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LAWS RELATING TO UNORGANISED SECTOR AND IMPLICATIONS IN INDIAN LEGAL PERSPECTIVE
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LAWS RELATING TO UNORGANISED SECTOR AND IMPLICATIONS IN
INDIAN
LEGAL PERSPECTIVE
AUTHORED BY - MS. MAARIA LAKDAWALA (A017)
YEAR: BBA-LLB 4th YEAR, SEMESTER-VII
RESEARCH PAPER
SUBMITTED
TO THE SVKM’S NMIMS, NAVI MUMBAI
KIRIT P. MEHTA SCHOOL OF LAW
FOR BBA LLB [HONS.]
I, MAARIA
LAKDAWALA, hereby declare that the paper titled submitted to the Kirit P.
Mehta, School of Law represents our original work and has not been previously
submitted for academic or publishing purposes. Furthermore, this paper
represents my own opinions and conclusions. The materials/sources utilized in
this paper are given their due credit.
Date:
22.09.2022.
I would
like to express my deep and sincere gratitude to Prof. Vidya Nair who guided me
throughout the whole process of writing this paper. I would like to thank him
for giving me an opportunity to research on the present topic and for helping
me carry out our research in an organized manner and for answering any doubts
or queries I have had throughout the course of the research.
Thankyou
Ma’am.
ABSTRACT
The
prevalence of the vast majority of informal or unorganised labour employment is
a defining feature of the Indian economy. Unstable profits or gains are
indicative of an unorganised sector. Its production is constrained to a small
geographic area. It involves less investment and labour. The unorganised sector
of the Indian economy is where you can find handicrafts, artisan occupations,
khadi, and village businesses like the handloom sector, beedi making, agarbatti
making, hand paper creation, and match box industries, etc. The unorganised
sector requires special consideration since it is essential to society. The
majority of the society's socially and economically disadvantaged groups are
involved in informal economic activity. The unorganised sector's crucial
contribution to the economy was recognised by the government. As a result, the
government starts a lot of laws and programmes to help unorganised employees.For
unorganised workers, there are numerous programmes and laws that offer social
security and numerous other advantages for their welfare. The issues faced by
unorganised employees, the judiciary's role in defending the unorganised
sector, and policies created to ensure its protection are the main topics of
this research paper.
About 44
crore people in India are employed in the unorganised sector as unorganised
employees. Numerous issues, such as employment opportunities, employer-employee
relations, low wages, etc., plague the unorganised sector. Slum neighbourhoods
are home to a large number of unorganised workers, who have very poor living
conditions, including poor cleanliness.
The Unorganized
Workers' Social Security Act of 2008 under section 2 (m) defines an unorganised
worker as a home-based employee, a self-employed individual, or a wage worker
in the unorganised sector. It also includes an employee in the organised sector
who is not protected by any of the laws listed in Schedule-II of the Act,
including the Employees' Compensation Act of 1923 (3 of 1923), the Industrial
Disputes Act of 1947 (14 of 1947), the Employees' State Insurance Act of 1948
(34 of 1948), and (39 of 1972). 90% of the workforce in India is made up of
unorganised employees, who control the labour market. India has one of the
largest unorganised sectors in the post-industrial world.
Workers
that are belonging to unorganised sector do not receive benefits like
pensions, maternity leaves, provident funds, gratuities, etc. These employees
are paid on a daily and hourly basis. Since there is an enormous amount of
unorganised labour in India, it is impossible to avoid them. Because the
majority of unorganised employees lack access to stable, long-term employment
opportunities, the unorganised sector must deal with periods of excessive
seasonality in employment. Workers who are not organised lack a formal
employer-employee relationship and work in a disorganised, dispersed
environment. Unorganized workers are more likely to get indebted because their
pay falls short of what they need to survive. They are most likely to be
discriminated, exploited, bullied, among other employees.
In India,
the unorganised sector is crucial to the growth of the economy. India's
population is made up of unorganised workers to a degree of 92%. The
unorganised labourers don't have adequate resources to guarantee their own
security. The importance of social security to workers' families and the
community cannot be overstated. The majority of unorganised workers experience
numerous issues, such as inadequate pay, dangerous working conditions, etc. The
government passed the Unorganized Workers Social Security Act in 2008 to give
unorganised workers access to social security benefits. The rights of the
unorganised sector are significantly protected by the Indian judiciary.
The Indian
Parliament approved the Unorganized Workers Social Security Act, 2008 dated
December 30. With this law, the unorganised sector will receive social security
and assistance. The federal government and state governments have created a
number of programmes related to life, disability, ageing, housing, job,
education, etc. The Central and State Governments provide funding for these
programmes. This law is relevant to the unorganised sector in India as a whole.
The National Social Security Board and the State Social Security Board were
established by the government to carry out the law.
Board of
National Social Security
The Union
Government established the National Social Security Board. The Union Minister
is the chairman for labour and employment. Seven individuals who represent
employees and companies in the unorganised sector are chosen by the Union
Government's members. The board advises the Union Government on programmes for
the unorganised workforce. They provide advice to the government on issues
arising from the execution of the law. The board oversees programmes designed
for unorganised labour.
Board for
State Social Security
Each
state's social security board has been established by the state government to
ensure proper implementation of the legislation. The State Social Security
Board's membership is identical to that of the National Social Security Board.
After reviewing the registration, the board issues identity cards to the
unorganised workers. The board has limited authority to carry out various
tasks. Only evaluation and monitoring are possible. They are not permitted to
make any independent judgments because only the government may take action on
the board's recommendations.
Constraints
of the Unorganized Workers Social Security Act, 2008
·
The statute does not mention security for unorganised
workers, other from the creation of national and state level boards.
·
The measure does not include a separate bill for
agricultural workers or agricultural worker-specific programmes.
·
Only a very minor portion of the unorganised sector is
covered by this act. There are no provisions that reference reprimanding
employers who break the law or officials who fail to register any unorganised
workers under the programmes.
The Act
lists several statutes that deal with unorganised workers, including Workmen's
Compensation Act of 1923 (8 of 1923), the Industrial Disputes Act of 1947 (14
of 1947), the Employees' State Insurance Act of 1948 (34 of 1948), the
Employees' Provident Funds and Miscellaneous Provisions Act of 1952 (19 of
1952), the Maternity Benefit Act of 1961 (53 of 1961), and the Payment of
Gratuity Act of 1972 (39 of 1972).
OBSTACLES FACED BY THE UNORGANISED SECTOR
The unorganised
sector of the economy faces numerous difficulties notwithstanding its
contribution:
Less
Relationship with Labor Union - The majority of unorganised workers
are unaware of the existence of labour unions and the procedures they have in
place to protect their interests. They operate their businesses independently
of any recognised labour union or organisation. Their interactions with their
individual labour unions are less formal. By taking advantage of this uneasy
relationship with their labour unions, employers in the unorganised sector
frequently violate the rights of unorganised workers.
High level
of job uncertainty: Because of employment insecurity, unorganised
employees depend on a variety of jobs. Climate change, geographic location, and
other factors have an impact on the employment options for unorganised people.
For instance, India's agriculture industry is quite erratic and unreliable.
This is due to the fact that they have access to employment. In a year, they
are only employed for three months; the other nine months, they are either
unemployed or looking for other work to provide bread for the family on a day
to day basis and avoid starvation.
Bare
Minimum Stipends: The term "wages" is defined under Section 2(h) of
the Minimum Wages Act of 1948. It refers to compensation that can
be represented in monetary terms and that would be due to an employee in
exchange for his or her services, including housing rent allowance, if the
conditions of the express or implied employment contract were met. Even though
the laws specifies the word, the workers typically do not receive the minimum
wage. The Supreme Court ruled in Peoples' Union for Democratic Rights v.
Union of India [1]that,
even if poverty forces someone to work for minimal pay, Article 23 forbids
employers from hiring workers for salaries below the legal minimum because
doing so constitutes forced labor.
Workplace
dangers, workplace safety, and living conditions:
Unorganized
workers are subjected to hazardous working circumstances, which have an impact
on their health. Due to their poor nutrition and excessive physical activity,
people have several health issues. They are unable to cover their medical
expenditures because of their low income. Due to inhaling tobacco dust, fire
powder, etc., workers in matchstick, tobacco, and fireworks manufacturers are
more likely to get respiratory illnesses. Pesticide, insecticide, and
fertiliser overuse has an impact on agriculture industry workers. Unorganized
employees reside in unhygienic neighbourhoods and slum areas. Basic amenities
like restrooms and washing stations fall short of expectations.
Long hours
at work: Long working hours go beyond the regular labour and
regulatory regulations in India in the unorganised sector. Since there are no
rules governing the working hours for the agriculture sector, there are no set
working hours in this industry. In the other unorganised industries, employees'
wages are based on how many hours they put in for their employer and have set
working hours between 12 and 15 hours. Due to their dependence on the
employer's salary and the fact that the majority of workers lack literacy, the
supervisors exploit them by making them put in longer hours and work
them to the bone.
Children
and women are not protected: Equal compensation for equal
effort is mentioned in Article 39(d) of the Indian Constitution. This implies
that all employees, regardless of their sex, should receive equal pay. For the
same number of hours worked, men receive higher pay than women and children.
Numerous kids are made to work for little pay in homes, dhabas, and tea shops.
Children labour long hours and are subjected to risky working circumstances, both
of which have an impact on their health. Many workplaces experience sexual
harassment and abuse against women. Women struggle with a variety of physical
and emotional issues as they are unaware of their legal rights.
ROLE OF THE GOVERNMENT IN IMPLEMENTING
NATIONAL POLICIES
National
Pension Scheme for Independent Contractors and Business Owners
In order to
safeguard Vyaparis in their senior years, the Unorganized Workers Social
Security Act, 2008 section 3(1) was created.
Objective- to
give shopkeepers, traders, and other self-employed individuals, known as
vyaparis, between the ages of 18 and 40 who are not employed by EPFO, ESIC, or
PM-SYM social security and old age protection.
They are
the proprietors or owners of small or specialised businesses like real estate
brokers, restaurants, and hotels.
Central
Sector Scheme For Rehabilitation Of Bonded Labourer, 2016
The state
government was tasked with finding, rescuing, and rehabilitating the bound
labourers, and the federal government would provide them with financial
assistance on a 50/50 basis. This programme was originally introduced in 1975.
Since then, the plan has undergone numerous changes, and it is currently in
2016.
ISSUE Following
the revisions to the scheme's guidelines, the state government is no longer
required to contribute financially to the rehabilitation of bonded workers;
instead, the ministry of labour and employment will offer up to 4.5 lakhs in
aid for each district.
They will
become the beneficiary of the annuity scheme when the money is placed, for
example, if it is an adult man, they will receive 1 lakh, and if it is a group
of women, children, or transgender people, they will receive 3 lakh.
Niraman
Kamgar Awasha Yojana. The majority of construction workers are from
underprivileged or rural areas of society. As a result, the majority of them
lack the comfort of home. They also lack the funds to construct or purchase a
home of their own.
The Uttar
Pradesh Building and Other Construction Employees Welfare Board offers
construction workers the "Construction Worker's Housing Assistance
Scheme" in consideration of this. Under this, employees receive financial
aid to build or purchase a home.
This
financial aid totals one lakh rupees. Two payments are required. Along with
housing construction, the UP government also provides labourers with Rs 15,000
in assistance for house repairs. However, the same beneficiary does not receive
both benefits at once.
Antyodaya
Deen Dayal Updhyaya Yojana (Day)
The Ajeevika
scheme was superseded by DAY, whose goal is to skill people so they can be
trained in both urban and rural locations. By the end of 2016 and 2017,
respectively, it aimed to train 500,000 urban residents and ONE MILLION rural
residents- HOWEVER NO STATISTICS ON HOW MANY HAVE BEEN ACHIEVED
The
program's goal is to make people self-employed by offering them training and
loan provisions that will allow them to start small businesses or self-help
organisations in metropolitan areas.
Rozgar
Garib Kalyan Yojana
The
programme was implemented by the Indian government in June 2020 with a budget
of 50,000 crore rupees to boost employment prospects for migrant workers. This
programme was purchased as a result of COVID-19, a period of mass worker
relocation during which many workers suffered severe economic losses due to job
loss during the lockdown.
The total
number of migrating employees reached 670,000 thanks to the identification of
25 different types of working places for this programme, including the PM Kusum
Works, livestock, poultry, and goat sheds, the Shyama Prasad Mukherjee RURBAN
mission, workers on national highways, well building, etc.
One hundred
twenty-five days of employment will be provided by the plan.
Gatidhara
Self-Employment Program
The West Bengal
government launched a programme called Gatidhara. This programme was tied to
the department of transportation and was designed to provide jobs to young
people who have declared themselves unemployed. They would find work in the
state of West Bengal's transportation industry.
All
individuals between the ages of 20 and 45 who have a monthly household income
of less than 25,000 rupees are eligible for work under this programme. Each
household could only submit one applicant.
The
recipients would receive a subsidy of up to 1,00,000 rupees, or 1.5 lakhs if
they were female.
Training
and Extension: Under this programme, fisherman are given a 15-day training
course along with a stipend and travel expenses. Training handbooks and manuals
are also published to help advance fishing knowledge and abilities. The
programme also makes it easier to hold international conferences, seminars, and
symposiums.
National Child
Labor Policy[2]
The
National Child Labor Policy was approved by the cabinet on August 14, 1987.
This policy's primary goal was to end child labour in industries with dangerous
jobs. Children under the age of 14 who worked in environments where kids had
health issues were the scheme's target audience.
The policy
intends to be implemented for the wellbeing of kids who are employed in places
with a lot of child labour. The goal of the strategy is to rehabilitate kids
who work in dangerous environments. The government engages in activities such
as official and informal education, public awareness raising through campaigns
and rallies, etc. to end child labour.
National
HIV/AIDS Policy[3]
To educate
unorganised workers about the HIV AIDS infection, a national policy on HIV AIDS
is required. Discrimination and stigma provide a significant obstacle in the
battle against HIV/AIDS. The majority of public and private sector employers
have not implemented workplace intervention due to a lack of awareness.
Around 10
million new jobs will be created in India over the next 10 to 12 years, with
young people making up the majority of the workforce. The country's economic
development would be hampered by the spread of HIV/AIDS. Workplace policies
should contain the proper services and information regarding the same to
prevent this. This policy's objective is to stop the spread of HIV and AIDS
among the workforce. Additionally, it strives to defend the rights of the
impacted workers and give them access to treatment.
ROLE OF JUDIARCY IN ADVANCING
UNORGANISED SECTOR
The
judiciary defends the rights of unorganised workers in situations where laws
are not implemented correctly. In addition to laws, the Indian Constitution
protects unorganised workers' fundamental rights. Anyone who works but is not
paid the minimum wage for the work they accomplish is in violation of Article
21 of the Indian Constitution. According to Article 21, the government must
acknowledge bonded labour. Every State Government is required to treat bonded
labour with the utmost respect.
In Sanjit
Roy V. State of Rajasthan[4],
the court ruled that the state must not pay any employee of the state minimum
wages when they are impacted by famine or drought because this would be in
violation of Article 23 of the Indian Constitution. Any labour performed by
inmates that does not result in payment of the minimum wage constitutes forced
labour and violates Article 23 of the Constitution[5]
In Daily
Rated Casual Labour v. Union of India[6]the
court found that classifying workers as regular and working employees violates
the Constitution's Articles 14 and 16. No one has the right to refuse to
perform services for a worker because they are a member of a scheduled caste.
The judiciary should uphold the rights of unorganised employees and establish
social security welfare programmes for their benefit.
In the case
of State v. Banwari[7]
is the matter at hand. "The person cannot refuse to offer the services
only on the grounds that such labours belong to the Scheduled Caste," the
High Court of Allahabad said. The goal of doing this is to safeguard the
interests of society's weaker groups.
In the case
of Hubli v. Employees State Insurance Corporation v. Siddheshwar[8]
The court
has broadened the scope of what constitutes an employee for the purposes of
this Act and further clarifies that this Act is applicable to individuals whose
services are lent to the major employer.
In the
Landmark case of M.C. Mehta v. State of Tamil Nadu[9]
The
Government was ordered by the Indian Supreme Court to conduct a survey and to put
an end to child labour in the matchstick and cracker companies. The court
further ordered that the provisions of Section 21 of the Contract Labor Act,
1970 shall be followed, as well as the minimum pay paid by the subcontractors
under the Minimum Wages Act.
CONCLUSION
Unorganized
labourers in India deal with a variety of issues, including inadequate pay,
harsh treatment by employers, substandard living conditions, etc. In order to
combat poverty in the nation, social security is one of the crucial issues that
the government needs to acknowledge. In addition to the Unorganized Workers
Social Security Act of 2008, there are numerous other programmes for the
welfare of unorganised workers, including old age, life, and health insurance
schemes.
Several
sections in the Indian constitution safeguard the rights of unorganised
labourers. Employers shouldn't take advantage of unorganised workers in their
working environments and should educate them about their rights regarding
health, living conditions, and pay.
It is well
acknowledged that, although making a significant contribution to the Indian
economy, unorganised labourers are the most vulnerable and insecure group in
society. Unorganized workers have grown at an alarming rate, but nothing has
been done to address their fundamental issues. Although the Indian government
has passed a number of laws intended to provide unorganised workers with social
security, these laws have not been successful in meeting their objectives. The
government has implemented numerous programmes and policies to safeguard the
interests of workers in the unorganised sector.
By passing
the "Unorganized Social Insurance Act, 2008," it also took a step
toward providing unorganised workers who operate in unorganised sectors with
basic social security. The Indian government has put in place a number of
programmes in accordance with this Act, including the Aam Admi Bima Yojana
(Life Insurance) and the Rashtriya Swasthya Bima Yojana (Health Insurance).
The State
Government has the authority to establish the regulations for the efficient
operation under the designated section and the Central Government has the
authority to do so under the applicable section.
Section 11
gives the Central Government the authority to direct the State Governments and
the National Board in the appropriate application of this Act's provisions.
BIBLOGRAPHY
·
INDUSTRIAL RELATIONS CODE, 2020.
·
INDUSTRIAL DISPUTES ACT, 1947
·
INDUSTRIAL DISPUTES (CENTRAL) RULES, 1957
·
The Child Labour (Prohibition and Regulation) Act of
1986
·
M.C. Mehta v. State of Tamil Nadu 10 December, 1996
·
Hubli v. Employees State Insurance Corporation v.
Siddheshwar 4 November, 1996
·
State v. Banwari 28 February, 1950.
·
Daily Rated Casual Labour v. Union of India 1987 AIR
2342, 1988 SCR (1) 598
·
Sanjit Roy V. State of Rajasthan 1983 AIR 328, 1983
SCR (2) 27
·
National HIV/AIDS Policy ILO Convention No. 111
on Discrimination (Employment and Occupation)
·
National Child Labor Policy, 1988.
Article Information
LAWS RELATING TO UNORGANISED SECTOR AND IMPLICATIONS IN INDIAN LEGAL PERSPECTIVE
Authors: MS. MAARIA LAKDAWALA
- Journal IJLRA
- ISSN 2582-6433
- Published 2023/10/26
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- Abbreviation IJLRA
- ISSN 2582-6433
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