SOCIAL
SECURITY IN INDIA 33
2.7.1 To Secure a Social Order for the
Promotion of Welfare of the People 34
2.7.2 Directives to the State to Secure
Social Security Measures while
Enacting Legislations 34
2.7.3 Right to Work, to Education and to
Public Assistance in Certain Cases 35
2.7.4 Provision for Just and Humane
Conditions 36
2.7.5 Living Wage, etc. for Workers 36
2.8 ORIGIN AND DEVELOPMENT OF
SOCIAL SECURITY 38
2.8.1 From Nomadic Period to the
Modern Factory System 38
2.8.2 Pastoral Stage 39
2.8.3 Agricultural Stage 39
vii

CHAPTER NO. TITLE PAGE NO.

2.8.4 Handicrafts Stage 39


2.8.5 Workshop Stage 40
2.8.6 Industrial Revolution 40
2.9 HISTORICAL DEVELOPMENT OF
SOCIAL SECURITY IN INDIA 43
2.9.1 Pre-Independence Phase 44
2.9.1.1 Hindu Period 44
2.9.1.2 Muslim Period 45
2.9.1.3 British Period 46
2.9.1.4 Impact of Two World Wars 47
2.9.1.5 Royal Commission on Labour 47
2.9.1.6 Scheme by Professor
B.P. Adarkar Committee 48
2.9.2 Post Independence Phase 48
2.10 DEVELOPMENT OF SOCIAL SECURITY
DURING FIVE YEAR PLANS 49
2.10.1 First Five Year plan (1951-1956) 50
2.10.2 Second Five Year Plan (1956-1961) 51
2.10.3 Third Five Year Plan (1961-1966) 53
2.10.4 Fourth Five Year Plan (1969-1974) 54
2.10.5 Fifth Five Year Plan (1974-1979) 55
2.10.6 Sixth Five Year Plan (1980-1985) 55
2.10.7 Seventh Five Year Plan (1985-1990) 56
2.10.8 Eighth Five Year Plan (1992-1997) 57
2.10.9 Nineth Five Year Plan (1997-2002) 58
2.10.10 Tenth Five Year Plan (2002-2007) 59
2.10.11 Eleventh Five Year Plan (2007-2012) 61
2.10.12 Twelfth Five Year Plan (2012-2017) 64
viii

CHAPTER NO. TITLE PAGE NO.

3 ROLE OF INTERNATIONAL LABOUR


ORGANISATION IN PROMOTING SOCIAL
SECURITY 69-126
3.1 ILO AND SOCIAL JUSTICE 70
3.1.1 Basic Principles of ILO 70
3.1.2 Means of Governance 72
3.2 POWERS AND FUNCTIONS OF THE
ILO ORGANS 73
3.2.1 International Labour Conference 73
3.2.1.1 Powers and Functions of the
General Conference 75
3.2.1.2 Legislative Powers and
Functions 76
3.2.1.3 Administrative Powers and
Functions 77
3.2.1.4 Financial and Budgetary
Powers and Functions 78
3.2.2 Governing Body 78
3.2.2.1 Powers and Functions of
Governing Body 79
3.2.3 International Labour Office 81
3.2.3.1 Powers and Functions
of International Labour
Office 81
3.3 ILO ON HUMAN RIGHTS OF WORKERS 82
3.3.1 Freedom of Association and
Right to Collective Bargaining 83
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CHAPTER NO. TITLE PAGE NO.

3.3.2 Conventions concerning Forced


Labour 84
3.4 ILO AND SOCIAL SECURITY 86
3.4.1 Conventions and Recommendations
concerning Medical Care and
Sickness Benefit 87
3.4.2 Invalidity, Old Age and Survivors’
Benefits Convention (No.128)
of 1967 90
3.4.3 Conventions and Recommendations
relating to Employment Injury Benefit 93
3.4.4 Convention (No.102) of 1952
concerning Minimum Standards
of Social Security 100
3.5 ILO CONVENTIONS AND RECOMMENDATIONS
TO PROMOTE GENDER EQUALITIES AND
WOMEN RIGHTS 105
3.5.1 ILO Conventions and
Recommendations relating to
Employment of Women 107
3.5.2 Conventions and Recommendations
relating to Maternity Benefits 110
3.5.3 Conventions relating to Safe
Working Condition and Protection
of Women Employees 113
3.5.3.1 Employment of Women
During the Night Convention
No.4 of 1919 113
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CHAPTER NO. TITLE PAGE NO.

3.5.3.2 Employment of Women


During Night (Revised)
Convention (No.41) of 1934 114
3.5.3.3 Night Work by Women
Employed in Industry
(Revised) Convention
(No.89) of 1948 114
3.5.3.4 Night Work Convention
(No.171) of 1990 115
3.5.3.5 Underground Work
(Women) Convention
(No.45) of 1935 115
3.5.3.6 Reduction of Hours of Work
Recommendation (No.116)
of 1962 115
3.5.3.7 ILO’s Maximum Weight
Convention (No.127) of 1967 116
3.5.3.8 ILO’s Occupational Health
Services Convention,
(No.161) of 1985 116
3.5.3.9 Welfare Facilities
Recommendation
(No.102) of 1956 117
3.5.3.10 ILO’s Home Work Convention
(No.177) of 1996 117
3.5.3.11 Decent Work for Domestic
Workers Convention (No.189)
and Recommendation
(No.201) of 2011 117
xi

CHAPTER NO. TITLE PAGE NO.

3.5.3.12 Decent Work for Domestic


Workers Recommendation
(No.201) of 2011 118
3.6 UNITED NATIONS INSTRUMENTS AND
HUMAN RIGHTS OF WOMEN 119
3.6.1 The Convention on Elimination of
all forms of Discrimination Against
Women, 1979 119
3.6.2 Human Rights of Women 121
3.7 IMPACT OF ILO ON INDIAN LABOUR
LEGISLATIONS 122

4. AN ANALYSIS OF SOCIAL SECURITY LAWS


IN INDIA WITH SPECIAL REFERENCE
TO THE UNORGANISED WORKERS’
SOCIAL SECURITY ACT, 2008 127-187
4.1 LAWS WHICH PROVIDE SOCIAL SECURITY 129
4.1.1 The Employees’ Compensation
Act, 1923 129
4.1.1.1 Scope and Coverage 130
4.1.1.2 Qualifying Conditions 130
4.1.1.3 Doctrine of Notional
Extension 132
4.1.1.4 Conditions of Non-liability 132
4.1.1.5 Benefits 133
4.1.1.6 Source of Funds 134
4.1.1.7 Administration of Scheme 134
4.1.1.8 The Working of the Act 135
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4.1.2 The Employees’ State Insurance


Act, 1948 136
4.1.2.1 Scope and Coverage 136
4.1.2.2 Benefits 137
4.1.2.3 Sources of Funds 142
4.1.2.4 Administration 143
4.1.2.5 Working of the Scheme 143
4.1.3 The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952 145
4.1.3.1 Scope and Coverage 146
4.1.3.2 Benefits 146
4.1.3.3 Sources of Funds 148
4.1.3.4 Administration 148
4.1.3.5 Working of the Act 149
4.1.4 The Maternity Benefit Act, 1961 149
4.1.5 The Payment of Gratuity Act, 1972 150
4.1.5.1 Scope and Coverage 151
4.1.5.2 Qualifying Conditions 151
4.1.5.3 Benefits 152
4.1.5.4 Administration of the Act 152
4.1.5.5 Working of the Act 153
4.2 PROTECTIVE AND REGULATORY
LEGISLATIONS APPLICABLE OR
EXTENDABLE TO THE UNORGANISED
SECTOR 153
4.2.1 Payment of Wages Act, 1936 154
xiii

CHAPTER NO. TITLE PAGE NO.

4.2.1.1 Scope and Coverage 155


4.2.1.2 Obligations of Employer 155
4.2.1.3 Authorities 156
4.2.1.4 Working of the Act 157
4.2.2 Minimum Wages Act, 1948 157
4.2.2.1 Scope and Coverage 158
4.2.2.2 Fixation and Revision of
Minimum Wages 158
4.2.2.3 Procedure for Fixation or
Revision of Minimum Wages 159
4.2.2.4 Administrative Machinery 160
4.2.2.5 Working of the Act 161
4.2.3 Child Labour (Regulation and
Prohibition) Act, 1986 162
4.2.3.1 Scope and Applicability 163
4.2.3.2 Regulation of Conditions
of Work 164
4.2.3.3 Health and Safety Provisions 165
4.2.3.4 Working of the Act 165
4.2.4 Inter-State Migrant Workmen
(Regulation of Employment and
Conditions of Service) Act, 1979 166
4.2.4.1 Objectives, Scope
and Coverage 166
4.2.4.2 Enforcement of the Act 168
4.2.5 Bonded Labour System (Abolition)
Act, 1976 170
4.2.5.1 Scope and Coverage 170
4.2.5.2 Implementing Authorities 171
xiv

CHAPTER NO. TITLE PAGE NO.

4.2.5.3 Working of the Act 171


4.3 UNORGANISED WORKERS’ SOCIAL
SECURITY ACT, 2008 172
4.3.1 Social Security Benefits 174
4.3.2 Critical Evaluation of the Act 175
4.3.3 Schemes Specified under
Schedule I of the Unorganised
Workers’ Social Security Act, 2008 177
4.3.3.1 Indira Gandhi National
Old Age Pension Scheme 178
4.3.3.2 National Family Benefit
Scheme 178
4.3.3.3 Janani Suraksha Yojana 179
4.3.3.4 Handloom Weavers’
Comprehensive Welfare
Scheme 179
4.3.3.5 Handicraft Artisans’
Comprehensive Welfare
Scheme 181
4.3.3.6 Pension to Master Craft
Persons 183
4.3.3.7 National Scheme for Welfare
of Fishermen and Training
and Extension 183
4.3.3.8 Janshree Bima Yojana
(Public Insurance Scheme) 183
4.3.3.9 Aam Aadmi Bima Yojana
(Common People Insurance
Scheme) 184
xv

CHAPTER NO. TITLE PAGE NO.

4.3.3.10 Rashtriya Swasthya Bima


Yojana (National Health
Insurance Scheme) 185
4.3.4 Working of the Schemes 186

5. UNORGANISED WORKERS IN INDIA:


ISSUES AND CONCERNS 188-222
5.1 DEFINITIONS AND MAGNITUDE OF
UNORGANISED SECTOR 190
5.1.1 Definitions of Unorganised Sector 190
5.1.2 Magnitude of Workforce in the
Unorganised Sector 193
5.2 CHARACTERISTICS OF UNORGANISED
LABOUR 194
5.3 CATEGORIES OF UNORGANISED LABOUR 196
5.4 IMPORTANCE AND CAUSES OF
UNORGANISED LABOUR 197
5.5 PROBLEMS OF UNORGANISED WORKERS 198
5.5.1 Insecurity of Job 199
5.5.2 Irregularities and Inability to Secure
Even Minimum Wages 200
5.5.3 Long Hours of Work 200
5.5.4 Poverty and Indebtedness 201
5.5.5 Occupational Hazards and
Health Issues 202
5.5.6 Non-Applicability of Social
Security Measures 203
xvi

CHAPTER NO. TITLE PAGE NO.

5.5.7 Lack of Proper Physical Environment


at Place of Work 204
5.5.8 Insecurity Arising out of Illness 204
5.5.9 Loss of Income Arising out of
Accident 205
5.5.10 Lack of Old Age Security 205
5.5.11 Migrant Workers 206
5.5.12 Lack of Bargaining Power 207
5.5.13 Lack of Employer-Employee
Relationship 207
5.5.14 Insecurity Arising out of Natural
Disasters 208
5.5.15 Vulnerable Labour Groups 208
5.6 CHALLENGES AND OPPORTUNITIES
FOR EXTENDING SOCIAL WELFARE
SCHEMES FOR UNORGANISED SECTOR
WORKERS 210
5.6.1 Target Beneficiaries 211
5.6.2 Lack of Awareness 212
5.6.3 To Design Simple and Easily
Accessible Schemes 212
5.6.4 Convergence of Social Security
Schemes 213
5.6.5 Need for Centralised Data Base 213
5.6.6 Lack of Proper Follow-up Action 214
5.7 ROLE OF JUDICIARY IN THE PROTECTION
OF RIGHTS OF UNORGANISED WORKERS 215
5.7.1 Judiciary in the Protection of Workers 215
xvii

CHAPTER NO. TITLE PAGE NO.

5.7.2 Judicial Interpretation with regard


to Extension in Coverage of Social
Security Legislations to
Unorganised Workers 218

6 SOCIAL SECURITY FOR WOMEN WORKERS


IN UNORGANISED SECTOR 223-294
6.1 CAUSES OF UNORGANISED WOMEN
WORKERS 224
6.2 PROBLEMS OF UNORGANISED
WOMEN WORKERS 227
6.3 WOMEN WORKERS IN CONSTRUCTION
SECTOR 229
6.3.1 Types of Recruitment 229
6.3.2 Working and Living Conditions
of Women Workers 230
6.3.3 Occupational Hazards 232
6.3.4 Social Security and Welfare
Legislations for Construction
Workers 233
6.3.4.1 Building and Other
Construction Workers
(Regulation of Employment
and Conditions of Service)
Act, 1996 234
6.3.4.2 Building and Other
Construction Workers
Welfare Cess Act, 1996 236
xviii

CHAPTER NO. TITLE PAGE NO.

6.3.4.3 Contract Labour (Regulation


and Abolition) Act, 1970 236
6.3.4.4 Inter-State Migrant Labour
(Regulation of Employment
and Conditions of Service)
Act, 1979 237
6.4 WOMEN WORKERS IN BEEDI
MANUFACTURING SECTOR 238
6.4.1 Methods of Production System
in Beedi Sector 239
6.4.2 Working and Living Conditions
of Women Workers 242
6.4.3 Health Hazards 242
6.4.4 Indebtedness and Gender
Based Discrimination 243
6.4.5 Legislative Protection 244
6.4.5.1 Beedi and Cigar (Conditions
of Employment) Act, 1996 244
6.4.5.2 Beedi Workers Welfare
Fund Act, 1976 245
6.4.5.3 Beedi Workers Welfare
Cess Act, 1976 246
6.5 WOMEN IN BRICK-KILN INDUSTRY 246
6.5.1 Working and Living Conditions
of Women Workers in Brick-kilns 247
6.5.2 Occupational Hazards 248
6.6 WOMEN LABOURERS IN
AGRICULTURAL SECTOR 249
xix

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6.6.1 Working Conditions 250


6.6.2 Health and Occupational Hazards 251
6.6.3 Gender Dimension and
Discrimination in Agriculture Work 253
6.6.4 Technological Progress and
Women in Agriculture 255
6.7 WOMEN LABOURERS IN TANNERIES 255
6.7.1 Working Conditions and
Occupational Hazards 256
6.7.2 Impact of Tanneries on the Health
of Women Workers 258
6.8 WOMEN DOMESTIC WORKERS 261
6.8.1 Working Conditions of
Domestic Workers 262
6.8.2 Problems of Domestic Workers 264
6.9 EMPLOYMENT OF WOMEN IN
PLANTATION INDUSTRY 266
6.9.1 Working Conditions 266
6.9.2 The Plantation Labour Act, 1951 267
6.9.3 Medical Facilities 267
6.9.4 Maternity Benefit and
Creche Facilities 269
6.10 WOMEN WORKERS IN HANDLOOM
SECTOR 271
6.10.1 Pattern of Employment 271
6.10.2 Working and Living Conditions 273
6.10.3 Occupational Hazards 275
xx

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6.11 WOMEN WORKERS IN MATCH


INDUSTRIES 276
6.11.1 Working Conditions 276
6.11.2 Wage Payment 277
6.11.3 Bonus 277
6.11.4 Deductions from Wages 278
6.11.5 Maternity Benefits and
Creche Facilities 278
6.12 SOCIAL SECURITY LEGISLATION
RELATING TO WOMEN WORKERS 279
6.12.1 Equal Remuneration Act, 1976 280
6.12.2 Relevant Statutory Provisions of
Safety, Health and Welfare
for Women Workers 282
6.12.2.1 Prohibition of Women in
Night Work 283
6.12.2.2 Prohibition of Employment
of Women Near Cotton
Openers 283
6.12.2.3 Prohibition of Employment
of Women in Dangerous
Operations 284
6.12.2.4 Prohibition of Employment
of Women in Mines 284
6.12.2.5 Hours of Work 285
6.12.2.6 Restriction on Heavy Loads 286
6.12.2.7 Health and Welfare
Provisions 287
xxi

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6.13 PROVISIONS RELATING TO MATERNITY

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PROTECTION 291
6.13.1 Scope and Coverage 291
6.13.2 Qualifying Conditions 292
6.13.3 Benefits 292
6.13.4 Administration 294

7 CONCLUSION AND SUGGESTIONS 295-323

BIBLIOGRAPHY 324-338
xxii

ABBREVIATIONS

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AIR - All India Reporter

DB - Division Bench

CEDAW - Convention on Elimination of all form of Discrimination


Against Women

ESIC - Employee’s State Insurance Corporation

FJR - Factories Journal Reports

ILJ - Indian Labour Journal

JT - Judgment Today ILO – International Labour Organisation

ILO - International Labour Organisation

ISM - Indian System of Medicine

Ker - Kerala

Lab.IC - Labour and Industrial Cases

LLJ - Labour Law Journal

MWN - Madras Weekly Notes

NSSO - National Sample Survey Organisation

SC - Supreme Court

SCC - Supreme Court Cases

SSSA - State Board Social Security Administration


xxiii

TABLE OF CASES

1. Ahmedabad Pvt. Primary Teacher’s Association V. Administrative

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Officer (2004) 1 SCC 755

2. B.Shah V. Presiding Officer, Labour Commissioner (1977) 4 SCC 384

3. Baldir Kour V. Steel Authority of India Ltd (2006) 6 SCC 493

4. Bandhua Mukti Morcha V. Union of India AIR 1984 SC 802

5. Bijoy Cotton Mills Ltd. V. State of Ajmer (1955) 1 LLJ 129 (SC)

6. C.S.Azad, University of Agriculture and Technology V. Court of


Coorkmen Compensation Commissioner Lab.IC 140 Allahabad

7. Calcutta Electric Supply Corporation (India) Ltd. V. Subash Chandra


Bose AIR 1982 SC 573

8. Daily Rated Casual Labour V. Union of India (1988) 1 SCC 122

9. Deena V. Union of India AIR 1983 SC 1155

10. Delhi Jal Board V. National Campaign for Dignity and Rights of
Sewerage and Allied Workers (2011) 8 SCC 568

11. Gamman India Ltd. V. Union of India (1974) 1 LLJ 489 (SC)

12. Hindustan Antibiotics V. Their Workmen (1967) 1 LLJ 714 SC

13. Indian Commerce and Industries Co. Ltd. V. BVSS Mani (2000) 1
MWN (Civil) 419 Mad.

14. Kochu Velu V. Joseph (1987) II LLJ 174 (Kar)

15. M.C.Mehta V. State of Tamil Nadu (1996) 6 SCC 786

16. M/s. Satish Plastics V. RPF Commissioner (1981) 11 LLJ 277

17. Municipal Corporation of Delhi V. Female Workers (Muster Roll)


2000 (2) SC Almanac 269

18. N.Krishna Devi V. Vishnu Mitra AIR 1982 Raj 281


xxiv

19. National Iron and Steel Company V. State of West Bengal (1967) 2
LLJ 23 (SC)

20. National Domestic Workers Welfare Trust V. Union of India W.P

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(Civil) No(s) 160 of 2003

21. Neeraja Chaudhary V. State of M.P. (ARR 1984 SC 1099)

22. Oriental Insurance Co. Ltd. V. Mohd.Nasir (2009) 6 SCC 280

23. P.M.Patel V. Union of India and Others (1986) 1 LLJ 88 (SC)

24. People’s Union for Democratic Rights V. Union of India AIR 1982 SC
1473

25. Poly Chem Ltd. V. R.D.Tulpule, Industrial Tribunal, Bombay (1972)


1 SCC 885

26. Regional Director, ESI Corporation V. L.Ranga Rao (1982) 1 LLJ 29


(DB)

27. Regional Director, ESI Corporation V. Francis Decosta (1993) Supp.4


SCC 160

28. Regional Director, Employees’ State Insurance Corporation V.


Suvarna Saw Mills (1980) 57 FJR 154

29. Royal Talkies, Hyderabad V. Employees’ State Insurance Corporation


(1978) 4 SCC 204

30. Rural Litigation and Entitlement Kendra, Dehradun V. Uttar


Pradesh AIR 985 SC 652

31. Sanjit Roy V. State of Rajasthan AIR 1983 SC 328

32. SIC Mastan Bee V. G.M., South Central Railway J.T. 2002(10) SC 50

33. Siddheswar Hublic V. Employees State Insurance Corporation (1998)


Lab.IC 2 (4) (Orissa)

34. Standard Vacuum Refining Company Ltd. V. Their Workmen (1960)


2 LLJ 233 (SC)

35. Unichoyi V. State of Kerala (1961) 1 LLJ 631 (SC)


1

CHAPTER 1

INTRODUCTION

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“The concept of social justice is not narrow, or one-sided, or
pedantic, and is not confined to industrial adjudication alone. Its sweep is
comprehensive. It is founded on the basic ideal of socio-economic equality
and its aim is to assist the removal of socio-economic disparities and
inequalities; nevertheless in dealing with industrial matters, it does not adopt
a doctrinaire approach and refuses to yield blindly to abstract notions, but
adopts a realistic and pragmatic approach. It, therefore, endeavours to
resolve the competing claims of employers just and fair to both parties with
the object of establishing harmony between capital and labour, and good
relationship”.

-Gajendragadkar, Former chief Justice of India.

A man or woman has the basic right to a life of dignity in a


civilized society where the rule of law prevails which is essential for
the growth, development and stability of an individual’s personality.
“Dignity of all” is indispensable for social peace as it is a matter of a
fair social adjustment with dependable economic and ethical support
which has been an exception rather than a rule in almost every
human aggregate and culture. This is a fact particularly with regard
to the dignity of labour, therefore, recognition of labour as a subject
of social justice was established only after the painful struggle and
cries of suffering of millions of workers.

Industrialisation plays a vital role in providing employment


opportunities and generating income.1 Industrial development has

1 Inderpaul Kaur, Impact of Liberalisation on Indian Industry (New


Delhi:Deep and Deep Publications)1997 edn p.2.
2

been a major factor in the economic development of the Country as it


serves the role of a catalyst that transforms agriculture,
construction, transport and other service industries into highly
productive sector leading to a sophisticated life.

Economic development alone cannot be relied upon to deal


either with the promotion or with the protection of living standards of
the workers. This is because, the growth of industrialisation has led
virtually all works subject to various types of health hazards and
occupational hazards due to their frequent exposure to chemical
substances, environmental factors including illness arising out of
radiation, noise, vibrations, inadequate ventilation etc., and also
biological factors such as sickness caused by bacteria, viruses,
dietary deficiencies, emotional strains due to fear, anxiety etc. These
kinds of hazards necessitated the protection of workers in the society
as it deprives the earning power.

Economic security is one of the main components of human


security which requires employment and an assured source of a
basic income adequate to workers basic need. But the industrial
development which has generated the employment opportunities
threatens the workers regarding the fear of insecurity arising out of
certain risks or contingencies in the event of sickness, old age,
maternity, unemployment, employment injury, death of worker etc.

Primitive man sometimes sought safety in plight and


sometimes his innovative mind would have motivated him to master
and control numerous sources of insecurity through human
ingenuity. The lifting of some wooden stick or a stone by him in
defence against the aggressive postures of some carnivorous beast
3

was probably the first effort of man to overcome insecurity.2 It seems


that from the primitive time to the present industrial society, man is
not entirely free from insecurity because in order to ensure physical
survival he strives continuously for material security to protect
himself from pangs of hunger and also deadly diseases. Thus concept
of social security is as old as the history of man.

Prior to industrialisation, when human needs were limited


and livelihood was based primarily on agriculture, the artisans were
also existed as independent self employed persons. They used to
market their own products. In case of agriculture, the independent
peasant or farmer worked with his own holding by the labour of
himself and his family.3 As regards India, we are not merely a
pastoral band since industries like handicrafts of export quality,
mining, metal processing and manufacturing of jewellery were
existing prior to industrialisation though not industry in the modern
sense.

In the episode of human civilization from pre-industrial


society to the present day, everyone is dependent on others because
no one is capable and versatile as to be able to satisfy all his needs.
In every society, there have been sick people requiring medical aid
and care, handicapped and aged people unable to work for a living,
pregnant women need assistance during the period of pregnancy
before and after delivery and then unemployed persons not able to
make both the ends meet.4 Hence, during the pre-industrial society
joint families, craft guilds, churches, charitable, philanthropic and

2 Dr. Veer Singh, Industrial Employment Injuries (New Delhi:Deep and Deep
Publications)1986 Edition P.11.
3 G.B. Pai, Labour Law in India (New Delhi:Butterworths India) 2001 Edition
p.81.
4 Government of India, Report of Committee on Labour Welfare, (1969),
p.255.
4

other institutions provided securities to overcome the hazards of life


and work.5

This system was drastically disturbed after industrial


revolution when labour was drawn to factory. This was due to the
competition between machine-made foreign goods and hand-made
Indian goods. Machine-made goods were flooded into the market as
Indian goods failed to compete with machine-made goods for its
cheapest price. This had led to the closure of most of the
manufacturing units. So, skilled Indian craftsmen lost their jobs and
had to migrate to cities for survival.

The introduction of factory system had led to the problems


relating to safety, hygiene and health of the workers. Employers paid
their sole attention to the maintenance of machines and the
improvement of the technical knowhow to the utter neglect of the
human hands employ to man the machines because they were
readily available and could be easily replaced.6 Since the laissez-faire
policy ruled supreme during the colonial period, there was no
interference of the government to provide compensation or medical
care when workers were exposed to serious accidents due to
unprotective methods of handling machines and sickness due to
unhealthy living and working conditions. Therefore, the causes of
accidents might be attributed to work related causes and worker
related causes.7 Most of the industrial workers were temporarily or
permanently disabled resulting in their unemployment causing
financial misery and other consequences due to hazardous working

5 Dr.S.C Srivastava, Treatise on Social Security and Labour law


(Lucknow:Eastern Book Company) 1985 Edition p.1.
6 V.V. Giri, Labour Problems in Indian Industry (Bombay:Asia publishing
house) 1972 Edition p.115.
7 M.Velusamy, Labour Welfare : Legislation and Social Security
(Delhi:Dominant Publishers and Distributers Private Ltd) 2014 Edition p.128.
5

conditions. The need of the compensation to the worker arises when


his working conditions is at risk. Since there was no provision for
social security, the workers had to spend their major portion of
earnings for their medical treatment and also to manage interruption
of wages i.e. loss of earning due to their absence for work during
treatment.

The traditional protective system was inadequate for the


modern industrial worker because industrialisation and urbanisation
have resulted in drastic change in social-economic conditions which
in turn resulted in new conflicts and tensions consequent upon the
erosion of joint family and fraternal security. Thus, the transition
from agricultural economy to industrial economy brought in special
accompanied problems that called for social security for its absence.

So, it was very much felt that workers should be provided


measures for financial stability as they could not take care of their
own needs when exposed to problems linked with social insecurity
i.e. inability or lack of capacity of a worker to protect himself from
the risks of unemployment, sickness, industrial accidents or
disability, old age or other contingencies. Thus, the concept of social
security has been evolved in response to meet the specific needs
relating to the protection and stability of the work force.

The shift from laissez-faire policy to welfare state made


obligatory on the part of the state to take the responsibility of
assuring the confidence to the workers and their families that their
level of living and quality of life will never be eroded by meeting the
contingencies such as sickness, unemployment, industrial accidents,
disablement, old age etc., in their work life.
6

In pre-independence period, a beginning was made to


provide social security measures with the passing of the Workmen’s
Compensation Act, 1923. After the independence, the Government
of India has enacted a number of legislations to provide social
security to industrial workers as productivity of labour is an
essential condition for all-round prosperity of the country. But
efficient production depends upon the sincere functioning of labour
and industry. If an industry exploits labour, it will affect the
attainment of socio-economic objectives of the country itself. When
social justice is the primary objective of the state as envisaged in our
constitution, a reasonable return on labour is facilitated by social
security laws which are as follows:

The Employees’ Compensation Act, 1923;

The Employees’ State Insurance Act, 1948;

The Employees’ Provident Funds and Miscellaneous


Provisions Act, 1952;

The Maternity Benefit Act, 1961;

The Payment of Bonus Act, 1965;

The Payment of Gratuity Act, 1972;

The Unorganised Workers’ Social Security Act, 2008.

Thus, the labour policy has two fold objectives i.e.,


maintaining industrial peace and promoting social security of labour.

Social security is an important component of any social


development agenda and is as relevant as physical security in the
evolving concept of human security. Right to social security is a
7

human right8 and hence everyone has a right to a standard of living


adequate for the health and well being of himself and his family.
India, being a socialist democratic state, has a commitment of
providing social and economic justice to its citizen for the survival of
democracy. Moreover, the creation of a welfare state is to execute
instrumentalities which are enshrined in the Directive Principles of
State Policy serve as fundamental guides for the state’s action
towards social, economic and welfare programmes with a view to
ameliorate the conditions of labour.9

Labour at the grass root level is being hit by uncertainty and


poor wages. A number of legislations relating to social security have
been passed to operationalise the vision of the constitution for the
working class to ensure adequate livelihood security, i.e., freedom
from want. But in reality, mostly the workers in the organised sector
are able to secure social security benefits for themselves and their
families.10 The total employment in the Indian economy is 456
million, of which informal sector accounted for 393.2 million. This
direct estimation shows that the unorganised sector constituted
more than 86% of the total workers in 2004-0511 and in that, only
about to 0.4% of the unorganised sector workers were receiving
social security benefits like provident fund12.Despite their significant
contribution to national income, they face the problem of deprivation
of basic needs as well as the problem of adversity i.e., arising out of
such contingencies as sickness and accident.13

8 Article 22 and Article 25 of Universal Declaration of Human Rights, 1948.


9 Articles 38, 39, 41, 42, 47 of the Constitution of India.
10 National Commission for Enterprises in the Unorganised Sector, Report on
Social Security for Unorganised Workers, 2006, p.12.
11 Report of the National Commission for Enterprises in the Unorganised Sector,
The Challenge of Employment in India, Vol.I, 2009, P.13.
12 Ibid.
13 Supra note 10, at 85.
8

Apart from that, the National commissions entrusted with


the task of review of status of unorganised sector, have observed that
there is irregularity, uncertainty and inability to secure even
minimum wages for the informal workers. The detailed review of
wages and earnings carried out by the National Commission for
Enterprises in the Unorganised Sector has brought the fact that the
wages in the unorganised sector are arbitrarily fixed without regard
to the minimum wage legislation which adversely affected the income
of the wage workers in general and women workers in particular.14
This is due to casual nature of employment, illiteracy, lack of skill
and poverty.

The aim of social security measures is designed to prevent


the loss of productive capacity due to sickness, disease and
accidents and therefore, it is imperative to have good quality of
physical environment at work place by providing some basic
comforts and healthy living which in turn enhance the productivity
of the workers. Based upon the studies on physical environment at
work place in the unorganised sector, the National Commission for
Enterprises in the Unorganised Sector has revealed that cramped
working space is provided to the workers in many work places. 15
Adequate ventilation, lighting and good sanitation conditions are
indispensable to enhance the quality and safety of work at work
place. But, the problem of poor ventilation and lighting is widely
prevalent in industries such as leather tanning, brick kilns, fish-
processing units and in some specific industries such as cutting
operations done with the use of sharp knife, weaving of carpets etc.

In most of the industries in unorganised sector, sanitation


facilities are scarce and scary leading to unhygienic working

14 Ibid at 141.
15 Ibid at 144.
9

conditions of workers. In case of home based workers their living


place serves as working place resulting in both unhygienic working
and living conditions.

There is another segment of disadvantaged workers in the


unorganised sector called as migrant labourers who need special
attention as they are more vulnerable groups in the labour force. 16
This is due to lack of employment opportunities for the less educated
and less skilled which lead to migration. The major problems faced
by the migrant workers are instability in employment, forced to
accept unhealthy working conditions and work for lesser wages due
to their poverty. Their working hours are not only long but also not
fixed. Often they are exploited due to their weak bargaining power. 17
For instance, in fish-processing units the whole operation depends
upon the arrival of catching of fishes. Likewise, in cases like sugar-
cane cutting, the arrival of trucks for transporting the sugar-cane
has no fixed hours. The long working hours have a severe
repercussion on the social and family life of labourers in general and
women labourer in particular. Women workers are found physically
weak due to the burden of dual fronts or work.

Migrant labourers are not free to leave their job in between


as per their wish because they come under the clutches of
intermediaries and employer. For instance, in agricultural sector,
workers do not get work throughout the year, so in the absence of
alternative employment there is a need to migrate from their native
places to other parts of the country. In the process of such migration
and during their employment, they are exploited by the middle men,

16 Narendar Jetli (K) India : Man Power, Employment Policy and Labour
Welfare, 1947-2007 (New Delhi : New Century Publications) 2006 Edition
p.425.
17 Report of Second National Commission on Labour, (2002), pp 682-683.
10

contractors and employers. They become victims of payment of low


wages, inhuman working conditions as they are reluctant to raise
their voices due to illiteracy and poverty. The Workers used to take
some advance amount when they enter the work which is like a
bondage atleast for a season where the labour stands in the position
of debtor while the employer is the creditor resulting in unfree labour
is that of bonded labour. Despite of the passing of the Inter-State
Migrant Workmen (Regulation of employment and Conditions of
Service) Act, 1979; and even after the judicial pronouncements in
cases such as People’s Union for Democratic Rights v. Union of India18,
Sanjith Roy v. State of Rajasthan,19 Bandhua Mukti Morcha v. Union of
India,20 where the Supreme Court provided a new dimension to the
system of bonded labour by holding that the non payment of
minimum wage would be forced labour and violative of Article 23 of
the Constitution of India, evidence revealed by a number of studies
and surveys show that the incidence of bonded labour still remains
high in some segments of unorganised industry.21 The emergence of
bondage in newer forms is one of the reasons that make it more
difficult to enforce the existing legislations.

1.1 WOMEN WORKERS IN UNORGANISED SECTOR

The women labour constitutes an important segment of


labour force in India and their participation in the labour force is
gradually increasing in the labour market. The existence of
patriarchy at all levels also intervenes with the division of labour in
the work place. For the majority of women engaged in paid economic

18 AIR 1982 SC 1473.


19 AIR 1983 SC 328.
20 AIR 1984 SC 802.
21 National Commission for Enterprises in the Unorganised Sector, Report on
Condition of Work and Promotion of Livelihoods in the Unorganised
Sector, 2007, p.107.
11

activity, the fact of being female means being paid less than man for
their work. It is most evident in case of agricultural labourers.22 For
instance, in agriculture sector women concentrated in the activities
such as weeding, transplanting and harvesting. But they receive
lower wages than men because they have minimum wages fixed in
the unskilled category. But ploughing, which is predominantly a
male operation, has a minimum wage fixed in the semi-skilled
category because the use of tractor or operation of a tube well is
categorised as a skilled activity and therefore, the minimum wages
fixed are higher. But transplanting is also a kind of very skilled
activity and weeding is back-breaking work. Since there is no use of
technology included in these activities as semi-skilled, such
categorisation works against the interest of the women. Due to use
of agro-chemicals, women are also exposed to several health hazards
such as gynaecological infections, arthritis, intestinal and parasitic
infections.23

The working conditions of women migrant workers are


extremely arduous. As most of the women are illiterate and
unskilled, they face hazards that reflect the lack of adequate rights,
protection and safety. Often women workers move with the family
and have the additional burden of domestic chores and child rearing.

These women migrant workers are highly concentrated in


construction sites, brick kilns and in fishing industries. They face
greater insecurity and are more prone to exploitation than their male
counterparts. Maternity benefits are another important social
security concern for the well being of the mother and their child and

22 Government of India, Report of the Working Group on Empowerment of


Women, 2006, p.28.
23 National Commission for Women, Impact of WTO on Women in Agriculture
2005, p.17.
12

for the continuity of the employment for women in the unorganised


sector. But the studies on women workers reveal that they lack
maternity benefits and child care facilities subjecting their children
to the hazards at the work place as they have to accompany their
parents to their work site. Children are often engaged in helping the
workers and thus the workers begin their work life very young and
continue till old age without any provision for old age benefits.

Overall, labourers suffer under highly insecure and


vulnerable working conditions resulting in serious occupational
health problems. This is due to lack of social security measures to
provide risk coverage and ensure maintenance of basic living
standards at times of crisis such as unemployment and health
issues. Since they are covered in a peace-meal manner in various
legislations, they lack comprehensive protection of the minimum
social security benefits. Actually in reality, unorganised sector
workers do not meet the applicability criteria, coverage and
restrictions existing in the social security legislations except laws
such as Equal Remuneration Act, 1976 and the Bonded Labour
System (Abolition) Act, 1976 which apply to all sections of
unorganised sector.

Apart from that, there are large number of self employed


persons, home based workers, street vendors constituting the
majority of informal work force lack visibility and identity as workers.
In case of migrant labourers and casualisation of work force, there
are no prospects of single employer-employee relationship. Realising
the importance that the extent of prevalence of the social security
measures as a measure of the progress made by the country towards
the ideal of a welfare state, the Commission on Rural Labour (1991)
and the Second National Commission on Labour (2002) have been
13

appointed to tackle the issues relating to their need for providing


social security to workers particularly to unorganised sector and
other vulnerable groups. As an outcome of the recommendation of
the Second National Commission on Labour, the Central Government
passed the Unorganised Workers’ Social Security Act, 2008 where
the basic entitlements had not been satisfactorily met. A beginning
has been made to provide social security for workers in unorganised
sectors but in reality there has been dismal progress to improve the
status of workers. There are many defects in the Act, for instance,
the title of the Act is Unorganised Workers’ Social Security Act, 2008,
but the concept of the social security has not been defined in any
substantial sense. The Act is silent regarding the improvement of
working conditions, regulation of wages, problems of women workers
etc., which are very essential components of social security
comprising the measures of prevention, promotional and protective
programmes to the workers in the unorganised sector.

Since our country has adopted the socialistic pattern of


society, we should not allow these workers to be deprived of the basic
necessities of life. Hence, there is a need for reviewing the
effectiveness of the Act and as such an attempt has been made to
take up an in-depth study on the issues of unorganised labour and
also the recommended policies for a comprehensive social security
system with a view to explore the possibilities of securing social
security measures in the midst of economic difficulties. By
considering the importance of involvement of women in unorganised
sector as workers to supplement their poor family income, an
attempt has also been made to analyse the various issues of women
in unorganised sector relating to the factors affecting their quality of
life and to provide concrete suggestions to make them self-reliant
and inculcate in them a feeling of dignity and self respect.
14

In this perspective, an attempt has been made to analyse


the provisions of Unorganised Workers’ Social Security Act, 2008 to
pin point its inadequacies with a view to explore the possibilities and
suggest means to secure social security benefits not in paper but in
action.

1.2 SIGNIFICANCE OF THE STUDY

The quest for social security and freedom from want and
distress has been the consistent urge of men through the ages.
Absence of a meaningful social security arrangement is not merely a
problem for individual workers and their families but also over lapse
the prospects of the country’s economy. Therefore, social security is
a dynamic concept and an indispensable chapter of the national
programme to eradicate the root of poverty, unemployment and
disease.

Even though social security is a measure of progress made


by the country towards the ideal of a welfare state, it covers only the
industrial workers of the organised sector. Despite the significant
contribution made by the unorganised sector to national income,
they are deprived of basic necessities of life and many of them
victims of invisibility. They generally do not enjoy employment
security, work security and social security which ensure
maintenance of basic living standards at times of crisis. The
insecurity, lack of safety, occupational hazards and incidence of
exploitation is high in case of migrant labourers and women workers.
They lack legal protection due to inadequate application, poor
implementation and enforcement. The Unorganised Workers’ Social
Security Act, 2008 also fails to provide adequate social security
measures to these workers. Hence, the researcher felt it is important
to study the problems of unorganised workers and try to evolve an
15

appropriate result by testing the hypothesis. Another prominent


issue is the nature of work participation of women in the recent
period. Inspite of the stress from the double burden of work, the
economic condition forces many women fall to face the risk of
exploitation, discrimination and human rights abuse. Hence, the
researcher has also felt that there is a crying need to undertake this
study with respect to socio-economic conditions of women workers
including their sufferings due to harsh working and living conditions
than their male counterparts.

1.3 OBJECTIVES OF THE STUDY

The basic objective of the present study is to explore,


examine and analyse the issue of social security along with the
conditions of work and livelihood promotion for unorganised
workers. In this background, the present study examines the
following research objectives specifically:

To analyse the concept of social security as an effective


tool for transforming the workers lives towards the
attainment of decent status for majority work force.

To identify the status of unorganised sector in India


including the magnitude of workers in the unorganised
sector.

To examine the issues of unorganised workers relating to


the physical conditions of work, promotion of livelihoods
particularly focusing the issue of migrant labourers,
construction workers and women workers and the need
for immediate attention to extend the benefits of the
social security schemes.
16

To test the efficiency of the social security legislations


with a view to identify the factors that hurdle the
application of social security schemes to the unorganised
sector workers.

To review the existing arrangements of social security


with a view to describe a number of challenges in
extending social security measures to the informal
sector.

To analyse the nature and working conditions of women


workers in order to understand the position of women
workers in informal sector.

To analyse the success of the Unorganised Workers’


Social Security Act, 2008 by evaluating the working of
the Act and to suggest measures to provide social
security to all the unorganised workers.

1.4 SCOPE AND LIMITATIONS OF THE STUDY

This research is intended to be limited to analyse the


problems and issues of unorganised workers pertaining to physical
conditions of work, wages, working hours, employment injury risks,
the existing social security measures and its scope for evasion of
employer’s obligation. The research would also highlight the
obstacles in extending the social security measures to unorganised
sector workers particularly focusing on migrant labourers, self-
employed persons and women workers. The present study is also
based on the review of the Unorganised Workers’ Social Security Act,
2008.
17

1.5 HYPOTHESES FORMULATED

Social security is an important component of any social


development agenda which is to provide protection against the
economic and social distress thereby evolving the concept of basic
human security. Recent studies have shown that an overwhelming
majority of the workforce are in unorganised sector in which only a
small percentage of the unorganised sector workers are receiving
social security benefits. Though unorganised sector has become an
integral part of our economy, the glaring drawback of the sector is
that social security laws cannot be implemented adequately and
effectively. Considering the unprotected situation of the workforce in
the unorganised sector, following hypotheses have been formulated:

Social security legislations are not adequate enough to


extend their coverage to suit the conditions of
unorganised sector workers.

Labour laws fail to take adequate steps in the process of


implementation to confer the intended benefits to the
workers with a view to fulfil the objectives of the
constitution of India in the upliftment of labour.

The statutory schemes for the implementation of


maternity entitlements, security to assure minimum
level of income, protection against exploitations and
discriminatory attitudes and practices, are not adequate
enough to promote the quality of work by ensuring
decent life to women workers.
18

1.6 METHODOLOGY ADOPTED

The research work is predominantly doctrinal in nature. To


comply with this kind of research, the researcher has collected data
from primary and secondary sources. International labour
conventions and recommendations, legislations concerning social
security, notifications issued by the government of India and Tamil
Nadu have been made use of as primary sources. The researcher
could rely upon data collected from reports such as National
Commission for Enterprises in the Unorganised Sector, Reports of
First and Second National Commission on Labour and National
commission for Women with a view to make an analytical study.
Historical method is also employed to trace out the origin and
development of the concept of social security. Further, the researcher
has applied the evaluative method with a view to find out the
effective implementation of social security legislations. The
researcher has also referred various articles published in different
reputed journals to update the research. To appreciate the
contribution made by the judiciary in promoting social justice to
the workers case laws are also analysed.

1.7 SCHEME OF THE STUDY

The research is divided into seven chapters.

The first chapter deals with the importance of labour and


also the technological progress that has not improved the quality of
life of the worker. This chapter also highlights the significance of
social security as well as social justice by emphasising the need for
state action in ensuring protective and ameliorative measures in
favour of unorganised labour particularly women labourers against
19

the exploitative labour practices as it is the most sensitive issues of


human rights.

The second chapter entitled ‘‘Concept, Origin and


Development of Social Security” which examines the evolution,
object, scope, constituents and developments of social security with
a view to appreciate the need for social security to protect the
interest of the workers when they lack capacity to protect themselves
and their families from the risk of unemployment, sickness,
industrial accidents or disability, old age and other contingencies.

The basic idea of social security is based on the ideals of


humanity and social justice to which every civilised society is
committed and hence the third chapter deals with the “Role of
International Labour Organisation in Promoting Social
Security”. This chapter makes an attempt to analyse various
conventions because ILO has contributed very effectively through its
conventions concerning various aspects such as employment injury
benefit, old age benefit, unemployment benefits etc. This chapter also
examines the recommendations containing comprehensive provisions
relating to guiding principles for the attainment of social security. In
addition to that, an attempt has been made to analyse its impact on
Indian labour legislation.

The fourth chapter entitled “An Analysis of Social Security


Laws in India with special Reference to The Unorganised
workers’ Social Security Act, 2008” makes an attempt to have an
overview about the legislations providing social security for
unorganised sector. This chapter also analyses The Unorganised
workers’ Social Security Act, 2008 and special emphasis is also made
to pinpoint its inadequacies.
20

The fifth chapter deals with the “Unorganised Workers in


India: Issues and Concerns”. This chapter examines the causes,
problems and challenges of workers in unorganised sector. It also

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highlights the working and living conditions of unorganised workers
generally by providing overall picture which reveals pathetic plight of
the unorganised workers in the absence of adequate social security
measures.

The sixth chapter entitled “Social Security for Women


Workers in Unorganised Sector” examines the various issues of
women workers in unorganised sector. It also focuses on certain
categories of women workers engaged in unorganised sector and
throws light on critical areas of wages, maternity benefits, child care
facilities and social security which require immediate attention.

The seventh chapter deals with “Conclusion and


Suggestions” in which the discussion of facts in the findings set-
forth in the preceding chapter leads to the conclusion that legislation
have failed to provide social security benefits to workers in
unorganised sector in general and women in particular. By
considering the importance of quality of life, few suggestions are
proposed to ensure provisions for comprehensive social security
coverage comprising provision for working condition, welfare and
livelihood promotions. In the process of implementation, it is also
suggested to have adequate enforcement machinery keeping in view
the problem of unorganised sector workers.
21

CHAPTER 2

CONCEPT, ORIGIN AND DEVELOPMENT OF

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SOCIAL SECURITY

The concept of social security has evolved over a period of


time. In the primitive societies it was mankind’s struggle against
insecurity to protect himself from the vagaries of nature or finding the
basic necessities of day today life. Later community living came into
existence which brought the family to provide adequate social
measures for the needy. With the rapid industrialisation, there was
break up of family setup destructing the traditional system resulting
in need for institutionalised and state-cum society regulated social
security arrangement. Therefore, the concept of social security kept
evolving and widening as there is no commonly accepted definition of
the term.1 Hence, an attempt has been made in this chapter to
discuss the concept, definitions along with the background of origin
and development of social security

2.1 CONCEPT OF SOCIAL SECURITY

All the industrial countries of the world have developed


measures to promote the economic security and welfare of individual
and his family. These measures have come to be called as social
security.2 Social security is dynamic concept and an indispensible
chapter of a national programme to strike at the root of poverty,
unemployment and diseases.

1 Government of India, Planning Commission Report of the Working


Group on Social Security for the Eleventh Five Year Plan, (2007-
2012), p.17.
2 Encyclopaedia Britanica, Vol.20, p.762.
22

Social security may provide for the welfare of persons who


become incapable of working by reason of old age, sickness and
invalidity and or unable to earn anything for their livelihood.3 It is
necessary to analyze various definition of social security in order to
appreciate the nature and concept of social security.

2.2 ANALYSIS OF VARIOUS DEFINITIONS OF SOCIAL


SECURITY

Definition by Sir William Beveridge

In 1942, Sir William Beveridge headed a committee that


reviewed the national schemes of social insurance in Great Britain
during the post war period. In his report he defines social security as
follows:

“The security of an income to take place of the earnings when


they are interrupted by unemployment by sickness or accident to
provide for retirement through age, to provide against the loss of
support by the death of another person and meet exceptional
expenditure, such as those connected with birth, death and
marriage.4

The Beveridge report argued that there were ‘five giants’ that
were stalking the land and that should be tackled. They are want,
disease, ignorance, squalor and idleness.5

3 Dr.S.C.Srivastava, Treatise on Social Security and Labour Law (Lucknow:


Eastern Book Company) 1985 Edition p.5.
4 Dr. N. H. Gupta, Social Security for Labour in India (New Delhi: Deep & Deep
Publications) 1986 Edition p.32.
5 Stephen Mckay & Karen Rowlingson, Social Security in Britain (Palgrave
Macmillan) 1989 Edition p.54.
23

Beveridge report is seen as the foundation stone of the


current social security system as he has suggested that social security
system would play a role in reducing inequality and preventing
poverty if social security is intended to fulfill the need “to abolish want
by ensuring that every citizen willing to serve according to his powers
has at all times an income sufficient to meet his responsibilities.6

Definitions by ILO

A systematic attempt was made by ILO in defining social


security. ILO defines social security as follows:

“The security that society furnishes, through appropriate


organisation, against certain risks, to which its members are exposed.
These risks are essentially contingencies against which the individuals
of small means cannot effectively provide by his, own ability or
foresight alone or even in private combination with fellows”.7 These
risks are being sickness, maternity, invalidity, old age and death. It is
the characteristics of these contingencies that they imperil the ability
of the working man to support himself and his dependents in health
and decency.

ILO Social Security (Minimum Standards) Convention No.102 of


1952 defines Social Security to mean:

“The result achieved by a comprehensive and successful and


series of measures for protecting the public (or a large sector of it)
from the economic distress, that, in the absence of such measures,
would be caused by the stoppage of earning in sickness,
unemployment or old age and after death; for making available to that

6 Srivatsava, Supra note 3, at 10.


7 ILO, Approach as to Social Security, (Geneva 1942) p.81.
24

same public medical care as needed; and for subsidizing families


bringing up young children”.8

As per the contention of ILO social security is a multi-winged


and multi-faceted concept. It also observed that social security is the
basic need of all people regardless of employment in which they work
and live. It should be begun with birth and should continue till
death.9

Definition by National Commission on Labour

“Social security envisages that the members of the


community shall be protected by collective action against social risks
causing undue hardship and privation to individuals whose primary
resources can seldom be adequate to meet them. The concept of
social security is based on ideals of human dignity and social justice.
The under lying idea behind social security measures is that a citizen
who has contributed or is likely to contribute to his country’s welfare
should be given protection against certain hazards or as consequence
of it”.10 Thus the National Commission on Labour observed that the
citizen who has contributed to his country’s welfare should be given
protection against certain contingencies of work life to which he is
exposed as every worker is an active partner in a protective process
and hence, he has legitimate right to claim social security benefits to
safe guard against economic insecurity as a condition of human
survival.

8 MK Srivatsava, Agricultural Labour and the Law (New Delhi: Deep & Deep
Publications) 1993 Edition p.151.
9 Meenakshi Gupta, Labour Welfare and Social Security in Unorganized Sector
(New Delhi: Deep & Deep Publications) 2007 Edition p.90.
10 Government of India, Report of National Commission on Labour, (1969),
p.162.
25

Definition by Fried Lander

Fried Lander defines social security as “a programme of


protection provided by the society against these contingencies of
modern life- sickness, unemployment, old age, dependency, industrial
accidents and invalidsm against which the individual cannot be
expected to protect himself and his family by his own ability or
foresight.11

According to him the concept of social security is used to


describe as a programme of protection to assure the justified share to
the working class by covering certain risks to which a person is
exposed in which these risks are such that an individual with meagre
earnings cannot afford.

Definition by Giri (V.V.)

V.V. Giri defines Social security as “Social security, as


currently understood, is one of the dynamic concepts of the modern
age which is influencing social as well as economic policy. It is the
security that the state furnishes against the risks which an individual
of small means cannot, today, stand up to by himself or even on
private combination with his fellow countrymen.12

Sinfield describes Social security situationally i.e., as a state


of complete protection against the loss of resources.13

11 Deepak Bhatnagar, Labour Welfare and Social Security Legislation in India


(New Delhi: Deep & Deep Publications) 1984 Edition pp.46-47.
12 V.V. Giri, Labour Problems in Indian Industry (Bombay: Asia Publishing
House) 1972 Edition p.269.
13 Danny Pieters, Social security: An Introduction to the Basic Principles
(Kluwer Law International) p.2.
26

Berghman views social security as a situation of complete protection


against human damage.14

2.3 NEED FOR SOCIAL SECURITY

Modernisation and urbanisation have resulted in radical


socio-economic changes and give rise to new conflicts and tensions
consequent upon the erosion of age old family and fraternal security. 15
The transition from agricultural economy to an industrial economy
brought in special accompanied problems like industrial accidents in
serious dimensions. Hence the joint family system, workers mutual
aid societies, private savings etc. are found to be out dated and
inadequate to the tempo of modern life to provide relief in the event of
sickness, old age, maternity, unemployment, employment injury etc.

Human development insists that everyone should enjoy


minimum level of security. Workers also want to be free from
economic threats which disrupt in their daily lives. Hence, there must
be a system in which the state bears the responsibility for providing
and ensuring a basic level of social security which is an essential
ingredient in the protection, development and full utilisation of human
resources.

As social security is one of the fundamental needs of the


modern human society to provide for alternative sources of income to
the workers at the time of contingencies through a concerted effort of
the most appropriate organisations, it was very much realised by the
state regarding the importance of protecting the victims from the

14 Ibid.
15 M.Velusamy, Labour Welfare : Legislation and Social Security (Delhi:
Dominant Publishers and Distributers Private Ltd) 2014 Edition p. 230.
27

contingencies in work life. It is to meet this type of need the institution


of social security is developed.

2.4 CHARACTERISTICS OF SOCIAL SECURITY

The purpose of any social security measure is to provide


individuals and families the confidence that their standard of living
will not be eroded by meeting with such socio-economic contingencies
in their life. The concept of social security varied from country to
country.16 This is understandable in a way because of the differential
social and economic development of societies in difference parts of the
world. But the need for economic protection is universal and hence
social security measures have three major characteristics even though
they vary from country to country and from time to time according to
the need of the people and countries resources. They are as follows:

Social security measures are established by law.

They provide cash benefit to replace atleast a part of


income in meeting contingencies such as unemployment,
maternity, employment injury, sickness, old age etc.

These benefits are provided in three major ways such as


social assistance, social insurance and public services.

The most well known techniques adopted by social security at


present are no doubt social assistance and social insurance which are
discussed as follows:

16 Dr.V.G.Goswami, Labour and Industrial Law (Allahabad: Central Law Agency)


2011 Edition p.3.
28

2.4.1 Social Assistance

Social assistance schemes will grant benefits to people


needing them.17 Social assistance is a devise organised by the state
by providing cash assistance and medical relief, to such members of
the society as they cannot get them from their own resources. The ILO
defines social assistance scheme as one that provides benefits to
persons of small means granted as of right in amounts sufficient to
meet a minimum standard of need and financed from taxation.18

The special characteristic of this measure is that it is


financed wholly from the general revenues of the state and the
benefits are provided free of cost. But the beneficiary has to satisfy
means test which means certain prescribed conditions. The first risk
to be covered was that old age, but gradually non-contributory
benefits were also introduced for invalids, survivors and unemployed
persons as well. Today social assistance programmes cover
programme like unemployment assistance, old age assistance,
national assistance.19 Thus, the social assistance underlines the idea
that the care of people could not be left to voluntary charity and
should be placed on a compulsory and statutory basis. It represents,
“the unilateral obligation of the community towards its dependent
groups”.20

17 Danny Pieters, Supra note 13, at 6.


18 Goswami, Supra note 16, at 11.
19 Meenakshi Gupta, Supra note 9, at 85.
20 S.N.Mehrotra, Labour Problems in India (New Delhi: S.Chand and Company
Limited), 1981 Edition p.307.
29

2.4.2 Social Insurance

Social Insurance was first introduced in Germany by Bismark


and since spread all over the world.21 Social insurance is a plan
insurance which aimed for protecting the wages of those workers who
do not have sufficient source to support their own self or their families
in case of loss of income due to meeting contingencies in their work
life. Lord William Beveridge has defined social insurance as “plan of
insurance of giving in return for contributions benefits upon
subsistence level, as a right and without means test so that
individuals made build freely upon it.”22

From the above analysis the following ingredients may be


regarded as basic features of scheme of social insurance:

Certain risks which cannot be faced by the persons in


their individual capacity are faced collectively by a group
of persons;

For that purpose they have pooled together their


resources;

Benefits are provided to them in case of contingency;

This makes them maintain their standard up to a


subsistence level;

21 R.K.A.Subrahmanya, Strategies for Protective Social Security In: Rehana


Jhabwala and R.K.A.Subrahmanya editors, The Unorganised Sector Work
Security and Protection, (New Delhi: Sage Publications) 2008 Edition p.38.
22 Nayan Barua, Social Security and Labour Welfare in India (New Delhi: Ashish
Publishing House) 1995 Edition p.25.
30

Benefits are payable to them according to rates prevalent


as a matter of right in accordance with their salary or
income; and

The payment of contribution is obligatory since they are


insured against the risk compulsorily.

2.4.3 Similarities and Differences between Social Assistance


and Social Insurance

Social assistance and social insurance have some similar


features because both are social in approach and are organised under
a law passed in this behalf. Both provide a legal title to benefits. But
both differ from each other in some respects. First, social assistance
is financed by the general tax payers, while social insurance is
financed by tripartite or bipartite contributions. Secondly, social
assistance aims at to provide minimum subsistence to those who
cannot make it on their own. Hence, the beneficiary has to satisfy a
means test for being entitled to such benefits while social insurance
schemes aim to protect a minimum standard of living related to
beneficiaries’ immediate standard of living as reckoned by his daily
earning. Thirdly, social insurance ignores the income and means of
liable relations while social assistance makes the beneficiary a first
charge on the liable relation. Benefits are paid only when the
specified relations do not possess sufficient means to support the
beneficiary. Thus social assistance is a progression from private
charity towards private insurance whereas social insurance is a
progression from private insurance towards public welfare
measures.23

23 Goswami, Supra note 16, at 12.


31

Apart from social insurance and social assistance, social


security measures are provided through public service programmes.
This type of public service is available in number of countries in the
form of national service providing medical care for every citizen of
country.

2.5 AIM OF SOCIAL SECURITY

Social security represents society’s current answer to the


problem of economic insecurity. Social security measures have a
twofold significance for every developing country. They constitute an
important step towards the goal of a welfare state, by improving living
and working conditions and affording the people protection against
the uncertainties of the future. These measures are also important for
every industrialisation plan, for, not only do they enable workers to
become more efficient, but they also reduce wastage arising from
industrial disputes causing work stoppages. Hence, the aim of all
social security measures is three fold in nature which are as follows:

2.5.1 Compensation

It aims to substitute income when there is interruption of


earnings due to unemployment, sickness, permanent disability, old
age etc.

2.5.2 Restoration

It is designed to provide certain services like medical care to


the sick and invalid and rehabilitations in cases of need.
32

2.5.3 Prevention

Social security measures not only provide reliefs when


occasions require expenditure that strains family budget, but also
prevents the risks from arising in the first place itself. Prevention is
designated to avoid the loss of productive capacity due to sickness,
unemployment or invalidity and to render the available resources
which are used up by voidable disease and idleness and this increase
the material, intellectual and moral well being of the community.24

2.6 SOCIAL SECURITY AND HUMAN RIGHTS

The International Labour Conference emphasised that social


security is the basic human right and the fundamental means for
creating social position, thereby helping to ensure social peace and
social inclusion. It is an indispensible part of government social policy
and an important tool to prevent and alleviate poverty.25 Hence the
concept of social security as a human right originated with the
Universal Declaration of Human Rights.26 The need for social security
as human right has been enumerated as follows:

“Everyone, as a member of society, has the right to social


security and is entitled to realisation, through national efforts and
international cooperation and in accordance with the organisation and
resources of each state, of the economic, social and cultural rights
indispensable for his dignity and the free development of his
personality”.27

24 Jagdish Chandra Joshi, Labour Welfare Administration (New Delhi: Rajat


Publications) 2010 Edition p.207.
25 The ILO, Decent Work and the Informal Economy, (2002).
26 Kanak Kanthi Bagchi and Nirupam Gobi, Social Security for Unorganised
Workers in India (Gurgaon: Madhav Books) 2012 Edition p.1.
27 Art.22 of The Universal Declaration of Human Rights, 1948.
33

“Everyone has the right to a standard of living adequate for


the health and well being of himself and of his family, including food,
clothing, housing and medical care and necessary social services, and
the right to social security in the event of unemployment, sickness,
disability, widowhood, old age or other lack of livelihood in
circumstances beyond his control. Motherhood and childhood are
entitled to special care and assistance. All children, whether born in
or out of wedlock, shall enjoy the same social protection”.28

2.7 CONSTITUTIONAL STATUS OF SOCIAL SECURITY IN


INDIA

The constitution of India guarantees fundamental rights to


every citizen including the right to life and as the Supreme Court has
pointed out that the right to livelihood is inherent in the right to life. 29
The ultimate aim of social security is to ensure that everyone has the
means of livelihood and hence the right to social security and
protection of the family are integral part of right to life.30 Further, the
Supreme Court has also held that security against sickness and
disablement31 and also right to family pension held to be forming part
of right to life under Article 21.32

The Directive Principles of State policy set standard of


achievement of socialistic pattern of society as it embraces principles
and policies pertaining to social security measures which are to be
followed by the state in future. It is pertinent to discuss the following
provisions which are relevant to social security:

28 Ibid., at Art.25.
29 Olga Tellis v. Bombay Municipal Corporation AIR 1986 SC 180.
30 Calcutta Electricity Supply Corporation (India) Limited v. Subhas Chandra Bose
AIR 1992 SC 573.
31 Regional Director, ESI Corporation v. Francis De Costa (1993) Supp 4 SCC 100.
32 S.K.Mastan Bee v. G.M., South Central Railway, JT 2002 (10) SC 50.
34

2.7.1 To Secure a Social Order for the Promotion of Welfare of


the People33

It is the duty of the state is to promote the welfare of its


people by securing and protecting social order in which justice, social,
economic and political, shall inform all the institutions of the national
life.34 Art.38 incorporates part of the preamble within it concerning
justice, social, economic and political. This class has often been relied
upon to sustain and demand social welfare measures and to remain
the state about the kind of society the constitution expects it to
create.35

Further, the constitution mandates the state to strive to


minimise inequalities in status, facilities and opportunities, not only
amongst individuals but also amongst groups of people residing in
different areas or engaged in different vocations.36

2.7.2 Directives to the State to Secure Social Security


Measures While Enacting Legislations37

While enacting social security legislations the state has been


directed to secure the following measures:

Adequate means of livelihood;

33 Article 38 of the Constitution of India.


34 Ibid., at Article 38(1).
35 Air India Statutory Corporation v. United Labour Union (1997) 9 SCC 377): AIR
1997 SC 645.
36 Supra note 33, at Article 38(2).
37 Ibid., at Article 39.
35

Proper distribution of ownership and control of the


material resources of the community so that it may sub
serve the common need;

Prevention of the concentration of wealth and means of


production;

Equal pay for equal work for men and women;

The health and strength of workers; and

Childhood and youth are protected against exploitation.

2.7.3 Right to Work, to Education and to Public Assistance in


Certain Cases38

The state has been directed to ensure to the people within the
limits of its economic capacity and development to secure the right
work, employment, education and public assistance in cases of
unemployment, old age, sickness and disablement and in other cases
of underserved want. It is usual to refer to matters specified in the
directive as measures of social security.

The Article 41 has no bearing on the interpretation of Article


16 as it is manifest that the term public assistance or relief to people
who are unemployed or old, or sick or disabled, or in other similar
cases of undeserved want.39

38 Ibid., at Article 41.


39 Sukhanandan Takur v. State of Bihar, AIR 1957 pat 617.
36

2.7.4 Provision for Just and Humane Conditions40

It exhibits the concerns of the framers for the welfare of the


workers by requiring the state to make provisions for securing just
and humane condition of work and for maternity benefit.

While upholding the claim of non-regularised female workers


for maternity relief, the Supreme Court has stated:41

“Since Article 42 specifically speaks of ‘just and humane


conditions of work’ and maternity relief, the validity of an executive or
an administrative action in denying maternity benefit has to be
examined on the anvil of Article 42 which, though not enforceable at
law, is nevertheless available for determining the legal efficacy of the
action complaint of.”

2.7.5 Living Wage, etc. for Workers

Article 43 requires the state to strive to secure to the worker


work, a living wage, conditions of work ensuring a decent standard of
life and full enjoyment of leisure and social and cultural opportunities.

In Standard Vacuum Refining Co. of India v. Workmen,42 it has


been observed that every workmen shall have a wage which will
maintain him in the highest state of industrial efficiency, which will
enable him to provide his family with the material things which are
needed for their health and physical well-being, enough enable him to
qualify to discharge his duties as a citizen. The amount of living
which in terms of money will vary as between trade and trade. It is in

40 Supra note 33, at Article 42.


41 Municipal Corporation of Delhi v. Female Workers, (2000) 3 SCC 224: AIR 2000
SC 1274.
42 AIR 1961 SC 895, 901.
37

this broad and idealistic sense that Article 43 of the Constitution


refers to living wage when it enunciates the directive principles that
the state shall endeavour, inter-alia to secure by suitable legislation or
economic organisation or in any other way, to all workers,
agricultural, industrial or otherwise, work, a living wage and
conditions of work ensuring a decent standard of life and full
enjoyment of leisure and social and cultural opportunities.

Article 43 sets out the ideals to which our social welfare state
has to approximate in an attempt to ameliorate the living conditions of
the workers .Considering the question of wages in the background of
the directive principles, a wage structure should serve to promote a
fair remuneration to labour ensuring due social dignity, personality
and security, a fair return to capital, and strengthen incentives to
efficiency, without being unmindful of the legitimate interest and
expectation of the consumer in the matter of prices.43

It is an indispensable component of labour welfare and extent


of its prevalence is a measure of the progress made by any country
towards ideal the welfare state.44 The concept of social security has
been further widened, so as to include provisions for housing, safe
drinking water, sanitation, health, educational and cultural facilities
and also a minimum wage which can guarantee workers a decent
life.45 Social Security is a more positive concept, assuming that with
the provision of these systems and mechanisms the unorganised
sector will become part of the main stream of the economy and
enhance the national income significantly.46 Hence, social security in

43 Poly Chem Ltd. v. R.D.Tulpule, Industrial Tribunal Bombay, (1972) 1 SCC 885:
AIR 1972 SC 1967.
44 Supra note 10.
45 Supra note 1, at 14.
46 Subrahmanya, Supra note 21 at 38.
38

the modern era is essentially conceived as a related concept to the


high ideals of human dignity and social justice.

From the above discussion it is clear that social security


measures have introduced an element of stability and protection in
the midst of the stresses and strains of modern life. Lack of social
security impedes production and prevents the formation of a stable
and efficient labour force. Social security is, therefore, not a burden,
but a wise investment which yields good dividends in the long run.47

2.8 ORIGIN AND DEVELOPMENT OF SOCIAL SECURITY

Historical Scanning of Social Security System would reveal


that recognition of labour was not a subject of social justice during
pre-industrial society as slaves, serfs etc. Where the system prevailed
reflecting their state of deprivation with no legal rights. Later the
advent of industrial revolution in the world gave rise to invention of
many numbers of machines and chemical discoveries in the 18th
Century.

Man kind’s experience of various evolutionary changes from


primitive times to the present day, have been extensive and varied.48

2.8.1 From Nomadic Period to the Modern Factory System

Initially, man passed through “the hunting and fishing stage”.


Wild animals, birds and fruits fulfilled his hunger, his thirst was
quenched by the waters of springs and rivers, caves gave him shelter
and the barks of trees were used as clothing. Thus, his basic needs
food, shelter and clothing were adequately met by nature. Due to the

47 Giri, Supra note 12, at 271.


48 S.D. Punekar and S.B. Deodhar, Labour Welfare, Trade Unionism and
Industrial Relations (Bombay: Himalaya Publishing House) 1988 Edition, p.5.
39

absence of any economic, political and social systems, labour


problems did not exist.

2.8.2 Pastoral Stage

This stage was marked by a certain amount of economic


activity. The nomadic and migratory nature of man persisted, and
together with his goats and cattle, he move on to fresh pastures and
meadows. Some conflicts would sometimes take place among herd-
owners, for private property ownership was not known.49

2.8.3 Agricultural Stage

This stage paved the way for recognition of individual


property rights as they started to have fixed abodes for cultivation.
This period saw the growth of villages, towns as well as cities. There
was a small artisan class who were self employed and also the landed
proprietors or zamindars as well slaves. Even after, feudal system
arose where serfs served under the barons who, in return, gave them
and their families’ protection, food and shelter. This type of division
was later responsible for the emergence of the class struggle.

2.8.4 Handicrafts Stage

This stage has marked the beginning of the labour problems


in the world. As the artisans were not able to sell their finished
products in their own villages, they started depending upon traders or
merchants who found a market for their products. They gave them
loans to those artisans and developed themselves to the class of
entrepreneurs. As a result the system of exchanges and commodities
developed into commercial centres. They used improved navigational

49 Ibid.
40

aids and land communication system to develop their trade and


became even more important than feudal Lords. Craft guilds ensured
the quality and quantity of manufactured goods by a strict control
over artisans. They also marketed the goods. Hence, in this period
wealth accumulated and there was a prominent division of labour and
other classes.

2.8.5 Workshop Stage

Since there is a need to manufacture products on larger scale


the workshop stage soon overtook the handicrafts stage, standardised
tools came to used and the small workshop manufactures dominated
the general market. The employer-employee relationship, however,
was still cordial, sympathetic and personal, though the elementary
problems of labour relating to wages, hours of work, recruitment and
employment also surfaced about this time.50

2.8.6 Industrial Revolution

Virtually industrial civilization began with the introduction of


factory system which was largely responsible for the rise of cities as
production of goods was shifted from small workshops and cottage to
large factories located in big town and cities. A large number of
workers migrated into the cities in search of employment in the
factories for survival.51

Large scale of production and division of labour became the


order of the day in Britain along with the growth of capitalism.
England may be regarded as the original home of modern industrial
capitalism and spread to other countries of Europe and to the United

50 Ibid., at 6.
51 Velusamy, Supra note 15, at 33.
41

States of America.52 The workers became an "exchanges" whose


labour was treated as the prime cost of production in such a manner
as new materials were and are treated.53

Industrial capitalists accelerated method of production and


flooded world markets with cheap goods which had led to the growth
of Trade and Commerce. The doctrine of Adam Smith, J.S. Mill,
Spencer had resulted in concentration of wealth in few hands as there
was no legal restriction on trade, production, exchange of wealth and
accumulation of property. This had led the manufacturing class
whose commercial doctrine was laissez-faire to labour exploitation and
victimisation. The process of industrialisation has not only resulted in
overcrowding with problems relating to safety, hygiene and health and
also employment accidents in serious dimensions.

The fear of insecurity to the workers in the event of sickness,


old age, maternity, unemployment, employment injury etc. threatened
the industrial workers regarding the interruption of the daily wages.
This was due to the laissez-faire policy of the state to play the part of
passive on looker by not taking responsibility for ensuring the better
standard of living to its citizen needed from womb to tomb.

Hence, workers had to make their own arrangements to


overcome the economic insecurity. This had drifted the workers from
bad to worse condition as there was no provision of any relief while
meeting contingencies in their work life.

The concept of social security had developed in the course of


historical process because when life is becoming more and more

52 Ghokhale (B.K), Political Science (Bombay: Himalaya Publishing House) 1973


Edition p.4.
53 Drake D (Charles), Labour Law (London: Sweet and Maxwell Limited) 1973
Edition p.4.
42

complicated due to industrial and scientific advancement, the risks of


life have increased manifold. The departure of laissez-faire philosophy
to the concept of welfare state yielded the new principles of social
welfare and common good through the instrumentality of social justice
and so that, the state was no longer content to play the part of passive
on looker. Since the late 19th Century gave birth and recognition of
industrial jurisprudence with social justice, it was almost felt by every
country to establish a system of social security to protect the workers
from the risk or contingencies of work life as a matter of right to
employees and also every state had to take active participation for the
development of human society to pursue the wide range of social and
economic policies for ensuring the dignity to man to reach the goal of
freedom from want. As per the contention of Grigson and Gibbs
Smith: laissez-faire - The doctrine that the state should not interfere
with the natural working of a nation's economy that economic forces
alone working through private individuals should shape economic
welfare, died at the end of 19th Century and was buried in the 20th
Century.54 Thus the modern society being a welfare society has
assumed the responsibility of providing social security measures to
protect industrial workers against sickness, old age, invalidity,
unemployment etc.

Though the broad system of social insurance was created by


the Government of Germany, the term social security was officially
recognise and authoritatively used in United States of America in
1935. The influence of ILO also laid foundation to social security
measures for workers for adopting the principles to secure universal
peace based on social justice. The Philadelphia declaration reaffirmed
in particular that labour is not a commodity and poverty anywhere

54 Chandra (Mahesh), Industrial Jurisprudence (Bombay: N.M.Tripathi Pvt. Ltd.)


1976 Edition p.18.
43

constitutes a danger to prosperity everywhere with a view to the


promotion of common welfare.55

2.9 HISTORICAL DEVELOPMENT OF SOCIAL SECURITY IN


INDIA

The developments of social security are closely linked to


changes in the economy and society. History is not only for those
persons interested in how things were in the past, but also important
in facilitating us to understand the present. Hence, an attempt has
been made to trace the origin and development of social security
system in India with a view to identify lagging in social security
system.

In India, social security schemes have been in existence since


times immemorial. In the beginning, economic security for needy
persons was provided primarily through individual efforts. Gradually,
to meet contingencies, organised methods developed to deal with the
problems of insecurity. In the early days when human needs were
limited and livelihood was based primarily on agriculture, joint
families, craft guilds, churches, charitable philanthropic and other
religious institutions provided these securities.56

In order to appreciate the growth and development of social


security through different stages, it has been conveniently divided into
following phases:

Pre independence phase, and

Post independence phase.

55 Article 1 of Philadelphia Declaration, 1944.


56 Srivastava, Supra note 3, at 1.
44

2.9.1 Pre-Independence Phase

In the pre-independence era, social security measures were


extremely limited in its scope and new trends started developing in
India during British period when hundreds of factories developed in
Bombay, Madras, Ahmedabad, Calcutta, Nagpur and Khanpur.
Hence, it is desirable to discuss the social security measures adopted
in the following periods:

Hindu period;

Muslim period; and

British period.

2.9.1.1 Hindu Period

In ancient India, joint Hindu family was the unit of social


organisation and was also the original cell for security, prototype and
analogous to the further institutions. The reciprocal obligations of the
parents to support the child in infancy and of the son to support the
parents in old age were represented in social insurance by the
solidarity of generations.57

The society in ancient India did not witness the class struggle
as between the employer-employee, exploiter-exploitee and oppressor-
oppressed. Since, system of regulation existed regarding wages, mode
of their payment and fixation, availability of leave to workers. All
these details are found in Arthasasthra, Yajnovalkya, Brahaspathi,
Naradas smritis etc. Kautilya’s Arthashastra is the building example
of the introduction of the philosophy of social security in ancient
India. Kautilya attached a great importance to female labour. Female

57 Goswami, Supra note 16, at14.


45

labour in ancient India was recommended in occupation like husking,


grinding, winnowing etc.58 Kautilya has also mentioned a number of
pension schemes in his work, such as, educational pension, public
poor relief. He says that “State itself should provide support to poor,
pregnant women, to their new born off spring, to orphans, to the aged,
the infirm, the afflicted and the helpless”.59

In the eighth century Sukracharya makes special provisions


for social security particularly regarding sickness benefits, pensions
and the old age benefits, family pensions and maintenance allowance.
He made it clear that when a servant was ill and could not work
temporarily, the master should make no deduction from his family.60

2.9.1.2 Muslim Period

During Mughal period due to frequent warfare there was a


rapid decline of Indian Industry. The impact of Muslim culture and
thought on India gave a new depth to the concept of charity and social
service. Islam enjoins five major duties on its followers, one of which
is ‘Zakat’, meaning charity. The Mughuls had a special governmental
department to supervise the administration of charities and
endowments.61 Among Mughal rulers, Akbar the Great made certain
provisions for learned. Shajahan made liberal grants to spiritual
guides, literary men and musicians. The motive of charity was
religious rather than safe guarding the economic interest of the poor.62

58 Arjundas, Economic Philosophy of Ancient India (Delhi: Ahamkala


Prakashan) 1986 Edition p.55
59 Goswami, Supra note 16, at 15.
60 Ibid.
61 Jagdish, Social Welfare in the 21st Century, (New Delhi: Akansha Publishing
House) 2004 Edition, pp.85-86.
62 Goswami, Supra note 16, at 15.
46

2.9.1.3 British Period

The Indian industry has declined considerably after the


Britishers, came as local industry was hardly encouraged. The first
cotton textile factory was set up at Bombay as early as 1854.63 Along
with large scale cotton and jute textile industries, seasonal industries
like cotton ginning, cotton and jute pressing and rice milling also
cropped up.64

New trends started developing in India during British period


as a result of the technological developments and industrialisation
which had led to the establishment of two distinct classes in the
society that is employers and employees. Joint family system lost its
validity to provide security against certain socio-economic
contingencies as labour was drawn to factory in order to improve their
living conditions. There was hardly any law of the land in India to
govern labour matters.

Exposure to serious accidents due to unprotective methods of


handling machines and sickness due to unhealthy living and working
conditions made the workers entirely incapable of work which in turn
considerably reduced their earning capacity. The capitalists wanted
more production but for less wages. Since the traditional right of an
employer to hire and fire his workmen at his will under the laissez-
faire policy ruled supreme for some time, the living standard of
workers became low due to interruption of wage-earnings and
expenditure on the cure of diseases. So this double income loss had
resulted in economic insecurity. Since there was no productive
system either in the form of compensation or in the form of medical

63 Sinha G.P & Sinha P.R.N, Industrial Relation and Labour Legislation (New
Delhi: Oxford & IBH Publishing Company) 1971 Edition p.14.
64 Sharma G.K, Labour movement in India (New Delhi: Sterling Publishers Pvt.
Ltd.) 1971 Edition p.14.
47

care and treatment, they found to be difficult to cope up with the cost
of living in urban life. A sense of union conscience became
widespread in the western countries that were followed by other parts
of the world including India. The workmen on many occasions
combined for increasing wages and reducing hours of works. But,
they were resisted by the employers by holding unions as illegal.

2.9.1.4 Impact of Two World Wars

The impact of two world wars deteriorated both economic and


social conditions of working class. As trade unions were legalized in
some countries, they started functioning as welfare bodies in addition
to protest organization. Meanwhile the establishment of ILO gave a
morale boost to the Indian workers to have organized movements for
redressing their grievances particularly the need for protecting
workmen against hazards of life such as the injury, sickness,
maternity, old age was very much felt and that the institution of social
security has to established.

As there was no proper legislation for the protection of


workers against social and economic contingencies except few
legislations like the Fatal Accidents Act, 1855; The Factories Act, 1948
etc. The influence of ILO during the post war period favoured the
growth of trade union movement resulting the enactment in the field
of social security namely Workmen’s Compensation Act, 1923.

2.9.1.5 Royal Commission on Labour

The Royal Commission on Labour was appointed in 1929 to


enquire into the working conditions of industrial labour. The
Commission, inter alia, recommended a scheme of health insurance of
48

industrial workers on a contributory basis financed by the employers


and by small deductions from the wages of workers.65

The Royal Commission also emphasised the necessity for


making some provisions against old age as the workers are unable
save out of their low earning against old age.66 Further, the
commission also recommended for maternity benefits as well as
payment of gratuity.67

2.9.1.6 Scheme by Professor B.P. Adarkar Committee

The question of formulating a health insurance scheme


received the attention of the Government of India in 1927. The Royal
Commission on Labour also stressed the need for health insurance for
industrial workers. The problem of health insurance was discussed in
the Labour Ministers Conference in 1940, 1941and 1942 which has
resulted in the appointment of a committee presided over by Professor
B.P. Adarkar in 1943. Professor B.P. Adarkar was entrusted with the
task of preparing details of the compulsory insurance for industrial
workers. He submitted his report in 1944 with the recommendations
based on compulsory contributory principles wherein contributions by
the workers depending upon their earnings in slabs. The Adarkar’s
report was modified by ILO experts and finally it was passed as the
Employees’ State Insurance Act in 1948.

2.9.2 Post Independence Phase

The real sense of social security legislations took shape only


after independence even though its birth may be traced back to the
industrial revolution. India witnessed the introduction of industrial

65 Srivastava, Supra note 3, at 15.


66 Report of Royal Commission on Labour in India, (1931), p.269.
67 Ibid., at 159.
49

adjudication in India during 1947.The interim Government formulated


a five year programmes for the welfare of labour class with a view to
raise the living standards of workers. The significant features of the
programmes are follows:

Organisation of health insurance scheme, applicable to


factory workers to start with;

Revision of Workmen’s’ compensation Act;

A central law for maternity benefit;

Extension to other classes of workers of the right, within


specific limits, to leave with allowance during the
sickness.68

2.10 DEVELOPMENT OF SOCIAL SECURITY DURING FIVE


YEAR PLANS

The labour policy set out in the five year plans since
independence was based on the belief that the basic needs of workers
for food, clothing must be satisfied. Hence, India began the process of
planned economic development in the start of First Five Year Plan in
April 1951.69 Since the Constitution has made a special mention of
the duties that the state owes to labour, to their economic upliftment
and social regeneration70 planning was introduced to provide certain
directions aimed at physical, social and moral improvements of labour
that has directly bearing on social security legislations and hence, the

68 Supra note 10, at 163.


69 Narendar Jetli (K) India: Man Power, Employment Policy and Labour Welfare,
1947-2007 (New Delhi: New Century Publications) 2006 Edition p.121.
70 Supra note 10, at p.14.
50

Directive Principles of State Policy is described as social security


charter.71

2.10.1 First Five Year Plan (1951-1956)

The first five year plan has two main objectives namely a
better standard of life for the people and social justice. The objectives
of the plan reflect the idealism of the community and are derived from
Directive Principles of State Policy embodied in the Constitution.72

This plan has emphasised that adequate provisions has to be


made for the basic needs of the workers in respect of food, clothing
and shelter so as to enable them to remain in a state of health and
efficiency. Besides this, it is also further emphasised that workers
should have their due share in social and economic progress in the
shape of improved health services, wider provision of social security,
better educational opportunities and increased recreational and
cultural facilities.73

The plan also stressed that the conditions of work should be


such as to safeguard the workers health and protect them against
occupational hazards. Further, it was observed that the workplace has
to provide reasonable amenities for his essential needs and the worker
should be assured of a reasonable measure of security against the
various natural and other risks to which he is exposed.74

With regard to economic inequalities between rich and poor,


the plan observed that at present there are large inequalities between
the rich and poor, between the urban and rural areas. This inequality

71 Supra note 33, at Articles 38,39,41,42 and 43.


72 Government of India, First Five Year Plan, (1951-1956), Chapter 34 Para 4.
73 Ibid. at,Para 2.
74 Ibid. at,Para 3.
51

is both unjust and uneconomic. Further, it stated that our country


can survive only if there is a more equitable distribution of wealth.
The plan also suggested the ways for bringing out equality by way of
taking away excessive wealth through fiscal and legislative measures.
It also suggested other method that is to raise the standard of life of
the common man through improvement in the economic and social
status of the more vulnerable classes and through increase in the
wealth and productive capacity of the community as a whole.
Protection of tenants, labour welfare, amelioration of the backward
classes and the substitution of usury by organised credit are steps to
this end. The plan has emphasised on agricultural development
towards rectifying prevailing inequalities. Further, the plan also
suggested to consider matters such as prevailing situation of Indian
economy which is not fully integrated. Secondly, essential facts and
data relating to important aspects of our economy are lacking. It
focussed its attention that the federal structure of the Constitution in
which the states are largely autonomous should involve a great deal of
mutual consultation and also special attention to the problem of
effective coordination of policy and programmes.75

The plan also observed that worker today is not satisfied with
merely the wage he receives but expects to be protected against types
of natural and other risks arising out of employment.76

2.10.2 Second Five Year Plan (1956 - 1961)

The Second Five Year Plan has explained the significance of


the socialistic pattern of society as India adopted socialistic pattern of
society as an objective of state policy.

75 Supra note 72, at p.570.


76 Supra note 10, at para 45.
52

Considering the significance of socialistic pattern of society,


the second five year plan stated that the basic criterion for
determining the lines of advance must not be private profit but social
gain, and that the pattern of development and the structure of socio-
economic relations should be so planned that the result not only in
appreciable increases in national income and employment, but also in
greater equality in income and wealth. The plan also observed that the
major decisions regarding production, distribution, consumption and
investment and in fair all significant socio-economic relationships
must be made by agencies informed by social purpose. The plan
marked that the benefits of economic development must accrue more
and more to the relatively less privilege classes of society and there
should be a progressive reduction of the concentration of incomes,
wealth and economic power.77

The plan also stated that the problem is to create milieu in


which the small man who has so far had little opportunity of pursuing
of participating in the immense possibilities of growth through
organised effort is enable to put in his best in the interest of the
higher standard of life for himself and increased prosperity for the
country. It also suggested that for creating the appropriate conditions,
the state has to take on heavy responsibilities, as the principle agency
speaking for and acting on behalf of the community as a whole.78

The plan also aims to have a wage policy in order to raise the
real wages of the workers and also felt that workers’ right to a fair
wage has been recognised but in practice it has been found difficult to
quantify.79 The plan suggested that employees’ provident funds
should be extended to cover more industries and commercial

77 Government of India, Third Five Year Plan (1961-1966) pp.9-10.


78 Ibid.
79 Government of India, Second Five Year Plan, (1956-1961) para 21.
53

establishments. During this plan possibility of combining different


social security provisions in force in to an overall social security
scheme is being explored. It has also suggested that decentralisation
of the administration of such a unified scheme would prove
advantageous to its beneficiaries.80

Special attention has been focused on women workers also


with regard to the effective implementation of legislations relating to
protection against injurious work, maternity benefits and creche
facilities at work places. While discussing about the schemes framed
under Employees State Insurance Act, 1948 the plan has stressed
that steps should be taken for proper implementation of the schemes.
The plan also focussed considerable attention about the requirement
to improve the conditions of labour through legislations such as
Factories Act, 1948, Mines Act, 1952 and Plantation Labour Act,
1951.81

The Second Five Year Plan also emphasised that agricultural


workers need special and immediate attention to improve the living
standards of the people due to lack of organisation and prevailing
economic conditions of the agricultural labour.82

2.10.3 Third Five Year Plan (1961-1966)

The Third Five Year Plan gave importance to social assistance


programmes.83 The plan stated as follows:

“It would be desirable to make a modest beginning in respect


of three groups of persons, the physically handicapped, old persons

80 Ibid., at para 27.


81 Ibid., at para 37
82 Ibid., at para 34.
83 A Report of National Commission on Labour, (1969), p.164.
54

unable to work and women and children, where they are altogether
lacking in the means of livelihood unsupport. Assistance for them will
have to come from voluntary and charitable organisations, municipal
bodies, panchayat samitis and panchayats and voluntary
organisations. With a view to enabling these organisations to develop
their activities with the help of local communities and giving them a
little support, it might be useful to constitute a small relief and
assistance fund”.84

For creation of welfare funds the third five year plan


suggested that special welfare funds have been constituted for
financing welfare measures for workers in the coal and mica mining
industries. They are meeting very real needs and hence similar funds
are proposed to be created for workers in the manganese and iron ore
mines.85

The plan also felt that the state and local bodies both urban
and rural need to participate in schemes undertaken by way of social
assistance and social security and also recommended for the
integration of the existing social security schemes.

2.10.4 Fourth Five Year Plan (1969-1974)

The plan provided for the expansion of employees state


insurance activities to provide hospitalisation to families of all insured
workers to cover shops and commercial establishments in selected
centres and also to non power factories employee ten or more
persons.86

84 Supra note 77, at 258.


85 Ibid., at 259.
86 Government of India, Fourth Five Year Plan, (1969-1974) para 22.9.
55

The plan gave importance to social assistance programmes


and also observed that the programmes for welfare centres, holiday
homes and recreational centres have been included in state plans. The
plan also stressed for strengthening labour administration for better
enforcement of labour laws.87

2.10.5 Fifth Five Year Plan (1974-1979)

The Fifth Five Year Plan identified that stray progress is being
achieved in social security measures.88 It emphasised the suggestion
of the Committee on Perspective Planning appointed by the
Employees’ State Insurance Corporation that the Employees State
Insurance Scheme should carry out a five year phased programme of
extension of additional categories of establishments, including smaller
factories, shops and commercial establishments, mines and
establishments.89 The plan further stated that the scope for
integrating certain important social security measures should be
studied.90

2.10.6 Sixth Five Year Plan (1980-1985)

The Sixth Five Year Plan observed the progress made in social
security scheme in India. It recommended that the Provident Fund
Scheme should be gradually extended to smaller establishments and
to rural areas.91 The plan also emphasized that effort should be made
to remove the difficulties of limitation of financial and physical
resources of the state government and to extend the coverage to new

87 Ibid., at 22.11.
88 Draft Fifth Five Year Plan (1974-1979) Vol.2, p.273.
89 Ibid.
90 Ibid.
91 Government of India, Sixth Five Year Plan, (1980-1985) p.405.
56

areas.92 The planners also suggested that as welfare and social


security service overlap in areas of medical care and income security
during sickness and disability, it will be conducive to efficiency and
economy if services in such common areas can be integrated.93

The thrust of the programmes in the sixth plan was in


extending measures contemplated in the coverage of Employees State
Insurance Scheme and Employees Provident and Family Pension
Scheme. The plan also recommended that special programmes need to
be undertaken by the State Governments for the benefit of agricultural
labour, artisans, hand loom weavers, fisher man, leather workers and
of the unorganised workers in the rural and urban areas.94

The planners also focused their attention to bonded labour


and stressed that effort should be undertaken for its abolition.95
Further, focus was made towards the abolition of child labour and
also regarding the protection extended in prohibition of employment of
women in underground mines/coal units and in certain other
hazardous occupations. It was also observed that special steps have to
be taken to promote their welfare facilities like creches maternity
benefits and ensuring equal pay for equal work.96

2.10.7 Seventh Five Year Plan (1985-1990)

The highlight of this plan is regarding the labour policy for


unorganised labour. The plan observed that labour policy should
necessarily have provisions for the welfare and working and living
conditions of unorganised labour not only in rural sector, but also in

92 Ibid., at p.406.
93 Ibid.
94 Ibid., at para 29.4.
95 Ibid., at 24.42.
96 Ibid., at 24.46.
57

the urban areas. It examined that although a great majority of


unorganised labour is found in the rural areas, an increasing number
of workers are shifting in the metropolitan cities and small and
medium towns in search of better employment opportunities. It
further examined that in the unorganised urban sector, incomes are
not protected, legal regulations of employment and wages are almost
nonexistent and it is extremely difficult to enforce the rules where they
exist. While discussing the problem of unorganised sector, it has
specifically stated that apart from the general problem of
unemployment, rural labour such as land less labourers and small
and marginal farmers, fishermen, beedi workers, leather workers,
handloom workers, etc., face problems of under employment, low
wages, lack education and organisation.97

The plan also pointed out that a number of schemes are


already being implemented to improve the living and working
conditions of rural workers in the country, but it is a challenging task
to provide programmes for employment creation and income
generation to the rural unorganised labour. This plan also paid a
special attention to the bonded labour and child labour for their
eradication.98

2.10.8 Eighth Five Year Plan (1992-1997)

This plan has observed that adequate levels of earnings and


safe and humane conditions of work and access to some minimum
social security benefits are the major quantitative dimensions of
employment which enhanced quality of life of workers and their
productivity. The plan has marked that there is an inadequate
coverage and implementation of Minimum Wages Act. The plan

97 Government of India, Seventh Five Year Plan, (1985-1990) para 5.33.


98 Ibid., at 5.35
58

further stated that a National Child Labour Programme has been


taken up to make effective intervention to prevent exploitation of child
labour in the unorganised sector. The plan also suggested that
suitable organisational arrangements would need to be developed to
provide a minimum measure of social security for unorganised
workers.99 It also suggested that rural workers educational
programmes should be organised for agricultural workers, forest
labour and rural artisans to solve their problems by making aware of
industrial health, safety and environment as well as to develop
leadership among workers.

2.10.9 Nineth Five Year Plan (1997-2002)

The planning process attempts to create conditions for


improvement in labour productivity and for provision of social security
to supplement the operations of the labour market. The plan has
pointed out that the situation of surplus labour, coupled with the
employment of most of the workers in the unorganised segments of
the economy has given rise to unhealthy social practices like bonded
labour, child labour and adverse working conditions faced by the
migrant labour. The strategy during the plan was that the resources
have been directed to the plan programmes towards skill formation
and development, exchange of information on job opportunities,
monitoring of working conditions, creation of industrial harmony
through a infrastructure for healthy industrial relations and
insurance against disease and unemployment for the workers and
their families.100

The approach of the plan was to provide social security to the


population where high instance of poverty is prevalent. The plan

99 Jetli, Supra note 69, at 330.


100 Ibid., at 366.
59

identified that a large number of unorganised labour do not get


acceptable minimum level of living and focussed its attempt in
providing social security for a targeted group through a special
employment generation programme on the one hand and the provision
of free or heavily subsidised basic needs like health, nutrition,
housing and the education on the other.101

A number of schemes are already being implemented to


improve the living and working conditions of rural workers in the
country. The transformation of their socio-economic conditions is
admittedly a challenging task and due to the basic malady afflicting
the rural unorganised workers has been the lack employment
opportunities. Hence, the plan intended that emphasis will continue
to be placed on the special target group programmes for employment
creation and income generation. Therefore, plan aimed to undertake
efforts not only to improve and upgrade the skills of the workers but
also to reduce them and make them aware of the programmes and
legislative provisions available for them.102

2.10.10 Tenth Five Year Plan (2002-2007)

The plan observed that the productivity of labour is an


essential condition for the prosperity of enterprises and the well being
of the workers and their families. It stated that while the production
facilities at work place and the remuneration are important, attitudes
towards work, and their value placed by the society on dignity of
labour are equally important in influencing the productive of
labour.103

101 Ibid., at 370-371.


102 A.M.Sarma, Welfare of Unorganised Labour, (Mumbai: Himalaya Publishing
House) 2008 Edition PP.30-31.
103 Government of India, Tenth Five Year Plan, (2002-2007) para 3.5.1.
60

The planning process supports the attainment of economic


and social objectives in the labour sector through a set of strategies.
The supply of labour is kept in tune with demand through skill
development and vocational training. The Plan further observed that
appropriate conditions at work are ensured by measures taken to
promote safety at the workplace and minimizing occupational hazards
and a reasonable return on labour is facilitated by labour laws that
regulate payment wages and provision of social security to workers.104

The plan also marked that the situation where the supply of
labour exceeds demand by a huge margin can lead to highly
exploitative forms of work and therefore an effective implementation of
the existing regulations relating to prohibition of bonded labour and
child labour and monitoring the conditions of migrant workers is
required.105

The main objective of Tenth plan would be to increase the


coverage of the labour market institutions and also to provide
provision of gainful employment to the entire labour force. It is
observed by the planners that the growth of population in the working
age group is at a substantially higher pace than that of the average
population. Agriculture used to provide employment to a major part of
the work force. It was also pointed out that the number of workers
deployed in agriculture cropping activities has not increased and it
has even declined in certain parts of the country. Further, the plan
noted that the pace of growth of jobs in the organised sector has
slowed down primarily because number of jobs in the public sector
has reduced and employment elasticity in the private sector has
decreased significantly.

104 Ibid., at para 3.5.2.


105 Ibid., at para 3.5.3.
61

The plan recommended for the economic policy in general and


labour policy in particular must facilitate the opening up of new
employment avenues. Particularly in agriculture and related sector,
there is a need to create more employment opportunities in
horticulture, animal husbandry, poultry and development of water
sheds. The plan contemplated that the non agricultural sectors of
economy will have to observe the bulk of the increase in labour force
and the labour sector has to focus at those times of establishment
where much of the labour finds work.106

2.10.11 Eleventh Five Year Plan (2007-2012)

The plan pointed out that the unorganised section of


agricultural sector consisting of crop cultivation and other agricultural
activities such as forestry, livestock, and fishing, not protected under
the Plantations Workers Act, has neither formal system of social
security nor regulation of conditions of work. The plan also stated that
the Government has taken note of the concerns expressed by the
National Commission for Enterprises in Unorganised Sector in
examining the desirability of enacting laws regulating the minimum
conditions of work of agricultural wage workers and provide a
measure of social security to agricultural wage workers and marginal
and small farmers in the unorganised sector as well as
informal/unorganised workers in the organised sector consisting of
wage workers, independent self-employed, and workers who are self-
employed at home, whose minimum conditions of work are not
regulated by any other legislation. The plan also felt that the
provision of a statutory package of National Minimum Social Security
to which all unorganised (agricultural and non-agricultural) workers
are entitled need to be considered. It also suggested that there may be

106 Ibid., at para 3.5.5.


62

Social Security Advisory Boards and dispute resolution mechanisms


to oversee and monitor the implementation and ensure that each such
worker has the sense of being provided with what is due to him/her.

The plan has observed that in order to provide accessible,


affordable, accountable quality health services to households in rural
areas the government has launched National Rural Health Mission.
The plan pointed out that many efforts in the past for providing health
insurance for the rural poor have not been successful because of
inadequacies in design and implementation. There is a need for an
inclusive social security system for more than 91% of India’s work
force which consists of informal workers working either in the
unorganised sector (85%) or in the organised formal sector (6%).107
The plan noted that a large majority of them face the problem of
deficiency or capability deprivation as well as the problem of adversity.
Further the social security schemes that are currently inplace hardly
cover even 5 to 6% of estimated number of total informal workers of
362 million.108 It also examined that with the exception of a small
number of states with some social security cover for workers in the
unorganised sector, a majority of the states do not offer any cover,
especially for addressing such core concerns as healthcare and
maternity. The plan also pointed out that among the central and state
governments initiatives that address the social security needs of the
population, there are very few schemes addressed specifically for the
unorganised workers. Kerala and Tamil Nadu are the only states that
offer some reasonable coverage of both old age pension for the aged
poor and other protective social security schemes for the workers in
the unorganised sector.

107 Eleventh Five Year Plan (2007-12), p.152.


108 Ibid.
63

While discussing the issues on social security in the context


of inclusive growth the plan observed that majority of the workers in
the unorganised sectors come from the socially backward
communities. Lack of purchasing power as a result of low earning
power, along with vulnerabilities will have the effect of reducing the
aggregate demand in the economy. The plan also observed that the
absence of a viable and comprehensive social security arrangement is
not merely the problem of individual workers and their families. It has
also wider ramification for their economy and society. The plan
pinpointed out the overall wellbeing of the country as measured by
health, education, longevity of life and access to resources may be
affected adversely, at times manifesting itself in crimes and other
illegal activities.109

Regarding workers without institutionalised social security


cover, the plan stated that the beedi workers, brick-kiln workers,
handicraft artisans, handloom weavers, leather and tannery workers
are covered under social insurance schemes available to the
unorganised sector which is operated through Life Insurance
Corporation such as social security group insurance scheme. It is
necessary to ensure living wage, distinct from the concept of minimum
wage, which can guarantee the workers a decent life. Hence, the
objective of the Eleventh Plan is to treat social security as inclusive
concept that covers housing, safe drinking water, sanitation, health,
educational and cultural facilities for the society at large. During this
Period, as sequel to the recommendations of National Commission for
Enterprises in the Unorganised Sector, the Unorganised Workers’
Social Security Act was passed in the year 2008 to provide for the
social security and welfare of unorganised workers. The Act provides
for welfare schemes formulated by Government on matters relating to

109 Ibid., at 152.


64

life and disability cover, health and maternity benefits and old age
protections under schedule I of the Act.

2.10.12 Twelfth Five Year Plan (2012-2017)

The plan focused its attention towards the women in the


unorganised sector and stated as follows:

“Women in the unorganised sector require social security


addressing issues of leave, wages, work conditions, pension, housing,
child care, health benefits, maternity benefits, safety and occupational
health, and a complaints committee for sexual harassment. This can
only be ensured in extending labour protection to these sectors in a
manner that pays special attention to the needs of women workers”.110

With regard to home based workers, the plan stated that the
promotion of enterprises of home based workers, self employed
workers and small producers is an essential component of twelfth
plan and is of particular relevance for women. The Twelfth Plan
strategy would be to identify such workers and support their
enterprises through setting up of common facility centres to ensure all
important services including technology and skill training,
entrepreneurship training, market information access to
institutionalised credit, power and other infrastructure and related
facilities are readily provided.111

The plan proposed that medical insurance policies will be


modified to recognise needs of women headed and single women
households and encouraged to have uniform coverage norms. Policies
on pensions and post-retirement benefits will be engendered to reflect

110 Twelfth Five Year Plan (2012-2017) p.169.


111 Ibid., at 167.
65

the needs of single women and women headed households. The plan
suggested that Kisan Credit Cards should be issued to women
farmers, with joint pattas as collateral and there will be provision of
refinance loan for women entrepreneurs to extend their involvement in
economic activities. Government loan guarantees to substitute for
collateral to facilitate women’s access to credit will also be provided.112

The plan also pointed out that one of the major impediments
affecting women’s participation in the workforce, is due to lack of
skills. The Twelfth Plan envisages a major scaling up of skill
development which must be accompanied by special efforts to promote
skill development of women from traditional skills to emerging skills,
that help women break the gender stereotypes and move into
employment requiring higher skill sets.113

While discussing about employment generation, the plan


suggested that a significant increase is required in formal sector
employment, with reasonable pay and conditions, which would
provide for the specific needs of women workers. The Twelfth Plan
strategy is mainly focussing on health, education, sanitation and
infrastructure development that will create many productive jobs and
a large proportion of which will be in the formal sector. This must be
accompanied by measures to ensure that women have adequate
access to these new job opportunities. The plan also aims to
strengthen the implementation of the Equal Remuneration Act and
the Maternity Benefits Act.114

With regard to migrant workers, the aim of the twelfth plan is


to ensure provision of financial services to migrant women to enable

112 Ibid., at 167.


113 Ibid.
114 Ibid., at 167.
66

promotion of savings and to facilitate secure transfer of remittances.


To protect migrant domestic workers from exploitation by placement
agencies, the plan suggested that a system of registration, monitoring
and accountability of placement agencies for domestic workers may be
introduced. To prevent marginalisation of migrant labour, especially
women migrants at their new destination, it has further suggested
that portability of entitlements such as ration cards based on the
experience of the Rastria Swasthiya Bima Yojana card will have to be
ensured. Migrant Resource Centres /Assistance centres will have to
be set up in major destination areas to provide information
counselling for migrants including training and placement to ensure
better integration in urban labour markets.115

Further, Constitution of India provides an overreaching frame


work for regulation of conditions of work as well as protection and
promotion of livelihoods. The Constitution of India guarantees
fundamental rights to every citizen including the right to life. The
ultimate aim of social security is to ensure the means of livelihood and
therefore, the right to social security is also inherent in the right to
life. Thus, there was a complete change in the approach to labour
legislations after independence as the ideas of social justice and
welfare state are enshrined in the constitution which laid down
directives to the state under part IV relating to labour and its welfare.

Accordingly, the following legislative measures have been


adopted by the Government of India by way of social security schemes
for industrial workers:

Employees’ Compensation Act, 1923;

Employees’ State Insurance Act, 1948;

115 Ibid., at 175.


67

Employees Provident Fund and Miscellaneous Provisions


Act, 1952;

Maternity Benefit Act, 1961;

Payment of Gratuity Act, 1972.

Recently, the Unorganised Workers’ Social Security Act was


passed in 2008.

Apart from these legislations there are legislations to regulate


the conditions of work. Which are as follows:

Payment of Wages Act, 1936;

Factories Act, 1948;

Minimum Wages Act, 1948;

Plantation Labour Act, 1951;

Contract Labour (Regulation and Abolition) Act, 1970;

Bonded Labour (Abolition) Act, 1976;

Inter-State Migrant Workmen (Regulation of Employment


and Conditions of Service) Act, 1979;

Child Labour (Prohibition and Regulation) Act, 1986;

Building and other Construction Workers (Regulation of


Employment and Conditions of Service) Act, 1996;

Beedi and Cigar (Conditions of Employment) Act, 1996.

From the above observation it is concluded that there is


considerable development in the social security measures during the
68

post independence period. Even from the perusal of five year plans, it
is inferred that the state has moved to translate the objectives stated
in Directive Principles of State Policy in to statutes which are to

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safeguard the interests of workers against sickness, accident, disease,
old age and unemployment. Particularly the programmes of sixth plan
was on the effective implementation of different legislative enactments
regarding labour and special programmes for agricultural labourers,
artisans, hand loom weavers, leather workers etc., and its special
attention towards the problems of bonded labour, child labour, women
labour, contract labour, construction labour and inter-state migrant
labour. The eight five year plan also pointed out that the enforcement
of labour laws especially laws relating to the unorganised labour
should be effective.
69

CHAPTER 3

ROLE OF INTERNATIONAL LABOUR ORGANISATION IN

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PROMOTING SOCIAL SECURITY

ILO is a large community including not only Governments,


but also includes workers’ and employers’ representatives each with
their global networks. The ILO has played a key role at historical
junctures such as the great depression, decolonisation etc., and at
present, it plays a productive frame work for affairs of globalisation.
ILO was created to promote social progress and overcome social and
economic conflicts of interest through dialogue and cooperation. The
two triggers for the creation of ILO were war and revolution.1

In the wake of the First World War, there was a need for
fundamental changes in politics, economy and society and the same
openness to change again emerged after second world war to
reconstruct better world by promoting human rights and social
progress.

The failure of any nation to adopt human conditions for


labour is an obstacle in the way of other nations which desire to
improve the conditions of labour in their own countries.2 To achieve
these objectives ILO came into existence in the year 1919 assuring
overall development of working class of the world through standard
setting and economic development of member countries, as a means

1 Gerry Rodgers, et. al., The ILO and the Quest for Social justice (1919 -2009)
(Geneva: ILO), 2009 Edition p.2.
2 Para XIII of Treaty of Versailles, 1919.
70

to improve world economy. The vision of original constitution3 was


taken a step further towards the end of the Second World War in a
powerful declaration, and was adopted by the organisation at the
conference held in Philadelphia 1944, which is consequently
incorporated in to its constitution for the need of international and
national action for universal social progress.4

3.1 ILO AND SOCIAL JUSTICE

In the context of the ILO constitution, “Social Justice” can


be interpreted so as to include within its ambit the conceptualized
philosophy that all human beings irrespective of race, creed or sex
have the right to pursue both their material well being and their
spiritual development in conditions of freedom and dignity of
economic security and equal opportunity. Thus, ILO was built on the
fundamental belief that universal lasting peace can be established
only if it is based upon social justice. Peace and justice go hand in
hand whereas conditions of labour exists involving such injustice,
hardship and privation to large number of people as to produce
unrest so great that the peace and harmony of the world are
imperilled.

3.1.1 Basic Principles of ILO

The basic principles of ILO is based on the recognition of the


fundamental social right guaranteed by law to all human beings who
live from their labour and who finds themselves unable to work
temporarily or permanently for reasons beyond their control. These
objectives are as follows:

3 ILO’s First Constitution was prepared by the Commission of the ILO of the
Peace Conference in 1919 and formed the part of Treaty of Versailles.
4 E.Lee, The Declaration of Philadelphia: Retrospect and Prospects,
International Labour Review (Geneva: ILO) Vol.133 No.4, pp-467-485.
71

Lasting peace cannot be achieved unless it is based on


social justice, grounded in freedom, dignity, economic
security and equal opportunity.

Labour should not be regarded merely as a commodity or


an article of commerce.

There should be freedom of association for both workers


and employers, along with freedom of expression and the
right to collective bargaining.

These principles are fully applicable to all human beings,


irrespective of race, creed or sex.

Poverty anywhere constitutes a danger to prosperity


everywhere, and must be addressed through both
national and international action.5

An improvement in the conditions of labour is urgently


required to progress towards the goals. These goals are in the form of
seven central policy concerns which are as follows6:

The promotion of full employment and rising standards


of living, in occupations in which workers can apply
their capabilities and contribute to the common well-
being-along with equal opportunity for men and women
in achieving this end, and facilities for training and for
migration.

5 Gerry Rodgers, Supra note 1, at p.7.


6 Ibid., at 8.
72

The provision of an adequate living wage for all those


employed, calculated to ensure a just share of the fruits
of progress to all.

The regulation of hours of work, including the


establishment of a maximum working day and week
and of weekly rest.

Protection of children, young persons and women,


including the abolition of child labour, limitation on the
labour of young persons and the provision for child
welfare and maternity protection.

Protection of the economic and social interest of those


workers who are employed in countries other than their
own.

The adequate protection of all workers against sickness,


death and injury arising out of employment.

The extension of social security measures to provide for


old age and ill-health, a basic income to all those in
need of protection, and comprehensive medical care.

3.1.2 Means of Governance

The ILO constitution identifies four means of governance7:

Tripartism: the representative of workers and the


employers, enjoying equal status with that of
governments, join with them in free discussion and
democratic decision on social and economic measures,
and collaborate in increasing productive efficiency.

7 Ibid., at 9.
73

The adoption of international Conventions and


Recommendations to be submitted to national
authorities for ratification or other action.

A system of inspection to ensure enforcement of the


laws and regulations concerned.

Collaboration among international bodies in order to


ensure that all economic and financial policies
contribute to social progress and well-being.

3.2 POWERS AND FUNCTIONS OF THE ILO ORGANS

The three principle organs of the ILO are constituted


according to Article 2 of the ILO Constitution they are as follows:

1) General Conference of representatives of the Members,


which is also called as the International Labour
Conference.

2) Governing Body composed of representatives of


Government, employers and workers in the given
proportion, as described in Article 7 and

3) International Labour Office controlled by the Governing


Body which was also known as the International
Labour Office or the Secretariat of the ILO.

3.2.1 International Labour Conference

The general conference is the supreme decision making body


since it provides a forum for discussing social, economic and labour
related issues. The main function of the conference is to set and
74

adopt international labour standards in the form of conventions,


recommendations and resolutions8. It is a parliament of world
labour. All the members of the ILO are the members of conference in
which each member is entitled to send four members as its
representatives in the ratio of 2:1:1 (Government : Employers :
Workers). Each delegate may be accompanied by advisors where
questions specifically affecting women are to be considered by the
conference atleast one of the advisors should be a woman. The
conference appoints committees such as selection committee,
credentials committee, conference drafting committee, conference on
the application of conventions and the recommendations, finance
committee of government representatives and other committees for
assisting in various activities assigned to the same by it as
contemplated in Articles 4 to 8 of the standing orders of ILO
respectively. The conference may appoint any other committee to
consider on report on any matter depending on the need.

The very idea of protecting the interest of the working class


is two universal standards. Hence, the foremost obligation of the ILO
is to set-forth various universal standards to improve the working
conditions of the labouring class thereby ensuring social justice.

ILO convention provides a comprehensive procedure for


drafting, discussing, voting and finally adopting a universal standard
which takes the form of convention or recommendations. The chief
executive body of the ILO takes note of the opinion expressed by
various countries during discussion and also which are known to the
governing body through the surveys made by the International
labour office. The international labour office seeks the views of the

8 Prof. Ahmedullah Khan, Commentary on International Labour Organisation


and the Indian Response, (Hyderabad: Asia Law House) 2005 Edition p.17.
75

governments through the pre drawn detailed questionnaire on all


aspects of the matter proposed to be discussed in the international
Labour Conference for the purpose of adoption. Further the ILO
constitution requires the governing body to make rules to ensure
through technical preparation and adequate consultation of the
members primarily concerned by means of the proprietary
conference or otherwise prior to the adoption of a convention or
recommendation by the conference.9

The ILO constitution contemplates that when the


Conference has decided on the adoption of proposals regarding any
item on the agenda, it rests with the Conference to decide whether
such proposal should take form of a Convention or a
Recommendation. However, in either case a majority of two-thirds of
votes cast by the delegates present shall be necessary on the final
vote for the adoption of the Convention or Recommendation, as the
case may be, by the Conference.10

3.2.1.1 Powers and Functions of the General Conference

The powers and functions of the International Labour


Conference could be divided into three parts: namely:

Legislative;

Executive; and

Financial.

9 Article14 (2) of the ILO Constitution.


10 Ibid., at Art. 19(2).
76

3.2.1.2 Legislative Powers and Functions

The legislative powers and functions of International Labour


Conference are based on the idea of protecting the interest of the
working class through universal standards with a view to improve
the working conditions the labouring class and thereby ensuring
social justice. These are as follows:

Adoption or Revision of International Labour Code


consisting of Conventions and Recommendations,

Amending the Constitution of the ILO,

Determining whether an item on the agenda should


take the form of an International Convention or a
Recommendation to meet circumstances where the
subject or aspect of it dealt with is not considered
suitable or appropriate at that time for a Convention,11

Deciding whether any subject to be considered by it


shall be included in the agenda for the following
meeting,

Deciding about any change in the seat of the


International Labour Office,

Admission and readmission of members of the ILO.

Permission to members who are in arrears, to vote in


the Conference, (Section D of International Labour
Standing Orders)

11 Rule 19 of the ILO Constitution


77

Deciding whether Conventions or Recommendations


shall be considered in full Conference or referred to a
Committee for report.

Inclusion of new items in the agenda of the Conference

Regulation of its own procedure.12

3.2.1.3 Administrative Powers and Functions

Ever since its establishment in the year 1919, the ILO’s


Conventions and Recommendations have been increasing in number
and consequently the ratifications by the member countries also
increased. Hence, ILO’s Constitution confers the following
administrative powers and functions for an effective and constant
watch over the application of the conventions ratified by the
members:

Enforcement and follow up action of the Convention and


Recommendations.

Seeking explanation from the members who fail to ratify


Conventions.

Appointment of Director-General and Committees and


sub-Committees including Regional Offices.

Approaching the International Court of Justice (ICJ), as


and when occasion arises for taking advisory opinion

12 Dr.N.Maheshwaraswamy, Impact of ILO Standards on Indian Labour Law


(Hydrabad: Asia Law House) 2007 Edition, p.46.
78

Convening Regional Conferences to undertake survey on


labour and employment matters.

Deciding powers of the Regional Committees

Approval of the election of members to the Governing


Body.13

3.2.1.4 Financial and Budgetary Powers and Functions

Each member has to pay travelling expenses of its delegates


and their advisors etc., who are attending the meetings of the
conference. Apart from that, ILO Constitution also provides for the
following financial and budgetary arrangements:

Approval, allocation and collection of the budget of ILO.

Arrangements for the allocation of expenses among the


Members of the ILO by Committee of Government
representatives.14

3.2.2 Governing Body

The governing body of the ILO is executive wing of the organ


which is an intermediary between the International Labour
Conference and International Labour Office. It is also a tripartite
body representing governments, employers and workers group. The
governing body has the following six committees:15

13 Ibid., at 46-47.
14 Ibid., at 47.
15 Ibid., at 50
79

Committee on the Freedom of Association (CFA)

Programme, Financial and Administrative Committee


(PFA)

Committee on Legal Issues and International Labour


Standards (LILS)

Committee on Employment and Social Policy (ESP)

Committee on Sectoral and Technical Meetings and


Related Issues (STM), and

Committee on Technical Cooperation (TC)

3.2.2.1 Powers and Functions of Governing Body

The main functions of the Governing Body are to control and


supervise the International Labour Office which is the chief
secretariat of the ILO. The governing body exercise the following
powers and functions specifically:

Executing the policies and programmes approved by the


International Labour conference.

Appointment of the Director-General under the


instrument of amendment to the Constitution of 1986,
subject to the approval of the International Labour
Conference.

Considering the programmes and budget proposals


submitted by the Director General and recommending
the same to the Conference for approval.
80

Drawing up of the Agenda of each session of the


Conference

Deciding specific actions to be taken on the resolutions


thus adopted by the International Labour Conference.

Setting the dates, duration, agenda and composition of


all subsidiary meetings.

Taking follow up actions on the proposals or


conclusions of the Conference

Examination of the applications of the Members about


the Conventions and Recommendations adopted by the
Conference.

Coordination of the activities of the ILO with the other


members of the United Nations Family and other
regional and international organizations.

Election of its own Chairman every year immediately


after the Conclusion of the Conference.

Seeking advisory opinion of the International Court of


Justice with the approval of the International Labour
Conference.

Appointment of Commissions of Inquiry and Tribunals


for quick disposal of disputes between members
wherever possible.16

16 Ibid., at 56.
81

3.2.3 International Labour Office

It is the third principal permanent organ of the ILO. It


provides the Secretariat for all conferences and other meetings.
International Labour Office also called as a Store House of Literature
relating to World Labour and functions as a Liaison Office between a
member country and ILO. International Labour Office headed by
Director-General appointed by the governing body is responsible for
the efficient conduct of the International Labour Office subject to the
instructions of the governing body. The Director-General and his
Deputy is required to attend all meetings of the Governing Body.17

3.2.3.1 Powers and Functions of International Labour Office

The functioning of the International Labour Office as a


unique feature that its Director-General and other staff have to
discharge their responsibilities exclusively in international character.
Therefore, having regard to the efficiency of the work of the office, the
following powers and functions have been assigned:

1) The functions of the International Labour Office shall


include the collection and distribution of information on
all subjects relating to the international adjustment of
conditions of industrial life and labour, and particularly
the examination of subjects which is proposed to bring
before the Conference with a view to the conclusion of
international Conventions, and the conduct of such
special investigations as may be ordered by the
Conference or by the Governing Body;

17 Article 8(1) and (2) of the ILO Constitution.


82

2) Subject to such directions as the Governing Body may


give, the International Labour Office shall:

(a) Prepare the documents on the various items of the


agenda for the meetings of the Conference;

(b) Accord to governments at their request all


appropriate assistance within its power in
connection with the framing of laws and regulations
on the basis of the decisions of the Conference and
the improvement of administrative practices and
systems of inspection;

(c) Carry out the duties required of it by the provisions


of the ILO Constitution in connection with the
effective observance of Conventions;

(d) Edit and issue, in such languages as the Governing


Body may think desirable, publications dealing with
problems of industry and employment of
international interest.18

3.3 ILO ON HUMAN RIGHTS OF WORKERS

The core themes of the ILO regarding human rights


specifically focus on the subjects like Freedom of Association, Forced
Labour and Discrimination. These themes are aimed at removing
obstacles to access to work, through its attempt to eliminate
discrimination on the basis of sex, ethnicity and otherwise. The
themes are discussed as follows:

18 Article 10 of ILO Constitution.


83

3.3.1 Freedom of Association and Right to Collective


Bargaining

Organising for the protection of economic interests was well


established during the establishment of ILO.19 Over the years, ILO
has adopted a certain number of other instruments on Freedom of
Association and Collective Bargaining, but they are elaborations of
the Conventions Nos.87 and 98. It is important to be noted that the
Universal Declaration of Human Rights was adopted by the United
Nations and include the phrase “everyone has the right to form and
to join trade unions for the protection of his interests’ which is
derived from Convention No.87”

Freedom of Association and Protection of the Right to Organise


Convention (No.87) of 1948

The ILO adopted Convention NO.87 on 9th July, 1948 which


consists of 21 Articles. This Convention is being adopted in
accordance with and considering the preamble to the Constitution of
the ILO that “recognition of the principle of freedom of association” to
be an integral part and essential means of improving conditions of
labour and of establishing peace. It also referred to the Declaration of
Philadelphia which reaffirmed that “freedom of expression and of
association are essential to sustained progress”.

The Convention contemplates that workers and employers,


without any distinction, shall have the right to establish and to join
organisations of their own choice without any previous

19 H Dunning, The Origins of Convention No.87 on Freedom of Association


and Right to Organise, in International Labour Review (Jeneva: ILO) 1998
Vol.137 No.2, p.149.
84

authorisation.20 The workers’ and employers’ organisations shall also


have the right to draw of their constitution and rules, to elect their
representatives in full freedom to administer their activities and
formulate programmes.21

Right to Organise and Collective Bargaining, Convention (No.98)


of 1949

This Convention consists of 16 Articles and provides for the


protection to workers’ and employers’ organisations against any acts
calculated to interfere with the right of workers to join or relinquish
membership of any trade union and against any discrimination on
account of their trade union activities.22 It also contemplates that
workers’ and employers’ organisations shall enjoy adequate
protection against any act of interference by each other or each
other’s agent or members in their establishments, functioning or
administration.23

3.3.2 Conventions Concerning Forced Labour

Forced labour was the first human rights subject dealt with
at the international level. At the First World War slavery and slavery
like practices were among the first issues addressed by League of
Nations. ILO has adopted Convention (No. 29) of 1930 and
Convention No.105 of 1957 concerning abolition of forced labour.

20 Article 2 of the Freedom of Association and Protection of the Right to Organise


Convention (No.87), 1948.
21 Ibid., at Article 3.
22 Article1 Right to Organise and Collective Bargaining Convention (No.98), 1949.
23 Ibid., at Article 2.
85

Forced Labour Convention (No. 29) of 1930

The forced labour convention (No.29) was adopted by the


ILO in 1930. It requires the state to abolish all forms of forced and
compulsory labour.24 While identifying certain acceptable exceptions
such as compulsory military service, prison labour under certain
conditions and minor civic obligations.25 It also further states that
illegal exaction of force or compulsory labour shall be punishable as
penal offence and that the penalties imposed must be really adequate
and strictly enforced. At present there have been improvements in
many countries in relation to the abolition of forced labour. But
however some of these practices regrettably still exist in number of
countries in various forms including debt bondage.

Abolition of Forced Labour Convention (No.105) of 1957

This convention requires the member countries who ratifies


has to undertake to suppress and not to make use of any form of
forced labour or compulsory labour as a means of political coercion,
education or punishment even for holding or expressing political
views ideologically opposed to the established political, social or
economic system.26

Equal Remuneration Convention (No.100) of 1951

During the time of great depression in the 1930s, a concern


for women’s equality and non discrimination employment based on
sex began to be evident in ILO publications. The increasing concern
for the promotion women’s equality reflected not only the increasing
activities of women’s organisation but also the changes that had

24 Article 1 of the Forced Labour Convention (No. 29), 1930.


25 Ibid., at Article 2.
26 Article 1 of the Abolition of Forced Labour Convention (No.105) ,1957.
86

taken place in women’s organisation in the work place.27With the


growing number of women entering the work place, ILO has
reformulated the women’s issues as one of the human rights and a
demand for equality. Hence, this convention was adopted with the
specific aim of promoting equal pay for equal work to deal with the
consequences of discrimination. This Convention has been discussed
in detail under 3.5 of this Chapter.

Discrimination in respect of Employment and Occupation


Convention (No.111) of 1958.

The principle of equality cannot be achieved unless all forms


of discriminations are prevented. The ILO has adopted this
Convention in accordance with its Declaration of Philadelphia which
affirms that all human beings irrespective of race, sex, creed have
the right to pursue their material and spiritual well being in
condition of freedom and dignity, economic security and equal
opportunity. The term discrimination is to include any distinction,
exclusion or preference on the basis of race, colour, sex, religion,
political opinion, national extraction or social origin which nullify or
impair the equality of opportunity or treatment in employment or
occupation.28

3.4 ILO AND SOCIAL SECURITY

The preamble of the ILO Constitution affirms the need for


providing protection of the workers against the contingencies in work
line such as sickness, maternity, employment injury, oldage thereby
promoting income security resulting in improvement of the

27 Gerry Rodgers, Supra note 1, at p.59.


28 Article 1 of the Discrimination in respect of Employment and Occupation
Convention (No.111) of 1958.
87

conditions of labour. During the period from 1992 to 1995


International Standards were laid down for various risks to be
covered under social insurance and allied schemes for applicability of
specified classes of workers. The pre-war conventions and
recommendations provided workmen’s compensations for accidents
and occupational diseases, provision for old age, invalidity, widow’s
and orphan’s pensions, maternity protection, provision for
unemployment and maintenance of migrant’s pension rights.29

In 1944, the Declaration of Philadelphia recognised the


obligation of the ILO to further programmes to extend the social
security measures to provide the basic income to all in need of such
protection in addition to comprehensive medical care. Since, ILO has
been committed to the cause of social justice in which social security
measures are considered effective means of establishing social
justice, it has adopted conventions and recommendations relating to
social security by establishing norms to improve the labour
conditions. Some of the conventions concerning various aspects of
social security are discussed as follows:

3.4.1 Conventions and Recommendations concerning Medical


Care and Sickness Benefit

Sickness Insurance (Industry) Convention (No.24) of 1927

In the field of social security, the contribution of the ILO is


invaluable and it is manifested in this Convention.No.24 which the
ILO adopted in its 10th Session held at Geneva on 25th May, 1927,
concerning Sickness Insurance for Workers in industry and
commerce and domestic servants.

29 Dr.Hema V. Menon, Unorganised Women Workers and Social Security


(New Delhi: Satyam Law International) 2012 Edition p.113.
88

The Convention requires the member-Countries which ratify


to set-up a compulsory sickness insurance system which shall apply
to manual and non-manual workers including apprentices employed
by industrial undertakings, commercial undertaking, out-workers
and even domestic servants. However, a member-Country may, by
its national laws or regulations, make exceptions in respect of
temporary employments, workers whose wage exceed an amount
specified by the national laws or regulation, workers who are not
paid money wages, out-workers, or the workers outside the wage-
limit prescribed by the national laws or regulations.

The convention also provides that the sickness benefit shall


be payable in cash to an insured person who is rendered incapable of
work by reason of his abnormal bodily or mental health. The
qualifying period and a waiting period of 3 days may also be
prescribed.

It further provides for the dependents’ benefit in the shape


of medical benefits to the members of the family of the insured
person dependent upon him and the national law may provide for
such conditions under which such benefit may be given to the family
members.

It is further clarified that the sickness benefits granted


under this Convention shall not affect the obligations arising out of
the convention relating to employment of women before and after the
child birth, thus the maternity benefits of a woman are protected.30

30 Khan, Supra note 8, at 97-98.


89

Sickness Insurance for Agricultural Workers Convention (No.25)


of 1927

The convention envisages that the compulsory sickness


insurance system shall apply to manual and non-manual workers
including apprentices employed by agricultural undertakings subject
to any exceptions prescribed by the law made by the member
States.31

Medical Care and Sickness Benefits Convention (No.130) of 1969

The convention provides for medical care which shall be


afforded with a view to maintaining, restricting or improving the
health of the person protected and his ability to work and to attend
to his personal needs.32 The persons protected in respect of
contingencies for all employees, including apprentices and the wives
and children of such employees.33 The sickness benefit shall be a
periodical payment and a maximum limit may be prescribed for the
rate of the benefit or for the earnings taken in to account for the
calculation of the benefits.34

The contingencies to be covered for sickness benefit or


medical care shall include medical care of curative nature as well as
medical care of preventive nature.35 The convention clarifies that
persons who are in receipt of a social security benefit for invalidity,
old age, death of the bread winner or unemployment, and wherever

31 Maheshwaraswamy, Supra note 12, at 236.


32 Article 9 of the Medical Care and Sickness Benefits Convention (No.130), 1969.
33 Ibid., at Art.10.
34 Ibid., at Art. 22.
35 Ibid., at Art. 7.
90

appropriate, the wives and children of such persons, shall continue


to be protected under prescribed conditions.36

Medical Care Recommendation (No.69) of 1944

The adoption of this recommendation is also in sequence to


the obligation created by the ILO through its Convention (No.17)
concerning Workmen’s Compensation (Accident) Convention of 1925
and the Convention.Nos.24 and 25 relating to Sickness Insurance
(Industry) and (Agriculture) of 1925 respectively.

It suggested as guidelines to the essential features of a


medical care service, forms of medical care, complete coverage
through social insurance medical care services, coverage through a
public medical care service, medical care and its coordination with
general health services, quality of services, working conditions and
status of doctors, standards of professional skill and knowledge,
raising of funds under social insurance schemes, supervision and
administration of medical care services, settlement of claims and
provision for making an appeal. Thus, the Recommendation (No.69)
is a complete Code of medical care services which are meant to be
followed as guidelines by the member-States.37

3.4.2 Invalidity, Old age and Survivors’ Benefits Convention


(No.128) of 1967

The ILO adopted this Convention (No.128) on its 51st


Session held on 7th June, 1967 at Geneva. In fact this Convention is
a very comprehensive document which has revised earlier 6

36 Article 7 of the Convention No.130 of 1969: Medical Care and Sickness


Benefits.
37 Khan, Supra note 8, at 99.
91

Conventions that were adopted by ILO in the year 1933 are as


follows:-

Old-Age Insurance (Industry) Convention (No.35), 1933;

Old-Age Insurance (Agriculture) Convention (No.36),


1933;

Invalidity Insurance (Industry) Convention (No.37), 1933;

Invalidity Insurance (Agriculture) Convention (No.38),


1933;

Survivor’s Insurance (Industry) Convention (No.39), 1933


and

Survivor’s Insurance (Agriculture) Convention (No.40),


1933.38

This convention has also relevance to Convention No.130 of


1969 as it provides for provision besides for general aspects,
invalidity benefit, old age benefit, survivor’s benefit, standards to be
complied with periodical payment, common provision, and final
provisions. A member whose economy is insufficiently developed
may avail itself certain temporary exceptions provided for in Articles
9, 13, 16, 22 etc., by a declaration accompanying its ratification.
The contingency covered shall include incapacity to engage in any
gainful activity to a prescribed extent which incapacity is likely to be
permanent or persists after a termination of a prescribed period of
temporary or initial incapacity. The persons protected under this
Convention comprise of all employees, apprentices or class of the
economically active population constituting not less than 75% of the
whole economically active population or all residents or residents

38 Maheshwaraswamy, Supra note 12, at 241.


92

whose means during the contingency do not exceed the limits


prescribed under Article 28 of this Convention.39

The benefit shall be granted throughout the contingency.


The contingency covered by survivors’ benefit shall include loss of
support suffered by the widow or child. Article 22 of this convention
provides for the persons entitled to the benefit under this Convention
such as wives, children etc. The survivors’ benefits shall be a
periodical payment calculated as per Articles 26 and 27 of this
convention. In case of a periodical payment the rate of benefit shall
be such as to attain at least the percentage indicated therein of the
total of the previous earnings of the beneficiary or his breadwinner
etc.40

Invalidity, Old-Age and Survivors’ Benefits Recommendation


(No.131) of 1967

This recommendation contains general provisions, persons


protected, contingencies covered and the benefits. The persons
protected are casual employees and persons economically active.
The definition of invalidity should take into account incapacity to
engage in an activity involving substantial gain. A reduced benefit
should be provided in respect of partially invalid persons. Old age
benefit with pension, widow’s right to survivors’ benefit etc., are also
covered by this recommendation. 41

39 Ibid., at 241-242.
40 Ibid., at 242.
41 Ibid., at 243.
93

Older Workers Recommendation (No.162) of 1980:

Recommendation (No.162) of 1980 provides for provisions


relating to older workers. It applies to all workers who are liable to
encounter difficulties in employment and occupation because of
advancement in age. Employment problems of such workers should
be dealt within the context of overall and well balanced strategy for a
full employment and, at the level of the undertaking, of an overall
and well balanced social policy by giving due attention to the groups
of all population thereby ensuring that employment problems are not
shifted from one group to another. This recommendation also
contains inter alia provisions relating to equality of opportunity and
treatment protections such as measures to enable older workers to
continue in employment under satisfactory conditions with the
participation of the representative organisations of employers and
workers etc., preparation for and access to treatment and
implementations. This recommendation contains benefits like old
age, retirement, long service, etc.42

3.4.3 Conventions and Recommendations relating to


Employment Injury Benefit

The demand for compensation to employees in case of injury


arising out of and in the course of the employment of the employer
was gaining attention as early as nineteenth century itself. Hence,
ILO has adopted the following conventions relating to workmen’s
compensation.

42 Ibid.
94

Workmen’s Compensation (Agriculture) Convention


(No.12), 1921

Workmen’s Compensation (Accidents) Convention


(No.17), 1925

Workmen’s Compensation (Occupational Diseases)


Convention (No.18),1925

Equality of Treatment (Accident Compensation),


Convention (No.19),1925

Workmen’s Compensation (Occupational Diseases)


(Revised) Convention (No.42),1934

Employment Injury Benefits Convention (No.121), 1964

Workmen’s Compensation (Agriculture) Convention (No.12) of


1921

This convention contemplates that a member country which


ratifies shall extend the protection and benefits of its laws and
regulations to provide for the compensation of workers for the
personal injury by accident arising out of and in the course of
employment.43 This Convention which has come into force on 16th
February, 1925 was revised by ConventionNo.121 of 1964. Each
member who ratifies this Convention agrees to take necessary action
for effective enforcement and to apply it to its colonies, positions and
protectorates.44 A member country may denounce it after expiration
of ten years or the date on which it comes to force.

43 Article 1 of the Workmen’s Compensation (Agriculture) Convention (No.12),


1921
44 Ibid., at Article 4.
95

Workmen’s Compensation (Accidents) Convention (No.17) of


1925

Each member country which ratifies this convention should


ensure that workmen who suffer personal injury due to industrial
accidents or in case of death, their dependants shall be compensated
on terms at least equal to those provided for by this Convention. The
laws and regulations relating to workmen’s compensation shall apply
to workmen, employees and apprentices employed by any enterprise,
undertaking in establishment of whatsoever nature, whether public
or private.

The compensation payable to the injured workman or his


dependants where permanent incapacity or death results from the
injury shall be paid in the form of periodical payments in a lump
sum either wholly or partially. In case of incapacity compensation
shall be paid not later than as from the fifth day after the accident.45

Workmen’s Compensation (Occupational Diseases) Convention


(No.18) of 1925

Under this Convention each member who ratifies it shall


undertake to provide for payment of compensation to workmen
incapacitated by occupational diseases or in case of death to their
dependants in accordance with the general principles of national law.
Occupational diseases are listed in the Schedule annexed to this
Convention.46

45 Maheshwaraswamy, Supra note 12, at 245.


46 Ibid.
96

Equality of Treatment (Accidents Compensation) Convention


(No.19) of 1925

The member countries which ratify this Convention should


undertake to grant nationals of other member countries who suffer
personal injury due to industrial accidents happening in its territory
or to their dependants, the same treatment in respect of workmen’s
compensation as it grants to its own nationals.47

Workmen’s Compensation (Occupational Diseases) Convention


(No.42) of 1934

Under this convention the list of occupational diseases has


been increased to ten from the list provided under Convention
(No.18) as incorporated in the Schedule appended thereto. The
additional entries of the list relate to silicosis, phosphorous, arsenic
poisoning by benzene, poisoning by the halogen derivatives of
hydrocarbons, pathological manifestations and primary
epitheliomatous cancer of the skin.48

Employment Injury Benefits Convention (No.121) of 1964

This Convention which has come into force on 20th July,


1967 revises the original Convention (No.12) of 1921 contains 39
Articles with a Schedule consisting of list of occupational diseases
and an annex relating to industrial standards, industrial
classification of all economic activities consisting of two Schedules,
namely, Schedule I contains a list of occupational diseases as
amended later and incorporated in annex to Convention (No.130) of
1968 and Schedule II containing periodical payments to standard

47 Khan, Supra note 8, at 88.


48 Maheshwaraswamy, Supra note 12, at 246.
97

beneficiaries. Most of the provisions of this convention are similar to


that of Convention (No.130), medical care and allied benefits in
respect of a morbid condition shall comprise general practitioner and
specialist, inpatient and outpatient care, dental care, nursing care,
maintenance in hospitals etc., including emergency treatment and
follow-up treatment.49

Recommendations relating to Employment Injury and


Workmen’s Compensation

The Recommendations relating to employment injury and


workmen’s compensation are as follows:

Workmen’s Compensation (Jurisdiction) Recommendation


(No.23), 1925

Equality of Treatment (Accident Compensation)


Recommendation (No.25),1925

Employment Injury Benefits Recommendation (No.121),


1964

Protection of Workers’ Claim (Employer’s insolvency)


Recommendations (No.180),1992

List of Occupational Diseases Recommendation (No.194),


2002

Workmen’s Compensation (Jurisdiction) Recommendation


(No.23) of 1925

This Recommendation deals with jurisdiction in respect of


disputes on workmen’s compensation claims. Every such dispute
should be relating to preferably dealt with by a Special Court or

49 Article 10 of the Convention No.121 of 1964: Benefits in the case of


employment injury.
98

Board of Arbitration comprising with or without the addition of


regular Judges in equal number of employers and workmen’s
representatives appointed to act as adjudicators.50

Equality of Treatment (Accident Compensation)


Recommendation (No.25) of 1925

This Recommendation is concerned with equality of


treatment for national and foreign workers as regards workmen’s
compensation for accidents. Such equality must be with regard to
facilitating the payment of compensation, settlement of disputes,
exemption from duties and taxes etc. Under this recommendation
wherein any country there does not exist any social security system
relating to workmen’s compensation for industrial accidents the
Government concerned should afford facilities to alien workers
enabling to benefit by the laws and regulations in their countries
pending the institution of such a system in that country.51

Employment Injury Benefits Recommendation (No.121) of 1964

This Recommendation requires the member countries to


extend the application of its legislation for employment injury
benefits to any categories of employees not covered under Article 4,
paragraph 2 of Employment Injury Convention of 1964. It requires
that in respect of such person’s employment injury or analogous
benefits shall be secured. Special schemes applicable to seafarers
including sea-fishermen and public servants should be provided
benefits in case of an employment injury which are not less
favourable that those provided in the relevant convention of 1964.
The recommendation contains the industrial accidents which are to

50 Khan, Supra note 8, at 87.


51 Maheshwaraswamy, Supra note 12 at 248.
99

be covered by the benefit under this convention. It also covers


diseases known to arise out of the exposures to substances or
dangerous conditions in processes, trades or occupations as
occupational diseases.52

Protection of Workers’ Claims (Employer’s Insolvency)


Recommendation (No.180), 1992

Under this recommendation, the term insolvency means the


situations in which, in accordance with national law and practice,
proceedings have been opened relating to an employer’s assets with
a view to the collective reimbursement of its creditors.

Where the insolvency proceedings cannot ensure rapid


payment of workers’ privileged claims, there should be a procedure
for accelerated payment to ensure that the claims are paid, without
awaiting the end of the proceedings, out of available funds or as soon
as funds become available, unless the rapid payment of workers’
claims is ensured by a guarantee institution. These accelerated
payments and guarantee institutions operations shall be subject to
the other provisions of this recommendation. The protection of
workers’ claims by a guarantee institution should have as wide
coverage as possible.53

List of Occupational Diseases Recommendation (No.194) of 2002

This Recommendation provides a list of occupational


diseases in its Annex. This Annex should be regularly reviewed and
updated through tripartite meetings of experts convened by the
governing body of the ILO. The national list of occupational diseases

52 Article 5 of the Recommendation No.121 of 1964: Employment Injury Benefits.


53 Maheshwaraswamy, Supra note 12, at 248-250.
100

should be reviewed and updated with due regard to the most up to


date list established in accordance with paragraph 3 of this
recommendation.54

3.4.4 Convention (No.102) of 1952 concerning Minimum


Standards of Social Security

This Convention has been adopted by ILO in its 35th Session


held at Geneva on 11th June, 1952. It is a very comprehensive
convention covering the following benefits:

Medical Care: Articles 7 to 12 of part II of this convention provides


for Medical care to the persons covered in respect of condition
requiring medical care of a preventive or curative nature. The
contingencies include morbid condition, pregnancy and confinement
and their consequences.55

The medical care should be available to the prescribed


classes of employees, constituting not less that 50 per cent of all
employees and their wives and children, or it should cover atleast 20
per cent of the prescribed classes of economically active population
and their wives and children.56

The nature of medical care includes general practitioner care


including domiciliary visits, specialists care at hospitals both for in-
patients and out-patients. In case of maternity or confinement and
its consequences, pre-natal and post-natal care is also to be
provided.57

54 Ibid.
55 Article 8 of the Convention No.102 of 1952 concerning Minimum Standards of
Social Security.
56 Ibid., at Article 9.
57 Ibid., at Article 10.
101

Sickness Benefit: The Sickness benefit covers the contingencies like


incapacity for work resulting from any morbid condition and
involving suspension of earnings.58 The persons protected shall
comprise atleast 50 percent of the prescribed employees, 20 percent
of the prescribed classes of economically active population, and all
residents whose means do not exceed prescribed limits in accordance
with Article 67 of the Convention. Such benefit is available to such
persons who comply with such qualifying conditions considered
necessary to preclude abuse. The sickness benefit may be limited to
26 weeks in each case of sickness.59

Un-Employment Benefit: The contingency covered shall include


suspension of earnings, as defined by national laws, due to inability
to obtain suitable employment in the case of a person protected who
is capable of and available for work.60

The nature of unemployment benefit shall be the periodical


payments calculated in such a manner as to comply either with the
requirement of Article 65 or 66, or in case of residents as required by
Article 67.61

Old-Age Benefit: It is incorporated under Part V of the convention


which consists of Articles 25 to 30, deals with old-age benefit and
prescribed the contingency to be covered as survival beyond a
prescribed age not exceeding 65 years.62 The percentage of the

58 Ibid., at Article 14.


59 Ibid., at Article 16.
60 Ibid., at Article 20.
61 Ibid., at Article 22.
62 Ibid., at Article 25.
102

beneficiaries to be covered is same as in the case of Medical Care,


Sickness Benefit or unemployment benefits.63

The nature of old-age benefit is in the nature of periodical


payments calculated in such a manner as to comply with the
requirements of Article 65 or 66 and in the case of residents, with
the requirement of Article 67.64

The qualifying period for old-age benefit may be 30 years of


contribution or employment or 20 years of residence or where, in
principle, all economically acting persons are protected, to a
protected who has completed a prescribed qualifying period of
contribution and in respect of whom, while he was of working age,
the prescribed early average number of contribution has been paid.65

Employment Injury Benefit: This is incorporated under Chapter


VI, consisting of Articles 31 to 38, which deals with employment
injury benefit. The contingencies covered include the following
conditions that result from the employment due to accident or
prescribed disease, namely:-

a morbid conditions;

incapacity for work resulting from such condition as


may be defined by national law or regulations and
involve suspension of earnings;

total or partial loss of earning capacity in excess of a


prescribed degree, likely to be permanent;

63 Ibid., at Article 27.


64 Ibid., at Article 28.
65 Ibid., at Article 29.
103

loss of support suffered by the widow or child as the


result of the death of the bread-winner.66

Family Benefit: Under Part VII of the Convention, Articles 39 to 45,


deals with family benefit and the contingency covered shall be the
responsibility for maintenance of children and the percentage of
persons protected is same as in the case of old age etc.67

The nature of family benefit is in the nature of periodical


payments granted to any person protected having completed the
prescribed qualifying period, or the provision to children for food,
clothing, housing, holidays or domestic help or combination of both
the benefits.68 The qualifying period prescribed consists of three
months of contribution or one year or residence.69

Maternity Benefit: Part VIII of the Convention consisting of Articles


46 to 52 deals with maternity benefit and the contingency covered
includes pregnancy and confinement and their consequences and
suspension of earnings as defined by national laws.70

The percentage of persons protected is same as in the case


of old-age or other similar benefits and ranges from 50 percent to 20
percent in the prescribed conditions.71

The nature of maternity benefit includes medical care during


pre-natal, confinement and post-natal care either by a medical
practitioner or by qualified midwives. The maternity benefit shall be

66 Article 32 of the Convention No.102 of 1952 concerning Minimum Standards


of Social Security
67 Ibid., at Articles 40 and 41.
68 Ibid., at Article 42.
69 Ibid., at Article 43.
70 Ibid., at Articles.46 and 47.
71 Ibid., at Article 48.
104

afforded with a view to maintaining restoring or improving the health


of the women protected.72

In case of suspension of earning resulting from pregnancy or


confinement and their consequences, the benefit shall be a periodical
payment calculated in the manner prescribed in Article 65 or Article
66 and all such benefits including those specified in Article 49 shall
be granted throughout the contingency upto 12 weeks, unless a
longer period is prescribed by the national laws.73

Invalidity Benefit: Articles 53 to 58 of part IX of the convention


deals with invalidity benefit and the contingency covered includes
inability to engage in any gainful activity or the inability continuing
after the exhaustion of sickness benefit.74

The percentage of persons protected is same as in the case


of old-age, sickness or other similar benefits and ranges from 50
percent to 20 percent of the population of the prescribed
employees.75

The invalidity benefit is in the nature of periodical payment


calculated in accordance with the requirements of Article 65 or
Article 66 and in the case of residents, in accordance with Article
67.76 The qualifying period for invalidity benefit is 15 years of
contribution of 10 years of residence.77 The validity benefit has to be

72 Ibid., at Article49.
73 Ibid., at Article 52.
74 Ibid., at Articles 53 and 54.
75 Ibid., Article 55
76 Ibid., at Article 56.
77 Ibid., Article57
105

continued throughout the contingency or until an old-age benefit


becomes payable.78

Survivor’s Benefit: Articles 59 to 64 under part IX deals with


survivor’s benefit and the contingency covered includes the loss of
support suffered by the widow or child as the result of the death of
the bread-winner. However such benefit may be suspended or
reduced by national laws if such person is engaged in any prescribed
gainful activity.79

The percentage of the persons protected is same as


prescribed in case of other benefits being 50 percent to 20 percent,
as the case may be, in the prescribed conditions80. The benefit shall
be calculated in accordance with the requirements of Article 65 or
Article 66 and in the case of residents, in accordance with Article
67.81 The qualifying period is 15 years of contribution or employment
or 10 years of residence82 and such benefit shall continue
throughout the contingency.83

3.5 ILO CONVENTIONS AND RECOMMENDATIONS TO


PROMOTE GENDER EQUALITIES AND WOMEN RIGHTS

Women today in addition to the traditional un-paid labour


required to maintain a house-hold, increasingly is taking part in paid
work to augment personal or family income. Since women are
getting exposed to the outside world they face gender oppression.
Hence, protection to women workers had been the special concern of
the ILO. The United Nations Convention on the Elimination of all

78 Ibid., at Article 59.


79 Ibid., at Article 60.
80 Ibid., at Article 61.
81 Ibid., at Article 62.
82 Ibid., at Article 63.
83 Ibid., at Article 64.
106

Forms of Discrimination against Women spells out the areas of


protection namely:-

Prohibition of dismissal on the ground of pregnancy.

Maternity and marital status with maternity leave and


pay without loss of employment, seniority or social
protection.

Providing special protection during pregnancy in harmful


jobs.

Encouraging child care facilities.

ILO provides similar benefits as Constitution of the ILO


included in its objectives the need for affecting women to improve
their status by eliminating discrimination and also ensuring equality
and social justice. The International Labour Conference has set out
the following aims of ILO in respect of women workers:

Guarantee of all civil and political rights;

Opportunity to improve education;

Better conditions for finding employment;

Equal pay for equal work;

Legal protections against dangerous working conditions

Maternity protection; and

Trade union rights at par with male workers.


107

3.5.1 ILO Conventions and Recommendations relating to


Employment of Women

Gender Equality:

Gender equality is a basic condition for economic, social and


political development of the country. ILO Constitution states that,
“on human beings irrespective of race, creed or sex have the right to
pursue both their material well being and their spiritual development
in conditions of freedom and dignity economic security and equal
opportunity.84

Concerning Equal Remuneration for Men & Women Workers for


Work of Equal Value Convention (No.100) of 1951

The ILO adopted the C.No.100 in its 34th Session held at


Geneva on 6th June, 1951 which contains 14 Articles. Equal
remuneration to men and women workers for work of equal value, in
fact, refers to rates of wages determined without any discrimination
based on sex.

The convention also suggests the means of obtaining such


equal treatment by requiring the member-countries that ratify this
convention to achieve the object through national laws or regulations
or through recognised machinery legally established for wage-
determination. Such determination of wages can also be made
through collective agreements between employers and workers or it
can be a combination of all the above methods.

84 Preamble of ILO Constitution and the Philedelphia Declaration, 1944.


108

The Convention also contemplates measures to assist in


giving effect to the provisions of this Convention, and to promote
objective appraisal of jobs on the basis of the work to be performed.

It also enshrines that each member shall, by means


appropriate to the methods in operation for determining rates of
remuneration, promote and, in so far as is consistent with such
methods, ensure the application to all workers of the principle of
equal remuneration for men and women workers for work of equal
value. A pioneering feature of this Convention was its guarantee of
equal pay for work of equal value and not just for the same or similar
work. This addresses gender biases in the way labour markets are
structured, because most women do different jobs from most men.
Equal remuneration for work of equal value is integral to the
fundamental principle of the elimination of discrimination in
employment and occupation and has been a concern of the ILO since
its founding.85

Concerning Equal Remuneration for Men & Women for Work of


Equal Value Recommendation (No.90) of 1951

It provides, among other provisions designed to facilitate the


application of this principle, for equality of opportunity and
treatment for women workers in such matters as vocational
guidance, vocational training placement and access to various
occupations and posts.

It is contemplated that all the members, while implementing


the Convention (No.100) in their own territories, should have regard

85 Surinder Mediratta, Handbook of Law Women and Employment: Policies,


Issues, Legislations and Case Laws (New Delhi: Oxford University Press) 2009
Edition p.46.
109

to the methods of application adopted by others countries and which


have been found satisfactory. The Member-Countries are also
suggested to take appropriate measures, in consultation with the
Employers’ and Workers’ Organisations to ensure, as rapidly as
possible, the application of the principle of equal remuneration to
men and women for the work of equal value. Such wages based on
the principles of equal remuneration should be fixed by the member-
countries in respect of industries, undertakings and other services
under the control of the Public Ownership.

Concerning Equal Opportunity for Workers with Family


Responsibilities Convention (No.156) of 1981

The ILO in its 67th Session held at Geneva on 3rd June, 1981
adopted Convention (No.156) concerning Equal Opportunities and
Equal Treatment for Men and Women Workers with Family
Responsibilities which consists of 19 Articles and has been ratified
by 36 member countries. This Convention is a special effort on part
of the ILO to extend the protection to the workers with family
responsibilities which several other Conventions of the ILO have
provided, but are not likely to benefit the workers who are not able to
prepare for entering into or participating in the advancing economic
activity particularly in view of their family responsibilities.

The ILO also made a special note of various International


Instruments concerning equality of opportunity and treatment for
men and women and, in particular para 14 of the Preamble of the
United Nations’ Convention on the Elimination of all Forms of
Discrimination Against Women, 1979, commonly known as CEDAW
stressed the need for yet another Convention to resolve the problems
of workers with family responsibilities. The ILO identified that many
of the problems faced by all workers are aggravated in case of
110

workers with family responsibilities and therefore they need special


facilities and protection to them.

The Convention calls upon the member-countries to aim


their national policy to enable the workers with family
responsibilities to engage themselves in employment and to the
extent possible, without conflict between their employment and
family responsibilities.86

3.5.2 Conventions and Recommendations relating to


Maternity Benefits

Maternity is a state of disability in women from undertaking


any paid work during the few weeks immediately preceding and
following child birth. Women require particular care during the
advance stage of pregnancy, confinement and post-natal period.
Employers tended to terminate the services of a women employee
when they found that maternity interfere with performance of her
normal duties. Poor health, additional medical expenses along with
loss of employment made the women employees economically
vulnerable during the period of childbirth, plunging her into a crisis
of debt and high interest expenses. Consequently, she often did not
take adequate rest and started working soon after the childbirth with
adverse effects on her health87 and more specifically when the fact is
that the mother-child pair requires close and continuous proximity
to each other during this crucial period.

Pregnancy and maternity are uniquely biologically specific


women, reproduction itself is a social function that should be

86 Khan, Supra note 8, at 72-73.


87 Government of India, National Commission on Labour, Report of the Study
Group on Women and Child Labour, 93 (2002)
111

protected.88 Our Indian Constitution also provides that the state


must make provisions for securing just and human conditions of
work and maternity relief.89

Hence, ILO has set standards to protect women employees


in relation to work that may cause risks to maternity.

Maternity Protection Convention (No.3) of 1919

This convention stipulates that a woman shall not be


permitted to work during the six weeks following her confinement;
and shall have the right to leave her work if she produces a medical
certificate stating that her confinement will take place within six
weeks. The purpose of this Convention was to ensure that a woman
employee would be able to sustain herself and her baby during the
period immediately before and after her confinement.

Maternity Convention (No.103) of 1952

Convention (No.3) was subsequently revised by Convention


(No.103) in the year 1952 which has enlarged the scope of protection
to the women by extending the coverage of women worker in non-
industrial undertaking including agricultural operations. The
improvement made in this Convention is extending the duration of
maternity leave to the women worker from six weeks to twelve weeks
and also provides for cash benefits in addition to medical benefits.

88 Lin Lean Lim, More and More Better jobs for Women: An Action Guide, Geneva:
ILO, 180 (1996).
89 Article 42 of the Indian Constitution.
112

Maternity Protection Convention (No.183) of 2000

Broadly, the ILO Maternity Protection, 2000 provides for


compulsory six weeks postnatal leave (not less than 14 weeks
maternity leave); covers all married and unmarried women including
those in a typical forms of work; cash benefits of two-thirds of a
woman’s previous earnings or equivalent payment; pregnant and
nursing women not obliged to perform work that is detrimental to the
mother or child; protection against discrimination in employment on
grounds of maternity; unlawful for employer to dismiss a woman
during pregnancy; guaranteed right to return to the same position or
an equivalent position with equal payment; prohibition of pregnancy
testing at the time of recruitment and right to one or more daily
breaks for breastfeeding.

Maternity Protection Recommendation, 2000

The Recommendation states that the member should


endeavour to extend the period of maternity leave to atleast 18
weeks. During pregnancy, exposure to certain hazardous and
arduous job or unsafe working environment may have adverse effects
on the health of a women employee and her unborn child. The
recommendation provides the measures to protect the health of
pregnant women and unborn child. The Recommendation also
outlines that where practicable, provision should be made for the
establishment of facilities for nursing under adequate hygienic
conditions at or near the work place.90

90 Article 9 of ILO Maternity Protection Recommendation, 2000.


113

3.5.3 Conventions relating to Safe Working Condition and


Protection of Women Employees

The ILO has passed the following conventions for prohibiting


night shift for women workers:

Night Work Convention (No.4), 1919

Night Work (Women) (Revised) Convention (No.41), 1934

Night Work (Women) Revised) Convention (No.89),1948

Night Work Convention (No.171),1990

3.5.3.1 Employment of Women During the Night Convention


No.4 of 1919

This Convention which has come into force on 13th June,


1921 and revised in 1934 by Convention No.41 of 1948 as also by
Convention No.89 of 1948 contains 7 Articles. For the purpose of
this Convention the term ‘night’ means a period of at least eleven
consecutive hours including the interval between 10 O’clock in the
evening and 5 O’clock in the morning. In countries where no
Government regulations are yet to be employed to the employment of
women in industrial undertakings during the night, the term ‘night’
be declared to be a period of only ten hours including the interval for
a maximum period of three hours. Under this Convention, women
without distinction of age shall not be employed during the night in
any public or private industrial undertaking or in any branch thereof
other than an undertaking in which only members of the same
family are employed.91

91 Maheshwaraswamy, Supra note 12, at 154.


114

3.5.3.2 Employment of Women During Night (Revised)


Convention (No.41) of 1934

This Convention which has come into force on 22nd


November, 1936 is a revised version of the Convention No.4 of 1919.
This Convention does not apply to women holding responsible
positions of management who are not ordinarily engaged in manual
work. Except this new addition to the provision of Convention No.4,
the other provisions of this Convention are similar to that of
Convention No.4.92

3.5.3.3 Night Work by Women Employed in Industry (Revised)


Convention (No.89) of 1948

This Convention revises the earlier two Conventions of 1919


and 1936. It contains general provisions, special provisions and
final provisions. It defines the term ‘industrial undertakings’ so as to
include mines, quarries and other works for extracting minerals
etc.93 This convention rightly modifies the term ‘night’ from that
defined in earlier Conventions by adding that night includes an
interval of at least seven consecutive hours falling between 10
O’clock in the evening and 7 O’clock in the morning. This
Convention added further a provision whereby women employed in
health and welfare services who are not ordinarily engaged in
manual work are not covered by it, besides those employed in
positions of technical character.94 Remaining provisions of these
Conventions are more or less similar to that of earlier Convention
Nos. of 4 and 41.

92 Ibid., at 155.
93 Article 1 of the Convention No.89 of 1948: Night work by women employed in
industry (Revised).
94 Ibid., at Art.8.
115

3.5.3.4 Night Work Convention (No.171) of 1990

When the ILO revised the 1919 night work instruments in


1949 with the Night Work convention (Revised) (No.89), it retained
the prohibition on women working at night. It was not until 1990
that the conference eventually adopted a more balanced position
with the night work convention (No.171) and its accompanying
recommendation and a protocol to convention (No.89) allowing more
equal treatment.95 This convention permits variations in the duration
the night period and exemptions from prohibition on night work.96

3.5.3.5 Underground Work (Women) Convention (No.45) of 1935

The ILO in its 19th Session held at Geneva on 4th June,


1935, adopted this Convention (No.45) concerning the Employment
of Women on Underground Work in mines of all kinds.

The Convention has duly prohibited the employment of


women underground in a mine and also provided for certain
exemption that can be made by the national law. The Convention
lays down that no female whatever her age, shall be employed on
underground work in any mine.

3.5.3.6 Reduction of Hours of Work Recommendation (No.116)


of 1962

The ILO provides that in carrying out measures for


progressively reducing hours of work, priority should be given to
industries and occupations which involve a particularly heavy
physical or mental strain or health risks for the workers concerned,

95 Gerry Rodgers, Supra note 1, at 58.


96 Surinder, Supra note 85, at 133.
116

particularly where those consist mainly of women and young


persons.

3.5.3.7 ILO’s Maximum Weight Convention (No.127) of 1967

This convention provides that the maximum weight for the


load to be carried by women employees shall be substantially less
than that permitted for male workers. In this way, the ILO
Convention protects women employees against the risks arising from
lifting of heavy loads. The underlying principle behind this is that if
women carry excessive loads, their intra-abdominal pressure may
rise abruptly and consequently, cause disturbances of blood
circulation in the pelvic organs and lower limbs, menstrual
disorders, miscarriages, or stillbirths. These disorders are more
frequent in case a woman has been carrying heavy loads from an
early age.

3.5.3.8 ILO’s Occupational Health Services Convention, (No.161)


of 1985

This Convention stipulates that all workers shall be


informed of health hazards involved in their work.97

This Convention further ordains that occupational health


services shall be informed by the employer and workers of any
known factors and any suspected factors in the working environment
which may affect the workers’ health.98 Apart from this, the ILO’s
Occupational Safety and Health Convention, 1981 (No.155) states

97 Article 13 of ILO’s Occupational Health Services Convention, 1985.


98 Ibid., at Article 14.
117

that workers and their representatives in the undertaking should be


are given appropriate training in occupational safety and health.99

3.5.3.9 Welfare Facilities Recommendation (No.102) of 1956

ILO stipulates special provisions for women for providing


sitting arrangements for them while at work and for rest rooms to
meet their needs. It is interesting to observe that only the Contract
Labour (Regulation and Abolition) Central Rules, 1971 and Inter-
State Migrant Workmen (Regulation of Employment and Conditions
of Service) Central Rules, 1980 contain provision for this.

3.5.3.10 ILO’s Home Work Convention (No.177) of 1996

It stipulates that the national policy on home work shall


promote, as far as possible, equality of treatment between home
workers and other wage earners, protection against discrimination in
employment and occupation, protection in the field of occupational
safety and health, remuneration, minimum admission age, and
maternity protection.100

3.5.3.11 Decent Work for Domestic Workers Convention


(No.189) and Recommendation (No.201) of 2011

Domestic work continues to be undervalued and invisible


which is mainly carried out by women and girls where significant
proportion of work force are exploited. Hence, the Convention
concerning decent work for domestic workers is adopted on 16th
June, 2011 by the ILO’s International Labour Conference.

99 Ibid., at Art 19(d).


100 Article 4 of the ILO’s Home Work Convention, 1996 (No.177).
118

This Convention is historically important because, for the


first time, International instruments are applied to an essentially
informal segment of the global work force. According to this
convention, domestic workers should be informed about their terms
and conditions of employment in an appropriate, verifiable and easily
understandable manner preferably written contracts.101

The convention contemplates that measures should be


taken to ensure that domestic workers enjoy minimum wage
coverage102 and they should have right to safe and healthy working
environment.103 The Convention also contemplates that appropriate
measures should be taken by the member country to avoid abusing
practices in accordance with national laws and regulations.104 Thus
the Convention guarantees minimum labour protection to domestic
workers on par with other categories of workers. By adopting this
convention, step has to be taken to move towards the goal of decent
work for all into the fold of International Labour Standards.

3.5.3.12 Decent Work for Domestic Workers Recommendation


(No.201) of 2011

This recommendation is also adopted on 16th June, 2011, by


the International Labour Conference. The provisions of this
Recommendation supplement the Domestic Workers Convention No.
(189) and provides practical and useful guidance on how to give
effect to the obligations embedded in the convention. It also
recommends that when regulating the working and living conditions
of domestic workers special attention should be given to the needs of
the domestic workers who are under the age of 18 and above the

101 Article 7of the decent work for domestic workers convention (no. 189).
102 Ibid., at Article 11
103 Ibid., at Article 13.
104 Ibid., at Article14 and 15.
119

minimum age of employment as defined by national laws and


regulations and take measures to protect them, including by strictly
limiting their hours of work.105

3.6 UNITED NATIONS INSTRUMENTS AND HUMAN RIGHTS


OF WOMEN

While the United Nations does not deal with labour matters
as such, and recognise the ILO as the specialized agency responsible
for taking appropriate action for the accomplishment of the purposes
set out in its Constitution, some UN instrument of more general
scope have also covered labour matters.

A number of provisions concerning labour matters are


contained in the International Covenant on Economic, Social and
Cultural Rights and the International Covenant on Civil and Political
Rights, which are legally binding human rights agreements. Both
were adopted in 1966 and entered into force ten years later, making
many of the provisions of the Universal Declaration of Human Rights
effectively binding.

3.6.1 The Convention on Elimination of all forms of


Discrimination against Women, 1979

The most important convention is the Convention on


Elimination of all forms of Discrimination Against Women, 1979
(CEDAW) adopted in 1979 at Beijing, which has been ratified by
India, also recognized the right of women to equality at the workplace
and it states that women shall not be subjected to sexual
harassment at the work place, as such harassment vitiates the

105 Recommendation-5 of the Recommendation Concerning Decent Work for


Domestic Workers No.(201).
120

working environment. Convention on Elimination of all forms of


Discrimination Against Women states that equality in employment
can be seriously impaired when women are subjected to gender-
specific violence, such as sexual harassment in the workplace.

It provides that the states parties should embody the


principle of equality of men and women in their national
constitutions and to ensure, through law and other appropriate
means, the practical realization of this principle.

It also emphasis that state parties shall take appropriate


measures to eliminate discrimination against women in the field of
employment in order to ensure on a basis of equality of men and
women, the same rights, in particular:

The right to work as an inalienable right of all human


beings;

The right to the same employment opportunities,


including the application of the same criteria for
selection in matters of employment;

The right to free choice of profession and employment,


the right to promotion, job security and all benefits and
conditions of service and the right to receive vocational
training and retraining, including apprenticeships,
advanced vocational training and recurrent training;

The right to equal remuneration, including benefits,


and to equal treatment in respect of work of equal
value, as well as equality of treatment in the evaluation
of the quality of work;
121

The right to social security, particularly in cases of


retirement, unemployment, sickness, invalidity and old
age and other incapacity to work, as well as the right to
paid leave;

The right to protection of health and to safety in


working conditions, including the safeguarding of the
function of reproduction.106

3.6.2 Human Rights of Women

The development of international human rights law


generally has been partial and andocentric, privileging a masculine
world view. Non-governmental organisations have recently begun to
document abuse of women that falls within the traditional scope of
human rights. But the very structure of this law has been built on
the silence of women. The fundamental problem that women face
worldwide is discriminatory treatment compared with men, although
this is a manifestation of the larger problem. Women are in an
inferior position because they have no real power in either public or
private worlds, and international human rights law, like most
economic, social, cultural, and legal constructs, reinforces this
powerlessness. As Noreen Burrows writes: “For most women, what it
is to be human is to work long hours in agriculture or the home, to
receive or no remuneration, and to be faced with political and legal
process which ignore their contribution to society and accord no
recognition of their particular needs.107

106 Article 11 of Convention of the Elimination of All Forms of Discrimination


Against Women.
107 Burrows, Noreen, International Law and Human Rights: the Case of
Women’s Rights, in Tom Campbell et al., Human Rights. From Rhetoric to
Reality, Oxford 1986, 80-98, at 82.
122

The Universal declaration of human rights had affirmed the


principle of the inadmissibility of discrimination and proclaimed that
all human beings are born free and equal in dignity. The declaration
also provides for the right to security in the event of unemployment,
sickness, disability, widow-hood, old age or other lack of livelihood in
circumstances beyond his control.108 It also states that motherhood
and childhood are entitled to special care and assistance.109

3.7 IMPACT OF ILO ON INDIAN LABOUR LEGISLATIONS

The perusal of ILO Conventions conveys that since its


creation in 1919, ILO has been tasked with establishing the labour
standards as well as advocating for the progressing realisation of the
right to social security. In order to implement those measures, the
ILO took steps to formulate international standards. The changing
nature of Indian Economy under the British Rule and the shift from
laissez-faire policy to welfare state concepts with the establishment
of ILO contributed for paying much greater attention to enact social
security laws in India.

The extent of impact of ILO standards on the Indian Labour


Legislations is very significant. Hence it is discussed as follows:

Basic Human Rights

To have a dignified life, there are certain basic rights needed


for every human being like right to life, equality of treatment, non
discrimination and equal opportunity. The feature of ILO
Constitution makes it visible by providing conventions and

108 Article 25 of Universal Declaration of Human Rights.


109 Ibid., at Para 2.
123

recommendations for the basic human rights of workers recognised


and assured in a large majority of the countries of the world.

Right of Association (Agriculture) Convention 1921 (No.11)

This Convention is to secure all the agricultural workers,


right to associate and combine which are available to industrial
workers. India has ratified this Convention in 1923. The Constitution
of India assures freedom of association to all its citizens. But this
right is subject to restrictions contemplated under clause (2) to (6) of
Article 19. Similarly the Trade Unions Act of 1926 prohibits
discrimination against union members and organisers in the formal
and informal sectors, without distinction.

Forced Labour

India has ratified Conventions (No.29) of 1930 and (No.105)


of 1957 concerning forced labour in the year 1954 and 2000
respectively. Forced labour is prohibited by the Indian Constitution
and legislations. Article 23 of the Constitution prohibits forced
labour not only in Government’s action but also enforced against
private citizens, companies and associations. Similar provisions are
also contained in Bonded Labour System (Abolition) Act, 1976 and
Child Labour (Prohibition and Regulation) Act, 1986. The Bonded
Labour Act also provides provision for the rehabilitation of freed
bonded labour. The National Human Rights Commission set up in
1994 has targeted bonded labour for its abolition. Forced labour
including of children in India is a major problem despite the
existence of legislation providing for its prohibition.
124

Equal Remuneration Convention (No.100) of 1951

This convention is ratified by India in 1958. The convention


guarantees equality before law and confers equal protection of law.
Equality of women is necessary, not merely on the grounds of social
justice but as a basic condition for economic, social and political
development to the country. Accordingly constitution of India
incorporated certain provisions which are to protect interest of
women.110 Apart from that its policy towards securing equal pay for
equal work for both men and women.111 In order to give effect to
exercise the rights of women on an equal footing to men, the Equal
remuneration act, 1976 was enacted to provide for the payment of
equal remuneration to men and women and also for the prevention of
discrimination on the ground of sex against women in the matter of
employment.

Discrimination (Employment and Occupation) Convention


(No.111) of 1958

This Convention is ratified by India in 1960. In India part III


of the Constitution prohibits all kinds of discrimination on the basis
of race, colour, sex, religion.112 The Directive Principles of State
policy under Part IV of the Constitution of India also aimed at
assuring social justice to all without discrimination. Almost all the
labour laws enacted in furtherance of fundamental rights and
directive principles are based on non discrimination and social
justice. However, certain additional benefits are given to women in
order to protect them from certain contingencies which are not
connected to adult male workers such as maternity protection,

110 Articles 14, 15 and 16 of the Constitution of India.


111 Article 39(d) of the Constitution of India.
112 Articles 14, 15, 16, 17 & 18 of the Constitution of India.
125

prohibition of night work and underground work etc. This is the


protective discrimination in order to bring equality in matters of
employment benefits among adult males and females. It has been
estimated that most of the women in informal sector are working as
agricultural labourers, in tea plantations, construction industries
and in home based occupations. It is a fact that women constitute
only a small minority of the formal work force which is an indication
of the level of discrimination in the labour market and the lack of
opportunities to enter into formal work. Despite the existence of the
Equal Remuneration Act, 1976, virtually no where equal wages are
paid to women for the same work performed by men. However efforts
are taken by the Government for its effective implementation.

Apart from that, India has also ratified the conventions


namely, Convention (No.18) Workmen’s Compensation (Occupational
Diseases) 1925; Convention (No.19) concerning Equality of
Treatment (Accident Compensation) 1925; Convention (No.42)
Workmen’s Compensation (Occupational Diseases) (Revised), 1934;
Convention (No.118) Equality of Treatment (Social Security) 1962.

Although Indian response in terms of ratification of ILO


conventions to social security has been poor nevertheless India has
made every attempt to provide for many of the obligations
contemplated in ILO conventions and enacted social security
legislations. India has not ratified Conventions such as Workmen’s
Compensation (Accidents) Convention (No.17), 1925; The Sickness
Insurance (Industry) Convention (No.24), 1927; The Old Age
Insurance (Industry) Convention (No.35), 1933; Maternity Protection
Convention (No.183), 2000 etc., but it has taken sufficient attention
by passing Acts such as Workmen’s Compensation Act presently
Employees’ Compensation Act, Employees State Insurance Act,
126

Employees Provident Fund Miscellaneous Provisions Act, Maternity


Benefit Act, to incorporate most of provisions contemplated by ILO to
ensure social security.

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To conclude, in the context of protection of human rights
relating to the unorganised sector workers India has taken several
measures by enacting and enforcing legislations viz., Minimum
Wages Act, Bonded Labour System (Abolition) Act, Equal
Remuneration Act etc. But, due to lack of organisation among the
workers, there is absence of extension of statutory protection to
unorganised labour resulting in victimisation and exploitation of
employees along with the gross violation of human rights.
127

CHAPTER 4

AN ANALYSIS OF SOCIAL SECURITY LAWS IN INDIA

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WITH SPECIAL REFERENCE TO THE UNORGANISED
WORKERS’ SOCIAL SECURITY ACT, 2008

Social Security Legislations in India provides security


against loss of earning due to certain contingencies such as
industrial accident and occupational diseases, sickness, invalidity,
maternity, old age and unemployment to which workers or their
dependents are exposed. The social security problems of workers in
unorganised sector may be divided into two sets of problems. The
first one arises out of deficiency or capability deprivation in terms of
inadequate employment, low earnings, low health and educational
status and so on that are related to the generalised deprivation of
poorer sections of the population. The second arises out of adversity
in the absence of adequate fall back mechanism that is, safety nets
to meet such contingencies such as ill health, accident, death and
old age.1 Hence the object of social security is to promote economic
development by increasing production and productivity.

This would be possible when the employer secure the labour


proper humane conditions of working and living so as to minimise
the hazardous effect on life of the workers. Hence, it is the duty of
the employer to provide proper working conditions with a view to
improve the efficiency of the labour to benefit both the employer and
worker. Adequacy of wages also has an impact on efficiency of the

1 National Commission for Enterprises in the Unorganised Sector, Report on


Social Security for Unorganised Workers, 2006 p.11.
128

worker as it includes provision for balanced diet, housing, education


etc.

A well built social security not only guarantees socio-


economic justice to the toiling masses, but also maximise
productivity by keeping up an efficient and healthy workforce by way
of security to guard against various contingencies consequent to
working class. A social security system should be backed by
adequate provisions for dual purposes i.e., social security measures
constitute a goal for a welfare state by improving living and working
conditions. Hence, an attempt has been made to discuss not only on
the benefits conferred exclusively under social security laws but also
a special focus is made on the provisions relating to working
conditions, welfare, social security and the schemes applicable to
unorganised sector.

Further, a detailed analysis has been made with regard to


the effectiveness of labour legislation to provide at least a minimum
standard for conditions of work and social security in order to
provide upliftment of the unorganised workers relating to their
livelihood opportunities in general and women workers in particular.
Hence, in this context, the study has been conveniently analysed
under the following categories to discuss few important legislations
that prevent deprivation and vulnerability to deprivation which is the
promotional aspect of social security:

Laws which provide Social security;

Protective and regulatory legislations applicable or


extendable to the unorganised sector; and

Unorganised Workers Social Security Act, 2008.


129

4.1 LAWS WHICH PROVIDE SOCIAL SECURITY

Social security legislations for workers in India consist of the


following enactments:

The Employees’ Compensation Act, 1923

The Employees’ State Insurance Act, 1948

The Employees’ Provident Funds and Miscellaneous


Provisions Act,1952

The Maternity Benefit Act, 1961

The Payment of Gratuity Act, 1972

Each legislative enactment provides provisions for social


security benefit by covering various risks and contingencies to which
a worker is exposed. Hence, an attempt has been made to discuss
overall perspectives of social security enactments.

4.1.1 The Employees’ Compensation Act, 1923

Object

The growing complexity of industry in this country with the


increasing use of machinery and consequent danger to workmen,
along with the comparative poverty of the workmen themselves
renders it advisable that they should be protected as far as possible
from the hardship arising from accidents. This is the first enactment
in the field of social security making the employer by imposing legal
obligation on the employer to pay compensation for injuries or death
130

sustained by the employee be paid to him or his family members


without delay.2

The object of the Act is not only to pay compensation to


employee but has an important effect in furthering work on
prevention of accidents, in giving them greater freedom from anxiety
and in rendering industry more attractive.3

4.1.1.1 Scope and Coverage

The Act extends to both agricultural and non agricultural


workers. It applies to railways and other transport establishments
factories, establishments engaged in making, altering, repairing,
adapting, transport or sale of any article, mines, docks,
establishments engaged in constructions, fire brigade, plantations,
oil fields and other employments listed in Schedule II of the Act.4

The Employees’ Compensation Act, 1923 provides


compensation even to casual workers. The Workmen’s Compensation
(Amendment) Act, 2000 has brought the employees within its ambit
irrespective of their nature of employment whether employed on
casual basis or otherwise than for the purpose of the employer’s
trade or business subject to the definition of employee.5

4.1.1.2 Qualifying Conditions

An employee is entitled for compensation if he fulfils the


following conditions:

2 C.S. Azad, University of Agriculture and Technology v. Court of Workmen


Compensation Commissioner, 2003 Lab I C 140 Allahabad.
3 Report of the Royal Commission on Labour in India (1931), p.298.
4 Section 1 (2) of The Employee’s Compensation Act, 1923.
5 Ibid., at Section 2(1)(dd) and Schedule II.
131

Personal injury is caused to a employee;

Such injury is a result of an accident;

Accident has arisen out of and in the course of


employment; and

The injury has resulted either in the death of the


employee or in his total or partial disablement for a
period exceeding three days.6

An occupational disease contracted by a workman is deemed


to be an accident arising out of and in the course of employment.7
Occupational diseases have been categorised in Parts A, B and C of
Schedule III. The employer is liable to pay compensation:

When an employee contracts any disease specified in


Part A at any time.

When an employee contracts any disease specified in


Part B, while in service for a continuous period of 6
months under one employer. (Period of service under any
other employer in the same kind of employment shall not
be included).

When an employee contracts any disease specified in


Part C, while he has been in continuous service for a
specified period, whether under one or more employers.
(Proportionate compensation is payable by all the
employers, if the employee had been in service under
more than one employer)

6 Ibid., at Section 3 (1).


7 Ibid., at Section 3 (2).
132

4.1.1.3 Doctrine of Notional Extension

As a rule, the employment of an employee does not


commence until he has reached the place of employment and does
not continue when he has left the place of employment. However,
this is subject to the theory of notional extension of the employer’s
premises so as to include an area which the employee passes and
repasses in going to and in leaving the actual place of work. There
may be some reasonable extension in both time and place and an
employee may be regarded as in the course of his employment even
though he had not reached or had left his employer’s premises.8

4.1.1.4 Conditions of Non-liability

The employer is, however not liable to pay compensation for


the injury to an employee under any of the following circumstances:

When injury does not cause total/partial disablement for


more than 3 days;

When injury, not resulting in death or permanent total


disablement is directly attributable to employee’s wilful
disobedience of the safety rules, or disregard of the
safety devices, or the employee having been under the
influence of drink or drugs.

When the employee has contracted a disease which is


not directly attributable to a specific injury caused by the
accident or to that occupation;9 or

8 Oriental Insurance Co. Ltd. v. Mohd.Nasir (2009) 6 SCC 280.


9 Supra note 4 at Section 3 (4).
133

When the employee has filed a suit for damages against


the employer or any other person, in a Civil Court.10

4.1.1.5 Benefits

Cash compensation generally a lump sum in cases of injury


caused by accident arising out of and in the course of employment
payable by the employer. Compensation is also payable for certain
specified occupational diseases.

The amount of compensation payable by the employer shall


be calculated as follows:11

Compensation in the case of death is 50% of the


monthly wages multiplied by the relevant factor or
Rs.1,20,000 whichever is more. And not less than
Rs.5000 for funeral expenses.

Compensation in the case of total permanent


disablement specified under Schedule I Part I is 60% of
the monthly wages multiplied by relevant factor or Rs.1,
40,000 whichever is more.

Compensation in the case of permanent partial


disablement specified under Schedule I Part II is such
percentage of the compensation payable in case of
permanent total disablement as is the percentage of the
loss in earning capacity

Compensation in the case of permanent partial


disablement not specified under Schedule I Part II is

10 Ibid., at Section 3 (5).


11 Ibid., at Section 4(1).
134

such percentage of the compensation payable in case of


permanent total disablement as is proportionate to the
loss of earning capacity as assessed by a qualified
medical practitioner.

Compensation in the case of temporary disablement


(whether total or partial) is a half-monthly instalment
equal to 25% of the monthly wages, for the period of
disablement or 5 years, whichever is shorter.

Compensation in the case of treatment of injuries


caused in the course of employment is actual medical
expenditure incurred by him.

4.1.1.6 Source of Funds

Since, the basic principle of the Act is that an employee is


entitled to compensation for work injuries whenever he suffers a
personal injury by an accident arising out of and in the course of
employment, it places the cost of the injuries only upon the
employer. Like tort but unlike social insurance, its operative
mechanism is unilateral employer’s liability with no contribution by
the employees or the state. Hence, all compensation under the Act is
payable by the employer.

4.1.1.7 Administration of Scheme

The Act is administered by State governments by appointing


Commissioners. The Commissioner will have the powers of a Civil
Court for certain purposes.12 The time limit for disposal of claim is

12 Ibid., at Section 23.


135

three months wherein the commissioner shall dispose of the matter


relating to compensation.

4.1.1.8 The Working of the Act

The Employees’ Compensation Act, 1923 is a mechanism for


providing relief to victims of work-connected injuries. But the Act
failed to provide the speedy relief to workers in unorganised sector.
The workers, who are in the unorganised sector, often find it difficult
to prove who is their employer and as a result cases are prolonged
and often workers die without receiving any compensation.13

In an indepth study of women workers employed in brick-


kilns industry of Hissar division of the State of Haryana,14 it has
revealed that, if there are injuries on hands and feet in the course of
carrying, loading and unloading operations, the employers do not
give any compensation to those workers according to the provisions
of the Act. Some money though is given to them at times but just as
a humanitarian ground or as debt. One of the weak features of the
Act is that it places the entire liability for compensation on the
employer. There being no obligation on the part of the employer to
insure is liability, a small employer in many cases find it difficult to
pay compensation in the event of a heavy liability arising out of fatal
accidents. Workers in remote areas find it difficult to approach
Commissioner because of their location.15

13 Report of Second National Commission on Labour, (2002), p. 707.


14 D.P. Singh, Women Workers in Unorganised Sector, (New Delhi: Deep and
Deep Publications Pvt. Ltd.) 2008 Edition, p.107.
15 Government of India, Planning Commission Report: Labour and
Employment (2002- 2007), p.275.
136

4.1.2 The Employees’ State Insurance Act, 1948

Employees’ State Insurance Act is a pioneering measure in


the field of social insurance in the country. Adarkar’s report was
considered by the Government of India, in consultation with the
state governments other interested concern gave birth to workmen’s
State Insurance Bill, 1946. The bill was modified by the select
committee making it applicable to all the employees in factories and
changed the name of the bill from workmen’s state insurance bill to
Employees’ State Insurance bill. Finally the Employees’ State
Insurance Act was passed in 1948.16

Objectives

The object of the Act is to provide the insured workers


certain benefits in case of sickness, maternity and employment
injury and to make provision for certain other incidental matters
related to these benefits.

4.1.2.1 Scope and Coverage

The Act applies to all factories including government


factories but excluding seasonal factories employing 10 or more
persons and carrying on a manufacturing process.17 Most of the
State Governments have extended the provisions of the Employees’
State Insurance Act, to new classes of establishments such as shops,
hotels, restaurants, road transport establishments, cinema including
preview theatres, newspaper establishments etc.18

16 Jagdish Chandra Joshi, Labour Welfare Administration (New Delhi: Rajat


Publications) 2010 Edition pp. 215-16.
17 Section 1 (4) read with Section 2(12) of the ESI Act, 1948 as amended by ESI
(Amendment) Act, 2010.
18 Section 1(5) of the Employees State Insurance Act, 1948.
137

Employees of factories and establishments covered under


the Act drawing monthly wages upto Rs. 15,000 per month and Rs.
25,000 per month for physically challenged employees w.e.f.
1.4.2008 are covered under the scheme.19

The Employees’ State Insurance Scheme is now operated in


815 centres situated in 31 States/Union Territories. As on
31.03.2014, 1.95 crore insured persons and about 7.58 crore
beneficiaries are covered under the scheme. The number of factories
and establishments covered by the end of the year had gone upto
about 6.70 lakhs.20

4.1.2.2 Benefits

Social security schemes should be designed in such a


manner to ensure freedom from economic fear. The benefits provided
under the Act seek to attack and remove the fear. The benefits
provided under the Act are sickness benefit, maternity benefit,
disablement benefit, dependents’ benefit, medical benefit and funeral
benefit. An insured person who is entitled to benefits under the
scheme is not eligible to claim similar benefits under the Employees’
Compensation Act, 1923 and Maternity Benefit Act, 1961.21

Sickness Benefit

Every insured employee is entitled to the cash benefit for a


period of sickness occurring during any benefit period and certified
by a duly appointed medical practitioner if the contributions in

19 Dr. Shashi bala, Training Module on Gender and Social Security for
Unorganised Sector (Uttar Pradesh: V.V.Giri National Labour Institute) 2014
Edition p.19.
20 Government of India, Ministry of Labour and Employment, Annual Report
2014-15, p.53.
21 Supra note 18 at Sections 53 and 61.
138

respect of him were payable for not less than 78 days in the
corresponding contribution period. The sickness benefit shall be
allowed to an employee for any day on which he remains on strike, if:

He is receiving medical treatment and attendance as an


indoor patient in any E.S.I. hospital or a hospital
recognised by the E.S.I. Corporation for such treatment,
or

He is entitled to receive extended sickness benefit for


any of the diseases for which such benefit is admissible;
or

He is in receipt of sickness benefit immediately preceding


the date of commencement of notice of the strike given
by the Employees’ Union to the Management of the
factory or establishment.22

No sickness benefit shall be payable for the first two days of


sickness following, at an interval of not more than 15 days, after the
sickness in respect of which sickness benefits were last paid.

Further no sickness benefit shall be payable to any person


for more than 91 days in any two consecutive benefit periods.23

Conditions to be Observed

Any person in receipt of sickness benefit has to observe the


following conditions:

22 Regulation 99 A of E.S.I. (Central) (4th Amendment) Regulations, 1991.


23 Section 63 of ESI Act, 1948 and Rule 55 of E.S.I. (Central) Rules.
139

Shall remain under medical treatment at the ESI


dispensary or hospital and carry out the instructions of
the medical officer;

Shall not do anything which retards or reduces his


chances of recovery;

Shall not leave the area where medical treatment is


provided without medical officer’s permission;

Shall get himself examined by the medical officer24

Maternity Benefit

A periodical cash benefit is payable to an insured woman


employees in case of confinement, miscarriage, medical termination
of pregnancy, premature birth of a child, or sickness arising from
pregnancy, etc., occurring or expected to occur in a benefit period, if
the contributions, in respect of her were payable for atleast in the
immediately preceding two consecutive contribution periods.25

The benefit is payable only if the woman employee does not


work during the benefit period, and the prescribed medical certificate
and other information are furnished.26

Disablement Benefit

Disablement benefit27 is payable in the form of cash in


instalments to an employee who is injured in the course of his
employment and is, permanently or temporarily, disabled, or

24 Supra note 18 at Section 64.


25 Rule 56 of E.S.I. (Central) Rules, 1960, w.e.f. 1.2.1991.
26 ESI Regulations: 87, 88, 89, 89A, 89B, 90, 91, 92, 93, 94 & 95.
27 Supra note 18 at Sections 51 and 52A.
140

contracts any occupational disease.28 It is sufficient if it is proved


that the injury was caused by an accident arising out of, and in the
course of employment, no matter when it occurred, and where it
occurred. However, the place or time of accident should not be
totally unrelated to the employment.29 The accident shall be deemed
to have arisen out of and in the course of employment unless there is
evidence to the contrary;30 and presumptions as to accident arising
out of and in the course of employment are as follows:-

Where the employee is at the time of the accident acting


for the purpose of, and in connection with, the
employer’s trade or business, even if he is acting in
contravention of any law or any safety rules/orders/
instructions of the employer;31

Where an accident happens while the employee is


travelling in employer’s transport, to or from his place
of work;32

Where an accident happens in or about any premises at


which the employee is employed for the purpose of his
employer’s trade or business, while the employee is
taking steps, in an emergency, to rescue, secure or
protect persons who are injured or imperilled or to avert
or minimise serious damage to property;33

28 Specified under Third Schedule to The ESI Act, 1948.


29 Regional Director, E.S.I. Corporation v. L.Ranga Rao (1982) 1 LLJ 29 (DB)
(Karnataka).
30 Supra note 18 at Section 51A.
31 Ibid., at Section 51B.
32 Ibid., at Section 51C.
33 Ibid., at Section 51D.
141

When the accident occurs to an employee while


commuting from his residence to the place of work and
vice versa, if nexus between the circumstances, time
and place of accident and the employment is
established.

Dependent’s Benefit

If an employee dies as a result of any injury sustained in the


course of his employment or an occupational disease, his dependents
shall be entitled to a benefit in the form of pension.34 The
dependent’s benefit is payable at 90% of the standard benefit rate for
the corresponding contribution period.35

The benefit shall be divisible among the following dependents:

(i) widow, legitimate or adopted son upto 25 years of age,


legitimate or adopted unmarried daughter,

(ii) widowed mother,

(iii) son or daughter who attained the age of 25 and infirm


and is wholly dependent on the earnings of the deceased
employee, in the prescribed percentage, if the deceased
does not leave any dependent as aforesaid the benefit
can be claimed by his parent other than widowed mother
or grand parent or other dependents.36

34 Section 52 of The ESI Act, 1948.


35 Rule 58(2) as amended by ESI Central (Amdt.) Rules, 2011 w.e.f. 1.7.2011.
36 Rule 58(1) of E.S.I. (Central) Rules, 1950, as amended by ESI (Central) (Amdt.)
Rules, 2011 w.e.f. 1.4.2011.
142

Medical Benefit

An insured employee and his family members, who require


medical treatment and attendance, is entitled to receive medical
benefit in the form of treatment and attendance at an E.S.I. hospital,
dispensary or clinic. A person is entitled to medical benefit during
any period for which contributions are payable in respect of him, or
in which he is qualified to claim sickness benefit or maternity
benefit, or he is in receipt of such disablement benefit as does not
disentitle him to medical benefit under the regulations. If in respect
of a person contribution ceases to be payable, he may be allowed
medical benefit for such period and at such conditions as the
regulations may specify.37

Funeral Expenses

If an insured employee dies, the eldest surviving member of


the family or the person who incurs the expenditure on funeral of the
deceased employee, is entitled to reimbursement of such expenditure
subject to a maximum of Rs.10, 000.38 The claim for the payment of
funeral expenses should be submitted in form 22 along with
prescribed documents within 3 months of the death of the insured
employee.39

4.1.2.3 Sources of Funds

The scheme is financed from ESI fund created by the


contributions of employers, employees and grants and donations, aid
from central and state governments or any individual or body. The

37 Section 56 of The ESI Act, 1948 read with ESI Regulation 95-A.
38 Rule 59 of E.S.I. (Central) Rules 1950 as amended by ESI (Central)
(Amendment) Rules, 2011 w.e.f. 1.4.2011.
39 Section 48(1)(f) and Regulation 95-E as amended by ESI (Central) (Amendment)
Regulations, 2004, w.e.f. 1.1.2005.
143

state government is also sharing the costs of the scheme by


contributing towards medical treatment which is to be determined by
an agreement between corporation and the state government.

4.1.2.4 Administration

The Employees’ State Insurance Scheme is administered by


a corporate body called as the Employees State Insurance
Corporation which is a multi-partite body consisting of nominees of
central and state governments and representatives of employers and
employees. There is also representation from medical personnel. The
corporation has a three-tier system that includes the head-quarters,
regional offices and primary unit local offices. The administration of
medical benefit is the responsibility of the respective state
governments except in Delhi where it has been taken over by the
corporation itself. The Employees’ State Insurance hospitals,
dispensaries and panel doctors are under the control of the
respective state governments. The Director General, who is the chief
executive officer of the corporation, is an ex-officio member of the
corporation and of its standing committee.

4.1.2.5 Working of the Scheme

The Act is not applicable to the workers in the unorganised


sectors as it has a threshold limit of employment of 10 persons. The
National commission for Enterprises in the Unorganised Sector
(2007) observed that the benefits of most of the provisions of
Employees State Insurance Act did not reach the unorganised
sectors as the Act is applicable only to very small segment of work
force. This is also evident from the Annual Report of Ministry of
Labour and employment. As per survey conducted by NSSO in the
year 2009-10, the total employment in both organised and
144

unorganised in the country was 2.8 crore and 43.7 crore in


organised and unorganised sectors respectively.40 But the coverage
under the Employees’ State Insurance Scheme as on 31.03.2014 is
1.95 crore insured persons. It is obvious that Employees’ State
Insurance Scheme covers only limited workforce that to in organised
sector. Legal barrier prevent ESI Corporation to extend the coverage
to informal sector.

The Employees State Insurance Act which provides for


health care and cash benefits is applicable to non seasonal factories
using power and employing 10 or more persons and non power
factory and certain other establishments employing 20 or more
persons. Hence, there is a huge gap in coverage of the unorganised
sector particularly in agricultural sector because of their seasonal
intermittent nature of work, low level irregular patterns of earning
and employment, absence of employer-employee relationship and
weak administrative structures at the rural areas.41 Health delivery
system is the responsibility of the state by way of ensuring
availability of drugs, posting of specialists, medical officers and para-
medical staff in the ESI hospitals found to be unsatisfactory.42

The Annual Report 2014-15 provides information regarding


medical infrastructure that there are 151 ESI hospitals and the beds
available in ESI hospitals are 23188 and there are 2879 reserve beds
in state government hospitals. The total number of Medical Officers
including specialist are 7763. The total number of ESI Dispensaries
and ISM units are 1418 and 140 respectively. There are 1017 Panel

40 Supra note 20, at 65.


41 Supra note 15, at 275.
42 Ibid.
145

Clinics.43 The details provided in the Annual report reveal that ESI
medical infrastructure facilities are inadequate.

The ESI scheme is financed mainly by contributions from


employer and employees. But a sum of Rs. 1754.14 crore was in
arrears as on 31.03.2014 on account of default by the employers of
covered factories/ establishments.44

4.1.3 The Employees’ Provident Funds and Miscellaneous


Provisions Act, 1952

Provident Fund is a form of retirement benefits but unlike


gratuity where the entire financial burden falls on the employer, this
is contributory in the sense that besides putting in service, a worker
has also to contribute a part of his wages.45

Objectives

The Act is a social security legislation and amount of


provident fund is payable in lump sum.46 The Act envisages the
institution of compulsory contributory provident fund in certain
industrial undertaking mentioned in Schedule I of the Act for the
future of the employee after his retirement or for his dependents in
case of his early death.

43 Supra note 20, at 59.


44 Ibid., at 54.
45 Government of India, Report of National Commission on Labour, (1969)
p.258.
46 Baldir Kaur v. Steel Authority of India Ltd. (2000) 6 SCC 493.
146

4.1.3.1 Scope and Coverage

The Act is applicable to-47

Every factory engaged in any industry specified in


Schedule I in which 20 or more persons are employed;

Every other establishment employing 20 or more persons


or class of such establishments which the Central Govt.
may notify;

Any other establishment so notified by the Central


Government even if employing less than 20 persons.

Apart from the provision for compulsory coverage, provision


also exists for voluntary coverage48 with effect from 01.09.2014, an
employee, on joining employment in a covered establishment and
receiving wages up to Rs. 15,000 is required to become a member of
the fund.

4.1.3.2 Benefits

The Central Government has framed 3 Schemes under this


Act viz., The Employees’ Provident Fund Scheme, 1952 for
establishment of provident funds for the employees, The Employees’
Family Pension Scheme, 1971 for providing family pension and life
assurance benefit to the employees which has been emerged into
Employees’ Pension Scheme, 1995 and the Employees’ Deposit
Linked Insurance Scheme, 1976 for providing life insurance benefits
to the employees.

47 Section 1(3) of the Employees’ Provident Funds and Miscellaneous Provisions


Act, 1952.
48 Ibid., at Section 1(4).
147

Employees’ Provident Fund Scheme

A member of Employees’ Provident Fund Scheme is entitled


to withdraw the amount lying in his account together with interest
on qualifying service. The scheme also provides for partial
withdrawals from the provident fund account to meet contingencies
like illness, invalidation and also to provide financial assistance to
discharge their social responsibilities like marriage of self, children or
higher education of children and construction of dwelling house.

Employees’ Deposit-Linked Scheme

All the employees who are members of Employees’ Provident


Fund Scheme are required to be members of this scheme. Employers
are required to pay contributions at the rate of 0.5 percent of the
aggregate of the basic wages, dearness allowance etc. On the death of
a member while in service, an amount equal to the average balance
in his Provident Fund account during the preceding 12 months or
during the period of his membership, whichever is less, except where
the average balance exceeds Rs. 50,000 the amount payable shall be
Rs. 50,000 plus 40% of the amount in excess of Rs. 50,000, subject
to a maximum of Rs. 1,00,000 is payable to the eligible member of
his family.49

Employees’ Pension Scheme

Members on attaining the age of 58 years and having


rendered minimum 10 years contributory service shall qualify for
superannuation pension. Those members who served less than 10
years on the date of retirement or superannuation, he shall be

49 As per Notification No. GSR 523(E), dated 18.6.2010, w.e.f. 18.6.2010.


148

eligible and entitled to return of contribution at the prescribed rate.


The following benefits are provided to memes and their families:

Monthly member pension;

Disablement pension;

Widow or widower pension;

Children pension;

Orphan pension;

Nominee pension;

Pension to dependent parents.

4.1.3.3 Sources of Funds

For financing these schemes the Central Government has


established a fund to which both the employer and employees are
required to contribute their shares. The employees’ contribution to
the Provident Fund shall be equal to the contribution payable by the
employer in respect of him i.e., 10 percent and in the case of notified
industries 12 per cent of the basic wages, dearness allowance and
retaining allowance as the case may be. Employee and employer are
not required to contribute to the Employees’ Pension fund. 8.33
Percent of the Employers contribution to the Provident fund shall be
diverted to the pension fund. The employee is, however, not required
to contribute towards deposit linked insurance fund.

4.1.3.4 Administration

The Employees Provident Fund Scheme framed under the


Act is administered by central board of trustees, a tripartite body
149

consisting of representatives of employers and employees and


persons nominated by the central and State Governments.50 The
central Provident Fund commissioner is the executive officer of the
Employees Provident Fund Organisation and secretary to the central
Board of Trustees. Apart from the Central Office, there are Regional
offices and Sub-Regional Offices functioning in various states for the
implementation of the Act and the schemes there under.

4.1.3.5 Working of the Act

The major social security benefits are provident funds given


to employees on superannuation and monthly pension. But it is
non-accessible to the workers in unorganised sector because of the
comparative high incidents of casual wage labour and the high
degree of labour mobility in the state’s economy.51 Even in National
Commission for Enterprises in Unorganised Sector, 2007 it has been
observed that provident fund did not reach the unorganised sectors
particularly in case of construction workers.

Moreover, in the Employees’ Provident Funds and


Miscellaneous Provisions Act, there are constrains like wage ceiling
limit, threshold limit of employment, strength of the establishment
and schedule of industries restrictions. Hence, the schemes failed to
cover the unorganised sector.52

4.1.4 The Maternity Benefit Act 1961

The Royal Commission on Labour stressed the need for


suitable maternity legislations for women employed permanently in

50 Supra note 47 at Section 5-A.


51 John (C.P.), Social Security and Labour Welfare with Special Reference to
Construction Workers in Kerala (Thiruvananthapuram: Centre for
Development Studies) 2004 p.24.
52 Supra note 15, at 274.
150

non seasonal factories with a view to enable working women to


discharge family as well as health care during the period of
pregnancy and confinement without loss of wages. Besides the
passing of state legislations for providing maternity benefits, there
are three Central Acts, viz., the Mines Maternity benefit Act, 1941;
the Employees State Insurance Act, 1948; the Plantation Labour Act,
1951 which also provide similar benefits. In order to remove the
disparities in various Acts the Central Government has passed a new
Act called the Maternity benefit act in 1961. The Act has been
discussed in detail under Chapter 6.

4.1.5 The Payment of Gratuity Act, 1972

Gratuity is also a kind of retirement benefit just like


provident fund or pension. It has been conceded as a provision for
old age and reward for a good, efficient and faithful service for a
considerable period. Prior to passing of the Act, the gratuity was
considered as a payment gratuitously made by an employer to his
employee at his own will and pleasure. In course of time, gratuity
came to be paid as a result of bilateral agreements or industrial
adjudication as a legal claim.53

Objectives

The Payment of Gratuity Act was enacted to introduce a


scheme for payment of gratuity in certain industrial and commercial
establishments as a measure of social security.54 The aim of the Act

53 Jagdish Chandra Joshi, Labour Welfare Administration (New Delhi: Rajat


Publications) 2010 Edition p. 233-234.
54 Ahmedabad Pvt. Primary Teacher’s Association v. Administrative Officer (2004) 1
SCC 755.
151

is to achieve uniformity and reasonable degree of certainty in


receiving gratuity.55

4.1.5.1 Scope and Coverage

The Act extends to the whole of India and is applicable to:-

Every factory, mine, oilfield, plantation, port and railway


company,56

Every shop or establishment governed by the Shops and


Establishments Act of that State, in which 10 or more
persons are employed, or were employed on any day of
the preceding 12 months,57 and

Any other establishment wherein 10 or more persons are


employed, or were employed on any day of the preceding
12 months, and which is so notified by the Central
Government.58 The Central Govt. has extended the
provisions of the Payment of Gratuity Act to all the
educational institutions in the country having 10 or
more employees, and to all trusts and societies
registered under the Societies Registration Act, 1860 (or
any other law) employing 10 or more persons.

4.1.5.2 Qualifying Conditions

Every employee (other than an apprentice) irrespective of his


wages is entitled to receive gratuity after he has rendered continuous

55 Indian Commerce and Industries Co. Ltd. v. BVSS Mani, (2012) 1 MWN (Civil)
419 Mad.
56 Section 1(3)(a) of the Payment of Gratuity Act, 1972.
57 Ibid., at Section 1(3)(b).
58 Ibid., at Section 1(3)(c).
152

service for 5 years or more. Gratuity is payable at the time of


termination of his services, either (i) on superannuation, or (ii) on
retirement or resignation, or (iii) death or disablement due to
accident or disease.59 Termination of services includes retrenchment.
However, the condition of 5 years continuous service is not necessary
if services are terminated due to death or disablement. Disablement
means permanent inability or incapacity of an employee to do the
work, which he was capable of doing before the accident or disease.

In case of death of the employee, gratuity payable to him is


to be paid to his nominee, and if no nomination has been made, then
to his legal heirs.

4.1.5.3 Benefits

Gratuity is a claim for retirement benefit and it is not a


claim to receive the share of the profit unlike bonus. It is an
efficiency device for an orderly and human elimination60 which
involve lumpsum amount of Gratuity payable should not exceed
Rs.10,00,000 in any case.61

4.1.5.4 Administration of the Act

The provisions of this Act are enforced by both the Central


and State Governments. Mines, major ports, oilfields, railway
company, factories and establishments owned or controlled by the
Central Government and establishments having branches in more
than one State, are controlled by the Central Government. The

59 Ibid., at Section 4(1).


60 Hindustan Antibiotics v. Their Workmen, (1967) 1 LLJ 714 (SC).
61 Supra note 56, at Section 4(3).
153

remaining factories/establishments are looked after by the State


Governments.62

The Central/State Governments shall appoint the


controlling authorities for different areas63 and Inspectors, to ensure
that the provisions of the Act are complied with. The Central/State
Governments shall also frame rules for administration of the Act.

4.1.5.5 Working of the Act

The implementation of the Payment of Gratuity Act is not


satisfactory due to the reason that implementations are the
responsibility of the employers and the process of getting redressal
for the beneficiaries is too complex and time consuming.64 The
threshold limit of employment for the application of the Act is also a
major constraint to cover the unorganised workers.

4.2 PROTECTIVE AND REGULATORY LEGISLATIONS


APPLICABLE OR EXTENDABLE TO THE UNORGANISED
SECTOR

Various studies indicate that labour laws are highly


protective to labour. But, the workers in the unorganised sector are
the most who suffer from various forms of insecurities and
vulnerabilities. No labour laws can be effective, if it does not take in
to consideration regarding the conditions of the working community
for which it is designed. Hence, an attempt has been made to
examine the protective and regulatory legislations to identify its
efficacy and adequacy. Important laws in this category are as follows:

62 Ibid., at Section 2(a).


63 Ibid., at Section 3.
64 Supra note 15, at 275.
154

Payment of Wages Act, 1936;

Minimum Wages Act, 1948;

Bonded Labour (Abolition) Act,1976;

Child Labour (Prohibition and Regulation) Act, 1986;

Interstate Migrant Workmen (Regulation of Employment


and Conditions of Service) Act, 1979;

Contract Labour ( Regulation and Abolition Act,1970;

Building and Other Construction Workers (Regulation of


Employment and Conditions of Service) Act,1996;

Beedi and Cigar (Conditions of Employment) Act, 1996.

The Contract Labour (Regulation and Abolition Act,1970; the


Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act,1996; and the Beedi and
Cigar (Conditions of Employment) Act, 1996 have been discussed in
detail under Chapter 6. Hence an attempt has been made to discuss
the remaining Acts as follows:

4.2.1 Payment of Wages Act, 1936

The Royal Commission on labour in India examined the


problems of employees regarding inordinate delays in receiving their
wages, imposition of fines and unauthorised deductions from their
meagre wages. The commission gave several recommendations to
mitigate these problems. Thus, the payment of Wages Act was
passed in 1936 based on such recommendations.
155

Objectives

The Payment of Wages Act, 1948 enacted with the object of


achieving the following objectives:

Regulating payment of wages

Imposition of fines and deductions from wages

Eliminating all malpractices by laying down wage


periods, time and mode of payment of wages

4.2.1.1 Scope and Coverage

The Payment of Wages Act extends to any factory, any


railway establishment and any industrial or other establishment65
like tramway service, motor transport service, air transport service,
dock, wharf, jetty, inland vessel, mine, quarry, oilfield, plantation,
workshop or other establishment producing, adapting or
manufacturing any article, establishments engaged in construction,
development and maintenance of buildings, roads, bridges or canals,
navigation, irrigation or supply of water, generation, transmission
and distribution of electricity/power and any other establishment
notified by the Central or a State Government.66

4.2.1.2 Obligations of Employer

The Act fixes the responsibility on the employer for the


payment of wages to his employees.67 The Act obligates that every
employer should fix wage periods, which may be per day, per week or

65 Section 1(4) of the Payment of Wages Act, 1936.


66 Ibid., at Section 2(ii).
67 Ibid., at Section 3.
156

per month, but in no case it should exceed one month.68 The Act also
provides that every employer should make timely payment of wages69
and also prescribes the mode of payment.70 The Act also stipulates
that the employer should not make any deductions which is not
authorised under the Act.71

The deductions from wages authorised under the Act include:

Absence from duty;

Damage or loss caused by the employed person;

Services rendered and accepted by the employed person;

Recovery of advances or loans received by the employed


person; and

Payments of co-operative societies and insurance


schemes.

4.2.1.3 Authorities

The State Government is empowered to appoint an authority


for a specified area to hear, decide and dispose of all claims arising
out of deduction of wages or delay in payment of wages.72 The Act
empowers the State Government to appoint Inspectors for enforcing
the provisions of the Act.

68 Ibid., at Section 4.
69 Ibid., at Section 5.
70 Ibid., at Section 6.
71 Ibid., at Section 7.
72 Ibid., at Section 15.
157

4.2.1.4 Working of the Act

According to the report of National commission for


Enterprises in the Unorganised Sector (2007) with regard to Payment
of Wages Act, the provisions of the Act are not implemented
effectively. For instance, one of the common exploitive practices
adopted by the middlemen is to deduct wages from the home based
beedi rolling workers by intentionally rejecting the beedis on the
grounds of poor quality but actually not.

4.2.2 Minimum Wages Act, 1948

Prior to 1948, there was no machinery to regulate minimum


wages for the workers of the industries where sweated labour was
prevalent and exploited. Hence, there was need for having such
machinery in particularly in unorganised sector where workers were
paid extremely low wages and also there was a disparity in the rate of
wages for similar kinds of work in the unorganised industries.
Hence, Minimum Wages Act was passed in 1948, to provide provision
for fixation and revision of minimum rates of wages in respect of
scheduled employment by the appropriate government where labour
is ignorant or less organised and is vulnerable to exploitation.73

Objectives

The Minimum Wages Act was enacted to give effect to the


recommendation adopted by the International Labour Conference in
the year 1928. The fixation of minimum rate wages is clearly directed
against exploitation of the ignorant, less organised and less
privileged member of the society by the capitalist class. The

73 Government of India, Report of the Working of the Minimum Wages Act,


(2013), p.10.
158

Constitutional validity of the Act could no longer the in doubt and


any hardship that may be caused to employers by the wages fixed
under the Act or their incapacity to pay the same are irrelevant
consideration in fixing such wages.74 The restriction imposed upon
the freedom of contract by the fixation of minimum rates of wages
though they interfere to some extent on the freedom of trade or
business guaranteed under Article 19 (1) (g) of the Constitution, are
not unreasonable and being imposed in the interest of general public
and a with a view to carry out the Directive Principle of State Policy
as embodied in Article 43 of the Constitution.75

4.2.2.1 Scope and Coverage

The Act is applicable to the workers engaged in the


scheduled employments comprising both agricultural and non
agricultural and to rural as well as urban workers but not the self
employed. The Government may, however increase the scope of the
Act by adding schedules.76 The Act covers even one employee
engaged in scheduled employments. Home worker are also covered
under the Act. Even a piece rated worker is entitled for minimum
wages.77

4.2.2.2 Fixation and Revision of Minimum Wages

The appropriate government shall fix or revise the minimum


rate of wages for the workers employed in the employment specified
in Part I or Part II of the Schedule. The appropriate government has
discretion to fix minimum rates of wages in respect of any scheduled
employment in which less than 1,000 employees are employed at a

74 Unichoyi v. State of Kerala (1961) 1 LLJ 631(SC).


75 Bijoy Cotton Mills Ltd. v. State of Ajmer (1955) 1 LLJ 129 (SC).
76 Section 27 of the Minimum Wages Act, 1948.
77 Bandhua Mukti Morcha v. Union of India, AIR 1984 SC 802.
159

given time in the whole of the State.78Moreover, the appropriate


Government may exempt the provisions of the Act in relation to
wages payable to disabled employees subject to such conditions, as it
may fit to impose.79 The Government is also not required to apply all
or any provisions of the Act to any class of employees employed in
any scheduled employment or to any locality where any scheduled
employment is carried on.80 The appropriate Government may fix a
minimum rate of wages for time work, piece work, guaranteed time
rates, and overtime rate.81 Further, in fixing or revising minimum
rates of wages, different minimum rates of wages are fixed for
different scheduled employments and within each scheduled
employment for different classes of work like skilled, unskilled,
manual or clerical. Different rates are fixed for adults, adolescents,
children and apprentices, and also for different localities.82 Similarly,
the minimum wages may be fixed by any one or more of the following
wage periods, namely, hour basis, day basis, month basis, or by any
other longer period as may be prescribed.83

4.2.2.3 Procedure for Fixation or Revision of Minimum Wages

In this Act, two methods have been provided for fixation or


revision of minimum wages they are the committee method and
notification method.

Under the committee method, committees and sub


committees are appointed by the appropriate
governments to hold enquiries and advice with regard to

78 Supra note 76, at Section 3(1A).


79 Ibid., at Section 26(1).
80 Ibid., at Section 26(2).
81 Ibid., at Section 3(2).
82 Ibid., at Section 3(3)(a).
83 Ibid., at Section 3(3)(b).
160

fixation or revision of minimum wages as the case may


be; or

In notification method government proposals are


published in the Official Gazette, for the information of
persons likely to be affected thereby, and specify a date,
not less than two months from the date of the
notification, on which the proposals will be taken into
consideration.84

After considering advice of the committees or sub-


committees and all the representations received within the specified
date in notification method, the appropriate government shall, by
notification in official gazette, fix or revise the minimum wages in
respect of the concerned scheduled employment which shall come in
force on expiry of three months from the date of issue.

4.2.2.4 Administrative Machinery

The appropriate government is empowered to appoint


through notification in the official gazette authorities to hear and
decide claims arising under the Act.85 It is not only the claim relating
to payment of less than minimum rate of wages but also other such
claims relating to differences of wages arising out of payment of less
than statutory wages which can be referred to the authority. The
authority shall hear the claim and decide after providing an
opportunity of being heard to both the employer and employee.86

84 Ibid., at Section. 5(1).


85 Ibid., at Sub Section (1) of Section 20.
86 Ibid., at Sub Section 3 of Section 20.
161

4.2.2.5 Working of the Act

The perusal of the Act reveals that the Act provides an


effective machinery to hear and decide claims. But various reports
such as, National commission for Enterprises in the Unorganised
Sector (2007), Report on the Working of the Minimum Wages
Act,1948 (2013) etc., show that employers often pay less than the
prescribed minimum rates of wages or even do not pay the wages at
a prescribed overtime rate to workers covered under the Minimum
Wages Act, 1948. In the case of migrant workers very often the
norms of Minimum Wages Act are followed. Migrant workers are paid
in piece rates and hence preferred by employers as it helps them in
cost cutting. Particularly in construction industry where illiterates
and unskilled workers are widely prevalent the wages are not paid in
time and the workers are unaware of the prevailing wage rates and
accept work at lower wages.87 Even in agricultural sector also the Act
fails provide minimum wages to workers. Hence they are unable to
secure even the minimal acceptable standard of living for himself and
his family.88

In most of the states and union territories, there was no


machinery appointed for the enforcement of the Minimum Wages Act
and the inspecting staffs appointed under the other labour Acts were
entrusted with the enforcement of this Act.89

87 National Commission for Enterprises in the Unorganised Sector, Report on


Condition of Work and Promotion of Livelihoods in the Unorganised
Sector, 2007, p. 99.
88 Ibid., at 133.
89 Supra note 73 at 16.
162

4.2.3 Child Labour (Regulation and Prohibition) Act, 1986

The Indian Constitution provides that no child below the age


of 14 years shall be employed in any factory or mine or engaged in
any other hazardous employment.90 It was made in order to protect
children from exploitation and provide them education to develop
their personality to lead a dignified life.

Despite of legislative prohibition on child labour, children


are working in large numbers in hazardous as well as non hazardous
work in almost all informal sectors of the Indian Economy. Industries
employing child labour are highly fragmented with complex
structures where much of the work is done through a system of sub
contracting to small unorganised sector enterprises like home based
and otherwise which are paid on piece rates.91

A number of legislative enactments were passed to provide


provisions to prohibit employment of child labour in different
occupations. They are:

The Factories Act, 1948;

The Mines Act, 1952;

The Motor Transport Workers Act, 1961;

The Beedi and Cigar Workers (Conditions of


Employment) Act, 1966;

The Apprentices Act, 1961;

The Shops and Commercial Establishment Acts.

90 Article 24 of the Constitution of India.


91 Supra note 87, at 103.
163

The Child Labour (Regulation and Prohibition) Act, 1986 is


also an exclusive Act to prohibit child labour which is also a
legislation relevant to the requirement of ILO92 and hence it has been
discussed in detail as follows:

Objectives

The main objectives of the Act are as follows:

To bring uniformity in the definition of child in the


related laws.

To ban the employment of children in specific


occupations and processes.

To modify the scope of banned industries and processes


by laying down a procedure.

To regulate the conditions of work of children when


they are not prohibited from working.

To lay deterrent punishment for violators.

4.2.3.1 Scope and Applicability

The Act is applicable to Child Labour (persons who has not


completed 14 years of age) and prohibits the employment of children
in certain occupation specified in Part A of the Schedule or processes
as specified in Part B of the Schedule. The Act is applicable to both
agricultural and non-agricultural workers covering both wage
workers and home workers.

92 Minimum Age Industry Convention (No.5), 1990.


164

4.2.3.2 Regulation of Conditions of Work

The conditions regarding hours and periods of work to be


performed by a child have been laid down in the Act are as follows:93

No child shall be required to work in excess of hours


which are prescribed for such establishments.

No period of work shall exceed three hours.

No child shall work for more than three hours unless he


has had an interval of at least one hour.

Inclusive of period of rest, periods of work shall not


spread over six hours.

No child shall work form 7 p.m. to 8 a.m.

There shall be no overtime for a child.

No child shall be required or permitted to work in any


establishment on any day on which he has already been
working in another establishment.

Every child shall be allowed a holiday of one whole day in


each week. The day shall be specified in a notice
exhibited in some conspicuous place. The day so
notified shall not be altered more than once in three
months.94

93 Section 7 of the Child Labour (Regulation and Prohibition) Act, 1986.


94 Ibid., at Section 8.
165

4.2.3.3 Health and Safety Provisions

The appropriate government may, by notification in the


official gazette make rules for the health and safety of children
employed or permitted to work. The rules may provide for
cleanliness, disposals of waste and effluents, ventilation and
temperature etc.95

4.2.3.4 Working of the Act

India’s child labour policy is of twofold: a ban on such


labour in certain hazardous industries and its regulations in others.
Any national policy that aims at improving the conditions of work in
the unorganised sector should aim at elimination of all types of child
labour in agriculture as well as in the unorganised non-agricultural
sector enterprises. In the survey conducted by National Sample
Survey Organisation (NSSO), the numbers of working children were
estimated at 90.75 lakhs in 2004-05 and as per the NSSO survey
2009-10, the working children are estimated at 49.84 lakhs which
shows a decline trend,96 but this is not sufficient. The banning of
child labour through legislation need enormous improvement in the
total decline of child labour as there is an exclusive legislation for
elimination of child labour. Since the banning of child labour
through legislation has not proved to give desired result, further
legislative effort should aim at regulating child labour and restrictive
their employment in all sectors consistent with the needs of their
development.97

95 Ibid., at Section 13.


96 Supra note 20, at 86.
97 Supra note 87, at 103-104.
166

4.2.4 Inter-State Migrant Workmen (Regulation of


Employment and Conditions of Service) Act, 1979

In India, there is a large scale migration of unskilled wage


labourers from not necessarily the resource poor areas, but also, the
areas which have wide spread poverty, low demand and wages for
unskilled labour. They migrate to areas where there is greater
demand for such labour in the unorganised sector. Since the
middlemen help the migrant workers to get employment they face
exploitation at the hands of employers and middle men.

It was felt to have a comprehensive legislation with a view to


secure effective protection to inter-state migrant workers against
their exploitations and hence the Inter-State Migrant Workmen Act,
1979 was enacted.

4.2.4.1 Objectives, Scope and Coverage

The Act seeks to regulate the employment of inter-state


migrant workmen and provides for the conditions of inter-state
workmen and matters relating to them. The Act applies to every
establishment in which five or more inter-state migrant workmen are
employed and to every contractor who employs five or more inter-
state migrant workmen. According to this Act, workmen means any
person employed in or in connection with the work of any
establishment to do any skilled, semi-skilled or unskilled, manual,
supervisory, technical or clerical work for higher or reward but does
not include any person who is employed mainly in a managerial or
167

administrative capacity; or who, being employed in a supervisory


capacity draws wages exceeding five hundred rupees per month.98

According to this Act the inter-state migrant workmen is


defined as follows:

Any person who is recruited by or through:

A contractor in one state;

Under an agreement or other arrangements;

For employment in an establishment in other state; and

With or without the knowledge of principal employer in


relation to such employment.99

The Act provides for wage rates, holidays, hours of work and
other conditions of service of an inter-state migrant workman shall
be the same as those applicable to such other workmen performing
the same or similar kind of work and cannot be less than the wages
fixed under the Minimum Wages Act, 1948 and are payable in cash.
It also provides for payment of displacement allowance and journey
allowance.100

The primary responsibility for payment of wages is on the


contractor and on his failure on the principal employer.101 The
contractor has to ensure the following:

equal pay for equal work irrespective of sex;

suitable conditions of work;


98 Section 2(1)(f) of Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979.
99 Ibid., at Section 2(1)(e).
100 Ibid., at Section 13.
101 Ibid., at Section 17.
168

to provide and maintain suitable residential


accommodation to such workmen during the period of
their employment;

to provide the prescribed medical facilities to the


workmen, free of charge; and

in case of fatal accident or serious bodily injury to any


such workmen to report to the specified authorities of
both the states and also the next-of-kin of the workmen.

Date of Recruitment

Inter-state migrant workmen has to be treated to be in


employment from the date of recruitment for the purposes of certain
enactments namely, The Employees’ Compensation Act, 1923; The
payment of Wages Act, 1936; The Industrial Disputes Act, 1947; The
Employees State Insurance Act, 1948; The Employees Provident
Fund and Miscellaneous Provisions Act, 1952; and the Maternity
Benefit Act, 1961.

4.2.4.2 Enforcement of the Act

The effectiveness of law lies in its implementation. Therefore,


the Act provides machinery for its proper enforcement. The main
responsibility for enforcement of the provisions of the Act lies with
both the Central and State Governments in their respective
jurisdiction. For the administration of the Act, the appropriate
government is empowered to appoint qualified inspectors for such
local limits as may be assigned to them. The inspector is empowered
to examine any register or record and can seize or take copies of
169

such register and exercise such other powers as may be prescribed


according to the Act.102

Overall with regard to the utility of the Act, in the process of


migration and during their employment they are exploited by
contractors, middle men, employers etc., who come in contact with
them because as per the definition of the inter-state migrant
workmen all migrant workers are not inter-state migrant workers.
According to this definition all migrant workers who are generally
unorganised workers are not inter-state migrant workers as defined
by the law, and cannot, therefore, enjoy the benefits of this Act. To
prove in Court that the Act is applicable is very difficult, as
employers deny that workmen were recruited from another state by
any of their contractors. They often contend that the workers were
recruited from nearby places within the State where the industries
are located. Thus, the Act provides very limited benefit to the
workers in the unorganised sector.103

The definition of inter-state migrant workmen is also


inadequate in the sense that it is restricted to those recruited
through contractors or middle men, but, would not applied to such
workmen if they are recruited by the employer directly or if they
come for work voluntarily. Hence, this would preclude substantial
number of workmen from the coverage of the Act. This can be also
considerably misused by the employers by claiming exemption from
the applicability of the Act.

102 Ibid., at Section 20(2).


103 Supra note 13, at 708.
170

4.2.5 Bonded Labour System (Abolition) Act, 1976

Out of many exploitative labour practices, the bonded labour


has become one of the most sensitive issues of human rights. The
history of society since the abolition of slavery in 1843 has been such
that the system of bonded Labour by custom and law has taken such
firm roots that a change in laws to the contrary has not been
successful in eradicating the system of bonded labour.104

Objectives

Bonded labours are mainly found in agricultural sector as


well as in several activities of the unorganised sector.105 Hence, in
order to abolish the bonded labour system throughout the country,
the Bonded Labour System (Abolition) Act, 1976 has been passed to
prevent the economic and physical exploitation of the weaker
sections of the society and such related or incidental matters.

4.2.5.1 Scope and Coverage

The Act extends to the whole of India106 and applies to all


sections of the unorganised sector labour.

The Important Features of the Act are as follows:

The Act abolished the bonded labour system in the


country and every bonded labourers stood freed and

104 Z.M. Shahid Siddiqi, “Sanctions for the Breaches of Contracts of Service”, 25
JILI 259-371 (1983).
105 Supra note 87, at 106.
106 Section 1 (2) of the Bonded Labour System (Abolition) Act, 1976.
171

discharged free from any obligation to render any bonded


labour.107

Any custom, agreement or other instrument by virtue of


which a person was required to render any service as
bonded labour was rendered void.108

Liability to repay bonded debt was deemed to have been


extinguished.109

Property of the bonded labourer was freed from mortgage


etc.110

Freed bonded labourer was not be evicted from


homesteads or other residential premises which he was
occupying as part of consideration for the bonded
labour.111

4.2.5.2 Implementing Authorities

District magistrates have been entrusted with certain duties


and responsibilities for implementing the provisions of the Act. The
Vigilance Committees are required to be constituted at district and
sub- divisional levels to provide for the economic and social
rehabilitation of the freed bonded labourers.112

4.2.5.3 Working of the Act

Despite the law, there are instances of forced labour


servitude in most parts of the country.113 The Ministry of Labour
estimated that between 1996 and 2006, about 20.86 lakhs bonded

107 Ibid., at Section 4.


108 Ibid., at Section 5.
109 Ibid., at Section 6.
110 Ibid., at Section 7.
111 Ibid., at Section 8.
112 Ibid., at Section 14(1) & (2).
113 Supra note 87, at 105.
172

labourers were in different states and of these about 2.66 lakhs were
rehabilitated.114 Due to social change, social movement and state
intervention, the unfree status of labour in traditional agriculture
and in some other sectors has changed positively. However, the
incidence of bonded labour still remains high in some segments of
unorganised industry.115

The impact of social change, economic modernisation and


state intervention has resulted in the emergence of bondage in newer
forms. Though from estimates of labour bondage are not available
but the extent of the bondage can be guarded from the fact that in a
number of industry a large proportion of workers suffer from
“unfreedom” and are paid wages lower than the minimum wages
which is found by the Supreme Court as a key identifying
characteristic of bondage.

4.3 UNORGANISED WORKERS’ SOCIAL SECURITY ACT,


2008

The National Commission for Enterprises in the


Unorganised Sector has examined the conditions of work as well as
livelihood issues of unorganised workers. The examination of the
regulatory frame work to ensure minimum conditions of work for
unorganised wage workers has shown that:

There is lack of comprehensive and appropriate


regulations in India.

Even where regulation exists, there are inadequate and


ineffective implementation mechanisms.

114 Ibid.
115 Report of the National Commission for Enterprises in the Unorganised Sector,
The Challenge of Employment in India, Vol.I, 2009, p.147.
173

Hence, it has been felt that there is a need for


comprehensive legislation for minimum conditions of work in the
country. The commission also has reviewed and analysed the
various perspectives on a comprehensive legislative framework for
unorganised wage workers and has made appropriate
recommendation. On account of their unorganised nature, these
workers do not get adequate social security. Even though State
governments are implementing welfare programmes for certain
catagories of unorganised sector workers, there is a huge deficit in
the coverage of unorganised sector workers in the matter of labour
protection and social security measures ensuring the welfare and
well being of the workers.116 Hence, Unorganised Workers Social
Security Act was passed in 2008 to create a dedicated social
protection environment for the unorganised work force.

Objectives

The Act aims to provide for social security and welfare of the
unorganised sector and for matters connected there with or
incidental thereto.

Scope and Coverage

This National legislation is an important step for the


universal coverage. It covers a home based worker, self employed
worker, or a wage worker in the unorganised sector and includes a
workers in the organised sector who is not covered by any of the Acts
mentioned in Schedule II to this Act.117

116 Statement of Objects and Reasons of the Unorganised Workers Social Security
Act, 2008.
117 Section 2(m) of the Unorganised Workers Social Security Act, 2008 defines
Unorganised Worker.
174

Definition of Unorganised Sector

‘Unorganised Sector’ means an enterprise owned by


individuals or self employed workers and engaged in production or
sale of goods or providing service of any kind whatsoever, and where
the enterprise employs workers, the number of such workers is less
than ten.118

4.3.1 Social Security Benefits

The Act provides for welfare schemes to be formulated and


notified by the Central Government from time to time for the welfare
of the workers of unorganised sector relating to the following
maters:- 119

Life and disability cover;

Health and maternity benefits;

Old age protection; and

Any other suitable benefit.

The Act also provides that the state Governments may


formulate and notify from time to time, suitable welfare schemes for
unorganised workers in the following maters:

Provident Fund;

Employment injury benefit;

Housing;

Educational scheme for children;

118 Section 2(l) of the Unorganised Workers Social Security Act, 2008.
119 Ibid., at Section 3.
175

Skill upgradation of workers;

Funeral assistance; and

Old age homes.

The workers need to register with the district


administration for the benefits provided under the Act.120

Social Security Boards

The Act empowers the central government to constitute a


National Social Security Board121 and state boards122 to exercise the
powers and perform functions assigned to them. The board shall
advice, monitor, and review the schemes for different sectors of
unorganised workers.

4.3.2 Critical Evaluation of the Act

Inadequate Coverage

The definition of unorganised worker seems to be excluded


from the major section of unorganised labourers whose income limit
is expected to be notified by the Government that to mostly
applicable only for below poverty line category. Hence, most of the
unorganised workers in the urban areas may not fall under the
below poverty line category.

Section 2(l) of the Act defines unorganised sector which


restricts the coverage to those enterprises employing less than 10
workers. Contrary to the usual way of defining the unorganised

120 Ibid., at Section10.


121 Ibid., at Section 5.
122 Ibid., at Section 6.
176

sector as a residue of the organised, the Act defines organised as a


residue of the unorganised. Moreover, limiting less than ten is
violation of Article 14 of the Constitution of India because there is no
reasonable classification between workers working with employee
less than ten workers and working with one who is employing more
than ten workers.

Inadequate Benefits

The objective of the Act is to provide social security and


welfare to the unorganised worker but, the Act does not confer any
justifiable social security for them as there is no provision for defined
right to social security.

Instead of providing social security schemes as a part of


body of the Act, Chapter II of the Act explains the possible scheme of
social security and most of these schemes are insurance schemes
which are to be sourced from workers and operated by insurance
companies. But social security cannot be reduced to these types of
schemes because it should be articulated from the perspective of
rights derived from constitutional rights and principles.123

Financing Arrangements

The Act has provided generally that the schemes notified by


the central government may be funded wholly by central Government
or partly funded by both central as well as state Governments. But,
it does not have separate section that defines the existence and
nature of the national social security fund. The Act fails to provide an
appropriate mechanism at the state level to ensure that there is clear

123 National Convention on Social security for unorganised Workers, ‘suggested


amendments to the unorganised workers’ Social Security Act, 2008 (2010) p.1.
177

financing support to address the social security needs of the


workers.

No Proper Administrative Mechanism

From the perusal of the Act, it is clear that the national and
the state social security boards are not vested with adequate powers
to implement the social security schemes effectively.

There is also no provision for aggrieved worker to seek


remedy in the court of law. The fairness and effectiveness of the
implementation of the Act greatly depends on the availability on a
functional institution of grievance redressal mechanism through
which workers have recourse to a method for voicing their
complaints about violations.

The board seems to have only advisory role. The boards will
be effective if some powers are conferred to administer and enforce.

4.3.3 Schemes Specified under Schedule I of the Unorganised


Workers’ Social Security Act, 2008

The Act also provides in Schedule I specifying ten schemes


and as proof of Government’s commitment to formulate new
schemes.

Indira Gandhi National Old Age Pension Scheme

National Family Benefit Scheme

Janani Suraksha Yojana

Handloom Weavers’ Comprehensive Welfare Scheme

Handicraft Artisans’ Comprehensive Welfare Scheme


178

Pension to Master Craft Persons

National Scheme for Welfare of Fishermen and Training


and Extension

Janshree Bima Yojana

Aam Aadmi Bima Yojana

Rashtriya Swasthya Bima Yojana

4.3.3.1 Indira Gandhi National Old Age Pension Scheme

The scheme provides security to vulnerably elderly citizens


above 65 years of age and belonging to below poverty line category
are eligible for a monthly pension under this scheme. The
government of India provides Rs.200 per month to the old aged
people while many State Governments also contribute varying
amounts. The pension will be credited into a post office or public
sector bank account of the beneficiary where feasible.124

4.3.3.2 National Family Benefit Scheme

It provides a lumpsum family benefit as a grant of Rs.10,000


in case of death due to natural causes as well as accidental death of
the primary bread winner of the family aged between 18 and 65
years.125 The bereaved house hold should belong to below poverty
line families to qualify for this benefit. The scheme implemented
through panchayats and municipalities.

124 Government of India, Press Information, Bureau, available at:


pib.nic.in/newsite/erelease.aspx?relid=32803 (last accessed on Jan. 01, 2015).
125 Government of India, Press Information, Bureau, available at:
pib.nic.in/newsite/erelease.aspx?relid= 87574 (last accessed on May 02, 2015).
179

4.3.3.3 Janani Suraksha Yojana

This scheme has been introduced to reduce overall maternal


mortality ratio and infant mortality rate, and to increase institutional
deliveries. The beneficiaries under the scheme are urban and rural
poor who live below the poverty line or on the margin. As per this
fully centrally sponsored schemes, the states are categorised into low
performing states and high performing states depending on the
proportion of institutional deliveries in the state. In case of the ten
low performing states (Assam. Bihar, Chattisgar, Jammu and
Kashmir, Jarkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar
Pradesh and Uttarkhand) all women who give birth to children in
Government health centres/accredited private institutions are paid
Rs.2000 in rural areas and Rs.1200 in urban areas. In the case of
high performing states, all women who give birth to children in
Government health centres/accredited private institutions are paid
Rs.700 in rural areas and Rs.600 in urban areas.126

4.3.3.4 Handloom Weavers’ Comprehensive Welfare Scheme

Handloom Weavers Comprehensive Welfare Scheme


comprises of two separate sub-schemes viz., Health Insurance
Scheme and Mahatma Gandhi Bunkar Yojana Health Insurance
Scheme.

Health Insurance Scheme

This scheme covers handloom weavers, his wife and two


children belonging to below poverty line categories. The scheme
covers pre existing and new diseases including outpatient treatment
and the annual limit per family is Rs.15000. The limit for outpatient

126 See National Portal, www.nhp.gov.in.


180

treatment as well as the limit per illness is Rs.7500.127 It also


provides for maternity benefit of Rs.2500 per child for 2 children.
Further, expenditure towards Ayurvadic/ Unani/ Homeopathic/
Siddha systems of medicine up to Rs.4000 is also provided.128

Mahatma Gandhi Bunkar Yojana Health Insurance Scheme

The scheme provides enhanced insurance cover to the


handloom weavers in case of natural as well as accidental death and
in cases of total or partial disability. To become eligible under the
scheme, the weaver should be earning atleast 50% of his income
from handloom weaving and should be between age group of 18 and
59 years. The weavers belonging to the State Hand Development
Corporation/apex/primary Handloom Weavers’ Co-operative
Societies will be covered under the scheme. Weavers outside co-
operative can also be covered under the scheme on a certificate from
the State Directorate of Handlooms that they are fulfilling the
eligibility conditions. The scheme provides for Rs 1.5 lakh cover for
accidental death/total disability, Rs.75000 for partial disability and
Rs.60000 for natural death. This scheme also provides scholarship of
Rs.300/- per quarter per child to children studying in class IX to XII
for a maximum period of four years or till they complete XII
standard. Government of India contribute of Rs.290, Weavers’
contribute Rs.80, and Life Insurance Corporation of India
contributes Rs.100.129

127 See Handlooms, Ministry of Textiles, Wcd.nic.in/ww/Bcconppt4.pdf.


128 Seewww.delhi.gov.in/wps/wps/wcm/connect/5f8f7bfb004efbf483b01db9fe
99daf05a/hl_sch_hwcwshanloom.pdf?MOD=AJPERES&CACHIED=5f8f7bo1df4
83bo1db9fe99daf05a.
129 See Ministry of Textiles, Office of the Development Commissioner (Handlooms),
Handlooms.nic.in/writereaddata/1232.pdf.
181

4.3.3.5 Handicraft Artisans’ Comprehensive Welfare Scheme

This scheme has been envisaged to address the needs of


artisans who lack proper care on their welfare.

This scheme is also like Handloom Weavers’ Comprehensive


Welfare Scheme but it covers the handcraft artisan and three family
members including spouse. It covers all handicraft artisans but the
rate of premium is different for different categories. The welfare
scheme comprises of the following yojana:

Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY)

This scheme aims at financially enabling the artisan’s


community to access to the best of health care facilities in the
country. This scheme provides with an annual limit per family of Rs.
30,000 in case of inpatient treatment and Rs.7,500 in case of
outpatient treatment.130

Bima Yojana for Handicrafts Artisans (Aam Admi Bima Yojana


(AABY)

The object of this scheme is to provide life insurance


protection to the handicraft’s artisans. The scheme provides
Rs.75,000 in case of death due to accident, Rs.75,000 in case of
Permanent total disability, and Rs.37,500 in case of loss of one eye
or one limb in accident. 131

130 See Government of India, Ministry of Textiles, Scheme of Office of the


Development Commissioner (Handicrafts), (New Delhi: Office of the
Development Commissioner (Handicrafts), p.3
131 Ibid., at 6
182

Support to Artisans in Indigent Circumstances

This scheme is proposed to support the artisans during their


old age. The beneficiaries of this scheme are limited only to the
recipients of Shilp Guru Awards, National awards, Merit Certificates
and State Awards in handicrafts. The persons whose annual income
is less than Rs.30,000 and do not have any financial assistance from
any other source are eligible under the scheme. The scheme provides
assistance from the government not exceeding Rs.2,000 per
month.132

Credit Guarantee Scheme

This scheme is envisaged to alleviate the problem of


collateral security or 3rd party guarantee and remove impediments to
flow of credit to handicrafts sector. The scheme covers collateral
free credit facility extended by Eligible Lending Institutions to
artisans/manufacturers involved in manufacturing of handicrafts
upto Rs. 25 lakh per borrowing unit.133

Interest Subvention Scheme

The scheme facilitates credit access for handicrafts artisans


through interest subvention for scheduled banks. It is proposed that
a interest subvention shall be available for artisans for loan taken
from scheduled banks. Admissible amount is upto Rs.50,000 for a
period of 3 years.134

132 Ibid., at 7
133 Ibid., at 8-9.
134 Ibid., at 10.
183

4.3.3.6 Pension to Master Craft Persons

The beneficiaries of this scheme are limited only to the


recipients of national awards, merit certificates and state awards in
handicrafts. The persons whose annual income is less than
Rs.15000 and do not have any financial assistance from any other
source are eligible under the scheme. The Central Government
provides Pension of Rs.1000 per month through the field offices of
the Development Commissioners of Handicrafts.

4.3.3.7 National Scheme for Welfare of Fishermen and Training


and Extension

The scheme provides for insurance cover to active fisherman


engaged in fishing in age group of 18-65. The Central and State
Governments share equal proportion of funding. This scheme is
implemented by the State Governments through the Fish Farmers
Development Agencies. For the construction of the houses a sum of
Rs.75,000 per house and tube wells for drinking water a sum of
Rs.40,000 and in case Northeast states of Rs.45,000 is provided. For
the construction of common work places or community halls
Rs.2,00,000 per hall is provided. Further, during the fishing ban
period a sum of Rs.900 per fisher is paid for 3 months. In case of
partial disablement the compensation payable is disability
Rs.1,00,000 and Rs.2,00,000 is provided in case of death.135

4.3.3.8 Janshree Bima Yojana (Public Insurance Scheme)

This scheme covers in the events of natural and accidental


death as well as partial or permanent disability. This scheme is

135 See Government of India, Press Information Bureau, Ministry of Agriculture,


pib.nic.in/newsite/printRelease.aspx?relid=102142
184

implemented by the Life Insurance Corporation of India, wherein


50% of the annual premium of Rs.200 is paid by the government of
India and the other 50% is paid either by the beneficiary, nodal
agency or the state Government. The target groups are urban and
rural poor who live below the poverty line or on the margin. This
scheme provides a sum of Rs.30,000 on natural death and Rs.75,000
on accidental death to the beneficiaries. The scheme also provides in
the case of total permanent disability Rs.75,000 and Rs.37,500 on
partial permanent disability. Further, scholarship for 2 children
studying in IX to XII class a sum of Rs.300 per quarter per child is
paid.

At present Janshree bima yojana scheme has been merged


with the Aam Admi Bima Yojana with effect from 01.01.2013.

4.3.3.9 Aam Aadmi Bima Yojana (Common People Insurance


Scheme)

The role of life insurance is to cover the family earner in case


of death are disability so as to assist the family in surmounting the
economic hardship of having loss their main source of income.136 The
scheme is confined to members of land less unorganised workers in
the rural households of the age group 18-59. It is implemented
through the agency of Life Insurance Corporation of India. The most
current version of the scheme was launched in January 2013 by
merging two previous Life Insurance Schemes Janashree Bima
Yojana covering 45 occupation groups and Aam Aadmi Bima Yojana
covering solely poor land less households in rural areas.137 This
scheme is implemented by the Life Insurance Corporation of India,

136 The Institute for Financial Management Research, Report of Comprehensive


Social Security for the Indian Unorganised Sector, (2013), p.12.
137 Ibid.
185

wherein the beneficiary has to pay premium of Rs.200 per annum for
a cover of Rs.30,000, out of which 50% premium will be subsidised
from the Social Security Fund. In case of death due to accident
Rs.75,000, Rs.75,000 in case of permanent Total disability and
Rs.37,500 in case of loss of one eye or one limb, in an accident is
provided.138

4.3.3.10 Rashtriya Swasthya Bima Yojana (National Health


Insurance Scheme)

This scheme provides provision of health insurance to


workers families consisting of five units. The target groups are
unorganised workers falling below the poverty line. The benefits are
inpatient care which is restricted by package limits as it does not
cover congenital external diseases, drug and alcohol induced illness,
sterilization and family planning, vaccination, attempted suicide, and
treatments from alternative medicines. In addition to that medicine
for 5 days post hospitalisation and transportation costs of Rs.100 per
visit upto maximum of Rs.1000 are provided. The benefits are
subject to an annual ceiling of Rs.30,000 to an family, are covered on
an cash less basis. To claim this benefit, smart cards are provided in
which Rs.30, 000 per year is credited to it for direct use at any
empanelled hospital.139 However, there is no provision to cover
outpatient treatment, which constitutes a major part of the medical
expenses.

With regard to premium, a contribution of Rs.30 has to be


paid by the beneficiaries as registration fee at the time of enrolment
and at the time of renewal. The Central and State Governments
contributes in the ratio of 75:25 respectively. In the case of North

138 See https://www.licindia.in/aam_admi_features.htm.


139 Supra note 136, at 19.
186

Eastern States and Jammu and Kashmir, the central and state
Government contributes in the ratio of 90:10 respectively.

4.3.4 Working of the Schemes

Current social security schemes are run by various


ministries. For instance, Aam Aadmy Bima Yojana is run by ministry
of finance while Rastriya Swastha Bima Jojana is run under Ministry
of Labour and Employment. This has led to a fragmented delivery of
schemes which has resulted in difficulty to access them through
multiple channels.

There are many schemes provided by centre and states


resulting in overlapping. For example, many state governments
provide a Minimum Pension Scheme that has come into conflict with
National Old Age Pension Scheme and National Pension service
provided by the Central Government. Due to lack of coordination
between centre and states there is inequitable pension coverage
across India.140

Moreover, the current schemes are implemented by various


Ministries and are regulated by different bodies. For instance, health
insurance is provided by insurance companies and hence it falls
under the purview of Insurance Regulatory and Development
Authority (IRDA). However, National Pension Scheme is regulated by
Pension Fund Regulatory and Development Authority (PFRDA). The
role of National Social Security Administration (NSSA) will have to
provide clarity on regulation setting for social security products.
There should be clarity between regulator and implementer.

140 Supra note 136, at 23.


187

To conclude, though the Government has taken several in


initiatives such as Legislative measures and welfare schemes to
improve the conditions of the unorganised sector, this study reveals

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that the majority of workers remain uncovered due to inadequate
and inefficient social security measures.
188

CHAPTER 5

UNORGANISED WORKERS IN INDIA: ISSUES AND

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CONCERNS

The concept of an informal or unorganised sector began to


receive world-wide attention in the early 1970s, when the
International Labour Organisation initiated series efforts to identify
and study the area through its World Employment Programme
Missions in Kenya, Columbia, Sri Lanka and Philippines primarily
underlined the development strategy based on economic growth in
which employment was considered as the prime objective for
development.1 The British Economist Keith Hart in 1971 coined the
term informal sector.2 He made a detailed study of urban Ghana in
which the study reported the new entrants, particularly rural
migrants, to the labour market in the urban areas were forced to
work in the informal sector partly owing to their lack of skill and
experience needed for the jobs in the urban formal sector.3 Since
then, the informal sector has been the subject of several studies and
seminars covering various aspects like its size, employment
potential, its relationship with the formal sector, technological levels
etc.4

The term often is defined by indicating the absence of


characteristics that belonging to the organised sector. The
unorganised sector is often termed as residual sector but, it has its

1 R.S.Tiwari, Informal Sector Workers: Problems and Prospects, (New Delhi:


Anmol Publishers) 2005 Edition, p.5.
2 Kanak Kanthi Bagchi and Nirupam Gobi, Social Security for Unorganised
Workers in India (Gurgaon: Madhav Books) 2012 Edition p.22.
3 Kishore.C. Samal, Growth of Informal Sector in India, (New Delhi: S.K.Book
Agency) 2013 Edition p.160.
4 Report of Second National Commission on Labour, (2002), pp. 596-597.
189

own merits as there is consistent growth rate in employment. The


unorganised sector is known by different names such as informal
sector, unregulated sector etc. This implies that informal workers are
beyond any regulation or legislations passed by the Government.
Hence, their working status is rarely covered by the legal status.

Social security arising out of employment status and


provided by employers is largely confined to workforce who are
identified as organised workers. Only 0.4% of the unorganised
workers in unorganised sector were receiving benefits like provident
fund, and this proportion has not changed since 1999-2000.5 The
social security measures such as old age pension, gratuity,
employees’ state insurance and other insurance schemes are non–
accessible to workers of the unorganised sector. A large number of
statutes and schemes addressed to different categories of workers
are found neither feasible nor practicable. This is because labour
relations in the unorganised sector are chaotic and there is no formal
employer-employee relationship. But, even if it exists, it is of casual
nature.

Since the unorganised sector plays pivotal role in the Indian


economy, it needs special attention. Hence, an attempt has been
made in this chapter to examine the issues and challenges faced by
the unorganised workers with a view to overcome the obstacles in the
unorganised sector to provide atleast a basic minimum social
security to the workers.

5 National Commission for Enterprises in the Unorganised Sector, Report on


Condition of Work and Promotion of Livelihoods in the Unorganised
Sector, 2007, p.4.
190

5.1 DEFINITIONS AND MAGNITUDE OF UNORGANISED


SECTOR

The unorganised sector has grown by leaps and bounds over


the years. In India, the term ‘unorganised sector’ is used commonly
in all official records and analyses. Changes in trade and technology,
accompanied by greater global linkages between nations resulted in
threat to worker’s income and is particularly in the developing
country as there is a rapid expansion of unorganised sector due to
increase in employment of poor quality and India is not exception to
it. The difficulties in the unorganised sector are multifarious in
nature. Covering various aspects many efforts have been taken to
define this vast segment to identify a common criteria for the
identification of unorganised sector enterprises. But the difficulty
starts in defining the sector itself to confine them in a comprehensive
manner.

5.1.1 Definitions of Unorganised Sector

Some of the definitions of unorganised sector are discussed


in detail as follows:

Definition of Kenneth King

“Their unorganisedity derives from their being unrecognised


in government employment statistics and operating in the main act
of the make shift shelters on urban waste lands, roadsides and forest
fringes”.6

6 Meenu Agrawal, Rural Women Workers in India’s Unorganized Sector, (New


Delhi: New Century Publications) 2012 Edition, p.41.
191

Unorganised sector could be described as that part of the


work force who have not been able to organise in pursuit of a
common objective because of constraints such as

a) casual nature of employment

b) ignorance and illiteracy

c) small size of establishments with low capital investment


per person employed

d) scattered nature of establishments and

e) superior strength of the employer operating singly or in


combination.7

The unorganised sector is in no way an independent and


exclusive sector. It is linked to, or in many cases depended on the
organised sector and the rest of the economy through a variety of
linkages. It depends on the organised sector for few raw materials
and other capital requirements, generation of employment,
marketing facilities, and so on. The sub contracting model is used
by the formal sector for engaging labour in the unorganised sector.8

Definition by 15th International Conference of Labour


Statisticians

According to International Conference of Labour


Statisticians the terms unorganised and informal sectors are often
used interchangeably. The informal sector may be broadly
characterised as consisting of units engaged in the production of

7 Government of India, Report of National Commission on Labour, (1969) p.


417.
8 Supra note 4, at 602.
192

goods or services with the primary objective of generating


employment and incomes to the persons concerned.9

National Commission for Enterprises in the Unorganised


Sector provides definition of unorganised sector as follows:10

Unorganised Sector: “The unorganised sector consists of all


unincorporated private enterprises owned by individuals or
households engaged in the sale and production of goods and services
operated on a proprietary or partnership basis with less than ten
total workers”.

Unorganised workers: “Unorganised workers consists of those


working in the unorganised enterprises or households, excluding
regular workers with social security benefits, and the workers in the
formal sector without any employment/social security benefits
provided by the employers”.

Definition of Unorganised Sector and Unorganised Workers


under the Unorganised Workers’ Social Security Act, 2008:11

‘Unorganised Sector’ means an enterprise owned by


individuals or self employed workers and engaged in production or
sale of goods or providing service of any kind whatsoever, and where
the enterprise employs workers, the number of such workers is less
than ten.

9 International Conference of Labour Statisticians, Resolution Concerning


Statistics of Employment in the Informal Sector, 15 (Geneva: ILO), 1993.
10 Supra note 5, at 3.
11 Section 2(l) of the Unorganised Workers’ Social Security Act, 2008.
193

Definition of Unorganised Worker

Unorganised worker means a home-based worker, self-


employed worker or a wage worker in the unorganised sector and
includes a worker in the organised sector who is not covered by any
of the acts mentioned in schedule II of the Act.12

From the analysis of definitions, it is clear that the


unorganised sector is a term that eludes definition as the sector is
too vast and varied to confine within a conceptual definition.

5.1.2 Magnitude of Workforce in the Unorganised Sector

As per the survey carried out by the National Sample Survey


Organisation in the year 2009-2010, the total employment in both
organised and unorganised sector in the country was of the order of
46.5 crore. Out of this, about 2.8 crore were in the organised sector
and the balance 43.7 crore in the unorganised sector. Out of 43.7
crore workers in the unorganised sector, 24.6 crore workers were
employed in agricultural sector, 4.4 crore in construction, and the
remaining were in manufacturing activities, trade and transport,
communication and services. A large number of unorganised workers
are home based workers and are engaged in occupations such as
beedi rolling, agarbatti making, pappad making, tailoring, and
embroidery work.13

More than 90% of workforce and about 50% of the national


product are accounted by the informal economy. A high proportion of

12 Ibid., at Section 2(m).


13 Government of India, Ministry of Labour and Employment, Annual Report
2014-15, p. 65.
194

socially and economically underprivileged sections of society are


concentrated in the informal economic activities.14

5.2 CHARACTERISTICS OF UNORGANISED LABOUR

The unorganised workers suffer from excessive seasonality


of employment, lack of formal employer-employee relationship and
inadequate social security protection.15 Unorganised sector or
informal economy is replete with diverse concepts and lack
uniformity of definitions. Based on some of the specific
characteristics, the unorganised enterprises could be distinguished
from formal sector like no paid leave, no written job contract, and no
social security to the workers.16

The high level of growth of Indian economy during the past


two decades is accompanied by increasing informalisation. There has
been new dynamism of the informal economy in terms of output,
employment and earnings. Faster and inclusive growth needs special
attention to informal economy.17

The unorganised labour is characterised as follows:18

It is in general a low wage and low earning sector.

Women constitute an important section of the workers in


this sector.

14 Government of India, Report on Employment-Unemployment survey, Vol.I,


Ministry of Labour and Employment, (2013-14) p.5.
15 ILJ, “Special Article: Sixty Seven Years of Independence-A Kaleidoscopic View of
Labour Activities”, Vol.55, 9 (2014) p.930.
16 Supra note 14, at 5.
17 Government of India, Report of the Committee on Unorganised Sector
Statics, National Statistical Commission, (2012) p.1.
18 Supra note 4, at 604-605.
195

Family labour is engaged in some occupations such as


home-based ones.

Economic activities, which engage child labour, fall


within this sector.

Migrant labour is involved in some sub-sectors.

Piece-rate payment, home-based work and contractual


work are increasing trends in this sector.

Direct recruitment is on the decline. Some employees are


engaged through contractors. An increasing trend to
recruit workers through contractors is visible in areas of
home-based work. There is a sort of convergence of
home-based work and engagement in work through
contractors.

If some kinds of employment are seasonal, some others


are intermittent. As such, under-employment is a serious
problem.

Most jobs are, for the greater part, on a casual basis.

Both employed and self-employed workers can be found


in a number of occupations.

Workers are not often organised into trade unions. The


self-employed are seldom organised into associations.
There is not much recourse to collective bargaining.

There are many co-operatives of self-employed workers.


196

Very often, others supply raw materials, production by


self-employed workers, therefore, becomes dependent on,
or linked with enterprises or individuals active in other
sectors.

Debt bondage is very common among the employed as


well as the self-employed workers in the unorganised
sector.

The self-employed have less access to capital. Whatever


capital they manage, is mostly from non-banking and
usurious sources, especially from the trader-contractor.

Health hazards exist in a majority of occupations.

5.3 CATEGORIES OF UNORGANISED LABOUR

The National Commission on Labour listed ‘illustrative’


categories of unorganised labour which are as follows:19

contract labour including construction workers;


casual labour;
labour employed in small scale industry;
handloom/power-loom workers;
beedi and cigar workers:
employees in shops and commercial establishments;
sweepers and scavengers;
workers in tanneries;
tribal labour; and
‘other unprotected labour’

19 Supra note 7, at 417.


197

5.4 IMPORTANCE AND CAUSES OF UNORGANISED LABOUR

The activities in the informal sector account for a


substantial share of total employment in the developing countries -
ranging from the third to two-thirds or more, particularly in urban
areas.20 National level data on employment and income generated in
the informal economy is generally not available. India is one of the
few exceptions where it has recently estimated the informal sector by
National Sample Survey Organisation.

Globalisation measured in terms of trade and capital flows


between countries and technological changes believe to have played
an important role. A faster growth of employment in the unorganised
or informal sector is often referred to as an evidence of the
employer’s unwillingness to expand employment in large sized
factories in which the protective labour laws are applicable. They
instead farm out work to smaller units. Hence, there is no doubt that
employment has growth faster in the informal segment and its share
has sharply increased over the years.21

Further, the intensified competitions among firms have


resulted in driving down the labour-cost. These costs are lower in
informal economy, due to non compliance with labour regulations
such as minimum wage, social security contributions and other
welfare provisions.

Apart from that, improvement in technologies are also have


contributed to such informalisation as we do not posses required
skills and training for the employment in the organised sector. A

20 Supra note 17, at 1.


21 K.Mariappan, Employment Policy and labour Welfare in India (New Delhi:
New Century Publications) 2011 Edition p.78.
198

further distinction is often made within the informal sector between


those who operated from their residence, and other micro
enterprises. Not all those operating from their residence or whom are
truly independent enterprises, taking risks and making decisions;
many, especially women, are paid for their work by the employer,
sub contractor, agent or middlemen and hence consider as “home
workers” or “disguised wage workers”. The tendency to engage
workers outside the factory premises on a sub contracting basis is
widely seen in the process of informalisation and interpreted as a
means by which employers disown responsibilities for their welfare
envisaged in the labour standards.22

Another factor that has developed the unorganised sector is


nom-availability of modern sector jobs even to those women and men
who live in urban places and have some education and skill. The
employment opportunities in the modern sectors are rare due to
technological development in these sectors. These sectors are capital
intensive rather than labour intensive. Thus, a large number of
unemployed men and women are attracted by the unorganised sector
as entry is easy there and it provides income, though insufficient, to
the family. The meagre income that they get is precious for their own
and for their survival.23

5.5 PROBLEMS OF UNORGANISED WORKERS

Unlike organised sector, this sector have not tasted the


benefits or derived the advantages that can be gained from
organisation. Many of them are victims of invisibility. The difficulty

22 Sudharshan Canagarajha and S.V.Sethuraman, “Social Protection and the


Informal Sectors in Developing Countries: Challenges and Opportunities”,
Discussion paper series No.0130 (Washington: World Bank Publication) 2001,
p.11.
23 Meenu Agarwal, Supra note 6, at 58.
199

starts from identifying or defining the unorganised sector itself.


There is no a single or primary criterion by which the sector could be
defined. The large segment of the work force has continued to be
neglected even though this sector has a crucial role in economy in
terms of employment. Hence, an attempt has been made to address
the problems faced by the unorganised workers resulting in
vulnerability are as follows:

5.5.1 Insecurity of Job

The informal sector workers often undertake multiple jobs,


pursuing of multiple jobs by a person may be taken as a sign of
insecurity in jobs. A single job or even two may generate income
barely enough for subsistence.24 For instance employment of
agricultural labour is irregular and unassured.25 This is due to
availability of work to them only for about three months and the
remaining nine months, they are mostly unemployed and suffer from
starvation.26 Employment in agriculture is thus available for fewer
days per year.27 In India Mahatma Gandhi National Rural Workers
Employment Guarantee Act, 2005 aims to provide employment
security by guaranteeing at least 100 days of work in the most
backward districts of the country who can perform manually.28 But,
informal workers continue to face the risk of loss of employment as
they are varied by nature and location.

24 Supra note 17, at 25.


25 Supra note 5, at 126.
26 Dr.Suresh Srivastava, “Social security for Agricultural Workers in India”, In:
Debi.S. Saini editor, Labour Law, Work and Development (New Delhi: Westvill
Publishing House 1995 Edition, p.106.
27 National Commission for Women Impact of WTO on Women in Agriculture
2005, p.16.
28 National Commission for Enterprises in the Unorganised Sector, Report on
Social Security for Unorganised Workers, 2006 p. 22.
200

5.5.2 Irregularities and Inability to Secure Even Minimum


Wages

The Supreme Court of India ruled that employing workers at


wage rates below the statutory minimum wage levels was equivalent
to forced labour and prohibited under Article 23 of the constitution
on India even though economic compulsion might drive one to
volunteer to work below the statutory minimum wage.29

Most of the studies on conditions of employment in the


unorganised sector have examined the wage levels and earnings of
workers are identified that the daily wages are below the minimum
rate of wages. But, the prevailing situation shows the reach and
effectiveness of the Minimum Wages Act is limited.30 In the
unorganised sector casual workers tend to be the least protected and
have the lowest level of earnings. The wages for the huge informal
sector cannot be left to be determined by the interplay of the market
forces.31 There is no uniformity in wage structure across the various
States or Union Territories.32 This is also due to applicability of the
Act only to certain employments which does not include all workers.
Hence, if a state Government fails to include a particular
employment within an industry in the employment schedule, the
Minimum Wages Act does not cover all workers in that industry.

5.5.3 Long Hours of work

The long working hours have a severe repercussion on the


social and family life of labourers in general and women labourers in

29 Peoples’ Union for Democratic Rights v. Union of India AIR 1982 SC 1473.
30 Supra note 5, at 47.
31 Government of India, Report of the Working Group on Social Security for
the Twelfth Five Year Plan, (2012-17), p.14.
32 Government of India, “Report of the Working of The Minimum Wages Act,
(2013), p.1.
201

particular. They do not find any time to take part in cultural or social
activities. They do not even take proper child care.33

Long hours work in the unorganised sector beyond the


labour and regulatory norms are common in India. In agricultural
sector there is no fixed hours of work as there are no laws to act as
guidelines for the working conditions of agricultural labourers. In
case of non- agricultural sectors such as fireworks, match making,
power looms and so on, workers started their work very early in the
morning at 6.00 a.m. and continue till late evening. In hand loom
sector the work is organised in such a way that wages were based on
a 12-15 hours work per day.34 The Factories Act, 1948, The
Minimum Wages Act, 1948 and the Shops and Establishments Act
stipulates that no adult worker shall be required to work more than
48 hours in a week. But these provisions relating to working hours
have been violated frequently. Thus limitation on hours of work is
almost non-existent.35

5.5.4 Poverty and Indebtedness

Workers in the unorganised sector had a much higher


incidence of poverty than their counterparts in the organised
sector.36 Due to low level of income and uncertain employment in
the unorganised sector make the workers unable to meet their basic
necessities and other social and other cultural responsibilities. In
agricultural sector, it is fact that increased indebtedness is noted as

33 Arjun Patel and Desai Kiran, “Rural Migrant Labour and Labour Laws”, In:
Debi.S. Saini editor, Labour Law, Work and Development (New Delhi: Westvill
Publishing House) 1995 Edition, p.64.
34 Supra note 5, at 36.
35 Kamala Kantha Mohabatra, “Women Workers in Informal Sector in India:
Understanding the Occupational Vulnerability” International Journal of
Humanities and Social Science, Vol.2, 21 (2012) p.198.
36 Kannan K.P., “How Inclusive is Inclusive Growth in India”, Working Paper
WP03/2012, New Delhi: Institute for Human Development (IHD).
202

a major reason for suicide in various states.37 Since the wage levels
have been very low, they are worst in terms of poverty level and
economic status.

5.5.5 Occupational hazards and Health Issues

The working conditions in the unorganised sector is the


main cause to have an adverse effect on the health conditions of
workers. Low nutritional intake due to low income, constant physical
labour increases health problems to the workers in the unorganised
sector resulting in risks of life of unorganised workers. Lack of
resources to pay for the health care often forces the poor workers
either to forego it or become indebted. With regard to home workers
most of the studies reported health problems mainly related to
respiratory due to inhalation of the tobacco dust and body ach due
to the peculiar posture that has to be maintained at all times of
work.38 In some of the sectors like fish processing units and
tobacco and salt pan industry, the working conditions can be called
as horrible for workers in general and women workers in particular.
In Tobacco- processing units the workers have to do their entire job
such as plucking, winnowing, grading and packaging, while they are
surrounded by heaps of tobacco, which is considered to be
unhygienic to the health. The mist of tiny particles of tobacco is
found to such an extent that the workers can’t even see the faces of
each other. The factory owners do not take proper care of the
workers. They do not provide them facilities like apron, spectacles,
mouth closer, socks etc.39

37 Supra note 5, at 135.


38 Ibid., at 73.
39 Arjun Patel, Supra note 33, at 72.
203

Similarly, salt pan workers are also found to be suffering


from skin diseases as they have to work constantly in salty water.
They develop severe eye problems due to the reflection of light from
the heap of salt.40 In agricultural sector due to extensive use of
fertilizers, insecticides and pesticides and mechanisation workers
suffer from certain specific health hazards. The pesticide applicators,
mixers, loaders are at the risk of exposure to toxic chemicals. Since
the farming sector is unorganised in character, there is an absence
of statistics on farm related accidents and injuries.41

Thus, workers in unorganised sectors such as fireworks and


match industry, leather tanning industries, construction sectors etc.,
are dangerous and full of hazards. Loss of limbs and amputations
occur often when workers operate unguarded or inadequately
safeguarded machines.42 Occupational illness and diseases have
also been reported among workers in many industries of unorganised
sector.43

5.5.6 Non-Applicability of Social Security Measures

There are many times when a worker cannot economically


active. Due to biological circumstances such as modernity, sickness
or old age; on account of personal calamities such as widowhood, or
an accident; social or natural calamities such as unemployment,
flood, fire drought or high unemployment or closure of an industry.
During these spells of risk the worker needs support, in the form of
some social insurance to survive the crisis and resume work after it.
Social security measures are indispensable for unorganised workers
to protect them from contingencies and deprivation. The existing

40 Ibid.
41 Supra note 5, at 127.
42 Ibid., at 33.
43 Ibid., at 34.
204

social security legislations are not applicable to most of the


unorganised sectors as discussed in Chapter 4. There are no social
security measures to provide risks coverage and ensure maintenance
of basic living standards at times of crises such as unemployment or
health issues.

5.5.7 Lack of Proper Physical Environment at Place of Work

Lack of sanitation facilities has an impact on health of the


workers. But, sanitary conditions are so precarious in most of the
industries in the unorganised sector due to lack of proper toilet
facilities. The facilities such as washing, urinal and toilet facilities at
work are found to be low standard. It could be said that no such
facilities were provided to workers in the industries.44 Apart from
that, physical conditions such as space, lighting, ventilation etc., are
very poor.

5.5.8 Insecurity Arising out of Illness

Many studies show health risk as the primary risk of


informal sector workers.45 A number of studies show that risks and
crisis situations due to low level of health security are endemic for
informal sector workers. Stress events associated with health,
dominated the outflows comprising 48% of annual household
expenditure, while rituals and marriages account for 30%. The
vulnerability of the poor informal workers increases when they have
to pay fully for their medical care with no subsidy or support.46 A
number of studies observed that the lack of resources to pay for
treatment often leads to the poor foregoing health care or becoming

44 Ibid., at 35.
45 Sudharshan, Supra note 22, at 54.
46 Supra note 28, at 6.
205

indebted or impoverished trying to pay for it. Poverty was a major


factor for not seeking treatment during illness.47

5.5.9 Loss of Income Arising Out of Accident

An accident either during the course of work or otherwise is


a major crisis for informal workers due to loss of income. It further
implies additional income expenditure of medicines, hospitalisation
etc. If the accident leads to partial or permanent disability the loss is
much greater.48 In the case of death of a breadwinner, it is a
permanent loss of income and the family has to borrow money,
spend savings or sell assets.

5.5.10 Lack of Old Age Security

Most of the provisions relating to provident fund did not


reach the construction workers and contract labourers.49 The old
age is a major concern of the workers in the unorganised sector
workers. Agricultural workers and construction workers are feared of
not being able to work during old age. For the large proportion of old
age persons expected in the future, the insecurities will arise due to
various reasons such as inability of adult workers to support the
needs of old age person in the family, inadequate public health care
facilities and increasing cost of private health care facilities of the
aged etc.50

47 Ibid., at 18.
48 Ibid., at 21.
49 Supra note 5, at 41.
50 Supra note 28, at 21.
206

5.5.11 Migrant Workers

Migrant workers are the most disadvantaged segment of


workforce facing adverse working and living conditions. For instance,
sugarcane labourers are generally staying in open place in the
absence of proper space. Also, they have to cook their food in open
space, which causes hardship during monsoon season. Since the
labourers are staying in open space, they are continuously worried
about the menace from snakes, scorpions, mosquitoes etc.51 In most
of the cases, the resident sugarcane cutters have no basic facilities
like electricity, water, sanitation etc.52

The Problems faced by migrant workers are as follows:

Vast majority of migrant workers fall in the unorganised


sector.

No working hours are fixed.53

They belong to poorest sections of population and


inadequate access to basic amenities.54

People who migrate from rural to urban areas have


absolutely no rights when they arrive55as they lack
bargaining power and forced to accept work for lesser
wages.

51 Arjun Patel, Supra note 33, at 71.


52 Ibid., at 70.
53 Supra note 4, at 707.
54 Supra note 5, at 96.
55 Gender and Economic Policy Discussion Forum, “Engendering Social Protection
for Informal Economy Workers” (New Delhi: Institution of Social Studies Trust
(ISST) November 2012, p.6.
207

5.5.12 Lack of Bargaining Power

Lack of organisation or least unionisation among the


unorganised workers is mainly on account of illiteracy and lack of
awareness. Despite the increased recognition of informal sector’s
contribution to employment and gross domestic product among
others the lack of worker’s rights and legal status has tended to
adversely affect worker’s prospects. This is due to lack of
organisation or least organised in the sense that they are not able to
voice their feelings or dissent against the attitude of employers in
order to protect their interests. Due to long working hours, social
isolation of migrant workers, high level of unemployment, illiteracy
and lack of awareness are the major hurdles in organising
themselves.56

5.5.13 Lack of Employer-Employee Relationship

The enterprises in the unorganised sector are mainly


unregistered units. Apart from that, there is a problem of invisibility
of such enterprises as there is no designated workplace due to
workers operate work at their homes. Even the entire basis of
establishing a master-servant relationship becomes the first hurdle
to apply labour laws to this sector. The employee prefers to work for
several employers in case he is not given any work on a particular
day or sometimes for days together. The other difficulty is the fact
that number of home based workers work through contractors.57
Particularly for women, it is easy to undertake these activities at
home itself. Hence, there is lack of visibility of employer-employee

56 Supra note 5, at 133.


57 Rani Advani and Debi.S. Saini, “The Constitutional Vision of Development,
Unorganised Labour and Accessibility to Justice System” In: Debi.S. Saini
editor, Labour Law, Work and Development (New Delhi: Westvill Publishing
house) 1995 Edition, pp.195-196.
208

relationship. Moreover, workers engaged in these enterprises often


tend to change employers frequently and therefore it is easy for the
employer not to recognise the workers which results in denial of
benefits arising out of Minimum Wages Act and Social security
benefits.

5.5.14 Insecurity Arising Out of Natural disasters

There are many natural disasters like floods, drought,


famine, earth quake etc., which also have a devastating impact on
the informal sectors. Natural disasters do not only wipe out the
productive base of the informal sector, but can also affect the limited
household assets of the own.58

5.5.15 Vulnerable Labour Groups

The study group on construction of the First National


Commission on Labour as well as Second National Commission
(2002) observed that in quarries, brick-kilns as well as in big
construction sites a system of bondage exists and gets extended from
one generation to the next through child labour.59

Apart from migrant labourers, bonded labourers and child


workers constitute as a major vulnerable groups who are the most
deprived and exploited.

The bonded labour involves a debtor-creditor relationship. In


this system, the creditor advances loan to the labourers and puts
him in bondage till the loan is returned. The repayment of debt is so
arranged that the servant cannot repay it during his life time by

58 Sudharshan, Supra note 22, at 74.


59 National Commission For Women, Report on The Status Of Women Workers
in the Construction Industry, (2005), pp 2-3.
209

ensuring lifelong service for the master. It is this feature, which


differentiates bonded labour from unpaid forced labour.60 In bonded
relationship not only the debt perpetuated but also the terms and
conditions of the debt are arbitrarily decided and interpreted by the
creditor master. This is a case of exploitation and not allowing
contract labourers to move is illegal detention.

These are a number of worrying trends as for as the child


workers are concerned with liberalisation and opening up of the
economy with a growing new demand for child workers in
agriculture. Further, there are instance of forced or bonded labour
among children. Often, children of indebted labourers are offered to
work in return of debt of the debtor to the creditor. Such child
labourers are subject to long working hours and involved in the
hazardous sectors such as carpet weaving, cloth printing, explosives
and fireworks, cigarette making, printing and soldering process in
electronic industries.61

Working and living conditions are inseparable for most


informal sector workers. Poor infrastructure and lack of basic
services result in poor working conditions. Improvements in working
conditions can be achieved through better infrastructure and better
basic services to the informal workers. Organisation among informal
workers will help to address problems concerning their working
conditions, since they are able to take self-help initiatives, and link

60 Vidyut Joshi, “Bonded Labour: Social Context and The Law”, In: Debi.S. Saini
editor, Labour Law, Work and Development (New Delhi: Westvill Publishing
House) 1995 Edition, p.96.
61 Ramadhar Giri, Industrial Relations (New Delhi: Adhyayan Publishers and
Distributers) 2007 Edition p.22.
210

between the workers and the institutional structure that provides


services.62

With regard to improvement of the chances for the


application of labour legislations in the informal sector, steps should
be taken to improve understanding of the temporary nature of
employment relations as well as to make the necessary revision of
labour legislations in the line with conditions of the informal sector.

5.6 CHALLENGES AND OPPORTUNITIES FOR EXTENDING


SOCIAL WELFARE SCHEMES FOR UNORGANISED
SECTOR WORKERS

The limitations faced in seeking to extend formal social


security systems to workers and their families outside the formal
sector are well documented. Informal sector workers cannot join
formal national social security systems on a voluntary basis. Most
are in categories of work that excluded from formal systems. Many
systems also exclude enterprises below a certain size, or exclude
workers with earnings below a certain level.63 From the detailed
analysis of the problems faced by workers in unorganised sector, it is
realised that social security is mandatory for the unorganised sector
workers to decrease their vulnerability. Though some efforts are
taken by the Government by passing the Unorganised Workers’
Social Security Act, 2008 to provide a minimum level of social
security to the poor unorganised workers but proved to be
inadequate.

62 ILO, Employment and Social Protection in the Informal Sector, (Geneva:


ILO) (2000) p.16.
63 Ibid.
211

The growth of informal employment resulted in shrinkage of


formal employment consequent upon their quality of life. Therefore,
to overcome such adverse consequences, it is necessary to build a
strong base for at least a minimum level of social security with a view
to climb up vertical occupation ladder resulting in strengthening
their financial status. Instead of analysing what sort of social
security measures are required to fulfil the multi facet needs of the
unorganised sector workers, the need of the hour is how social
security programmes have to be effectively implemented for the
informal workers who are the target groups.

Hence, with the objective of providing social security to the


most vulnerable sector of the society, the Government of India has
been actively involved in sponsoring a range of large social welfare
schemes under the unorganised workers’ Social Security Act, 2008
such as Aam Aadmi Bima Yojana (Life Insurance), Rashtriya
Swasthya Bima Yojana (Health Insurance) etc., includind both
national and state government initiatives.64 Since, these schemes
have been discussed elaborately under chapter 6, this chapter
focuses about the deficit in delivery mechanism of social security
programmes.

5.6.1 Target Beneficiaries

The definition under the Unorganised Workers Social


security Act, 2008 provides a broad sense of an ‘unorganised worker’
and hence, the true challenge is on the ground will revolve around
the identification of these unorganised sector workers. The state
Governments acting through a representative on the State Social
Security Administration (SSSA) should be given the authority to

64 The Institute for Financial Management Research, “Report of Comprehensive


Social Security for the Indian Unorganised Sector” (2013) p.12.
212

determine targeted beneficiaries and the eligibility criteria for the


scheme. While the scheme will be open to all unorganised sector
workers, State Governments should decide the target groups in their
particular state in order to avoid overlap between the national
scheme and state provided schemes.65

5.6.2 Lack of Awareness

The another important challenge is regarding lack of


awareness and knowledge which is a significant barrier to most
currently sponsored government social security schemes. Awareness
and the level of understanding ensure the beneficiaries to know
about the existence of the schemes and the benefits which they are
entitled. In this regard, states should take responsibility of creating
awareness about the schemes and the delivery system with a view to
facilitate proper implementation of programmes.

5.6.3 To Design Simple and Easily Accessible Schemes

The purpose of the plans or schemes is to provide immediate


and automatic delivery of benefits to the targeted groups. There has
been a lot of complaints with regard to accessibility to social security
schemes such as the old age pension schemes, schemes for the
widows, or social assistance in case of death of the breadwinner of
the family.66 The presence of large number of schemes for the same
cause creates lots of confusion at the level of beneficiaries as what
exactly they are entitled to.67 Hence, the challenge has been to
design simple and easily accessible social security schemes for the

65 Ibid., at 28.
66 Gender and Economic Policy Discussion Forum, “Engendering Social Protection
for Informal Economy Workers” (2012) p.4.
67 Government of India, Report of the Working Group on Social Security for
the Twelfth Five Year Plan, (2012-17), p.11.
213

target groups under one umbrella. Further, With regard to extended


opportunities of employment in addition to Mahatma Gandhi Rural
Employment Programme, the challenge is also to extend employment
opportunities by generating employments as the informal sector
workers are exposed to additional threats such as seasonal nature of
work to exit poverty and vulnerability with regard to fiscal stress.
Instead of survival benefit scheme or minimum pension,
appropriate programmes also needed for groups like young widows
by linking them to training or employment programmes to fulfil the
economic needs of bereaved family.68

5.6.4 Convergence of Social Security Schemes

There is multiplicity of social welfare schemes run by


different Government units at central and state level which is bound
to be some amount of confusion and involves the problem of
duplication of efforts, record keeping and there is also a possibility of
double or multiple benefits reaching the same person under different
schemes by way of manipulation. Administration of each scheme
involves huge administrative cost.69

5.6.5 Need for Centralised Data base

The demand by the Government offices to submit


documents to fulfil the eligibility criteria will be difficult for the poor
unorganised worker as it cause a struggle of foregoing a day’s wage
in order to stand in long queues in the Government offices. There
should be one centralised data base for all social security schemes

68 Government of India, Tamil Nadu Development Report, (New Delhi: Academic


Foundation) (2005) p.251.
69 Supra note 67, at 11.
214

and access to social security benefits should be made available


against one single identity number.

5.6.6 Lack of Proper Follow-up Action

Due to lack of proper follow-up action on informal sector


surveys, there is reduction in response rates in future service.
Therefore, whenever possible, survey results should be utilised as a
basis for the design and implementation of support action
programmes and technical co-operation.

From the analysis, it is concluded from the available


evidence on various social security programmes including the
evaluation studies on the programmes by the planning commission
of India, almost unanimously pointed out the delivery deficit in most
of social security programmes. Such deficit includes:70

Lack of delivery infrastructure at the level of state


governments;

Lack of organisational capabilities on the part of delivery


agencies;

Misidentification of the programme beneficiaries;

Incidence of corrupt practices, rent seeking by the


administration and delivery agencies, and elite capture
of the schemes;

Lack of awareness on the part of people regarding details


of schemes as well as their own entitlements.

70 Ibid., at 21.
215

5.7 ROLE OF JUDICIARY IN THE PROTECTION OF RIGHTS


OF UNORGANISED WORKERS

The judiciary has played a significant role in the evolution of


industrial jurisprudence and made a distinct contribution towards
innovative methods and devise strategies to ensure social justice to
weaker sections of the society which could be evidenced from a
number of decisions. Therefore, Indian judiciary has always been
quite proactive in the matter of extending the coverage of social
security to eliminate the vulnerability of unorganised workers.
Despite various legislations such as Employees’ Compensation Act,
Employees’ state Insurance Act, Employees’ Provident Funds and
Miscellaneous Provisions Act, etc., it is fact that the unorganised
sector workers are remaining outside the purview of social security
nets. Owing to the failure of legislations, judiciary has come forward
to protect the workers in order to fulfil the gap created by legislative
machinery.

5.7.1 Judiciary in the Protection of Workers

The judiciary has special responsibility towards the weaker


sections of the society and hence it has zealously protected not only
the human rights of individual but also particularly unorganised
workers who are due to poverty, ignorance and illiteracy find it
difficult to access the court of justice.

The Supreme Court in number of cases has pointed out that


the right to livelihood is inherent in the right to life. Particularly, in
the case of Rural Litigation and Entitlement Kendra, Dehradun v. Uttar
216

Pradesh,71 the court has held that the right to livelihood is inherent
in right to life under Article 21.

In peoples’ Union for Democratic Rights v. Union of India,72 it


was held that taking of labour or service of any person for payment
less than the prescribed minimum wages is violation of the
fundamental right to such labourer while excising the scope and
ambit of Article 23 of the Constitution of India. The court further
held that begar is a form of forced labour, in whatever form it may
manifest itself because it is violative of human dignity and contrary
to basic human rights.

In Sanjit Roy V. State of Rajasthan,73 it was held that


payment of wages lower than the minimum wages to the persons
employed on famine relief work is violation of Article 23 of the
Constitution of India. Whenever, any labour or service is taken by
the state from any person who is affected by drought and scarcity
condition, the state cannot pay him less wages than the minimum
wages on the ground that it is given to them to meet famine
situation. Further, the court held that state cannot take advantage of
their helplessness.

In Deena V. Union of India,74 the Supreme Court held that


labour taken from prisoners without paying proper remuneration
was forced labour and violation of Article 23 of the Constitution. The
prisoners are entitled to payment of reasonable wages for the work
taken from them. And the court is under duty to enforce their claim.

71 AIR 1985 SC 652.


72 AIR 1982 SC 1473
73 AIR 1983 SC 328
74 AIR 1983 SC 1155
217

Similarly the Supreme Court in Bandhua Mukti Morcha v.


Union of India,75 held that when an action is initiated in the court
through public interest litigation alleging the existence of bonded
labour, it may give the Government opportunity to examine whether
bonded labour system exists and as well as to take appropriate steps
to eradicate that system. This is the constitutional obligation of the
state to ensure that there is no violation of the fundamental right of
any person, particularly when he belongs to the weaker sections of
the community and is unable to wage a battle against a strong and
powerful opponent who is exploiting him.

The court also held that both the Central Government and
State Governments are, therefore bound to ensure observance of
social welfare and labour laws enacted by parliament for the purpose
of securing to the workmen a life of basic human dignity in
compliance with the Directive Principles of State policy.

Further, Justice P.N. Bhagwati observed the conditions of


bonded labourers as follows:

“bonded labourers as the “non-beings” are living a life worse


than that of animals are atleast free from to roam about as they want
and they can plunder or grab food whenever they are hungry. The
freedom of bonded labourers are snatched by their employers and
they are consigned to an existence where they have to live in hovels or
under the open sky and be satisfied with whatever little unwholesome
food they can manage to get, inadequate to fill their hungry stomachs.
Not having any choice, they are driven by poverty and hunger into a
cite of bondage, a dark bottomless pit from which in a cruel
exploitative society, they cannot hope to be rescued.”

75 AIR 1984 SC 802.


218

Thus, the Supreme Court has stretched its hands to reflect


its socio-economic approach in tackling legal and constitutional
issues relating to all the aspects of bonded labour regarding its
identification, release and rehabilitation.

In Neeraja Chaudhary V. State of Madya Pradesh,76the court


observed that any failure of action on the part of the State
Government in Implementing the provisions of the Minimum wages
Act was violative of Article 21 as also 23 of the Constitution.

5.7.2 Judicial Interpretation With regard to Extension in


Coverage of Social Security Legislations to Unorganised
Workers

The trend of judiciary in protecting the interest of labourers


could be evidenced by its interpretation in a number of cases. In
Kotchu Velu V. Joseph,77 the question of whether a coconut climber
employed periodically can be said to be a casual employee. In this
case the employer has engaged the worker to plough coconuts from
his trees periodically. While at work, the worker fell down and
became permanently disabled. He claimed compensation, but his
claim was dismissed by the commissioner as he was employed
casually. It was held by the court that when a person is being
regularly employed periodically it cannot be said that he is employed
casually and hence, the employment will not be of casual nature for
there is regularity in employment.

Similarly, in Daily Rated Casual Labour V. Union of India,78 it


was held that classification of employees into regular employees and

76 AIR 1984 SC 1099.


77 1987 II LLJ 174 (Kerala).
78 (1988) 1 SCC 122.
219

casual employees for the purpose of payment of less than minimum


pay is violation of articles 14 and 16 of the constitution and it is also
opposed to the spirit of Article 7 of the International Covenant of
Economic, social and Cultural Rights, 1966. Denial of minimum pay
amounts to exploitation of labour. The court further held that the
Government cannot take advantage of its dominant position and
should be a model employer.

Judiciary has also played a major role in protecting the


interest of contract labour. The court has discouraged the system of
contract labour and even directed its abolition in certain
circumstances to prevent exploitation.79 At the same time, if it
cannot be possible to abolish, according to the objectives of the Act,
fair conditions of service and security of tenure should be ensured to
them.80 The Court also emphasised the need of workmen and
interest of industry by extending the coverage of the employees by
widely interpreting the definition of employee. For instance, in Royal
Talkies, Hyderabad v. Employees State Insurance Corporation81, the
Supreme Court has held that the employees of cycle stand and
canteen run in a cinema theatre by contractors were to be covered by
the definition of employee under the Employees State Insurance Act
and also in Siddheswar, Hubli v. Employees State Insurance
Corporation,82 the Court, while interpreting the term ‘employee’ under
the Employees State Insurance Act held that the definition appears
to be of wider connotation and applies to those persons even whose
services are lent to the principle employer. Further, the Court also in
Employees’ State Insurance Corporation, Regional Director v. Suvarna

79 National Iron and Steel Company v. State of West Bengal, (1967) 2 LLJ 23 (SC).
80 Standard Vaccum Refining Company Ltd. v. Their Workmen (1960) 2 LLJ 233
(SC)
81 (1978) 4 SCC 204.
82 (1998) Lab I C 214 (Orissa).
220

Saw Mills83 has extended the provision to include even a casual


employee for a day wages. The Court held that the definition of the
word ‘employees’ contained in section 2 (9) of the Employees State
Insurance Act does not make any difference between a casual or
temporary or permanent employee.

In the case of maternity benefit, the Supreme Court has held


that even female workers engaged on casual basis or on muster roll
on daily wages are also entitled to benefit under the Maternity
Benefit Act, 1961 as nothing in the Act confers the benefit only on
regular women employees.84 The Supreme Court held that right to
claim maternity benefit is recognised as the child bearing role of
women as a social function incorporated under Article 5(b) of
Convention on Elimination of all forms of Discrimination Against
Women. Similarly, in B.Shah v. Presiding Officer, Labour
Commissioner85, it was rightly pointed out that “performance of the
biological role of childbearing necessarily involves withdrawal of a
woman from the workforce for some period. During this period she
not only cannot work for her living but needs extra income for her
medical expenses. In order to enable the women worker to subsist
during this period and to preserve her health, the law makes
provision for maternity benefit so that the women can play both her
productive and reproductive roles effectively”. Further, the court held
that maternity benefit is to be made for the entire period of actual
absence including Sundays.

While dealing with the issue of child labour in MC Mehta v.


State of Tamil Nadu,86 the Supreme Court has given direction to the

83 (1980) 57 FJR 154.


84 Municipal Corporation of Delhi v. Female Workers (Muster Roll) 2000 (2) SC
Almanac 269.
85 (1977) 4 SCC 384.
86 (1996) 6 SCC 756.
221

Government to monitor and prevent child labour in the Sivakasi


cracker manufacturing establishment. While implementing the
Minimum Wages Act, the Supreme Court observed that minimum
wages to the workers employed by sub-contractors must be paid
directly and the provisions of Section 21 of Contract Labour
(Regulation and Abolition) Act, 1970 should be observed.87

With regard to the coverage of home workers under the


Employees’ Provident Funds and Miscellaneous Provisions Act, 1952,
in P.M.Patel v. Union of India and others,88 the question arose for
consideration was whether the workers employed at their homes in
the manufacture of beedis are entitled to the benefit of Employees’
Provident Funds and Miscellaneous Provisions Act, 1952. The term
of definition of employee under section 2(f) of the Act are wide
enough to include persons employed directly by the employer and
also through a contractor and they also include persons employed in
the factory and persons employed in connection with the work of the
factory. The fact that the home workers deliver the beedis to the
manufacturer who has a right of rejecting those that do not confirm
to the standards clearly shows the degree of control and supervision
for establishing the relationship of master and servant between the
home workers and manufacturers. Hence, home workers are
employees.89

Therefore, when a person is allowed to work at his own place


or at hours of his choice or for someone else the master- servant
relationship still exists and for purpose of the application of the Act,
such person is an employee.

87 Salel Hydro Project v. State of Jammu & Kashmir, 1983 LLJ 494.
88 (1986) 1 LLJ 88 (SC).
89 M/s Sathish Plastics V. Regional Provident Fund Commissioner, (1981) II LLJ
277.
222

The concern of Judiciary for protection of labour rights and


to enforce the socio-economic justice is well expressed in different
cases relating to unorganised sector. From the above it is clear that

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the judiciary exists for the people and not vice versa.90 Hence,
judiciary cannot sit in silence, but has come forward to make good
the deficiencies in law and its implementations in providing relief
whenever and wherever required. This could be understood as
follows:

“Neither law-makers nor those entrusted with the duty of


implementing laws enacted for welfare of unorganised workers have
put in place appropriate mechanism for the protection of persons
employed by or through contractors to whom services meant to
benefit public at large are outsourced by State and/or its
Agencies/Instrumentalities for doing workers, which are inherently
hazardous and dangerous to life nor have they made provision for
payment or reasonable, compensation in the event of death”.91

From the in-depth study made in this chapter, it is


concluded that the unorganised workers lack social security and
hence they are exploited in many ways. This is due to their seasonal
intermittent nature of work, low level irregular patters of earning and
employment, absence of employer-employee relationship and weak
administrative structure. The Indian judiciary for the attainment of
social justice has been focussing attention to give effect to the rights
of workers with the aim of protecting the unorganised labour and
thereby reducing the huge gap in coverage of the unorganised sector
by establishing social security and dignity of the workers.

90 N Krishna Devi v. Vishnu Mitra AIR 1982 Raj 281.


91 Delhi Jal Board v. National Campaign for Dignity and Rights of Sewerage and
Allied Workers (2011) 8 SCC 568.
223

CHAPTER 6

SOCIAL SECURITY FOR WOMEN WORKERS IN

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UNORGANISED SECTOR

Various studies have shown that economic dependence of


women is predominant cause of their subordination. Thus, a change
in the structure of the economy whereby women are assigned a
major productive role would be a way to improve their status.
Economic independence is a foundation on which any structure of
equality for women can be built.1Hence the employment of women
have opened up new vistas for women; shifting interest from
household duties to work outside. In the modern world women have
to perform dual responsibilities in being a house wife, a mother as
well as an employee and a producer of income for her family.2

Society being male dominated, women workers receive still


poor recognition and value especially for women workers in the
informal sector, the double burden of combining the tasks of
production and reproduction is even more arduous despite the
statutory provisions to ensure fair working conditions for women in
India and also the specific provisions for the protection and welfare
of women workers.

According to the information provided by the office of


Registrar General and Census Commissioner of India as per census
2011, the total number of female workers in India is 149.8 million
comprising of 121.8 and 28.0 million in rural and urban areas

1 Mamta Rao, Law Relating to Women and Children (Lucknow: Eastern Book
Company) 2008 Edition p.388.
2 Dr.Rameswari Pandiya and M.S.Dhara Thakkar, Working Women: Issues and
Challenges (Gurgaon: Madhav books) 2010 Edition p.10.
224

respectively. Out of total 149.8 million female workers, 35.9 million


females are working as cultivators and another 61.5 million are
agricultural labourers. Of the remaining 8.5 million are in
household industry and 43.7 million are classified as other workers.
As per census 2011, the work participation rate for women is 25.51%
as compared to 25.63% in 2001. The work participation rate of
women was however 22.27% in 1991.3 Merely 6% of the women
workers are in formal sector and the remaining that is majority of the
women workers are employed in rural area, in that, 87% amongst
them are labourers and cultivators.4 Thus women constituted a
significant part of the workforce of India.

6.1 CAUSES OF UNORGANISED WOMEN WORKERS

Decline in the number of female world over is an indicator of


the discrimination against the female’s right from their birth. The
reasons for this discrepancy include, among other things, harmful
attitudes and practices, such as female genital mutilation, son
preference which result in female infanticide and pre-natal sex
selection using techniques like amniocentesis, chorine biopsy and
ultra-sound.5

In most parts of the world today, the women are virtually


absent from or the poorly represented in the decision-making
processes. Their household work is invisible as it is performed inside
four walls of the house and their work is not measured in

3 ILJ, “Special Article: Sixty Seven Years of Independence-A Kaleidoscopic View of


Labour Activities”, Vol.55, 9 (2014) p.932.
4 Government of India, Census of India, Ministry of Human resource
Development, 2011, New Delhi.
5 D.P. Singh, Women Workers in Unorganised Sector, (New Delhi: Deep and
Deep Publications Pvt. Ltd.) 2008 Edition, p.2.
225

quantitative terms and thus not valued in national accounts.6 The


contribution of the women to development is seriously under
estimated and socially unrecognised. Even when women are
remunerated for their work, their contribution is often undervalued.7
Women have shouldered a large part of the burden of developing
countries in 1980s. To make up for lost family income, they have
increased in employment for home consumption, worked long hours,
slept less and often eat less to make substantial costs of structural
adjustment that have gone largely unrecorded.8 In India, the
situation of women is even worse than most of the developing
countries of the globe today. Even after 68 years of its freedom
despite the progress the war on inequality, discrimination, violence
and also lack of empowerment is continuing. In addition to that there
are various other manifestations of women’s poverty in India which
include hunger and malnutrition, ill-health; increasing morbidity
and mortality from illness; homelessness and inadequate housing;
unsafe environments and their social discrimination and exclusion
from the mainstream. This is mainly due to lower level of education
among the women workers that are so crucial in determining the
quality of employment and the ability to secure reasonable wages.
Low level of education creates vulnerability at two levels. It first
denies access to “good jobs” in organised sector. Secondly, it confines
the workers to mostly manual jobs. Especially, women workers in
rural areas are the worst victims of this double disadvantage.9
Hence, illiteracy coupled with extremely low level of education denies

6 Vibhuti Patel, “Women Workers in Informal Sector” In: Ravi Prakash Yadav,
Kumar Chandradeep, Barsa Editors, Women Workers in India (New Delhi:
New Century Publication) 2012 edn. P.1.
7 Report of Second National Commission on Labour, 2002, p.937.
8 Ibid.
9 National Commission for Enterprises in the Unorganised Sector, Report on
Condition of Work and Promotion of Livelihoods in the Unorganised
Sector, 2007, p.18.
226

having access to better and possibly remunerative jobs and that it


confines to casual manual labour.

The activities in the informal sector are such that it requires


less skill and less capital and that is the reason for concentration of
women for employment in informal sector. Apart from that the social
norms and exigencies arising out of the double burden of work
restrict their mobility. But the economic condition forces many
women to be available for additional work as they wish to engage in
productive activities if such work was available within the confines of
their homes and also employer’s preference for female employee.10
Hence, women participate mostly in home based work system which
is predominantly unorganised. This home based system is creating
problem of invisibility of such enterprises as rural women workers in
non agricultural sector are even more likely to work at home than
urban women.11

From the above analysis it is clear that women workers are


mainly confined to unorganised sector of employment due to certain
basic factors such as they do not get opportunities for acquiring
skills and training in which they could thereby enable them to seek
occupational or professional change from unorganised to that of
organised sector of employment. Lack of education is major reason
seriously delimits their employment options in the modern sectors of
economy.

This is also mainly due to prevailing social relations between


men and women as well as the structure of economy. Women is
expected to bear maximum burden of domestic work in her family

10 Dr.S. Maria John and Dr.Mrs.A. Mary Grace, Women Labourers in unorganized
sector, In: Dr.A.Selva Kumar editor, Plight of Unorganised Workers (New
Delhi: Discovery Publishing House Pvt Ltd), 2009 Edition, p.83
11 Ibid., at 20.
227

which is time as well as energy consuming due to which they are not
in a position to acquire skills and training for getting jobs. Low skill
attainment among women and their consequence relegation to job,
which are labour intensive, time consuming and arduous in nature
have been perpetuated by their unequal access to technology.12

6.2 PROBLEMS OF UNORGANISED WOMEN WORKERS

Globalisation of economy and their new trends have created


new opportunities for employment of women around the world. In
many regions women’s participation in remunerated work in the
formal and non-formal labour market has increased significantly and
has changed during the past decade. While women continue to work
in agriculture and fisheries, they have also increasingly involved in
micro, small and medium sized enterprises.13 Policies of economic
liberalisation have severely altered the relationship among the state,
labour and business. Globalisation backed by rapid technological
progress brings in its trail- multi skilling, alteration of the
normal employment by new relation which are characterised as
pervasive contractualisation, casualisation and informalisation. The
transformation in production systems and growing competition had
major impact on employment, skill formation and on gender roles
leading to the shrinkage of jobs in the organised sector resulting in
more people entering the unorganised sector particularly, women
find easier to find jobs in the informal sector as it requires less
skill.14

12 Kanak Kanthi Bagchi and Nirupam Gobi, Social Security for Unorganised
workers in India (Gurgaon: Madhav Books) 2012 Edition p.144.
13 Singh, Supra note 5, at 5.
14 Ramadhar Giri, Industrial Relations (New Delhi: Adhyayan Publishers and
Distributers) 2007 Edition p.76.
228

Women’s share in the labour force continues to rise and


almost everywhere women are working more outside the household.
In India, the sharing of economic activity by women is nothing new.
From time immemorial women have been working both in the home
and the outside. Although various studies are conducted on the level
and type of female work participation in agricultural and other
sectors in India, scholars agree that these have often failed to take
note of women’s presence in or contribution to the labour force.
Further, the gender bias is evident in the fact that while enumerating
labour participation, there is a deliberate exclusion of a whole range
of non market activities produced by women.15

Women informal workers are concentrated mainly in


agriculture so much so that three quarters of all employed women
are in informal employment in agriculture. 90% of those employed in
manufacturing and construction are also unorganised sector
workers. The workers in these sectors suffer from high incidence
marginalisation and instance of casual wage workers which make
them vulnerable to arrange of exploitative practices.16

Women in the unorganised sector require social security


addressing issues of leave, wages, working conditions, pension,
housing, child care, health benefits, maternity benefits, safety and
occupational health. This can only be ensured by extending labour
protection to those sectors in a manner that pays special attention to
needs of women workers.17

15 Dr.Anita Dash, Women Industrial workers: Perception and Dynamics (New


Delhi: Regal Publications) 2009 Edition, p.25.
16 Government of India, Report of the Working Group on Empowerment of
Women, (2006) p.35.
17 Government of India, Report of the Working Group on Social Security for
the Twelfth Five Year Plan, (2012-17), p.169.
229

Hence, the need arises to make an in depth study of women


workers employed in informal sector with a view to analyse the
various issues and challenges of women workers concerning their
wages, employment injury risks, maternity needs, extent of
accessibility to social security measures and their vulnerability to
exploitation. In this background an attempt has been made to focus
the study only on specific employments and specific categories of
women workers in the following units of this chapter as it is not
possible to cover the vast segments of workforce in the unorganised
sector.

6.3 WOMEN WORKERS IN CONSTRUCTION SECTOR

Construction workers are the backbone of the economy as


they create the infrastructure necessary for industrial growth. In a
globalising economy, it is they who are constructing the new
economic zones, the information technology cities, the call centres
and mega malls that are creating new forms of wealth today. It is
they who are laying the cables for a rapidly expanding country-wide
telecommunication network.18

6.3.1 Types of Recruitment

Contracting, sub contracting and labour contract are the


methods by which construction is carried out in the construction
sector. There are broadly three types of recruitment;

Workers directly recruited by contractor and housed in


the site.

18 National Commission for Women, Report on the Status of Women Workers


in the Construction Industry, (2005), p.1.
230

Workers recruited from rural areas by sub contractors


by advancing loans.

Workers recruited from city slums by principal


employers or maistries.19

In big construction sites the first and second types of


recruitment were the most prevalent. There were women recruited
by contractors retained on muster roll for long number of years but
kept as temporary hands.20

6.3.2 Working and Living Conditions Of Women Workers

Construction work is determined to a great extent by a


number of factors including availability of raw materials, weather
and health status of workers.21 In this sector, there is no direct
employer-employee relation for most of the labourers as these
labourers are recruited by labour sub contractors22 and hence not
only is the labour invisible to the employers but employers are also
invisible to labourers. The sub contractors determine the conditions
of employment according to the convenience of the contractors.23

The construction sector offers easy entry to the unemployed


involving a large number of women workers in the unskilled
category24 which a number of them are young mothers with infant

19 Saba Anjum, Women Workers in Informal Sectors (Delhi: The Women Press)
2011 Edition, p.64.
20 Balbir Soni, Empowerment of Women Workers: The Unorganised Sector
(New Delhi: Dominant Publishers and Distributers) 2007 Edition pp.331-332.
21 John (C.P.), “Social Security and Labour Welfare with Special Reference to
Construction Workers in Kerala” (Thiruvananthapuram: Centre for
Development Studies) 2004 p. 60.
22 Supra note 18, at 45.
23 Balbir Soni, Supra note 20, at 333.
24 Meenu Agrawal, Rural Women Workers in India’s Unorganised Sector (New
Delhi: New Century Publications) 2012 Edition p.60.
231

children carrying construction material on their heads to the


construction site while the skilled and semi skilled work is done by
men. In this sector migrant workers, poor working conditions, low
wages and inadequate provisions for social security are issues of
concern.25 In construction sector, women workers live in miserable
conditions with respect to payment of wages and working hours.
Illiteracy and poverty has resulted in accepting low wages by the
women that they may not fulfil their basic minimum needs. These
workers do not have legal protection of employment or access to state
supported social security measure. Security of the employment is
available only to those workers who can establish permanent
employment relationships with their employer. Women are paid less
wages than men in construction sector for similar nature of work
which violates the Equal Remuneration Act of 1976.26

In a research which attempted to examine the socio-


economic profile of women construction labours in Orissa, it was
observed that the nature of work performed by women labourers, it
is not uncommon to find women handling crowbar and spade in
earth work.27 They help in removing over-ground materials once
excavated, carry water, sand, jelly, cement mixture for foundation
laying and concrete pouring etc., carry stones, bricks and tools
required at the premises. Women also help in the erection of
scaffolding by carrying centring materials do the smoothening of
surfaces with available local materials before concrete mixture is
poured for roofings and once a structure is laid, do the cutting
operations etc.28 She also assist mason in his work thus, women do

25 Government of India, Ministry of Labour and Employment, Second Annual


Report to the People of Employment, (2011), p.23.
26 Supra note 9, at 41.
27 Balbir Soni, Supra note 20.
28 Supra note 18, at 18.
232

combination of all types of work like carrying cement, water, sand,


brick etc.29

6.3.3 Occupational Hazards

Most of the studies related to construction industry


identified that the work related to the construction sector is one of
the most hazardous, with serious risks involved, especially physical
terms and accidents. Most of the operations and tasks are labour
intensive with non-existent or at best, inadequate safety measures.
The immediate causes of the accident have been identified as
follows:30

Failure or collapsing of scaffolding, centering or


shuttering;

Improper guards;

Night work without proper lighting;

Inadequate care regarding fire and against electrocution;

Excessive noise;

Handling of heave finished and semi finished material


like metals;

Blasting; and

a work.

Women workers have to climb great heights carrying heavy


loads. Falling from heights, electric shock, falling of objects and

29 Balbir Soni, Supra note 20, at 22.


30 Supra note 18, at 22.
233

collapse of ladder are the major reasons for fatal accidents. Apart
from that accidents involving simple injuries occur every day. Women
workers who carry the cement mix and wet bricks on their heads
suffer serious problems like neck pain, chest pain, body ache and
fever. In case of big sites where there is continuous employment,
they are compelled to take rest for few days every fortnight to recoup
their energies. Since there is no medical facility provided by the
employers, the labours have to forego their work as well as wages for
the day.31

6.3.4 Social Security and Welfare Legislations for


Construction Workers

The Government of India has taken initiatives to protect the


interest of the construction workers by enacting a number of
legislations to ensure social security benefits, a minimum standard
of wages and fair service conditions for the workers. Apart from that,
the Government of India has set up welfare funds administered
through Ministry of Labour for the employees employed in the sector.
The legislations which have direct relevance to construction workers
and great significance to women workers in the unorganised sector
are as follows:

Building and Other Construction Workers (Regulation of


Employment and Conditions of Service) Act, 1996;

Building and other Construction Workers Welfare Cess


Act, 1996;

Contract Labour (Regulation and Abolition) Act,1970;

31 Balbir Soni, Supra note 20, at 336.


234

Inter-State Migrant Labour (Regulation of Employment


and Conditions of Service) Act, 1979;

6.3.4.1 Building and Other Construction Workers (Regulation of


Employment and Conditions of Service) Act, 1996

The Act applies to every building or other construction work


establishment, which employs or had employed 10 or more
workers.32 The Act has been passed to lay down conditions for
registration of building workers33 and also have provisions for hours
of work,34 wages for overtime work35, maintenance of registers and
records.36 The Act prohibits the employment of certain persons.37
The Act also contains provision relating to safety.38

Working of the Act

The Act obligates the principal employer, contractor or sub


contractor of construction workers to provide for facilities in the work
place such as safe drinking water, urinals and toilets separately for
male and female workers, first aid accommodation and creches for
children of workers on sites where the number of women workers
more than 50.

But in reality, several studies in the construction industries


have found that creche facilities are not available on work sites. An

32 Section 1(4) of the Building and Other Construction Workers (Regulation of


Employment and Conditions of Service) Act, 1996.
33 Ibid., at Sections 11-17.
34 Ibid., at Section 28.
35 Ibid., at Section 29.
36 Ibid., at Section 30.
37 A person who is a deaf or has a defective vision or has a tendency to giddiness
are prohibited in the employment under Section 31 of the Building and Other
Construction Workers (Regulation of Employment and Conditions of Service)
Act, 1996.
38 Sections 38-41 of the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996.
235

all India study and many state level studies have noted the lack of
welfare measures such as creches for children, rest rooms for
workers, separate toilets for women and potable drinking water. If
housing was provided it was generally unfit for human living. One of
the consequences of not having adequate creche facilities was that
the children were often engaged in helping the workers and over time
were inducted into the work force. In fact the workers begin their
working life very young and continue till old age without any
provision for old age benefits.39 With regard to the unskilled workers
who do not work with a construction establishment continuously,
may not get the benefits available under the Act.

Construction Workers Welfare Fund

The Building and Other Construction Work (Regulation of


Employment and Conditions of Services) Act, 1996 provides for the
constitution of fund. The fund is to be utilised for welfare measures
like immediate assistance in case of accidents; Pensions to those who
have completed sixty years; sanctions of loans for the purposes of
construction of the house; premium for group Insurance Scheme;
financial assistance for the education of the children of the
beneficiaries; medical expenses for the treatment of the major
ailments of the beneficiaries; maternity benefits for the female
beneficiaries; grant loan or subsidy to a local authority or an
employer in aid of any scheme; and pay annually grant-in-aid to a
local or an employer who provides welfare measures. The fund is to
be managed and operated by Welfare Boards to be constituted by the
States. But in the construction industry a very large proportion of
men and women are concentrated as casual workers. Particularly

39 Supra note 9, at 35.


236

women are clearly categorized as unskilled workers.40 The condition


of women wage workers are quite dismal as it is not possible for
them to make regular, timely contributions to the fund as per the
requirement of law and hence they may not get the benefits available
under the Act. In a study conducted on construction workers, it was
opined by the construction workers that existing benefits are
inadequate to meet their needs.41

6.3.4.2 Building and Other Construction Workers Welfare Cess


Act, 1996

The major source of the funds of the Boards shall be,


collection of cess at the rate not exceeding 2 per cent of the cost of
construction incurred by an employer under the Building and Other
Construction Workers Welfare Cess Act. Although some State
governments such as Tamilnadu and kerala have constituted welfare
boards, several states are yet to conceive welfare schemes and
implement the same.42

6.3.4.3 Contract Labour (Regulation and Abolition) Act, 1970

The aim of the Act is to provide for the regulation of contract


labour in certain establishment and provides for its abolition if
certain conditions such as the nature of jobs being of perennial
nature and connected with the core business of the principal
employer are met.43 The Act does not apply when a contractor

40 Ibid., at 84.
41 Supra note 21, at 78.
42 Supra note 25, at 23.
43 Section 10 of the Contract Labour (Regulation and Abolition) Act, 1970.
237

employs less than twenty workers and this has led to manipulations
by employers and contractors.44

In construction sector, it is estimated that 10.7 million


construction workers, accounting for 83 percentage of all
construction workers in India were employed through contractors
and did not receive minimum employment protection and benefits
whatsoever.45 There are number of provisions in the Act relating to
welfare, safety and health46 of the contract labour. For regulating its
implementation certain registers, records, returns etc., are to be
maintained by the principal employers and contractors. But the
ground reality is neither the contractor nor the principal employer
takes responsibility for worker’s welfare.47 For incidence, in case of
construction workers temporary residential sheds which lack
minimum facilities are provided though the Act provides provision of
living accommodation of specified standard.48 The limitations in the
law are such that the contractor stands to gain if he engages less
than 20 workers and it provides a loophole for manipulations for
employers and contractors. Hence, the coverage that this Act
provides is far from satisfaction.49

6.3.4.4 Inter-State Migrant Labour (Regulation of Employment


and Conditions of Service) Act, 1979

This Act has been enacted to regulate the employment and


conditions of service of inter- state migrant workers. Since this Act
has been discussed in detail under chapter 4, an attempt has been
made to focus the violation of laws by the contractors. Workers

44 Supra note 7, at 711.


45 Supra note 9, at 38.
46 Supra note 43, at Sections 32-41.
47 Supra note 9, at 38.
48 Ibid., at 35.
49 Ibid., at 711.
238

trained and engaged in construction activities exhibit a high degree


of migration. The promise that constructors make at the time of
recruitment about payment are not usually kept. No working hours
are fixed for these workers and they have to work all the days in the
week under extremely bad, often intolerable environments.50

When a public hearing of women was conducted on the


status of the implementation of Building and Other Construction
Workers (Regulation of Employment and Conditions of Service) Act,
1996 and the Building and Other Construction Workers Welfare and
Cess act, 1996 it was observed that these legislations are not
adhered by the employers. In case of cess collection only a few
employers have been registered with the board and a paltry sum of
less than one crore has been collected from them as cess. In the
absence of cess collection, the board cannot provide construction
workers the promised social security benefits.51

6.4 WOMEN WORKERS IN BEEDI MANUFACTURING SECTOR

Beedi manufacturing is a traditional ‘agro-forest’ based and


‘home-based’ industry in India. There are no single or uniform
methods of production system in beedi sector. The method of
production of beedi used by the manufacturers varies from state to
state, district to district and sometimes block to block, depending on
local conditions and also on the business exigencies of the
manufacturer.

50 Supra note 7, at 707.


51 Supra note 18, at pp.51-52.
239

6.4.1 Methods of Production System in Beedi Sector:

The systems adopted in the manufacturing of beedis are as


follows52:

Factory System

The entire process of beedi manufacturing takes place in


factory premises under the direct control and supervision of owner or
manager/supervisor. Workers work for a fixed time and are paid
fixed wages for their work. Thus in the early 1970s, in many parts of
the country beedi rolling was mainly undertaken in the factory. 53
Later, beedi rolling was shifted to the house hold sector mainly as
home-based work as this system was convenient to the employer to
evade legal obligations relating to regularisation of conditions of
work, social security laws and payment of wages.

Home Based Work System

Under the system, factories issue fixed quantities of raw


materials like tobacco, thread, tendupatta directly to the individual
workers who role beedis at their homes and after rolling deliver it
back to the factory.54 Thus it is shifted to a large proportion of
women engaged activity.

Contract System

In this system the factory owner/manager distributes raw


material to intermediaries who in turn employs worker and get the

52 Ravi Prakash Yadav, Kumar Chandra Beep and Barsa, Women Workers in
Beedi Manufacturing Sector In: Ravi Prakash Yadav, Kumar Chandra Beep and
Barsa, Women Workers in India (New Delhi: New Century Publications) 2012
Edition pp.279-280.
53 Supra note 9, at 72.
54 Ravi Prakash Yadav, Supra note 52, at 280.
240

beedi rolled. The system is widely prevalent whereby the contractors


get the beedis rolled and the company does the checking, roasting,
labelling and packing in its premises. In this system the agent get
the beedi roll either in the shed maintained by him or at the workers
home. In many parts of Tamil Nadu beedi rolling is undertaken as
family enterprise.55

Sale-Purchase System

Under this system the raw material is sold to the workers


who roll beedis at their homes. Then the beedi rolled by the workers
are brought by them by the same contractors or by the company.
This system has been adopted by the factory owner to avoid the
employer-employee relationship and obligations under the beedi
workers laws. Under this system the factory owner registers different
companies for the purposes which are as follows:

One company is responsible for buying the raw material


from the market and sells it to the second company;

Second company then sells the raw material to the


contractor or directly to the worker;

The workers are required to prepare the beedis which


are then ‘sold’ back by them to third company. This
company is responsible for only ‘buying’ the finished
beedis from the workers; and

The fourth company is for ‘sell out’ the finished beedi in


the market.

55 Supra note 9, at 72.


241

The most interesting fact is that all these companies are


owned usually by one family itself.56 The worker has no choice and
no control over the entire process. They are the mute spectators of
the ‘play’. Under this system workers are exploited most and their
wages are very low.57

Two methods were used to reduce wages in which the


workers rarely received the wages as fixed by the Minimum Wages
Act. One, while supplying the leaves and tobacco to make thousand
beedis, sufficient amount was not provided. The workers purchased
the extra amount from the market for which they paid themselves, or
the contractor refused the beedis or refused to give further work. The
second method was to demand 110 beedis instead of 100 and then
reject 100 beedis, on the account that they were not of the specified
size. After all the deductions, the workers could be paid about 2/3 of
the actual stipulated wage. All these were hidden costs borne by the
beedi workers58 women work in beedi rolling also work as assistance
to other activities like ring making, leaf cutting, closing beedi ends
etc. The assistants would not get any wages, but their productivity
was added to the main workers. In a survey conducted in
Karnataka, the women workers reported that the registered company
supplied raw material required for only 3 or 4 days as against 6 to 7
days in the past. On account of reduced supply of raw material, the
per capita rolling had come down. Thus, the rejection of beedis on
the grounds of poor quality and providing less than the required
amount of raw material were methods used to reduce the wage
payments and keep the wages below the minimum wage.59 As per the
study conducted by the ILO in 2003, some of the contractors

56 National Commission for Women, Women Beedi Workers: A Report, (2005)


p.5.
57 Ravi Prakash Yadav, Supra note 52, at 281.
58 Supra note 9, at 73.
59 Ibid.
242

reported that sometimes they reject all the beedis of a worker


intentionally and this is not due to any sense of revenge but just to
make up their own expenses and therefore they sell this beedis in the
market at higher rates.60

6.4.2 Working and Living Conditions of Women Workers

Beedi manufacturing sector occupies an important place in


the country next to agriculture, handloom and construction sector
and hence beedi sector is known as the largest employers of the
workers.61 But the conditions under which the women beedi rollers
work is very poor and unhygienic. Most of them live in small room
where they do the beedi work as also cook, sleep. Children are
exposed to all the hazards of tobacco.62 Since log books, service book
or identity card are not issued, there is absence of employer-
employee relationship resulting in deprivation of benefits such as
provident fund, maternity, bonus, leave with wages etc., to these
workers.63

6.4.3 Health Hazards

The health problems of the home workers are mainly due to


inhalation of the tobacco dust and body ache due to the peculiar
posture that had to be maintained at the time of rolling beedis. The
common diseases that the beedi workers suffered from are asthma,
tuberculosis, spondilitis and back strain.64 The continuous contact
of beedi women workers with tobacco (nicotine) ultimately resulted
from occupational disease like abdominal pains, bronchitis, anaemia,

60 Ibid.
61 ILO Beedi Sector Programme, The Beedi Industry in India: An Overview (ILO-
Department of Labour, Karnataka, Beedi Industry Workshop 22-23) 2001, p.1.
62 Supra note 56, at 20.
63 Ibid., at 6.
64 Supra note 9, at 73.
243

asthma, tuberculosis, cancer, arthritis, swelling of lower limps,


indigestion, and constipation etc.

Many studies have reported that women tend to suffer a


number of problems relating to menstruation and pregnancy due to
the peculiar postures which has to be maintained at all times of
work. This has resulted in a large number of miscarriages due to the
pressure created on their abdominal region. They also have a high
degree of leuchorrea.65

In this sector, it has been very difficult to organise the


home-based workers resulting in majority of beedi women workers to
work and live in extremely vulnerable conditions. There is a rising
concern for the involvement of children, particularly girl child in the
process of beedi rolling. It appears that the home-based nature of
work and piece rate system of payment creates conditions for the
involvement of family labour including that of children.66

6.4.4 Indebtedness and Gender Based Discrimination

The low level of income and uncertain employment in the


beedi industry resulted in the high level of indebtedness and hence
the workers are unable meet their basic necessities and other social
and cultural responsibilities. Since there have been in shift away
from the ‘factory based production’ to the homes workers, women of
family shared this responsibility of work of beedi rolling and they
became a trained beedi workers. As woman cannot avoid any sort of
work at her home she accepts the work of beedi rolling at home
under economic and other compulsions, resulting in harmful effects

65 ILO, Losing Work: A Study of Beedi Workers in India, (2011) p.1-5.


66 ILO, Improving Working Conditions of Employment Opportunities for
Women Beedi Workers in India (ILO Pilot Action Project for Beedi Women
Workers in India), 2003, p.2.
244

such as loss of sleep, rest, leisure and even missing of meals. If the
workers work in their own homes, then no direct employer-employee
relations stand between them and hence, this industry is also an
important example of gender based discrimination due to a shift
away from ‘factory based production’ to the homes, of the workers. It
is clear from many studies that men generally earned more than
women. Employers and Contractors attitudes towards men and
women workers differ. Women workers rarely get minimum wages
prescribed by the State Governments.67

In a study conducted in beedi manufacturing sector68 it was


noted that the beedi manufacturing involves certain skills that need
to be imparted gradually. Girls are introduced in beedi
manufacturing when they are as young as 4 years old. Out of 100,
50% beedi assistants were introduced work between 5-10 years of
age and another 50% between 11-15 years of age. The
‘apprenticeship’ makes it easy for mothers to pass on their skill to
their daughters by thus affecting the inter-generational occupational
mobility.

6.4.5 Legislative Protection

To protect the interest of the workers and their families,


legislations and welfare measures have been taken by the
government which are as follows:

6.4.5.1 Beedi and Cigar (Conditions of Employment) Act, 1996

The aim of the Act is to regulate the working and service


conditions of the beedi workers and related measures. This Act

67 Ravi Prakash Yadav, Supra note 52, at 290.


68 Ibid., at 285.
245

obligates the employer to hold a valid license to use any place or


premises as industrial premises.69 It also provides for cleanliness,
ventilation and prohibits overcrowding of the premises70. The Act
Provides for arrangement sufficient supply of wholesome drinking
water71 and also other welfare measures like sufficient latrine and
urinal accommodation, washing facilities, creches, first aid and
canteens.72 It provides for working conditions such as working
hours, wages for overtime, interval for rest, spread over in any day
and weekly holidays, substituted holidays etc. It also contains
provisions regarding annual leave with wages and wages during the
leave period.73 Section 24 of the Act specifically prohibits
employment of children whereas section 25 deals with the
prohibition of employment of women and young persons during
hours except between 6a.m and 7p.m. The workers who roll the
beedi within their homes are not covered if they are not employees of
manufacturers under the Act. The enactment of such laws has led to
more manufacturers shifting their production from factories to
home-based workers.

6.4.5.2 Beedi Workers Welfare Fund Act, 1976

The main objective of this Act is to provide welfare facilities


related to health, education, maternity, group insurance, recreation
and housing to beedi workers and their families.

69 Section 3 of the Beedi and Cigar (Conditions of Employment) Act, 1996.


70 Ibid., at Sections 8,9 and10.
71 Ibid., at Section 11.
72 Ibid., at Sections 12,13,14,15 and 16.
73 Ibid., at Sections 26 and 27.
246

6.4.5.3 Beedi Workers Welfare Cess Act, 1976

This is also an important legislation meant for the welfare of


beedi workers. A fixed Cess of Rs.2 is levied per bundle of 1000 by
ways of ‘excise duty’ on manufactured beedi.

Besides this, in April 1992 ‘Group Insurance Scheme’ was


introduced by the Ministry of Labour under the social security
scheme of Life Insurance Corporation of India for those beedi
workers who are not covered under the Provident Fund. This
insurance scheme provides insurance cover of Rs.10,000 in the case
of nature death, Rs.25,000 in case of accidental death or permanent
total disability and Rs.12,500 in case of partial disability to those
beedi workers who have identity cards.

6.5 WOMEN IN BRICK-KILN INDUSTRY

Brick-kiln industry is a complimentary industry in the


construction sector. Brick remains one of the most important
building materials in India. The demand for bricks continues to rise
in India, as the population increases and people aspire to have better
standards for housing. Almost all the brick making units in India
are in the unorganised sector, employing traditional technology.
These units cater to the needs of the construction industry, in that,
very few units have officially registered themselves as small-scale
industrial units. The Indian brick industry is the second largest
producer in the world next to China.74

The brick making industry employs a large number of


skilled and unskilled labours. Workers employed in brick-kilns are
mostly migrant labour brought from other areas either within or

74 Singh, Supra note 5, at 13.


247

outside the state. These workers live in the huts or the quarters
made for them by the employer in the vicinity of the brick-kiln. So
workers have to remain away from their houses for merely 9 months.

Working conditions of migrant workers are severely adverse


with long working hours in hazards environs. These migrant workers
in most cases stay at the work site in temporary huts and shanties.
There is no fixed working hours as the employer often expects them
to be available for work all 24-hours of the day. These workers not
only face adverse working conditions, their living conditions are also
often deplorable.

There is no facility of safe drinking water, sanitation and


health. In case of temporary migration, the migrants are not able to
make use of the public distribution system due to non availability of
ration cards.75

Thus, migrant workers suffer due to lack of regulation in


working hours and resulting harsh working and living conditions.
These workers are not assured with as right to safe, adequate
accommodation, right to organise, assured minimum wages and
access to health and education services.76

6.5.1 Working and Living Conditions of Women Workers in


Brick-kilns

Sometimes migration of these labour is generally on a family


basis and hence females too migrate along with the male members of
the family especially with their husbands.77 Women migrant workers
in brick-kilns are even more insecure because of the odd work hours.

75 Supra note 9, at 98.


76 Ibid., at 99.
77 Singh, Supra note 5, at 19.
248

They face exploitation in terms of adverse working conditions, lower


wages and insecure living conditions. Often women workers move
with the family and have the additional burden of domestic chores
and child rearing. They suffer from malnutrition since they receive
low wages than men due to violation of norms of the Minimum
Wages Act, 1948. As they are illiterate and unskilled, they are made
to work for long hours with no commensurate increase in wages. As
a result they suffer from malnutrition. Even maternity benefits are
not provided to them which still worsen their situation. Child care
facilities are also lacking subjecting their children to the hazards at
the work place as they have to accompany their parents to the work
site by depriving basic education.78 Incidence of bonded labour is
also found in brick-kiln industry79 Therefore, there was total
absence of any regulation with none of the labour legislation being
implemented. There are restrictions to movement and interaction
with the non- bonded labourers.

6.5.2 Occupational Hazards

Workers in the brick-kiln industry suffer from respiratory


problems arising from living and working twenty four hours of the
day in the fumes emanating from the furnace. Workers had
persistent cough and complained of body ache and exhaustion.
Rudimentary facilities like drinking water and absence of health care
contributed to their vulnerability to disease where women and
children are equally exposed to the harsh life.80

78 Supra note 9, at 100.


79 Ibid., at 106.
80 Ibid., at 34.
249

These women workers work in hazardous conditions have no


safety at their work place.81 There were no proper and essential
devices provided to them for their safety. In a study conducted at
Hissar division of Haryana, it was observed that the women carry the
dried bricks to the trench, are not provided with hand gloves for
protecting their hands and fingers from bruises and injuries.
Similarly, those women who work in extreme dust all the time as
unloaders of the trench are not provided with gas masks and goggles.
In unloading operations there is always a possibility of some brick
may falling on the hand of the workers while sorting and stacking
the baked bricks as helmets are not provided to safeguard the
workers.82

6.6 WOMEN LABOURERS IN AGRICULTURAL SECTOR

According to the information provided by the office of


Regirtrar General and Census Commissioner of India, as per the
census of the 2011, out of total 149.8 million female workers, 35.9
million female workers are working as cultivators and another 61.5
million are agricultural labourers.83 From the report it is clear that
women always played a key role in agricultural production as
agricultural productivity is increasing dependent on the ability of
women to function effectively as farmers.84

Apart from that, women also constitute a special case


because of their dual role that is they are responsible for the
reproduction and maintenance of future labour force and at the
same time are participants in the production process. The link

81 Meenu Agrawal, Supra note 24, at 83.


82 Singh, Supra note 5, at 89.
83 Government of India, Ministry of Labour and Employment Annual Report
2014-15, p.73.
84 Supra note 16, at 30.
250

between women and agricultural sector is sufficiently strong to


warrant a detailed study.85

Agricultural labourers take up material activities in


agriculture in return for wages. Employment in agricultural sector is
seasonal and intermittent in character because of seasonality of
manual operations such as sowing, weeding, harvesting etc. in crop
cultivation. This seasonality in agricultural operations drives the
workers to migrate to other regions in search for employment during
the lean periods.86

6.6.1 Working Conditions

Agricultural labourers have been paid either on hourly basis


or also in some cases, by a piece rate system. The piece rate system
provides greater flexibility to the employer as it varies with the
amount of work done and also has greater scope for manipulation.
Overall, wage levels of agricultural labourers have been very low and
their growth rates decelerated through the decade 1993/94-
2004/05.87 The Minimum Wages Act, 1948 is the only legislation
which ensures minimum wages to workers in agricultural sector.
But lack of minimum standards in daily wage rates in most of the
states is alarming. In 2004-05 about 91% of the agricultural
labourers received wage rates below the norms of National Minimum
Wage and about 64% below the norms of National Commission for
Rural Labour Minimum Wage in rural areas.

85 John P.Mencher and K.Saradamoni, “ Muddy Feet, Dirty Hands: Rice


Production and Female Agricultural Labour”, In: Padmini Swaminathan editor,
Women and Work (New Delhi: Orient Blackswan Private Limited) 2012 Edition
p.141.
86 Supra note 9, at 125.
87 Ibid., at 122.
251

There are no fixed hours of work as there are no laws to act


as guidelines for the working conditions of agricultural workers.
Wage labourers are subject to long working hours at meagre wages
well below the minimum wage limit. Further, due to lack of
opportunities, there is high level of unemployment and
underemployment leaving the labourers with little bargaining
power.88

6.6.2 Health and Occupational Hazards

Agricultural workers, in general, suffer from certain specific


health hazards due to extensive use of fertilizers, insecticides and
pesticides and mechanization. The increasing use of chemicals and
biological agents with hazard potential unknown to people; the
indiscriminate use of agro-chemicals including pesticides,
agricultural machineries and equipment, and their impact on health
and safety of exposed population; pose serious safety and health
risks for agricultural workers. Since the occupational safety and
health services are out of the reach of this group their vulnerability is
further accentuated. Pesticides are usually sprayed and it has been
observed that the sprayer operators experience fatigue mainly due to
carrying the sprayer load. The vibration arising out of powered
sprayers also causes discomfort to the operator. The pesticide
applicators, mixers and loaders are at the risk of exposure to toxic
chemicals. It is not uncommon that the farmers broadcast pesticides
or prepare pesticide solutions with bare hands. Improper handling
of pesticides, spraying without wearing personal protective devices,
oral poisoning of pesticides, etc., led to many sprayer related
accidents. The health standard of female agricultural labour is week
as they have to perform different types of duties at home, in family

88 Ibid., at 125.
252

and in farm. Especially in case of women workers, due to the use of


agro-chemicals women are exposed to several health hazards such as
gynaecological infections, arthritis, intestinal and parasitic
infections.89 Also, due to low education and awareness levels among
the group, they are subject to greater health and occupational
hazards. Since the farming sector is unorganised in character, there
is an absence of statistics on farm related accidents and injuries.
Female agricultural labours do not enjoy maternity leave and do not
get proper rest after child birth.90

The risks of life of agricultural workers greatly increased by


their poor health status due to the risk of exposure to toxic
chemicals, low income levels and consequent low nutritional intake
and constant physical labour aggravate the health problems. Lack of
resources to pay for the health care compels the workers to become
indebted.91

Labourers are caught in a vicious circle and have no means


to get out of the bondage and often the other family members were
also compelled to offer their services due to abject poverty. The
National Commission on Rural Labour also noted that there is still a
sizeable incident of bonded labour in agriculture which reflects the
changing labour requirements of employers under the impact of
capitalist development.92

Increased indebtedness is noted as major reason for the


spurt in farmer suicides during recent times across a number of

89 National Commission for Women, Report on Impact of WTO on Women in


Agriculture, 2005, p.17.
90 Ibid., at 12.
91 Supra note 9, at 129.
92 Ibid., at 130.
253

states. In most of the cases suicide victims were small and marginal
farmers who could not sustain frequent price shocks.

6.6.3 Gender Dimension and Discrimination in Agriculture


Work

“Some historians believe that it was women who first


domesticated crop plants and thereby initiated the art and science of
farming. While men went out hunting in search of food, women
started gathering seeds from the native flora and began cultivating
food, fodder, fibre and fuel”.93

The nature and extent women’s involvement in agriculture


continue to play a key role in the consideration of basic life
supporting system such as land, water, flora and fauna. Studies on
women in agriculture conducted in India shows that women
contribute for more to agricultural production in spite of their severe
handicaps with respect to gender differences in work.94

Women activities in agriculture are concentrated in few


operations within agriculture as weeding, transplanting and
harvesting. Women are forced to accept agriculture work in their own
village because it has become essential part of men to migrate in
search of better-paid work as employment in agriculture is available
for fewer days of work throughout the year. Obviously women are
filling this vacuum as they cannot migrate as easily as men.
Farmers, on the other hand, also seem to prefer women as
agricultural workers as he can squeeze is labour costs by using

93 Supra note 89, at 9.


94 Ibid., at 9.
254

lower-paid women workers or else the farmer has to face with the
increase in cost of production require for modern agriculture.95

According to the notifications issued by the Ministry of


Labour, Government of India on November 11, 1999, all the
agricultural operations where women predominate such as sowing,
transplanting, weeding and harvesting have minimum wages fixed in
the unskilled category. Ploughing, which is predominantly a male
operation has a minimum wage fixed in the semi-skilled category and
use of a tractor or operation of a tube well is categorized as a skilled
activity and accordingly the minimum wages fixed are higher. This
has implications for the actual wages received by the workers since
the minimum wages gave the signal that the operations identified as
women’s work are unskilled and could be paid at lower rates. While
transplanting is a very skilled activity and weeding is a back-
breaking work, the minimum wages appear to take into account the
use of technology to categorise an activity as semi-skilled or skilled.
Such a categorization works against the interest of women.96 Women
agricultural workers, although they represent a big proportion of all
women workers, continue to receive lower wages than men. The
Ministry of Labour puts the difference at 60 percent of men’s
wages.97

Thus gender discrimination in wages and differentials in


earnings are acute and persistent problem where equal pay
legislation is not effectively implemented.

95 Ibid., at 17.
96 Supra note 9, at 132.
97 Supra note 89, at 16.
255

6.6.4 Technological Progress and Women in Agriculture

The introduction of capital intensive technologies in the


agricultural sector has had differential impact on men and women.
Men usually do semi- skilled or skilled and hence when new
machines are introduced, the work is taken over by men resulting in
reduced employment opportunities for women. Increasing
casualisation of work, falling income and increasing insecurity of
employment endanger the interests of women as they have remained
in the agricultural sector, accepting the traditional practice of paying
wages to women less than men. They cannot aspire to seek jobs
outside home because of traditional prejudices, male domination and
conservation attitudes.

6.7 WOMEN LABOURERS IN TANNERIES

Leather industry is one of the major export earning


industries of India. An attempt has been made to focus on the
leather industry from a gender perspective due to the following
reasons:

A larger proportion of the women workers in the industry


seem to be concentrated in the most polluting stages of
tanning process;

The proportion of women workers (to total women


workers) working in the ‘unorganised sectors’ (of the
leather industry) is relatively more than the proportion of
women workers in other ‘unorganised’ industries;

There is constantly a tendency on the part of employers


to deny the employment of women and children along
256

with the a tendency to deny access to researchers to


inspect the units and/or talk to the workers.98

Leather industry can be generally divided into leather


(tanning and finishing) and leather product industry. With respect to
details regarding number of leather units and persons employed, it is
difficult to obtain a comprehensive figure because most of the leather
tanning units are not registered and there is also a wide prevalence
of job work i.e. a type of contract labour, whether it is quite common
to note a single premise being owned by one employer but hired out
to several employers, and here workers are employed on temporary
basis.99 Women workers are mostly employed in semi skilled or low
skilled operations. There is a bias in estimation of leather workers
generally and a women in particular.100

6.7.1 Working Conditions and Occupational Hazards

The requirements of leather do not allow it to be a clean job.


Manual operations, lack of proper tools coupled with poverty and
ignorance of the workers make working conditions worse,
particularly in small and cottage industries.101 Tanneries are
dangerous place of work, at times even fatal. In spite of the
improvements in this industry which has given scope for an upward
trend in the foreign market, plight of workers cannot be said to have
improved resulting without any substantial improvement in their
working conditions. In order to analyse the impact of women with
reference to leather tanning industry, it is essential to have a clear

98 Millie Nihila, “Women and Work: “Development Process and Status of Women:
Tanning Industry in Tamil Nadu”, In: Padmini Swaminathan editor, Women
and Work (New Delhi: Orient Blackswan Private Limited) 2012 Edition p.306.
99 Government of India, Report on Leather Industry Including Footwear and
Other Art Works in India, (2007-08) p.19.
100 Millie Nihila, Supra note 98, at 310.
101 Ibid., at 314.
257

idea about the process of tanning, extent of machinery, chemicals


used and development of technology that has taken place in these
processes. Firstly, the pre-tanning operation is primarily to free the
derma from epidermis, flesh, hair and bristles. This is achieved by a
combination of manual, mechanical, chemical and machinery used
process the hide/skins and also operating parts of various machines
require efficient guarding. There are revolving drums, in-running
rollers and knives which has to be inter-locked. Particular care is
needed when two persons are employed in one machine. All
transmission machinery, belts, pulley and gear wheels should be
securely guarded. These guards would save the machine operator
from being ‘caught between’ hazards that is the chances of arm or
palm being caught between the rollers and knife while feeding the
hide/skin to the machine. The machinery used to process the
hides/skins also present hazard to workers with the capacity of
inflicting bruises, scrapes, crushing, abrasions or amputations of the
upper extremities.

Previously for fleshing, hairing and for other related pre-


tanning processes, hand tools like heavy knives of various designs
were used. Even now, in most of the tanning units, the proprietors
resort to hand a tool for certain processes. Trimming is done with a
sharp knife of small size in all the units. Hazards occur when these
tools are not properly maintained. The use of hand tools may lead to
callosities of hands and fingers.102

Apart from that, excessive noise can cause permanent


hearing damage. But the noise standard is one of the most
commonly violated standards. The nature of raw material handled in
these industries itself is not good for the health of the workers.

102 Ibid.
258

Workers are engaged in handling, transferring, curing, soaking,


trimming and weighing of hides/skins, which may be exposed to
anthrax. Apart from anthrax, other occupational diseases occur in
tanneries due to inhalation of dust produced in a variety of tanning
operations. Dusts of vegetable tanning materials, lime, chemicals
and leather arising in the process are responsible for causing chronic
bronchitis.103

There are also chemical hazards such as chemical dusts


produced during the loading of skins into the drums and workers
may be exposed to dust causing health hazards such as bladder
cancer and nasal cancer. In this industry much work has to be done
by hand only for certain operations of biological and chemical nature
which cannot be mechanised.

6.7.2 Impact of Tanneries on the Health of Women Workers

The workers in the leather industry are prone to various


health hazards in case preventive steps are not taken at their work
place.104 In most tanneries women are employed as helpers were they
made odd jobs like setting, pailing, drying etc. This is more
dangerous than the actual process of tanning. It has been pointed
out that women workers are actually made to get into the rotating
drums (containing toxic chemicals) to take the hide/skin out of the
drum and to clean it.105

During a pilot survey conducted in Didigul, a health worker


reported that the women working in tanneries and allied workshops
are not just infected by common tannery disease like dermatitis,

103 Ibid., at 315.


104 Supra note 99, at 14.
105 Millie Nihila, Supra note 98, at 318.
259

anthrax, bronchitis, tuberculosis, stomach-ache, fever, etc., apart


from menstrual disorders, miscarriage is quite common; instances of
stillbirth, pro-lapse of uterus are reported, foetus are also affected,
resulting in the birth of deaf and dumb, and mentally challenged
children, most of the babies are unhealthy.106 Due to hot and humid
work atmosphere, women begin to case hair early. Since mother’s
milk gets contaminated the children are prone to milk diarrhoea.

Two most striking aspects of the tanning and leather industry are:

The most polluting part of the operation (up to pre-


tanning) are performed in premises not technically
covered under the Factories Act;

Most of the above operation employs women and


children.

There is an ‘official’ undercount of the actual numbers of


women and children employed in tanneries. The ‘official’ recognition
of the hazardous conditions in which the workers (especially women
and children) in these operations work is also to that extent denied.
Since it has been notified under the Factories Act, that employment
of women and children should be prohibited in tanneries and leather
works, employers take advantage of this provision by not recruiting
women and children in their factories/workshops on permanent
basis, but they recruit them as casual labourers; their names are not
registered in the daily attendance. A concomitant result has been
the payment of less wages to women doing the job as men, excepting
for the coolies.107

106 Ibid.
107 Ibid., at 319
260

Most of the technological developments are introduced with


the aim to maximise profit. On one hand, this results in
retrenchment and displacement of women workers. On the other
hand, work, which is really strenuous and hazardous due to the
primitiveness of the methods and tools, is left untouched by
technology. This is true with leather tanning industry also. Many of
the processes in tanning are done independently in the name of job
work.

It is seen that when female workers are prohibited by the


Factories Act to do certain jobs, organised factories mostly followed it
and did not employ women in the prohibited processes. But the jobs
thus prohibited by the Factories Act were done by women in the
unorganised sector.108

It was also seen that men worker in tanneries were provided


with uniforms but women were not provided the same. The occupier
shall provide and maintain the following articles of protective
clothing:

Water-proof footwear, leg coverings, aprons and gloves


for persons employed in process involving contact with
chrome solutions, including the preparations of such
solutions;

Gloves and boots for persons employed in lime-yard; and

Protective footwear, aprons and gloves for all persons


employed.

108 Ibid.
261

The gloves, aprons, leg coverings or boots may be of rubber


or leather but in the first two above cases, the gloves and boots shall
be of rubber. The gloves may not be provided to persons fleshing by
hand or employed in processes in which there is no risk of contact
with lime, sodium sulphide or caustic soda.109

Women are not provided waterproof footwear, leg coverings,


and/or aprons and gloves. Women workers while getting into the
pits cover their legs with tyre tubes; instead of aprons they use
plastic sheets to cover their waist. The gloves, if provided, were not
provided to each worker individually. Since they are all common
property that are not maintained properly. Hence, if a particular
worker who has been affected by anthrax uses these gloves and
leaves it without washing it thoroughly, another worker, who uses it
next, is likely to be infected by the anthrax bacteria.110 Studies in
leather tanning industry have found that workers without foot wear
worked for long hours with their bare feet soaked in chemicals,
animal wastes and decomposing offal.111

Leather tanning industry is hazardous not only to workers,


but people living close to tanneries also experience certain specific
health problems. Besides, there are environmental hazards created
by this industry.

6.8 WOMEN DOMESTIC WORKERS

Of all the unorganised employments, domestic work is the


least regulated informal work. The estimated number of domestic
workers employed in the country was 41.3 lakh in which 27.9 lakh

109 According to Chapter IX of the Factories Act, 1948 the State Governments are
empowered to make rules in this regard
110 Millie Nihila, Supra note 98, at 320.
111 Supra note 9, at 230.
262

were women.112 A domestic worker is one carries out the house hold
chores on part-time or full-time basis for one or the more
employer/employers for nominal wages. Female and children
domestic workers constitute a large proportion of today’s migrant
worker population.113 Most of the women workers in involved in it
come from poor and needy families.114

6.8.1 Working Conditions of Domestic Workers

There is no written contact between the employer and


domestic worker and so there is more scope for exploitation of these
workers even to bargain wages.

Paid domestic workers operate in the invisible sector of the


economy. The low wages that reflect the status of the domestic
labourer make it impossible for her to be anything other than a
marginal earner within her own house hold. The fact is that
agricultural labourers are paid daily, where as domestic labourers
are paid only on a monthly basis indicates that the women’s wages
seem to be merely supplement to the male wage.115 Though these
women work hard to earn their livelihood, yet the returns for their
hard work are shockingly low. The remuneration paid to women
sometime includes labour of their daughters. Thus young girls work
as a components of their mothers.116

112 As per the Report of National Sample Survey Organisation Employment-


Unemployment Survey (2011-12).
113 Supra note 9, at 86.
114 Harvinder Kaur and Monika Rani, “Female Domestic Workers in Punjab”, In:
Ravi Prakash Yadav, Kumar Chandra Deep (eds.) Women Workers in India
(New Delhi: New Century Publications) 2012 Edition p.78.
115 Uma Kothari, “Women’s Paid Domestic Work and Rural Transformation: A
Study in South Gujarat”, In: Padmini Swaminathan editor, Women and Work
(New Delhi: Orient Blackswan Private Limited) 2012 Edition p.257.
116 Meenu Agarwal, Supra note 24, at 65.
263

One of the major problems in domestic work is that the


domestic workers work in more than one house which is a big
constraint in implementing any law regulating domestic work and
welfare schemes for domestic workers.117 This is due to poor wage
structure, the part time workers serve more than one employer and
strived hard to earn money.118 The conditions of work are not like
those of any other formal sector work. For instance, they do not get
maternity benefit, pension etc., like any other women worker in the
formal sector. In order to eke out their existence, they often agree to
their work at nominal wages. Increment of wages is the most
sensitive matter resulting in losing their job because someone is
ready to work at the same or lower wage rate.119 There are many
incidences which show that they are extremely poor, illiterate and so
they are migrated to the urban areas in search of employment as
they do not need any special skill.120

There is no system of social security to protect the domestic


workers, there are no fixed hours to work. In many cases, they are
not provided adequate food and they also do not earn enough to buy
adequate clothing. Though the Ministry of Labour has adopted
legislative measures for social security and welfare of unorganised
workers, there, if at all effected, are typically applicable to those
employed in agriculture, construction, trade, transport and
communication; domestic workers are left out. Thus domestic work
force is excluded from labour laws that look after important

117 United Nations Development Programme, “Synthesis of Important Discussions


on Livelihood and Micro Finance Issues of Domestic Workers” (New Delhi) 2012
p.30.
118 Dr.V.Ezhil Jasmine, Problems of Women Domestic Workers: As may in
Tirunelveli City, In: Dr.A.Selva Kumar editor, Plight Of Unorganised Workers
(New Delhi: Discovery Publishing House Pvt. Ltd.) 2009 Edition, p.39.
119 Seepana Prakasam, Domestic Women-Workers in India with Special
Reference to Chandigarh (New Delhi: Shipra Publications) 2012 Edition,
p.109.
120 Supra note 7, at 7.48.
264

employment- related issues such as conditions of work, wages, social


security, provident funds, old age pensions and maternity benefits.
Hence, they have no right to employee’s compensation, weekly
holidays and minimum wages.121

6.8.2 Problems of Domestic Workers

Domestic work sector is growing rapidly in urban areas as it


is the important source of employment and thus it is one of the
largest sectors of work in urban areas. Due to the innovation in
technologies, the nature of work underwent significant changes but
still the conditions in which a domestic worker works remain
unaltered. There is no minimum level of protection to domestic
workers. The domestic work is hard to regulate, being invisible
because it is performed in the privacy of the employer’s house hold.
Though, some states like Karnataka, Kerala, Andhra Pradesh, Tamil
Nadu, Bihar and Rajasthan have set minimum wages rates for
domestic work. But it is clear from the reports that domestic
servants do not have adequate social security measures, security of
tenure and regulation of working hours etc. The issues are
addressed in the petition filed by the National Domestic Workers
Welfare Trust for the recognition of rights of domestic workers and in
response to the petition, the central government has included
domestic workers in the schedule of employment in the Unorganised
Worker’s Social Security Act, 2008.122

121 Supra note 9, at 87.


122 National Domestic Workers Welfare Trust v. Union of India Writ Petition (Civil)
No(s). 160 of 2003.
265

The task force on domestic workers highlighted the issues of


domestic workers are as follows:123

Domestic workers remain invisible and under


reported, both in the labour market and in the society;

Domestic work takes place in an un-conventional work


place and hence, it is not regulated;

Domestic workers are illiterate and unexposed to the


urban way of life;

It is characterised by lack of job security, decent wages,


proper work conditions, defined work time, weekly
holidays and the work is generally undervalued;

Many domestic workers remain overworked, under


paid and unprotected; and

Domestic labourers insufficiently covered by social


protection, social security measures such as health
insurance, maternity protection, old age security and
accidental benefits.

The laws that are enforceable alone can protect the rights of
domestic workers. But mere legislative measures without their
enforcement will not be going to change the status of these workers.
So, it is the responsibility of the state to create suitable monitoring
and enabling mechanism to ensure proper implementation.

123 Government of India, Ministry of Labour and Employment, Final Report of the
Task Force on Domestic Workers, (2011), p.9.
266

6.9 EMPLOYMENT OF WOMEN IN PLANTATION INDUSTRY

Plantation is a unique sector as it has been instrumental in


developing the under-developed areas of the country. The entire
family of a worker is employed in plantations as plantations are
located in remote areas.124 This workforce does not possess any skills
other than ploughing leaf and the workers are mostly landless.125

6.9.1 Working Conditions

Plantation is an important industry wherein a majority of


workers in the plantation sector are women.126 This is due to the fact
that soft hands and nimble fingers are suited especially for the tea
leave plucking and picking of coffee seeds, women workers dominate
the employment scene in the plantations.127 The pay period of
workers are divided into five main categories viz., daily, weekly, ten
days, fortnightly and monthly. The survey report reveals that
majority of workers are paid wages on fortnightly. Many of the
workers are not aware of the provisions the Minimum Wages Act,
1948, Equal Remuneration Act, 1976 and the various other labour
Acts enacted for their welfare. The high rate of illiteracy and low level
of awareness make them more vulnerable to exploitation by the
employer.128

According to the survey conducted in four plantations viz.,


tea, coffee, rubber and cardamom by the Government of India, in

124 Narendar Jetli (K) India: Man Power, Employment Policy and Labour
Welfare, 1947-2007 (New Delhi: New Century Publications) 2006 Edition, p.76.
125 Government of India, Report on Socio-Economic Conditions of Women
Workers in Plantation Industry, 2008-09, p.2.
126 Ibid.
127 Ibid., at 4.
128 Ibid.
267

2008-2009 the majority of the workers are engaged in manual jobs


and hence plantation industry is predominantly of manual type.129

6.9.2 The Plantation Labour Act, 1951

The plantation Act was passed to provide for the welfare of


plantation labour by regulating the conditions of work in plantations.
It applies to all tea, coffee, rubber, cardamom plantations etc., which
admeasures five hectares of more and in which 15 or more persons
are employed or where employed on any day of the preceding 12
months.130 The provisions regarding health, safety and welfare the
workers are governed by the Plantation labour Act, 1951. The Act
requires employer to provide and maintain, readily available, medical
facilities for the workers and their families as may be prescribed by
the State Governments.131 The Act makes it obligatory for the
employers to provide and maintain necessary housing
accommodation for every worker and his family residing in the
plantation.132 The Act also requires the employer to provide sickness
and maternity benefits133, and other forms of social security
measures.

6.9.3 Medical Facilities

All over India, the position regarding the provision of


medical facilities in tea plantations shows that out of the total 47
units covered during the course of the field study by the Government
of India in 2008-09, 42 units are providing medical facilities, to the

129 Survey was conducted by the Government of India in all the major plantation
growing states viz., Assam, Tamil Nadu, West Bengal, Kerala, Karnataka and
Tripura.
130 Section 1(4) (a) of the Plantation Labour Act, 1951.
131 Ibid., at Section 10.
132 Ibid., at Section 15.
133 Ibid., at Section 32.
268

workers and their family members. Out of 34 units covered in coffee


plantations only five units (i.e., is about 15%) are providing medical
facilities, out of five units which are providing medical facility, four
are having their own dispensaries with four medical officers and four
attendants to look after the health of plantation workers and their
family members.134

Out of 33 units in rubber plantation units only one third of


the total rubber plantation units covered during the course of the
survey are providing medical facilities to the workers and their family
members. About 27 percent of the units covered are having their own
dispensaries with 8 medical officers and 17 nurses/attendants. In
Tamil Nadu, out of 4 units 75 percent units are providing medical
facilities while in Tripura only 25 percent units are providing medical
facilities.

Out of 18 units only 33 percent of the cardamom plantation


units studied is providing medical facilities to the workers and their
family members. Five units out of 16 in Kerala and one out of 2 units
in Tamil Nadu are providing medical facilities to the workers. Only 2
units, one each in Kerala and Tamil Nadu cardamom plantations are
having their own dispensaries with 1 medical officer each. However,
no nurse/attendant is found employed in any of the cardamom units
dispensary.

It is evident from the report that adequate medical facilities


in the form of well equipped dispensaries are provided in tea
plantations but the position is not satisfactory in other plantations.
The employers of some plantations expressed their inability
to comply with the entire requirement due to high cost involved.

134 Supra note 125, at 47.


269

The major problem of women workers is to consult male


doctors in the dispensary. Women workers, who are by and large,
illiterate, feel shy of consulting male doctors especially in
gynaecological problems. Facilities for pre natal and post natal
treatment are also inadequate and are to be improved. Frequent and
regular medical check-ups also go a long way in improving the health
of the plantation workers in general and women workers in
particular.135

6.9.4 Maternity Benefit and Creche Facilities

The Plantation Labour Act, 1951 obligates the employer that


any plantation where in 50 or more women workers employed on any
day during the preceding 12 months should provide and maintain
suitable creches for the children below the age of six years.136 Such
creches should have adequate accommodation and it should be
adequately lighted, ventilated and maintained in clean and sanitary
condition.

Out of 34 sample units in coffee plantations only five units


viz., 3 units in Karnataka and 1 each in Tamil Nadu and Kerala are
providing creche facility to the women workers. In rubber
plantations, it is observed that out of 33 units 6 units have provided
creche facility. In Kerala out of 15 units, 20 percent units have
provided creche facility with trained women worker in each unit
while in Tamil Nadu out of 4 units 50 percent units are providing
this facility by engaging women worker to look after the children.

135 Ibid., at 48.


136 Supra note 130, at Section 12.
270

However no creche facility is provided by all the 4 units surveyed in


Tripura state under the rubber plantation.137

In tea plantation units, out of 6 units cent percent units are


providing are providing maternity benefits. In Tamil Nadu out of 10
units around 90 percent units are providing maternity benefits to the
women workers while in Kerala out of 4 units around 75 units are
providing maternity benefits.138

In coffee plantations, out of 22 units in Karnataka around


77 percent units are providing maternity benefits whereas in Tamil
Nadu out of 8 units around 62 percent units are providing maternity
benefits. In Case of Kerala out of 4 units about 75 percent units are
providing maternity benefits to women workers.139

In rubber plantations, out of 15 units in Kerala 45 percent


of units are providing maternity benefits and in Karnataka out of 10
units 90 percent of units are providing maternity benefits. In Tamil
Nadu out of 4 units 75 percent of units are providing maternity
benefits.140

In cardamom plantations out of 16 units in Kerala 43.8


percent of units are providing maternity benefits whereas in Tamil
Nadu out of 2 units no unit is providing maternity benefits.141

A case study on the status of women working in the tea


plantations it was revealed that most of the women workers have
been found to suffer from various diseases chest pain, knee pain,
back ache, gastritis, anaemia, and cough and cold, etc. according to

137 Supra note 134.


138 Ibid.
139 Ibid.
140 Ibid.
141 Ibid.
271

the garden physician many of the diseases result from mal nutrition
and under nutrition. Hence, women labourers in the tea garden live
a relatively shorter life. It has been observed that in most of the cases
women worker generally look older than the real age and this may be
due to hard work and less nourishment.142

To conclude, it is evident from the field work undertaken by


Government of India that the women workers are deprived of
maternity benefits, proper child care benefits and various welfare
facilities such as recreational facilities, separate urinals and latrines
for women workers.143

6.10 WOMEN WORKERS IN HANDLOOM SECTOR

Handloom weaving of cloth, as occupation of ancient vintage


continued to be the main source of livelihood of a large number of
families in the country.144 Workers are involved in performance of
varieties of activities starting from preparation, marketing raw
materials, the weavers are forced in poor work place with unscientific
technologies leading to occupational stress.145

6.10.1 Pattern of Employment

In this Industry the pattern of employment includes the


following categories of workers.146

142 Elizabeth Kaniampadi, Status of women working in Tea Plantation: A Case


Study in Assam (New Delhi: Akansha Publishing House) 2003 Edition, p.253.
143 Supra note at 125.
144 Supra note 9, at 60.
145 Minaxi Pathak and Nandita Bhattacharya, Women Workers in Handloom
Weaving (New Delhi: New Century Publications) 2012 Edition p.101.
146 Govenment of Tamil Nadu, Report of the Committee Constituted to Study
the Problems and Issues of Unorganised Labour in Tamil Nadu, (1998)
pp.40-41.
272

Independent Weaver

The persons owns his loom and other instruments of


production and produces yarn and raw materials himself and
pursues his business including marketing of goods as an
independent craftsman.

The Master-Weaver

The person supplies yarn and other materials to a group of


weavers working under him, who may be called ‘dependant weavers’.
The weavers working under such master weavers are paid only wages
at piece-rate basis and their earnings not being affected by
fluctuations in the market conditions.

Coolie Weavers

The collie weavers have nothing of their own except their


skill and labour, and works in factories during specified hours and
receive wages on a piece-rate basis.

Weavers Who are Members of Co-operative Societies

This category of workers gets their supply of yarn from the


operative societies and work at their homes with their own looms or
hired looms. The cloth woven by them is taken back by the society
on payment of pre-determined wages. At the close of the accounting
year, the weaver members are paid dividends.

But, whether the weavers are working independently within


the co operative structure or under master weavers come under the
marketing chain because the weavers have become highly dependent
on the traders and the co operative societies for marketing their raw
273

material demand and marketing their products.147 Even the co-


operative societies have to obtain work orders from the various
agencies and traders who procured the products and send them to
various show rooms all over the country and also to the export
markets. In present study an attempt has been made to focus on
work related problems faced by the women workers in handloom
industry because whenever handloom sector is in crisis, the burden
of carrying through the crisis is most on the women weavers that
increase in physical, psychological and social pressures. In these
circumstances, it became important to analyse the sufferings of
women as they are vulnerable section of handloom sector.

In micro study of weavers and weaving in chinnalpatti, it


was identified that the profession of weaving has become a more and
more complicated in a globalised atmosphere with the advent of
power loom sector, the weavers are extremely finding it difficult to
meet both the ends. Further, it was revealed that weavers had sold
their kidneys to wipe off the debts and advances incurred by them at
the time of their employment. Further, the study identified that
bonded labour system prevailing in many of the power loom
centres.148

6.10.2 Working and Living Conditions

Women weavers are highly involved in weaving activity and


they need to be empowered in various ways by making improvement
in their working, living and wage conditions. The problems being
faced by women handloom weavers has been brought out by the

147 Supra note 9, at 61


148 Dr.P.Anandarajakumar, A Micro Study of Weavers and Weaving in
Chinnalampatti In: A.Selvakumar, Plight of Unorganised Workers (New Delhi:
Discovery Publishing House Pvt. Ltd.) 2009 Edition p.16.
274

study conducted by Centre for Handloom Information and Policy


Advocacy are discussed as follows:149

There is no recognition to women’s work as weavers,


even though women play a major role in all- pre-loom
operations and take on labour- intensive activities.

Women do not have access to government identity


cards, except in cases of where they are widowed or are
members of the co-operatives.

Regarding the living conditions of the women workers,


sheds have been provided to workers who weave on
looms owned by master weavers due to lack of housing
and other facilities most sheds do not have any primary
facilities such as bath rooms or toilets and hence,
women face problems to take bath or use toilets.

Number of women employees in the co-operatives is


low.

80 % of women in handloom sector are working for


more than 10 hours per day in handloom production
for very low wages.

The powerloom industry is a case in point where large


segments of artisans and workers are not independent producers but
are either employed on piece-rate basis or working on substantive
orders for large industrial units. While advantages are being claimed

149 Narasimha Reddy, Centre for Handloom Information and Policy, Women Hand
loom Weavers: Facing the Brunt, Gender and Trade Policy, (2011), p.4.
275

by the principal employers on the ground that it is small or cottage


industry, the female labour force is actually working for a pittance.150

6.10.3 Occupational Hazards

Due to poor working postures, women suffer from back and


joint pains, reproductive and respiratory disorders. In a case study of
Mubarakpur based on field survey 2010-2011, it has been found
that the female weavers frequently suffer from various diseases as
their work is more physical and hence they suffer from leg pain, back
pain, joint pain and respiratory diseases respectively.151 Apart from
that, the high dust level gives rise to respiratory problems and
diseases. Byssionosis is a disabling lung disease caused by inhaling
cotton flags for several years and is characterised by tightness in the
chest and breathlessness.152

From the above, it is clear that low wages, poor working and
living conditions, heavy indebtedness and non-ownership of looms
are the ground realities that remain untouched despite of various
government schemes for weavers.153 For instance, the destitute and
poverty force the weavers out of the Handloom Weavers
Comprehensive Welfare Scheme as many weavers expressed their
inability to pay the premium for renewal of the Health Insurance
Scheme.154

150 Dr.Falendra k.Sudan, Gender Bias in Employment of Women in Urban


Informal Sector, In: Dr. (Mrs.) S.Murty, Women and Employment (Jaipur:
RBSA Publishers), 2000 Edition, p.95.
151 Tasheem Shazly and Prof. Abdul Munir, “Journal of Education and Social
Policy” Vol(I) No.1 (2014) p.82.
152 Dr.S.Baluchamy, Women in Textile Industry (New Delhi: Mittal Publications)
2012 Edition, p.54.
153 Report of Study commissioned by the Planning Commission, Growth and
Prospects of the Handloom Industry, (2001) p.33.
154 Government of India, Planning Commission, Mid-Term Appraisal of the
Eleventh Five Year Plan, (2007-12) p.226.
276

6.11 WOMEN WORKERS IN MATCH INDUSTRIES

The employment in match industry is more or less akin to


type of manufacture in beedi industry.155 Match work industry plays
a vital role in providing employment opportunities to the women
workers as they are engaged as home workers. Recently a study has
been conducted which has revealed that 82% of the match
production in India exist in the ‘handmade small scale (67%) and
cottage (15%) sectors, where technology has remained obsolete.
Though the match products have been produced in many places of
the country, the contribution of the Tamil Nadu in this field is very
remarkable.156 This industry has been largely concentrated in areas
viz., Virudhunagar, Sattur, Kovilpatty, Kalugumalai, Sriviliputtur,
and Gudiyatham. The Second National Commission also highlighted
that the working condition in fireworks and match industry were
dangerous and full of hazards. In the match making industry in
Sivakasi, deaths were reported due to fire.157

6.11.1 Working Conditions

Match industry is primarily employing unskilled workers.


Since they are not educationally qualified or technically experienced
they can learn to gain knowledge from only doing work. A total
number of 170 units comprising 150 units of final match
productions in Tamil Nadu and 20 units of splints production in
Kerala are selected for the survey conducted by the Government of
India. Based on the data collected during the survey, it is evident
that male members are mostly engaged in the manual works as
drivers, supervisors, watchmen and machine workers. Similarly

155 Supra note 146, at 48.


156 Government of India, Report on Social Economic Conditions of Women
Workers in Match Industry, (2014-15) p.3.
157 Supra note 9, at 33.
277

women workers are mainly engaged in other manual works like


match box filling or packing, printing and labelling of match boxes.
In Tamil Nadu about 91% of the match box filling and packing are
being done by women workers this is due to the abundance of cheep
women workforce available in the surrounding areas. In case of
Kerala all the Splints collection or match box filling works are carried
by women workers only.

6.11.2 Wage Payment

In order to assess the wage level, the data was collected on


the system of payment of wages to the workers the survey results
showed that the men workers were paid more than the women
workers in all the industries in case of maximum wages in time rated
workers. Among all other occupations in the match industries, the
machine operator earns higher in a day. Further, in case of a male
machine operator, the average daily earnings are slightly higher
when compare to a women machine operator in Tamil Nadu. Even in
state of Kerala similar trends are visible. Not only in machine
operating, it is also evident that the average daily basic wages of
male workers is higher when compare to women workers in all the
occupations in match industry.158

6.11.3 Bonus

Bonus to the workers is paid with an aim to increase the


production and productivity. The type of bonus paid to the workers
varied from place to place. Bonus payments are paid for various
reasons like festival, increased productivity, etc.159 All the workers in

158 Supra note 156, at 32.


159 Ibid., 20.
278

Kerala and about 76% of the workers in Tamil Nadu are paid by the
employer during the financial year 2013-14.160

6.11.4 Deductions from Wages

The deductions from wages are made for various reasons


like loan advance, group insurance, employees’ provident fund,
employees’ state insurance etc. The deductions are made mostly for
employees’ provident fund, employees’ state insurance as employers
have statutory obligations towards the welfare of the workers.161

6.11.5 Maternity Benefits and Creche Facilities

The labour bureau has observed the information for


evaluating the implementation of Maternity Benefit Act. It is noticed
from the results that around 43% of the units are providing
maternity benefits to the women workers in the match units.162 Out
of 150 units in Tamil Nadu about 27% of the match units are
providing creche facilities. But in the state of kerala none of the
sample units is providing creche facility.163

From the above analysis, it is observed that majority of


workers are women. They are illiterate and are engaged only in
manual works.

160 Ibid., at 20-21.


161 Ibid., at 21-22.
162 Ibid., at 37.
163 Ibid., at 34.
279

6.12 SOCIAL SECURITY LEGISLATION RELATING TO WOMEN


WORKERS

The data on women working in the informal sector reveal a


mix of positive and negative trends.164 Flexible, precarious and now
far more dynamic than the formal sector in many regions, the
informal sector has observed female labour and continues to do
so.165

Thus, a change in the structure of the economy whereby


women are assigned a major productive role would be a way to
improve their status.166 Economic independence is a foundation on
which any structure of equality for women can be built. A study
undertaken by the Indian Institute of Science, Bangalore, on the
work output of men and women, concluded that women work harder
than men. Hence, labour laws relating to women-related Acts were
passed from time to time to provide security and protection to the
women employees in order to ensure them not only gender equality
by eliminating discrimination but also for promoting social equity
and decent work.

Some of the major labour legislations relating to women’s


employment in India are passed to protect the interests of women at
work against the problem of low income, unequal pay, poor working
conditions, long working hours, insecurity of tenure which are as
follows:

164 Government of India, Annual Report (2004-2005), p.73.


165 Dr.Digumatri Bhaskararao and Mr.Digumatri Pushpalatha, International
Encyclopaedia of Women: Women, Challenges and Advancement (New
Delhi: Discovery Publishing House) 1998 Edition p.224.
166 Mamta Rao, Supra note 1, at 388.
280

6.12.1 Equal Remuneration Act, 1976

A significant milestone in acceptance and promotion of the


principle of “equal pay for equal work” was earlier reached with the
establishment of the International Labour Organisation in 1919. The
preamble to the ILO Constitution of 1919 stressed, inter alia, the
urgency of the recognition of the principle of “equal remuneration for
work of equal value” and the preamble to the Constitution as
amended in 1948 reaffirmed that it was urgent that conditions of
labour be improved with regard to the principle of “equal pay for
equal work”.167 The convention on elimination of all forms of
discrimination against women, 1979 provides that the state parties
should embody the principle of men and women in their national
constitutions and to ensure through the law and other appropriate
means, practicable realisation of this principle. In order to recognise
the principle of equal remuneration for equal value as laid down in
ILO Equal Remuneration Convention 1951(No.100) and to implement
Article 39(d) of the Constitution of India contained in the Directive
Principles of State Policy, The Equal Remuneration Act,1976 was
enacted.

Scope and Coverage

The Act is applicable to establishments or employments


notified by the Central Government.168 The applicability of the Act
does not depend upon the financial viability of the employer to pay
equal remuneration under the Act.169

167 S.C. Srivastava, Labour Law in Factories, Mines, Plantations, Transport,


Shops and other Industrial Establishments (New Delhi: Prentice Hall of India
Private Limited) 1992 Edition p.230.
168 Section 1(2) and (3) of the Equal Remuneration Act, 1976.
169 Mackinnon Mackenzie and Co. Ltd. v. Audrey D Costa AIR 1987 SC 1281.
281

Obligations of the Employer

The Act imposes an obligation on the employer to pay


equal wages to men and women employees employed in
his establishment for performing same work or work of
similar nature.170

The employer should not make any discrimination


against women while doing recruitment of employees
for work or work of a similar nature or in respect of
their promotion, training or transfer etc.171

Every employer should maintain an up-to-date register


containing particulars such as category of workers,
nature of work, number of men and women employed,
rate of remuneration paid etc.172

Working of the Act

Though Equal remuneration Act imposes duty on the


employer to ensure equal pay for equal work for men and women, it
does not impose the duty on the employer to evaluate whether the
work of women and men is of a similar nature. The Act also does not
establish any institutional procedure by which such evaluations
would be made. Hence, the labour officer find difficult to detect
violations of the Equal Remuneration Act to deal with the issues
connected with the wage differentials. National Commission for
Enterprises in Unorganised Sector also observed that since men and
women often segmented in different activities in which women

170 Supra note 167, at Section 4.


171 Ibid., at Section 5.
172 Ibid., at Section 8.
282

predominant are valued poorly even in cases where work may be


arduous or may require high skills.173

6.12.2 Relevant Statutory Provisions of Safety, Health and


Welfare for Women Workers

Prior to independence, working conditions of workers in


factories, mines, plantations, constructions or any other work place
were extremely miserable. Men, women and children worked from
sun rise to sun set without rest and lunch break. They were working
in unhygienic conditions coupled with unsafe standards. Particularly
the condition of women workers was inhumane. There were no basic
facilities, which women normally needed at the place of work. Long
working hours, carrying heavy loads even during pregnancy, working
in hazardous occupations, absence of separate latrines and urinals,
no portable drinking water, absence of lighting and ventilation, and
lack essential safeguards made the life of women employees
miserable.174

After attaining independence it was fully realised that the


overall economic development in the country is not possible unless
women are also brought in its main stream. Accordingly, the Indian
Government took various steps to protect women employees from
unsafe working conditions and health hazards. Due to peculiar
reasons such as their physical build-up, poor health on account of
repeated pregnancies, responsibilities towards children and due to
nature of occupation in which they are engaged, the special
protection has been provided to women employees. The relevant

173 Supra note 9, at 208.


174 Surinder Mediratta, Handbook of Law Women and Employment: Policies,
Issues, Legislations and Case Laws (New Delhi: Oxford University Press) 2009
Edition p.231.
283

provisions of safety, health and welfare for the women employees are
discussed as follows:

6.12.2.1 Prohibition of Women in Night Work

The Factories Act 1948 stipulates that no women shall be


required or allowed to work in any factory except between 6.00 am to
7.00 pm.175 Similarly in Mines Act, 1952; Beedi and Cigar
(Conditions of Employment) Act, 1966; and Inter State Migrant
Workmen (Regulation of Employment and Conditions of Service)
Central Rules, 1980 also contain provision for prohibition of women
to work during night hours.176

6.12.2.2 Prohibition of Employment of Women Near Cotton


Openers

The Factories Act, 1948 prohibits the employment of


women in any part of factory for pressing cotton in which a cotton
opener is at work. However if faced end of a cotton opener is in a
room separated from the delivery end by a partition extending to the
roof or to such height as the inspector may in any particular case
may specify in writing, women may be employed on the side of the
partition where the faced end is situated.177

175 Section 66 (1)(b) of Factories Act, 1948.


176 Section 25 of The Mines Act, 1952; Section 46(1)(b) of Beedi and Cigar
(Conditions of Employment) Act, 1966; Rule 11(2)(ix) of Inter State Migrant
Workmen (Regulation of Employment and Conditions of Service) Central Rules,
1980.
177 Section 27 of the Factories Act, 1948: No women or child shall be employed in
any part of a factory for pressing cotton in which a cotton opener is at work.
284

6.12.2.3 Prohibition of Employment of Women in Dangerous


Operations

The Factories Act, 1948, authorizes the State Government to


prohibit employment of women in dangerous operations where it is of
the opinion that any manufacturing process of operation carried on
in any factory exposes any person(s) employed in it to a serious risk
of bodily injury, poisoning, or disease. It may make rules applicable
to any factory or class or description of factories in which
manufacturing process or operation is carried on specifying the
manufacturing process or operation and declaring it to be dangerous
and prohibiting or restricting the employment of women in the
manufacturing process or operation.178

6.12.2.4 Prohibition of Employment of Women in Mines

Mines are of two types, surface and underground. Every


underground mine also, has some aspects of the work which is
carried out on the surface. When the ore is taken out from the deep
mines it is to be loaded on trucks or wagons etc. Women are
employed in this loading operation. Women also do the same type of
work in open quarries. Sometimes they are employed for breaking
stones.179

The Mines Act, 1952 also, authorises the Central


Government to make regulations for prohibiting, restricting, or
regulating the employment of women in mines or in any class of
mines or in particular kinds of labour which are attended by danger

178 Supra note 175, at Section 87.


179 Jetli, Supra note 124, at 74.
285

to the life, safety or health of such persons and for limiting the
weight of any single load that may be carried by any such person.180

6.12.2.5 Hours of Work

According Factories Act, 1948181, the maximum permissible


hours of work for men and women are 48 per week. The Mines Act,
1952,182 further spells out that the daily hours of work of adult
workers should not exceed nine hours above ground, and also Beedi
and Cigar Workers (Conditions of Employment) Act, 1966, stipulates
that no employee shall be required or allowed to work in any
industrial premises for more than nine hours in any day or for more
than 48 hours in any week.183

Similarly, the Building and other Construction Workers’


(Regulation of Employment and Conditions of Service) Central Rules,
1998, provides that no building worker employed in building or other
construction work shall be required or allowed to work for more than
nine hours a day or 48 hours a week.184 However, as per the
Plantations Labour Act, 1951185, the maximum permissible hours of
work in a week for men and women are 45 hours in plantations.

Long hours of work in unorganised sector such as brick-


kilns, fireworks, leather manufacture, handloom industries etc., have
been highlighted by numerous studies.186

180 Section 57(j) of the Mines Act, 1952.


181 Section 51 of the Factories Act, 1948) and Section 30(1) of the Mines Act, 1952.
182 Supra note 180, at Section 30(1).
183 Section 17 Beedi and Cigar Workers (Conditions of Employment) Act, 1966.
184 Rule 234 of the Building and other Construction Workers’ (Regulation of
Employment and Conditions of Service) Central Rules, 1998.
185 Supra note 130, at Section 19(1).
186 Supra note 9, at 36.
286

6.12.2.6 Restriction on Heavy Loads

In the Factories Act, 1948 as well as the Mines Act, 1952,


authorise the appropriate government to fix the maximum load that
may be lifted by women workers to safeguard against the dangers
arising from lifting the heavy loads. While fixing the maximum loads
to be lifted by women employees, the appropriate government takes
their physique into account.

The Factories Act, 1948, stipulates that no person shall be


employed in any factory to lift, carry, or make any load so heavy as
to likely to cause injury.187 In this context, the state governments
may make rules prescribing the maximum weights which may be
lifted, carried, or moved by adult men, adult women, adolescents,
and children employed in factories or in any class or description of
factories in carrying out any specified process.

The Building and Other Construction Workers’ (Regulation


of Employment and Conditions of Service) Central Rules, 1998, lays
down that an employer shall ensure at a construction site of a
building or other construction work that no building worker lifts by
hand or carries overhead or over his back or shoulders any material,
article, tool, or appliances exceeding in weight the maximum limits
set out in the Central Rules.

In fish processing units in export zones, a study found that


lifting and carrying of 200 kg. or even 450 kg. rubs packed fish and
ice on wet and slippery floors often lead to falls, injuries, strained

187 Supra note 175, at Section 55(1).


287

muscles and slip discs the study also documented health problems
relating to uterus.188

6.12.2.7 Health and Welfare Provisions

Women face work environment problems like lack of toilets


and water which causes various reproductive health problems. As
basic hygiene is not available, women often get reproductive tract
infection and urinary tract infections.189

Separate Provision for Washing Facility

The Factories Act, 1948, stipulates that every factory shall


provide adequate and suitable facilities for washing purposes of the
workers. It must be separate for male and female workers190 and
such facilities shall be conveniently placed. Further, the state
government is empowered to prescribe standards of adequate and
suitable facilities for washing.191

Similarly, the Contract Labour (Regulation and Abolition)


Central Rules, 1971, enshrines that separate and adequate washing
facilities shall be provided for the use of male and female workers.
Such facilities shall be conveniently accessible and kept in clean and
hygienic condition.192

With regard to separate washing facilities, the same rules


also apply in case of migrant women workers covered under the

188 Supra note 9, at 34.


189 World Health Organisation, National Profile on Women, Health and
Development (New Delhi) (2000) p.214.
190 Supra note 175, at Section 42(1)(b) and Section 42(1)(c).
191 Supra note 175, at Section 42(2).
192 Rule 57 of the Contract Labour (Regulation and Abolition) Central Rules, 1971.
288

Inter-State Migrant Workmen (Regulation of Employment and


Conditions of Service) Central Rules, 1980.193

As far as Mines Act, 1952 is concerned, it empowers the


Central Government to make rules requiring employers to maintain
at or near the pit heads bathing places equipped with shower baths
and locker rooms separately for men and women.

Provision for Separate Toilet Facilities

Under the Factories Act, 1948, there is an obligation upon


the employer to maintain an adequate number of latrines and
urinals separately for men and women in the factory. These facilities
are to be conveniently situated and accessible to workers at all times
while they are in the factory. Every latrine is required to be under
cover and partitioned off so as to secure privacy and have a proper
door and fastenings.194 Sweepers are required to be employed to keep
latrines, urinals, and washing places clean. The standard of
construction of the latrine accommodation to be provided for men
and women employees is constrained in the rules framed by the
concerned state government.195 Apart from the Factories Act, the
Plantations Labour Act, 1951196, the Mines Act, 1952197, the Beedi
and Cigar Workers (Conditions of Employment) Act, 1966198, the
Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Central Rules, 1980199, and the Building and
other Construction Workers’ (Regulation of Employment and

193 Rule 43 of the Inter-State Migrant Workmen (Regulation of Employment and


Conditions of Service) Central Rules, 1980.
194 Supra note 175, at Section 19.
195 Ibid.
196 Supra note 130, at Section 9.
197 Supra note 180, at Section 20.
198 Supra note 69, at Section 12(1).
199 Supra note 193, at Rule 42.
289

Conditions of Service) Rules, 1998200, also contain a provision for


separate latrines and urinals for women; more or less on the same
pattern of the Factories Act, 1948.

The Contract Labour (Regulation and Abolition) Central


Rules, 1971, lays down that there shall be at least one latrine for
every twenty-five females, provided that where the number of males
or females exceeds one hundred it shall be sufficient if there is one
latrine for every twenty-five males or females, as the case may be, up
to the first one hundred, and one for every fifty thereafter.201

It is significant to note that the Contract Labour (Regulation


and Abolition) Central Rules, 1971202, Inter-State Migrant
(Regulation of Employment and Conditions of Service) Central Rules,
1980, and the Building and other Construction Workers’ (Regulation
of Employment and Conditions of Service) Rules, 1998203, ordain
that where both male and female workers are employed, there shall
be displayed outside the latrines and urinals a notice containing
therein ‘For Men Only’ or ‘For Women Only’ written in the language
understood by the majority of such workers. Such notice shall also
bear the figure of a man or a woman, as the case may be.

Under the Factories Act the floors, portion of walls and


blocks so laid or finished and the sanitary pans or latrines and
urinals shall thoroughly washed and cleaned atleast once in seven
days with suitable detergents or disinfectants or both of the Factories
Act, 1948.204

200 Supra note 184, at Rule 243.


201 Supra note 192, at Rule 51.
202 Ibid., at Rule 53
203 Supra note 184, at Rule 243.
204 Supra note 175, at Section 19(2)(c).
290

In all India study and many state level studies have noted
that there is lack of separate toilets for women.205 Studies have
repeatedly shown that even in industries employing large number of
women workers there was no separate toilets and washing facilities
for them.206

Rest Rooms

The Contract Labour (Regulation and Abolition) Central


Rules 1971, the Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Central Rules 1980,
prescribed provision for separate rest rooms for women employees
whereas in the case of Factories Act, 1948, the Plantations Labour
Act, 1951 and the Mines Act, 1952 do not contain the provisions for
separate rest rooms.

The resting place provided to some workers in construction


industry, stone quarrying and generally for any migrant workers are
of low standard and it could be safely held that no such facilities
were provided in these industries as well.207

Creches

The legislations such as Factories act, 1948, Plantations


Labour Act, 1951 and Contract Labour (Regulation and Abolition)
Central Rules 1971, make it mandatory to have creches for the
children of women employees, by specifying the minimum number of
women in the establishment for providing a creche by the employers.
But, in mines creches are obligatory even for a single woman.

205 Supra note 9, at 35.


206 Ibid., at 36.
207 Ibid., at 34-35.
291

The study conducted by National Commission for


Enterprises in the Unorganised Sector found that no creche facilities
are available to women workers, particularly in construction sector.
The construction sector involves a large number of women workers
and a number of them are young mothers with infant children. One
of the consequences of not having adequate facility were that the
children were often engaged in helping the workers and overtime
where inducted in the work force.208

6.13 PROVISIONS RELATING TO MATERNITY PROTECTION

The Maternity Benefit Act, 1961 aims at regulation of


employment of women employees in certain establishments for
certain periods before and after child birth and provision of
maternity and certain other benefits and facilities to the women
employees.

6.13.1 Scope and Coverage

The Act extends to the whole of India which applies to the


following establishments:

It is applicable to every establishment being a factory


within the meaning of Section 2 (m) of the Factories Act,
mine or plantation including any government
establishment.209

To every establishment which employs persons for


exhibition of equestrian, acrobatic and other
performances.

208 Ibid., at 35.


209 Section 2(1)(a) of the Maternity Benefit Act, 1961.
292

To every shop or establishment wherein ten or more


persons are employed or where employed on any day of
the preceding 12 months.210

6.13.2 Qualifying Conditions

Every women employee whether employed directly or


through a contractor, who has actually worked in establishment for a
period of atleast 80 days during the 12 months preceding the date of
her expected delivery is entitled to receive maternity benefit.

6.13.3 Benefits

The Maternity Benefit Act, 1961 has been enacted to provide


the following benefits:

The Act prohibits any woman employee from working in


an establishment during the six weeks after her delivery
or miscarriage.211

The maternity benefit to which every women shall be


entitled to and her employer shall be liable for, is a
payment to a worker at the rate of average daily wages
for the period of her actual absence immediately
preceding and including the day of her delivery and for
six weeks immediately following that day.212

A woman shall be entitled to the maternity benefit for a


maximum period of 12 weeks of which not more than six
weeks shall precede a date of her expected delivery.213

210 Ibid., at Section 2 (1)(b).


211 Ibid., at Section 4.
212 Ibid., at Section 5(1).
213 Ibid., at Section 5(3).
293

In case of death of a woman employee, the employer


shall pay the amount of maternity benefit to her nominee
or legal representative as the case may be.214

Every woman is entitled to maternity benefit shall also


be entitled to receive medical bonus of Rs.3,500, if no
prenatal confinement and post natal care is provided by
the employer free of charge.215

In case of miscarriage or medical termination of


pregnancy a woman shall on production of the
prescribed proof, be entitled to leave with wages at the
rate of maternity benefit for a period of 6 weeks
immediately following the day of her miscarriage or
medical termination of pregnancy.216

In case of Tubectomy operation a woman shall be


entitled to leave with wages at the rate of maternity
benefit for a period of two weeks immediately following
the day of operation.217

Leave for a maximum period of one month with wages at


the rate of maternity benefit are allowable in case of
illness arising out of pregnancy, delivery, premature
birth of child, miscarriage or medical termination of
pregnancy or tubectomy operation.218

Where an employee returns to work after delivery of a


child she has a right to have two breaks per day for
nursing until the child attains the age of 15 months.219

214 Ibid., at Section 7.


215 Ibid., at Section 8.
216 Ibid., at Section 9.
217 Ibid., at Section 9 A.
218 Ibid., at Section10.
219 Ibid., at Section 11.
294

The employer should not make any deduction from the


normal and usual daily wages of a woman entitled to
maternity benefit, nearly due to the light nature of work

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assigned to her or for the nursing breaks allowed to
her.220

6.13.4 Administration

It is administered by the factory inspectorates of State


Governments for factories, by the Coal Mines Welfare Officer for coal
mines and by Director- General Mines Safety for other mines.

From the above discussion, it is concluded that the


constitutional guarantees have not made women really equal to men.
Women workers in the unorganised sector in different occupations
such as agriculture, beedi rolling, construction etc., in substantially
large numbers, but paid less than men for the same or similar work.
Legislations which are providing health and welfare measures,
maternity benefits etc., are not implemented effectively because
women employees do not get the stipulated benefits and facilities to
their desired extent. This is a sign of vulnerability and exploitation.
Despite all these labour laws, a majority of women employees lack
proper education and ignorance of statutory provisions, which is the
thrust area affecting the development and welfare of women
employees. Hence, appropriate efforts should be taken to make
women employees conscious about their rights for improvement in
socio economic conditions.

220 Ibid., at Section 13.


295

CHAPTER 7

CONCLUSION AND SUGGESTIONS

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The aim of labour legislation is to protect labourers with a
view to provide humane treatment, welfare, well being and security
to make the work force more efficient and productive. This in turn
also, protects the interest of industry to have industrial peace.
Human development insists that everyone should enjoy a minimum
level of security. Moreover, it is the responsibility of the State to
protect its citizen from various contingencies like employment injury,
sickness, death, unemployment, maternity etc., in their work life by
assuring better standard living to workers. Thus the object of social
security is to provide a safety mechanism against stoppage or
substantial reduction of earnings resulting from sickness, maternity,
employment injury, occupational diseases, old age etc.

Social security should also extend to cover safe drinking


water, sanitation, health and educational facilities for society at
large. Apart from that, in the context of promotional aspects, it
should also ensure living wage to guarantee the workers for dignified
life.

The unorganised sector occupied a significant position in


Indian economy. It is also a major provider of urban jobs. According
to the National Sample Survey Organisation (2009-10), the total
employment in both organised and unorganised sectors in the
country was 46.5 crore. Out of this, about 43.7 crore wherein the
unorganised sector. It is clear that a large number of unorganised
workers are home based and are engaged in occupations like beedi
rolling, handloom weaving etc. It is clear that workers in the informal
296

economy are overwhelming proportion of the work force. But, most of


these workers suffer from various forms of insecurities relating to
job, income or inability to secure social security. Hence, there is
deprivation of social security measures as these measures are not
reaching the eligible beneficiaries in an adequate level which is not at
all acceptable.

The Central Government enacted several social security laws


to protect the interests of workers both in organised and unorganised
sectors. Apart from this, statutory welfare funds such as Beedi
Workers Welfare Fund Act, 1976; Lime Stone and the Dolomite
Mines Workers Welfare Fund Act, 1976 etc., have been enacted to
make apply to the special categories of workers in the unorganised
sector with a view to provide housing, medical, recreational,
educational, family welfare and other welfare facilities.

Recently, the Unorganised Workers’ Social Security Act,


2008, has been passed to safeguard the interests of unorganised
workers by providing a minimum level of social protection that would
enable them to endure income and health related shocks resulting in
dignified lives. The National Board which was constituted in 2009
under this Act has recommended social security schemes such as
Rashtriya Swasthiya Bima Yojana providing health insurance, Jana
Shree Bima Yojana providing death and disability insurance etc. In
addition to the Central Government’s programmes and schemes for
social security, State Governments have also launched social
security programmes. Despite these efforts, the unorganised sector
could be equated with the unprotected segment of the labour market.

The significant feature of unorganised sector is that it


cannot be identified by a definition but it could be described because
this sector is not homogenous as it includes the diversity of
297

employment. They are much scattered and fragmented in terms of


occupation like agricultural labour, domestic workers, construction
workers, beedi workers, plantation workers etc. This is a hurdle for
them to get unionised or strongly organised as they have
concentrated a small number of activity groups.

For instance, the condition of agricultural labour are widely


scattered due to fragmentation and sub division. They work in ones
and twos and not in groups as in the case of workers in industry. So
there is no room for communication of grievances as such no chance
of experiencing the advantage of organisation effectively.

As per the Annual Report of Ministry of Labour and


Employment 2014-15, a large number of establishments in the
unorganised sector remain outside any labour regulation with its
limited applicability of social security measures coupled with the
growing informalisation and contractualisation of the work process
there by deepening of dual labour market leaving an immense
majority of working class unprotected.

As per the Report of the Committee on Unorganised Sector


Statistics (2012), unorganised sector is replete with diverse concepts
and lack uniformity of definitions which is a basic requirement for
building a sound system of statistics that would ensure a reliability
and credibility, otherwise it will lead to its neglect in development
planning.

Since this research has analysed the conditions of


unorganised sector in Chapter 4 by focusing labour legislations
which are applicable as well as extendable to unorganised workers,
an attempt has been made in this chapter to explore the effectiveness
of implementation of labour legislations relating to important aspects
298

of working conditions including health and safety, welfare and social


security otherwise the benefits of social security would not have been
completed as they deprived of proper living and working conditions.
Therefore, insecurity and vulnerability of workers in unorganised
sectors are addressed and examined under the following angles:

Mode of Recruitment

The labour bureau surveys show that a large part of the


unorganised employment in the industries such as textiles,
garments, power looms is obtained at the factory gate. There is a
total absence of any form of formal publicity of employment, like
newspaper advertisements or posters in public places announcing
job vacancies. In the case of migrant labourers, the employers do not
follow the procedure of recruitment as laid down in Inter-state
Migrant Workmen Act, 1979. There is no uniform pattern of
recruitment in sectors such as sugarcane cutting, fish processing
units, brick-kilns, construction sectors etc.

According to the Report of National Commission for


Enterprises in the Unorganised Sector (2009) poor migrant workers
are extremely vulnerable and often resort to employment through
exploitative contractors. In the rural agricultural sectors,
employment is mainly through intermediaries or middle men who
recruit at entry points such as railway stations and bus stands,
many of these intermediaries did not possess license as required
under the Act.

Uncertainty of Employment and Irregularity of Wage Payment

According to the Report on Employment-Unemployment


Survey (2013-14), more than 90% of work force are in informal
economy, in which 50% of the national product are accounted. But
299

the wage workers in the unorganised sector are deprived a lot. Apart
from this, the Report of National Commission for Enterprises in
Unorganised Sector had given empirical evidence that lack of
employment opportunities lead to migration as a strategic for
survival. This report also has shown that particularly in the
employment days for agricultural wage labourers is characterised by
a great degree of uncertainty due to seasonality of manual operations
such as sowing, weeding, harvesting etc., in crop cultivation.

The Annual Report on the working of Minimum Wages Act,


1948 for the year 2013 also observed that there are irregularities in
the payment of minimum wages as per the Minimum Wages Act. The
detailed surveys conducted by the Labour Bureau in the different
employments of unorganised sector revealed that there is
uncertainty, irregularity, and inability to secure even minimum
wages for the wage employed. It is also observed by National
Commission for Enterprises in Unorganised Sector that the wages in
the unorganised sector are arbitrarily fixed often without regard to
the minimum wage legislation resulting in a large proportion of
unorganised workers remain outside the protection of the Minimum
Wages Act, 1948 especially, in construction sector and brick-kiln
industry. From the above, it is clear that there is income insecurity
and vulnerability of workers in the informal sector.

Employment Status of Employed Persons in Different Sectors

The Report on Employment-Unemployment Survey (2013-


14), it is estimated that most of the casual workers do not have any
written job contract which implies more informality among them and
they are tend to be least protected having the lowest levels of
earning. Similarly, the contract workers have reported to work
without any written job contract with their employers. According to
300

the Report of National Commission for Enterprises in Unorganised


Sector (2007) a major drawback of the contract labour system is that
the working conditions are poor as they do not receive wages in full
measure from neither the contractor nor the principal employer
takes responsibility to provide atleast minimum employment
protection and social security benefits. According to the Annual
Report to the People on Employment (2011) these workers are
millions in numbers and are engaged primarily in agricultural
operations, plantations and construction industry.

Long Hours of Work

The Report of National Commission for Enterprises in


Unorganised Sector (2007) and Report of National Commission for
Women (2005) have also highlighted long hours of work in the
unorganised sector contrary to the regulatory norms of work. Long
hours of work seem to be a common practice in India. For instance,
in handloom sectors, work is organised in such a manner that wages
are based on 12-15 hours in a working day. Similar situation also
identified by labour bureau in fireworks at Sivakasi where workers
normally start work at 6 am and continue till late evening. Workers
in match making, brass ware, glass bangle manufacture and so on,
start their work very early in the morning and the work day end up
very late in the evening. Apart from that, casual leave, earned leave
and sick leave for workers in unorganised sector are not provided by
the employers. The sixty first round of the National Sample Survey
Organisation observed that it is the feature of unorganised sector
that work goes on for 7 days a week. Despite the labour regulations
providing for one day off from work per week with wages in some
cases like workers in construction sector as well as in beedi sectors
are given a day off from work without wages.
301

Physical Environment at Work Place

The important components of the physical environment at


work place are very essential for occupational safety as well as
prevention of health hazards. In unorganised sector the physical
conditions at workplace involves space and height of work place,
ventilation, illumination, temperature, humidity, hygiene and
cleanliness. In a number of studies conducted by National
Commission for Unorganised Sector especially in leather tanning
industries, beedi rolling and textile including handlooms, workers
are exposed to pathetic working conditions. In various surveys
conducted by Labour Bureau have shown that a large number of
workers were cramped in tiny room which makes the work place hot,
humid and stifling. It has been pointed out that in most of the
leather industries standard of cleanliness, ventilation and lighting
arrangements in the units are not satisfactory. Moreover, due to
inappropriate ventilation during hot summers, industries like match
works and fireworks used to shift the work to late evenings and
nights itself an evidence that there is no proper ventilation in
industries and hence exposed to fumes and chemicals resulting in
health hazards. Studies in leather tanning industries have found
that workers without footwear worked for long hours with their bare
feet soaked in chemicals, animal waste and decomposing offal.

Proper illumination is necessary not only to protect the


workers eye but also for ensuring safety of the workers in cases
where production process involves intricate operations that are
performed manually by the workers using hand tools and also to
enhance the quality of the productive process. In the unorganised
sector, when a large part of work is done on piece rates, often the
workers end up paying penalty for mistakes, errors and bad quality
302

of work leading to double punishment due to inadequate


illumination.

It is also evident from the report of occupational safety and


health for Twelfth Five Year Plan (August 2011), that there are
number of violations relating to safety provisions under the Factories
Act, which are predominantly related to the provision of medical
facilities such as first aid boxes, essential life saving aid, ambulance
room, van, stretcher etc.

Precarious Housing and Sanitation Conditions

The labour bureau surveys in several industries like


building constructions, roads, highways and bridge constructions
and also mining workers are provided with the temporary residential
sheds which lack even minimum facilities. It is also common for the
migrant workers in single to sleep at the place of work where work
tools and unfinished products are pushed to a side to make space for
the workers to sleep in the workshops. Industries employing large
number of women workers, there was no separate toilets and
washing facilities in the unorganised sector.

Migrant Workers

In India there are large scale migrations of unskilled wage


labourers and hence there is a need special attention because they
face instability in employment. From the various studies conducted
by the Ministry of Labour and Employment it was observed that
migrant workers are extremely poor and they face adverse conditions
such as longer working hours, low wages and inadequate access to
basic amenities. Migrant workers receive lower wages and therefore
they were being preferred by the employers when compared to their
local counterparts, both in agricultural and non agricultural sectors.
303

In agricultural sector, they are predominantly found in sugarcane


cutting whereas in the case of non agricultural sector they are widely
prevalent in construction works, brick-kiln works, domestic works,
fish processing units and also in tobacco-processing units.

National Commission on Rural Labour in its various studies


reported that lack of employment opportunities for less educated
lead to migration as a strategy for survival. The problem of migration
has to be solved by having a multi dimensional approach towards
employment generations, increasing literacy level, removal of regional
disparities and rural development.

In addition to that, statutory minimum wage rate guidelines


are rarely observed. There are irregularities in the payment of wages
there by violating the Payment of Wages Act. Working and living
conditions increase the health hazards as the workers in
construction sector, brick-kilns, domestic servants are expected to be
available for work round the clock.

From the above analysis, it is clear that migrant workers are


not assured with adequate working and living conditions. The
National Commission for Enterprises in Unorganised has rightly
pointed out that the living conditions increased health hazards of
migrant workers making them more susceptible to disease and
infection because of the unhygienic living conditions.

The incidences of bonded labour is also found to be


relatively high among migrant labour in new forms in which the
system involves the repayment of loan through labour. But the wages
are meagre so that the labour remains in perpetual bondage. In view
of overwhelming evidence revealed by number of studies and surveys
conducted by Ministry of Labour and Employment, the bonded
304

labourers are from the lowest segment of migrant labourers and child
labourers.

Child Labour

As per the National Sample Survey Organisation (2009-10),


the working children are estimated at 49.84 lakh. From the
empirical evidence arising out of various studies and surveys on
working conditions of children, it is observed that child workers
worked as much as and as long as adult workers of the adult age
which was itself very low. It was observed that within the
unorganised sector, child workers are the worst affected as they
faced inhuman and even dangerous working conditions. Studies by
V.V.Giri National Labour Institute (2000) reported that child workers
work more than 8 hours a day. In the case of girl child, the
characteristics of their work participation and engagement in
domestic duties reflect those of the adult women. From this, it is
evident that the banning of child labour through legislation has not
provided to be effective as poverty and illiteracy are the root causes
of child labour and a multi-pronged strategy is needed to tackle the
problem.

Occupational Safety and Health Hazards

The Report of Occupational Safety and Health (2011) noted


that Occupational safety and health hazards cover for the
unorganised sector can be said as nonexistent. Some of the studies
conducted by National Institute of Occupational Health 2004
reported the existence of many occupational diseases to workers
relating to various segments of economic activity such as slate
pencil, stone quarries and potteries. It is evident that agricultural
sector is the most hazardous occupation. Further, it is evident from
305

the publication of ILO documents that agricultural sector is the most


hazardous occupation. The All India coordinated research project on
human engineering and safety in agriculture (1995-1999) revealed
that accidents were more in agricultural sectors due to tractors and
tractor implements, threshers, sprayers, sugarcane crushers and
chaff cutters. Since the occupational safety and health services are
out of reach of this group their vulnerability is further accelerated.
Further, the agricultural workers also suffer from certain specific
health hazards due to extensive use of fertilizers, insecticides and
pesticides and mechanisation. According to the report of National
Commission for Women (2005), it is observed that due to the use of
agro-chemicals women are exposed to several health hazards such as
gynaecological infections, arthritis, intestinal and parasitic
infections. Construction works are also one of the most vulnerable
segments in the country who are exposed to variety of serious
occupational safety and health hazards.

Problems faced by Women Workers

This research also made a study regarding the living and


working conditions of women workers with a view to make an
attempt to discuss the various problems of working women. Based
on the reports of National Commission for Enterprises in
Unorganised Sector, Annual Report of Labour 2014-15, Surveys
conducted by Labour Bureaus on Socio-economic conditions of
women in different occupations, National Commission for Women,
report of Ministry of Women and Child Development, etc., an attempt
has been made to analyse the problems faced by the women workers
and assess the role of law and effectiveness in its implementation to
ensure the well being of women employees which is a serious
objective of socio-economic development. Hence, it is imperative to
306

focus issues connected to working and living conditions along with


gender problems of women workers in unorganised sector are
discussed as follows:

Double Burden of Work

Women have to bear dual responsibilities both at home and


work place. The reproductive role of women is less visible and less
recognised by the society. According to the Report of National
commission for Enterprises in the Unorganised Sector (2007), women
spent nearly 35 hours a week in care of children, old and the sick
at home and household maintenance. The Central Statistical
Organisation of the government of India classifies the activities based
on the system of National Accounts into 3 categories:

(i) Those coming under economic activities that are


included in the System of National Accounts;

(ii) Those that are not currently included in the System of


National Accounts but are characterised as extended
System of National Accounts;

(iii) Non-System of National Accounts consisting of the social


and cultural activities, leisure and personal care.

From above categories it is clear that, women spent a


disproportionate of time as extended System of National Accounts,
on the other hand, men spend much greater time in System of
National Accounts activities. For instance women undertake
activities like fetching water maintenance and care for children, old
and sick in the household which are included in the count of
extended System of National Accounts activities. This implies that
307

there is absence of recognition of the kind of work in spite of the


stress from the double burden of work. The economic condition
forces many women to be available for additional work to augment
family income.

Non-Conventional Place of Work

The large number of women work as home based workers


due to the fact they have restricted mobility and gives the
opportunity to combine work with domestic chores, flexible and no
other readily available alternate employment and child care
responsibilities. Most of the statistical agencies are unable to
capture the complete picture of home based workers as there is no
designated place of work which adds to problem of invisibility. These
are the one of the most exploited groups in the work force associated
with beedi making, handloom weaving, food processing etc. There is
lack of a clear cut employer-employee relationship as workers
engaged in enterprises on a casual basis tend to change employers
frequently.

It is relatively easy for the employer not to recognise the


workers or to deny them any additional benefits. Available studies
show that the home workers are paid piece-rate wage for the work
delivered. Contractors fix the minimum piece-rate wage, which is
often lower than the minimum wage. Apart from that, studies also
show that there are cases of delayed payments and arbitrary cuts in
wages on the rejection of poor quality which is actually not.

As women convert the residence place as working place they


are exposed to serious occupational hazards. The Labour Bureau
Surveys, National Institute of Occupational Health and Field Survey
with regard to beedi rollers, revealed that continuous contact of beedi
308

women workers with tobacco and the inhalation of tobacco dust


resulted in respiratory problems, gynaecological problems and eye
problems etc. Since the work site is their home, the working and
living conditions are unhygienic due to the fact that, there is no
proper lighting and ventilation sitting on the floor with no provision
of working desks and stools.

Home workers in weaving also face problems of seasonality


with peak and lean seasons where both hours of work and earnings
varied substantially and even with no work. Due to lack of
recognition or lack of a designated business place increase their
vulnerability by subjecting them to unfair working conditions such
as insecurity of work, receiving low income, long working hours in
addition to the health hazards. Further, they use their girl children
as part of the family labour force by affecting inter-generational
occupational mobility. Apart from that, the disbursed nature of work
place makes the workers to face constrains in organising and
accessing themselves adding to their invisibility resulting in
deprivation of improved terms and conditions of their contract.

Gender Discrimination

A number of National and International studies have


documented that there is a strong division of labour between men
and women which represents a form of discrimination where large
segments of the labour force are in essence restricted from entering
many occupations. But the sexual division of labour is justified on
the ground of dubbing women’s work as low skilled. It is evident in
agricultural sector where women are widely concentrated as low
skilled and are placed at the bottom of the occupational ladder. This
segregation invariably corresponds to lower earnings and poor
working conditions for women.
309

The existence of patriarchy at all levels also intervenes with


work related problems of women. According to the notification
issued by ministry of Labour on November 11, 1999, all the
agricultural operations where women predominate in activities such
as sowing, transplanting, weeding and harvesting have minimum
wages fixed in the unskilled category. Ploughing has a minimum
wage fixed in semi skilled category as it is predominantly a male
operation. The use of tractor or operation of a tube well has a
minimum wage fixed higher as it is categorised as a skilled activity
which is also predominantly a male operation. Weeding is a back
breaking work and the expenditure of energy by women definitely
may be higher than that of men. Since minimum wages are fixed
according to the use of technology which categorise the activity as
semi skilled or skilled which works against the interest of women.

In the building and the construction sector, women are


engaged only in unskilled occupations as per the Second Annual
Report to the People on Employment 2011. They are engaged in the
activities to prepare mortar, to carry the bricks, mortar and water to
the place where the mason is at work. Even in brick-kilns also no
women workers were reported to be employed in skilled jobs like
firing the raw bricks and transporting them to the markets. Women
were found working in operations incidental to moulding bricks,
carrying raw bricks to the trench and unloading the finished bricks
and carry them to the storing yard and thus mainly work as helpers
to the moulders.

Even in the match industry also women workers are


engaged in manual works like match box filling or packing, printing
and labelling of match boxes.
310

Further, discriminatory practices in the unorganised sector


are very much reflected in the wages of women workers. Since high
share of female workers are concentrated in the unskilled category,
there is significant wage differentials and almost no prospects of
vertical mobility. They are not only concentrated in low paid
occupations in the unorganised sectors, but are subjected to
discrimination in payment. Hence, there is gender disparity in wages
which is more evident in agricultural sector, construction sector,
match industry etc. which were detailed discussed in Chapter 6.

Maternity Benefits

The Employees’ State Insurance Act and the Maternity


Benefit Act provide maternity protection for women workers are more
or less restricted to the organised sector. These Acts do not apply to
women workers who represent the majority of women employees
engaged in agriculture home based industries etc. In plantations,
women workers employed in small estates do not have access to
maternity benefit. In the case of agricultural labour, they do not have
maternity leave and proper rest after child birth. This is mainly due
to seasonal nature of agricultural work where they do not get
employment during the slack season resulting in casualisation of
work force leading to migration. The States that reported higher
women migration for economic reasons are Tamil Nadu, Andhra
Pradesh, Gujarat, Karnataka, Kerala and Maharashtra. Women
workers move along with the family. They face exploitation in terms
of adverse working conditions and non payment of maternity benefits
has further worsened these situations.

Even after the half of the century of Independence, one of


the most frequent causes of death among women is maternal
mortality. Among poor women, with a additional burden of economic
311

activity in the informal sector where the conditions of work are


strenuous, the chances of maternal mortality would be higher,
particularly if proper health facilities are not obtained. Moreover,
during the advanced period of maternity and immediately after the
child birth, when they are not able to work, there would be loss of
income and also reduction in incomes and savings where there is no
provision for medical care in cases of maternity needs. Hence, denial
of maternity protection to pregnant women employees is clearly a
discrimination against them. It is also evident that the enforcement
machinery is not effective enough to implement the provisions of the
maternity benefits. According to the Report of National Commission
for Enterprises in Unorganised Sector, it was noted that the
provision of paid maternity leave seems to be very rare in
unorganised sector.

Welfare Facilities

There are legislations such as Factories Act, Plantations


Labour Act, Contractor Labour (Regulation and Abolition) Act, specify
the minimum number of women in the establishment for providing
creche facility by the employers except in mines where a creche is
obligatory even for a single women employee. In various studies
conducted by the labour bureau, it was found that there are no
facilities for creche. Surveys in construction industry have found
that creche facilities are not available on work sites. And also in all
India study and many state level studies have noted that there is
lack of separate toilet facilities for women. In the recent study
conducted by Labour Bureau (2012), it is observed that in the states
of Assam, Tripura and West Bengal the number of plantations
maintaining creches was less than the number of plantations
required to provide creche facilities. Studies have repeatedly shown
312

that even in industries employing large number of women workers


there was no separate toilet and wash facilities for them.

Domestic Workers

Domestic work is one of the most hidden forms of work and


hence, domestic workers are isolated in individualised situation in
other people’s home. According to the study conducted by
Bharathiya Mazdoor Sangh on working conditions of domestic
workers (2012), it has observed that domestic workers are
unregulated, invisible and undervalued. Hence, they suffer from low
wages, long hours of work, job insecurity, no benefits and no dignity
which requires immediate action. According to the National Sample
Survey Organisation on Employment-Unemployment (2011-12), it
was estimated that the number of domestic workers employed in the
country was 41.3 lakh in which 27.9 lakh were women. The Report
of the Taskforce on Domestic Workers (2011) observed that despite
its growing size and importance both for workers and families who
benefit from the labour, domestic work remains unregulated and
workers are unprotected by labour laws.

The Status of Social Security Measures for Informal Workers in


India

The data of National Sample Survey Organisation from


1999-2000, 2004-05 and 2009-10 shows that the percentage of
informal workers among paid workers in the non-agricultural sector
has steadily increased on the percentage of such workers with access
to social security has declined. From the above analysis, it is clear
that social security measures are critical for informal workers,
particularly for women workers to protect them from contingencies
and deprivation. For instance, in the case of the informal workers the
313

death of bread winner is not only a tragic event but a question of


survival for the family left behind due to the permanent loss of
income. Hence, an accident either during the course of work or
otherwise is a major crisis for the informal workers since it leads to
loss of income.

Similarly, there is a lack of old age security to informal


workers especially for agricultural labour, construction labour and
domestic workers. For the unorganised workers, under employment
and low productivity employment with the consequent risk of low
incomes and high levels of poverty is also the great source of
insecurity.

The National Rural Employment Guarantee Act, 2005 made


an attempt to provide employment guaranteeing atleast 100 days of
work. But, informal workers who are varied by nature and location
would continue to face the risk of loss of employment for a variety of
reasons.

Another risk faced by the unorganised workers is with


regard to health care services. A number of studies show that risks
and crisis situations due to low level of health security is endemic for
informal sector workers. A number of studies also identified that the
vulnerability of the poor informal workers increases when they have
to pay their full hand-earned money on expensive health care.

The Rashtriya Swasthiya Bima Yojana which was initiated in


2008, is a health insurance package that covers upto Rs.30000 for
inpatient related expenses for families that hold below poverty line
cards. But since this insurance covers the cost of hospitalisation, the
informal workers still have to invest money often to outpatient
314

treatments which include medical fees, cost of medicines and


diagnostic facilities.

The Government also has shown its concern and desire to


take steps to root out the vulnerability of informal workers by
passing the Unorganised Workers’ Social Security Act, 2008. This Act
also does not assure benefits to all workers as it applies only for
below poverty line workers and there is no universal coverage or
integrated implementation. Hence, it is a major challenge to extend
social security measures effectively to unorganised sector.

In the light of foregoing discussions, and the problems


related to social security concerning the promotion of livelihood
security of unorganised workers in general and also hazards and
issues of women’s right at work in particular are identified as follows:

There is lack of conceptual clarity and uniformity to


define unorganised sector or unorganised employment
as there has not been any uniform definition of the
sector reflecting its specific characteristics.

Wages in the unorganised sector are arbitrarily fixed


without regard to Minimum Wages Act, 1948.

Long hours seem to be a usual feature of unorganised


sectors in India which is contrary to regulatory norms.

Due to low income and uncertain employment in


unorganised sector workers are not able to meet the
basic necessities and the level of indebtedness among
them is very high.
315

There is absence of proper unionisation in the


unorganised sector, hence they lack bargaining power
which is due to non availability of regular jobs and also
disbursed nature of work place.

The study also identified that workers recruited through


contractors did not receive minimum employment
protections and benefits as they are exploited by the
contractors or principal employer.

The physical condition of work and occupational safety


are deplorable.

The study also identified child workers are the worst


exploited.

New form of bonded labour is also identified as the


wage payment of the worker is tied up with debt and
practically wages are never received by the workers.

The experience of implementation of labour legislations


designed specifically for unorganised sectors namely
Contract Labour (Regulation and abolition) Act, 1970;
Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979;
Beedi Workers Welfare Fund Act, 1976; and Building
and Other Construction Workers’ (Regulation of
Employment and Conditions of Service) Act, 1996 etc.,
show that there is inadequate and ineffective
implementation resulting in not ensuring atleast
minimum labour standards to workers.
316

Social security laws like Employees’ State Insurance


Act, Employees’ Provident Fund Act, Payment of
Gratuity Act and Maternity Benefit Act cover both
organised and unorganised sector, but, it is limited in
its coverage due to threshold limit of employment in
which the unorganised sector do not meet the eligibility
criteria and thus kept aside the purview of application
of these laws. In the case of Employees’ Compensation
Act, the categories of employees specified in Schedule II
restrict its applicability. Hence, there is an inadequate
coverage of social security laws to unorganised sector
workers.

The latest enactment the Unorganised Workers’ Social


Security Act, 2008 has number of defects. The Act does
not confer any defined right to social security for the
workers. Social security schemes are not incorporated
as part of the body of the Act but are provided in a
Schedule which could be changed at any point of time
by notification. There is no universal coverage or
integrated approach in implementation. It is like a
collection of schemes in a piece-meal approach of
leaving vast number of vulnerable workers as it covers
only below poverty line workers. The Social Security
Board established under the Act has advisory role and
are not effective as they do not have powers to
administrate and enforces schemes. Even in the
schemes provided under Schedule I of the Unorganised
Workers’ Social Security Act, there is overlapping, lack
of coordination and ambiguity in regulations.
317

In the case of home based workers there is lack of clear


cut employer-employee relationship due to lack of
designated place of work and it is easy for the workers
to deny the benefits resulting in increasing their
vulnerability.

Women workers are mostly employed in unskilled jobs.


Gender discrimination at the work place is reflected in
the nature of the work they perform and also in the
valuation of skills and technologies used by men and
women.

Women employees are engaged in poor quality jobs as


they do not get opportunities for acquiring the required
skills and training. It is also identified that one of the
important factors contributing to hurdle their
improvement in acquiring higher paid jobs is due to
lack of opportunities for acquiring the required skills
and training responding to the technological changes
and facilitate occupation shift to appropriate
employment status.

The existing laws providing maternity benefits for


women employees are restricted to the organised sector.
But, women employees in the unorganised sector who
represent the vast majority of the work force are not
provided with maternity protection and provisions of
paid maternity leave seems to be very rare in this
sector.
318

There is a significant disparity in wage payments


between male and female employees resulting in
violation of the Equal Remuneration Act, 1976.

The relevant statutory provisions of safety, health and


welfare for the women employees with regard to
protection of employment, restriction on carrying heavy
loads, separate toilet facilities and washing facilities
creche facilities etc., under the Factories Act, 1948;
Building and Other Construction Workers (Regulations
of Employment and Conditions of Service) Act, 1996;
Inter-State Migrant Workmen (Regulation of
Employment and Conditions of Service) Act, 1979;
Plantations Labour Act, 1951; Beedi and Cigar Workers
(Conditions of Employment) Act, 1966 are failed to
protect the legitimate interests of women employees due
to their poor implementation.

It is also identified that the condition of women migrant


workers are more adverse than their male counterparts.

It is also identified that domestic workers are excluded


from labour laws to deal with the issues such as
conditions of work, wages, social security, provident
fund, old age pensions and maternity leave. Thus,
women are forced to work in sub-human conditions
with no job security due to absence of legal protection.
They remain invisible and under reported both in the
labour market and in the society.
319

SUGGESTIONS

In the light of the above discussions, the following


suggestions have been submitted to have a strategy to create a
legislative and administrative frame work to provide as per the
requirement and without any additional burden on the government
to ensure not only to remove existing inefficiencies, gaps and
weakness but also to ensure basic minimum social security cover for
unorganised workers are as follows:

One of the important insecurities to any informal


worker is the risk of health insecurity and hence health
security is the prime security for the unorganised
worker as it has a detrimental effect on the earnings
and earning potential leading to vulnerability of the
poor informal workers. It is suggested that the poverty
alleviation programmes should make allowance for the
burden of treatment. Since health security should be
equally available and accessible to all citizens, it is also
suggested that a comprehensive health policy should be
framed by strengthening the public health care
infrastructure by designing under a comprehensive
insurance plan for hospitalisation.

In the unorganised sector, under-employment in the


form of irregularity of work is also a source of
insecurity. The Mahatma Gandhi National Rural
Employment Guarantee Act, 2005 attempts to provide
employment security by guaranteeing atleast 100 days
of work in the most backward districts. However, the
informal workers who are varied by nature and location
would continue to face the risk of loss of employment.
320

Hence, it is suggested that government should make


provision for unemployment allowance to informal
workers to alleviate poverty.

To have a better coverage of beneficiaries and for


ensuring effective implementation of social security
schemes under the Unorganised Workers’ Social
Security Act, 2008, it is suggested that while
formulating the schemes itself efforts should be taken
to design simple and efficient procedures. It is also
suggested to use advance technology to ensure quick
accessibility of the schemes with regard to delivery of
the programmes by the government agencies because
beneficiaries should not be discouraged due to
complicate procedures.

Women who form the majority in the informal sector are


victims of gender based discrimination, hence it is
suggested that women should be fully empowered with
proper education, skills and training. It is also further
suggested that government should promote more
vocational training programmes for advancement of
skills of women.

Maternity benefit is an another important social


security measure for protecting the dignity of
motherhood by providing healthy maintenance and well
being of mother and child to prevent maternal mortality
and morbidity. In this regard, it is suggested to enhance
the maternity leave from 12 weeks to 14 weeks as per
the stipulation of ILO along with medical expenses to
prevent the loss of income during maternity illness.
321

One of the sources of risks for informal workers is


insecurity with regard to old age. When an adult
informal worker himself faces insecurity of work and
income for their survival, there is no possibility to save
from their earnings to support their needs during the
old age. Hence, it is suggested that a proper adequate
institutional mechanism should be established for
taking care of the aged informal workers and it is also
further suggested that Indira Gandhi National Old Age
Pension Scheme should be extended to cover the
informal workers belonging to above poverty line
category also.

It is suggested that domestic workers should be


identified and registered by the state labour
department. With regard to payment of wages, it is
further suggested that domestic workforce should be
included in the central list of scheduled employments
under the Minimum Wages Act, 1948 for fixation and
revision of minimum wages in order to ensure
uniformity in payment of wages throughout India. Since
the domestic work sector is going rapidly in urban
areas and takes place in an un-conventional work
place, it is suggested to have separate law with
adequate regulatory mechanism to protect and promote
labour rights of domestic workers when all such rights
and protection are available to other categories of
workers.

There are too many laws for too few in the organised
sector and too few for too many in the unorganised
sector. Hence, it is suggested to have comprehensive
322

social security legislation for both organised and


unorganised workers in the country.

There are irregularities in the payment of minimum


wages and hence, it is suggested that apart from
strengthening the enforcement machinery, the
Minimum Wages Act may be amended to enhance the
penalty so that violation of provision under the Act is
made so expensive for the employers. A major defect in
the implementation of the Minimum Wages Act is in its
applicability only to scheduled employments and does
not include all workers, therefore it is suggested to
enlarge its scope and coverage under the Act.

There are frequent violations in the Contract Labour


(Regulation and Abolition) Act,1970; inter-state migrant
workmen (Regulation of Employment and Conditions of
Service) Act, 1979 etc., hence it is suggested that
appropriate amendments should be made to include
provisions for heavy compensation payable to the
employee so that violations should be made costly and
not economically profitable the employers.

The main constraints with regard to effective


implementation are due to the small size of enforcement
machinery for a large and disbursed work force. Hence,
it is suggested to have adequate labour machinery and
proper training should be given to improve their
efficiency in implementation and also adequate
sensitisation. Since, there is a pressing need for the
rights of women to be respected, protected and fulfilled
in the work place, it is further suggested that there
323

must be a provision for mandatory recruitment of


female labour officials to monitor the effective
implementation of the provisions relating to beneficial

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measures of women workers. It is suggested that there
must be a provision for mandatory presence of
adequate number of women inspectors in the premises
where women employees are employed so that they do
not feel reluctant to interact with them.

It is also suggested that there should be a single strong


national umbrella body to govern and coordinate
schemes that fall under the comprehensive social
security schemes.

Last but not least, women workers in the unorganised


sector are ignorant about their rights, benefits and
protection provided under labour legislations. Ignorance
of statutory provisions is one of the main causes that
had resulted in injustice to women. Since there is
demand for empowerment of workers in general and
women in particular, it is suggested that government,
trade unions, non voluntary organisations should
organise awareness programmes relating to health,
nutrition as well as sanitation and disseminate
information to workers about the rights and their
responsibilities. To prevent exploitation of workers, it is
also suggested that the trade unions should extend
their assistance with regard to access to legal aid in the
course of legal proceedings.
324

BIBLIOGRAPHY

I. PRIMARY SOURCES

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I.a STATUTES

1. Constitution of India.

2. Beedi and Cigar Workers (Conditions of Employment) Act,


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3. Bonded Labour System (Abolition) Act, 1976.

4. Building and Other Construction Workers’ (Regulation of


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5. Child Labour (Prohibition and Regulation) Act, 1986.

6. Contract Labour (Regulation and Aboliion) Act, 1970.

7. Employees’ Compensation Act, 1923.

8. Employees’ Provident Funds and Miscellaneous Provisions Act,


1952.

9. Employees’ State Insurance Act, 1948.

10. Equal Remuneration Act, 1976.

11. Factories Act, 1948.

12. Inter-State Migrant Workmen (Regulation of Employment and


Conditions of Service) Act, 1979.

13. Maternity Benefit Act, 1961.

14. Minimum Wages Act, 1948.

15. Payment of Gratuity Act, 1972.

16. Payment of Wages Act, 1936.

17. Plantations Labour Act, 1951.

18. Unorganised Workers’ Social Security Act, 2008.


325

I.b ILO CONVENTIONS AND RECOMMENDATIONS

1. Freedom of Association and Protection of the Right to Organise


Convention (No.87), 1948.

2. Right to Organise and Collective Bargaining, Convention


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3. Forced Labour Convention (No. 29), 1930

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5. Equal Remuneration Convention (No.100), 1951

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8. Sickness Insurance for Agricultural Workers Convention


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18. Invalidity, Old-Age and Survivors’ Benefits Recommendation


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19. Older Workers Recommendation (No.162), 1980.


326

20. Workmen’s Compensation (Agriculture) Convention (No.12),


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27. Equality of Treatment (Accident Compensation)


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35. Maternity Protection Convention (No.3), 1919.


327

36. Maternity Convention (No.103), 1952.

37. Maternity Protection Convention (No.183), 2000.

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328

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