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LABOUR LAWS & PRACTICE

ELECTIVE 2 PAPER 7.3
Time allowed : 3 hours Maximum marks : 100
NOTE : Answer All Questions.

Question 1
Aviary Metal Limited (AML) is a Maharatna PSU under the Ministry of Defence, Government of India,
which gives progressed items and framework to military and government for manufacturing units.
AML is one of the top Maharatna PSUs.
The company has grown significantly in turnover and is consistently giving sufficient profit. AML is
focusing on solid development of 12-15% during 2022-23. Radar and Missile Systems, Communication,
Network-Centric Systems and other areas will continue to drive the company’s growth in the years
ahead.
In spite of being one of the top industries, total 1000 workers are employed and the working
condition of most of the contractual workers are not good. Therefore, Aviary Metal Limited (AML)
workers union decided to amalgamate to have effective collective bargaining as there were two
registered trade unions and they all were demanding 7th pay Commission and better working
conditions in AML. The contractual workers comprising 60 percent of the AML strength, which are
continuously working for the last 5 years and still they are on contract employment. Now after 5
years of service, the licence of the contractor has expired to engage the contract labor or the
contractor has not applied for the renewal of the licence but the workmen were still employed
with the company and not given the status of regular employees. There were frequent strikes
with respect to it. Now to have effective collective bargaining with the management, those two
registered trade unions have amalgamated to become a strong trade union with the name of
Hind Mazdoor Sangh.
Hind Mazdoor Sangh were in negotiations with the management for implementation of 7th
Pay Commission and to notify permanent positions for several months. Despite several round of
discussions, no agreement has been reached. The industrial peace got disturbed which led to
frequent strikes affecting the production and target delivery of products causing financial loss to
the company. The union after giving notice to management decided to go on hunger strike for 10
days.
The management of AML claims that this strike is illegal under the Industrial Disputes Act, 1947, as
it has not followed the prescribed procedure for calling a strike. The management has decided
to deduct 10 days wages of workers who resorted to hunger strike and initiated disciplinary
proceedings against them as they turned violent, they damaged the property of the company as
well.
In the meanwhile, due to some dispute with the officers of AML, one worker named Rakesh has
been suspended who was active member of the Union. In response to the above action, Hind
Mazdoor Sangh filed the case before the Labour Court against the AML. Whereas Court decided
the case in favour of Management along with compensation of ` 2 Lakh for the loss suffered by
management.
Based on the above facts, answer the following questions, with relevant provisions :
(i) Whether the employer is bound to pay the wages as per the 7th pay commission to the

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contractual employees and also liable to provide them better working conditions being
contract employees under the Contract Labour (Regulation & Abolition Act), 1970.
(ii) Are contract employees eligible to form a trade union ? Are workmen entitled to go for civil
or criminal immunities under the Trade Union Act ?
(iii) Who will be responsible for renewal of license for registration contract employees ? Explain
the procedure with regard to renewal licence.
(iv) Is it necessary for the principal employer to register the establishment for engaging contract
employees ? What are the effects of non-registration ?
(v) Can licence be revoked by the licencing officer for non-fulfilment of certain conditions ? Cite
those conditions under The Contract Labour (Regulation and Abolition Act), 1970.
(5 marks each)

Answer 1(i)
Section 21 of the Contract Labour (Regulation and Abolition) Act, 1970 makes a contractor
statutorily responsible for payment of wages to each worker employed by him as contract labour
and such wages shall be paid before the expiry of such period as may be prescribed.
The employer is not bound to pay the wages as per 7th Pay Commission to the contractual
employees but the employer is bound to pay them the minimum rates of wages under the Minimum
Wages Act, 1948 and as per the Payment of Wages Act, 1936.
Yes, the employer is responsible to provide them better working conditions, such as welfare and
health of contract labour as given from Section 16 to 20 of the Contract Labour (Regulation and
Abolition Act), 1970.
Section16 provides the facility of canteen.
Section 17 provides the amenities of rest-room.
Section 18 provides other essential benefits.
Section 19 provides first aid facilities.
Section 20 provides the liability of principal employer in certain cases.
If any amenity required to be provided under Section 16, Section 17, Section 18 or Section 19 for
the benefit of the contract labour employed in an establishment is not provided by the contractor
within the time prescribed therefor, such amenity shall be provided by the principal employer within
such time as may be prescribed.
All expenses incurred by the principal employer in providing the amenity may be recovered by
the principal employer from the contractor either by deduction from any amount payable to the
contractor under any contract or as a debt payable by the contractor.

Answer 1(ii)
Trade Union means any combination, whether temporary or permanent, formed primarily for
the purpose of regulating the relations between workmen and employers or between workmen
and workmen, or between employers and employers, or for imposing restrictive conditions on
the conduct of any trade or business, and includes any federation of two or more Trade Unions.
[Section 2 (h) of the Trade Unions Act, 1926]
Contract Employees can form a trade union as per the Trade Unions Act, 1926 as Section 4 of the
Act does not make any difference between the contractual or permanent employees with respect

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to forming a trade union, or Section 4 does not define or do not prohibit the contractual employees
to form a trade union. As they can form a trade union or become a member of the trade union.
Section 17 of the Trade Unions Act, 1926 provides that no office-bearer or member of a registered
Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal
Code, in respect of any agreement made between the members for the purpose of furthering any
such object of the Trade Union as is specified in section 15, unless the agreement is an agreement
to commit an offence.
As the workers can form a trade union or become a member of the trade union, but they are not
entitled for criminal immunity because the moment they turned violent, and damage the property
of the company, no immunity will be granted to them as defined under Section 17 of the Trade
Unions Act, 1926.
Section 18 of the Trade Unions Act, 1926 provides that no suit or other legal proceeding shall be
maintainable in any Civil Court against any registered Trade Union or any office-bearer or member
thereof in respect of any act done in contemplation or furtherance of a trade dispute to which
a member of the Trade Union is a party on the ground only that such act induces some other
person to break a contract of employment, or that it is in interference with the trade, business or
employment of some other person or with the right of some other person to dispose of his capital
or of his labour as he wills.
A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil Court
in respect of any tortious act done in contemplation or furtherance of a trade dispute by an agent
of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to
express instructions given by, the executive of the Trade Union.

Answer 1(iii)
Renewal of the licence is the responsibility of the contractor.
The contractor has to apply under Section 12 of the Contract Labour (Regulation and Abolition)
Act, 1970 to the licensing officer by providing all details and such conditions including, in particular,
conditions as to hours of work, fixation of wages and other essential amenities in respect of contract
labour as the appropriate Government may deem fit to impose in accordance with the rules, if
any, made under Section 35 and shall be issued on payment of such fees and on the deposit of
such sum, if any, as security for the due performance of the conditions as may be prescribed.
According to section 13 of the Contract Labour (Regulation and Abolition) Act, 1970 every
application for the grant of a licence under sub-section (1) of Section 12 shall be made in the
prescribed form and shall contain the particulars regarding the location of the establishment, the
nature of process, operation or work for which contract labour is to be employed and such other
particulars as may be prescribed.
The licensing officer may make such investigation in respect of the application received and in
making any such investigation the licensing officer shall follow such procedure as may be prescribed.
A licence granted shall be valid for the period specified therein and may be renewed from time to
time for such period and on payment of such fees and on such conditions as may be prescribed.
Under Rule 25 of the Contract Labour (Regulation & Abolition) Central Rules, 1971, every licence
granted under section 12 shall be “in Form VI annexed to the Rationalisation of Forms and Reports
under Certain Labour Laws Rules, 2017” and every licence granted under sub-rule (1) or renewed
under Rule 29 shall be subject to the following conditions, namely-
(i) the licence shall be nontransferable;

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(ii) the number of workmen employed as contract labour in the establishment shall not, on any
day, exceed the maximum number specified in the licence.
According to Rule 27 of the Contract Labour (Regulation & Abolition) Central Rules, 1971, every
licence granted under Rule 25 or renewed under Rule 29 shall remain in force for twelve months
from the date it is granted or renewed.
In accordance with Rule 29 of the Contract Labour (Regulation & Abolition) Central Rules, 1971-
1. Every contractor shall apply to the licensing officer for renewal of the licence.
2. Every such application shall be in Form VII in triplicate and shall be made not less then thirty
days before the date on which the licence expires, and if the application is so made, the
licence shall be deemed to have been renewed until such date when the renewed licence
is issued.
3. The fees chargeable for renewal of the licence shall be the same as for the grant thereof.
Provided that if the application for renewal is not received within the time specified in sub-rule (2)
a fee of 25 per cent in excess of the fee ordinarily payable for the licence shall be payable for
such renewal. Provided further that in case where the licensing officer is satisfied that the delay
in submission of the application is due to unavoidable circumstances beyond the control of the
contractor, he may reduce or remit as he thinks fit the payment of such excess fee.

Answer 1(iv)
Section 7 of the Contract Labour (Regulation and Abolition) Act, 1970 makes it mandatory for every
principal employer of an establishment to which this Act applies to make an application to the
registering office in the prescribed manner for registration of the establishment. If the application
for registration is complete in all respects, the registering officer shall register the establishment and
issue to the principal employer of the establishment a certificate of registration containing such
particulars as may be prescribed. So, the Act mandates the principal employer to be registered.
As per Section 7, the principal employer is required to obtain certificate of registration. [Food
Corporation of India Workers Union vs. Food Corporation of India & Ors. 192 LLJ (Guj.)].
According to Section 9 of the Contract Labour (Regulation and Abolition) Act, 1970, no principal
employer of an establishment, to which this Act applies, shall employ contract labour in the
establishment after the expiry of the period under Section 7 in the case of the establishment which
is required to be registered under Section 7. The principal employer shall also not employ contract
labour in the establishment after the revocation of registration of such establishment under Section
8 of the Act.

Answer 1(v)
A licence can be revoked by the licencing officer as mentioned under Section 14 of the Contract
Labour (Regulation and Abolition) Act, 1970 that if the licensing officer is satisfied, either on a
reference made to him in this behalf or otherwise, that:
a) A licence granted under Section 12 has been obtained by misrepresentation or suppression
of any material fact, or
b) the holder of a licence has, without reasonable cause, failed to comply with the conditions
subject to which the licence has been granted or has contravened any of the provisions of
this Act or the rules made thereunder, then, without prejudice to any other penalty to which
the holder of the licence may be liable under this Act, the licensing officer may, after giving
the holder of the licence an opportunity of showing cause, revoke or suspend the licence or

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forfeit the sum, if any, or any portion thereof deposited as security for the due performance
of the conditions subject to which the licence has been granted.

Question 2
Rahul (appellant) was working as a Clerk in a Nationalised Bank posted at MG Road Branch,
Panipat. He joined the branch on 1st November, 2016 and was assigned the duties of cashier.
As per appellant he attended the duty on 10th and 11th November, 2018 and his attendance
was marked on the muster roll for both days. But according to the Bank authorities the appellant
absented from duties on both days without permission. The case of the Bank further was that
the appellant on 10th November, 2018 entered the Bank with about 15 persons in the morning
and went to the office of the Chief Manager and thereafter left the office. Again, on 11th
November, 2018 he worked up to 2.30 pm and absented himself from duty thereafter. The bank
deducted two days wages of appellant treating him absent from duty. As a reason of this,
Appellant went on strike, later he provoked other bank employees as well and they all went on
strike for first four hours on 13th November, 2018 without complying the notice period. Hence,
the bank issued an administrative circular as per their Standing Orders, the employees cannot
go on strike for first four hours, warning the employees that they would be committing a breach
of their contract of service if they participate in the strike. By ignoring the order, they have
participated in the strike from the beginning of the working hours on 13th November, 2018.
The employees however, resumed work on that day after the strike hours and the bank did
not prevent them from doing so. The bank had already made it clear in advance, that if they
will go on strike for first four hours, they would not be entitled to the wages for the whole day
and hence they need not report for work thereafter. On 16th November, 2018, the Bank issued
a circular directing the managers to deduct the full day’s wages of those employees who
had participated in the strike. The employees requested to the Chief Manager not to make
deduction from wages, but the bank deducted their wages, hence the employees referred
the matter to the Labour Court.
On the basis of above facts, answer the following questions :
(i) Was appellant entitled for full day’s wages for both days 11th and 12th November 2018,
when he attended duty only for few hours ? Was the strike legal and justified, indicate the
legal provisions of strike as per lndustrial Disputes Act, 1947.
(5 marks)
(ii) The Bank Authorities made the deduction of wages for full day’s salary for 13th November,
2018 from the employees’ salary, was it justified ?
(5 marks)
(iii) Are bank employees bound to follow the Industrial Standing Orders of the Bank or the strike
notice be complied ?
(5 marks)
(iv) Discuss the various authorities for the settlement of disputes between Bank and their
employees under the Industrial Disputes Act, 1947.
(5 marks)
(v) What are the consequences of illegal strike, explain it, whether the Banking Industry come
under the category of Public Utility Services ?
(5 marks)

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Answer 2(i)
Section 7 of the Payment of Wages Act, 1936 allows deductions from the wages of an employee
on the account of absence from duty. Further, a Section 9 (1) of the Payment of Wages Act, 1936,
provides for deductions for absence from duty. It states that the deductions may be made under
clause (b) of sub section 7 only on account of the absence of an employed person from place or
places where, by the terms of his employment, he is required to work, such absence being for the
whole or any part of which he is required to work.
So, appellant is not entitled for both days’ wages, as it is based on the well-known principle of
Payment of Wages Act “No work no pay”. Hence appellant had not worked at all during the
period of his absence. It is abundantly clear that the person who has not left his desk but also office’
premises is certainly one who is absent form duty and makes himself liable for deduction of wages.
(Prakash Chandra Johri Vs. Indian Overseas Bank, 1984 sec).
Since the question is silent about the 12th November, 2018, hence, if appellant was absent from the
duty on 12th November, 2018, he is not entitled to be paid or if he was not absent, he will be entitled
to be paid the wages.
The strike was not legal and justified as they did not comply the provisions of Section 22 of the
Industrial Disputes Act, 1947, which are mentioned here:
1) No person employed in a public utility service shall go on strike in breach of contract-
a) without giving to the employer notice of strike, as hereinafter provided, within six weeks
before striking; or
b) within fourteen days of giving such notice; or
c) before the expiry of the date of strike specified in any such notice as aforesaid; or
d) during the pendency of any conciliation proceedings before a conciliation officer and
seven days after the conclusion of such proceedings.
A strike or lock-out shall be illegal if it is commenced or declared in contravention of Section 22 or
Section 23. So, in the given case, the strike is in contravention of the above provisions of Section 22
of the Industrial Disputes Act, 1947, hence it is an illegal strike.
In the case of Indian General Navigation and Rly. Co. Ltd. v. Their Workmen, (1960) I L.L.J. 13, the
Supreme Court held that the law has made a distinction between a strike which is illegal and one
which is not, but it has not made distinction between an illegal strike which may be said to be
justifiable and one which is not justifiable. This distinction is not warranted by the Act and is wholly
misconceived, specially in the case of employees in a public utility service. Therefore, an illegal
strike is always unjustified.

Answer 2(ii)
Section 7 of the Payment of Wages Act, 1936 allows deductions from the wages of an employee
on the account of absence from duty. Further, a Section 9 (1) of the Payment of Wages Act, 1936,
provides for deductions for absence from duty. It states that the deductions may be made under
clause (b) of sub section 7 only on account of the absence of an employed person from place or
places where, by the terms of his employment, he is required to work, such absence being for the
whole or any part of which he is required to work.
In the case of Crompton Greaves Ltd. v. The Workmen, AIR 1978 S.C. 1489, it was observed that for
entitlement of wages for the strike period, the strike should be legal and justified.
Supreme Court in Bank of India v. T.S. Kelawala (1990 II LLJ S.C. 39) decided, that where

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employees are going on a strike for a portion of the day or for whole day and there was no
provision in the contract of employment or service rules or regulations for deducting wages
for the period for which the employees refused to work although work was offered to them,
and such deduction is not covered by any other provision, employer is entitled to deduct
wages proportionately for the period of absence or for the whole day depending upon the
circumstances.
It was justified on the part of bank authorities to deduct full day’s wages for 13th November. 2018
from the employees’ salary, as the strike was illegal and not justified. On 13th November, 2018 the
employees were absent from duty for the first essential four hours and they went on strike even after
warned by the bank, as they will not be entitled to the wages for the whole day even the pro rata
salary for the hours of work that the employees remained in the Bank premises without doing any
work.

Answer 2(iii)
Standing Orders’ defines the conditions of recruitment, discharge, disciplinary action, holidays,
leave, etc., go a long way towards minimising friction between the management and workers
in industrial undertakings. The Industrial Employment (Standing Orders) Act requires employers in
industrial establishments to clearly define the conditions of employment by issuing standing orders
duly certified. Banking employees are bound to follow the Industrial Employment (Standing Orders)
over the Strike notice, as strike notice was also not legally served and they have not complied with
the provisions of the Industrial Disputes Act, 1947 as mentioned under Section 22 of the Industrial
Disputes Act, 1947.
As the object of the standing orders is-
– First to enforce uniformity in the conditions of services under the different employers in
different industrial establishments.
– The employer once having made the conditions of employment known to his employed
workmen cannot change them to their detriment or to the prejudice of their right stand
interests.
– For maintaining industrial peace and continued productivity, the significance of the express
written conditions of employment cannot be minimised or exaggerated.

Answer 2(iv)
The various Authorities for the settlement of industrial disputes are mentioned under Section 3 to 7
of the Industrial Disputes Act, 1947 which are applicable to Bank and their employees.
Works Committee (Section 3) - In the case of any industrial establishment in which one hundred or
more workmen are employed or have been employed on any day in the preceding twelve months,
the appropriate Government may by general or special order require the employer to constitute
in the prescribed manner a Works Committee. It shall be the duty of the Works Committee to
promote measures for securing and preserving amity and good relations between the employer
and workmen and, to that end, to comment upon matters of their common interest or concern
and endeavour to compose any material difference of opinion in respect of such matters.
Conciliation Officers (Section 4) - The appropriate Government may, by notification in the Official
Gazette, appoint such number of persons as it thinks fit, to be conciliation officers, charged with the
duty of mediating in and promoting the settlement of industrial disputes.
(2) A conciliation officer may be appointed for a specified area or for specified industries in a
specified area or for one or more specified industries and either permanently or for a limited period.

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Board of Conciliation (Section 5) - The appropriate Government may as occasion arises by

notification in the Official Gazette constitute a Board of Conciliation for promoting the settlement
of an industrial dispute.
Courts of Inquiry (Section 6) - The appropriate Government may as occasion arises by notification
in the Official Gazette constitute a Court of Inquiry for inquiring into any matter appearing to be
connected with or relevant to an industrial dispute.
Labour Courts (Section 7) - The appropriate Government is empowered to constitute one or more
Labour Courts for adjudication of industrial disputes relating to any matter specified in the Second
Schedule and for performing such other functions as may be assigned to them under the Act.
Tribunals (Section 7A) - The appropriate Government may by notification in the Official Gazette,
constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any
matter whether specified in the Second Schedule or the Third Schedule and for performing such
other functions as may be assigned to them under this Act.
National Tribunals (7B) - The Central Government alone has been empowered to constitute one
or more National Tribunals for the adjudication of industrial disputes which (a) involve questions of
national importance or (b) are of such a nature that industrial establishments situated in more than
one State are likely to be interested in or affected by such disputes.

Answer 2(v)
In the case of Express Newspaper (P) Ltd. v. Michael Mark, (1962) II L.L.J. 220 (S.C.), the Supreme
Court held that where the workmen who had participated in an illegal strike, did not join their duties
which resulted in their dismissal under the Standing Orders, participation in strike means that they
have abandoned their employment. However, the employer can take disciplinary action against
the employees under the Standing Orders and dismiss them.
Any workman who commences, continues or otherwise acts in furtherance of a strike which is illegal
under the Industrial Disputes Act, 1947, shall be punishable with imprisonment for a term which may
extend to one month, or with fine which may extend to fifty rupees or with both. [Section 26(1)].
In the case of Vijay Kumar Oil Mills v. Their Workmen, it was held that the act of a workman to
participate in an illegal strike gives the employer certain rights against the workman, which are not
the creation of the Statute but are based on policy, and the employer has every right to waive
such rights. In a dispute before the Tribunal, waiver can be a valid defence by the workman.
However, waiver by the employer cannot be a defence against prosecution under Section 26 and
something which is illegal by Statute cannot be made legal by waiver (Punjab National Bank v.
Their Workmen).
Section 2(n) of the Industrial Disputes Act, 1947 defines the term “Public Utility Service” which means-
(i) any railway service or any transport service for the carriage of passengers or goods by air,
(ia) any service in, or in connection with the working of, any major port or dock;
(ii) any section of an industrial establishment, on the working of which the safety of the
establishment or the workmen employed therein depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the public;
(v) any system of public conservancy or sanitation;
(vi) any industry specified in the First Schedule which the appropriate Government may, if
satisfied that public emergency or public interest so requires, by notification in the Official

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Gazette, declare to be a public utility service for the purposes of this Act, for such period as
may be specified in the notification.
The nationalised bank come under the Public Utility Services as defined in Section 2 (n)(vi) of the
Industrial Disputes Act, 1947.

Question 3
The new technology has rapidly changed the nature of work and labour relations. A new type of
workers ‘the Gig Workers’ as unorganised workers employed in unorganised sector have emerged
in all the countries. Though there has been a significant increase in the number of Gig workers in
India, but serious concerns have been expressed about the availability of jobs and income security
to them. A mismatch of skills have also become a common phenomenon. Proper planning to
reduce the mismatch and upskilling is thus required. State intervention has also become important
to provide social security to these workers. These Gig workers as unorganised workers protest and
demand for all social security laws and want the protection under Indian Labour Laws and the
Constitution of India. These unorganised workers as Gig workers are educated youth and plays a
significant share of growth in European countries. They provide skill intensive professional services
such as legal, accounting services, software development and translation. They are demanding
the status and the protection as given by the developed countries. As per these workers, they
contribute majorly in the Indian economy. In the light of above, answer the following questions :
(i) Define the unorganised workers including Gig workers and their legal rights as per the
Unorganised Workers’ Social Security Act, 2008.
(ii) Do we have any new labour codes which provide the protection to the unorganised workers
? Explain. What are the initiatives proposed by the Indian Government for the protection of
their legal rights ?
(iii) Why do we employ unorganised workers in India ? Is there any advantage to employ them
? Explain.
(iv) Are unorganised workers including Gig workers entifled for the regular status of the employee
? Explain.
(v) Which are the directive principles of our constitution for protecting and promoting the interest
of weaker sections ? Explain.
(5 marks each)

Answer 3(i)
The term Unorganised workers is defined under section 2(m) of the Unorganised Workers’ Social
Security Act, 2008 which 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 Unorganised Workers’ Social Security Act, 2008.
Regarding gig workers, they are classified into two categories - Platform workers and non-platforms
workers, where they use online algorithmic matching platforms i.e. websites or apps like Amazon,
Zomato, ola, blinkit or Uber to connect with customers, they are known as platform workers. The
workers who work outside of these platforms are non-platform workers. These mainly include
construction workers, day job workers and non-technology based temporary workers.
The Central Government shall formulate and notify, from time to time, suitable welfare schemes for
unorganised workers on matters relating to-
a. life and disability cover;

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b. health and maternity benefits;

c. old age protection; and
d. any other benefit as may be determined by the Central Government.
The schemes included in the Schedule 1 of the Unorganised Workers’ Social Security Act, 2008 shall
be deemed to be the welfare schemes which includes:
1. Indira Gandhi National Old Age Pension Scheme.
2. National Family Benefit Scheme.
3. Janani Suraksha Yojana.
4. Handloom Weavers’ Comprehensive Welfare Scheme.
5. Handicraft Artisans’ Comprehensive Welfare Scheme.
6. Pension to Master craft persons.
7. National Scheme for Welfare of Fishermen and Training and Extension.
8. Janshree Bima Yojana.
9. Aam Admi Bima Yojana.
10. Rashtriya Swasthya Bima Yojana.
Unorganised workers have limited recognition under the current Indian Labour laws. The other home
based and self-employed workers are recognised by the Unorganised Workers’ Social Security
Act 2008 but not getting any of the benefit of statutory labour legislations. The welfare of migrant
workers, building and construction workers and unorganized workers is regulated to an extent
under the Contract Labour (Regulation & Abolition) Act, 1970, the Unorganised Workers’ Social
Security Act, 2008 and the Building and Other Construction Workers’ (Regulation of Employment
and Conditions of Service) Act, 1996.

Answer 3(ii)
The Indian Ministry of Labour and Employment suggested a new labour Code Social Security Code,
2020 recognizing the new category of gig workers along with unorganised workers with access to
social security benefits, that social security would be provided to all employees and workers, either
in the organized, unorganized, or any other sector. The code has provisions for a social security
system that would give to these workers advantage including health coverage, maternity leave,
and pensions.
The Code further requires the Central Government to establish a social security fund for these
unorganised workers. The Code also mandates the registration of all unorganised workers to avail
the benefits of the Schemes.
The following are the provisions under Social Security Code, 2020:
l New Definition of the gig worker introduced under the Code of Social Security.

l National Social Security Board and (State) Unorganized Workers’ Board to be formed by
persons of eminence in the fields of labour welfare, management, finance, law and
administration. It will also administer schemes for the welfare of gig workers and platform
workers. (Section 6 of the Code)
l Employees State Insurance benefits to unorganized workers, gig workers and platform workers
and their families. (Section 45 of the Code)

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l Set up a toll free call centre or helpline to promulgate information on available social security
schemes, process to file application for registration, to assist unorganized workers, gig workers
and platform workers to obtain registration etc. (Section 112 of the Code)
Further, on 24 July 2023, the Government of Rajasthan passed the Rajasthan Platform Based Gig
Workers (Registration and Welfare) Act, becoming the first state to regulate platform based gig
workers at the legislative level. The Act ensures labour rights, social security and welfare programmes
for platform workers.

Answer 3(iii)
We employ unorganised workers in India because of the following advantages:
Flexibility: Unorganised workers allow you more freedom in terms of working hours, location, and
preferred work settings. This is especially helpful for those who must juggle job with obligations to
their families, studies, or health.
Opportunities for employment: Unorganised workers gives people a way to make money without
having to rely on regular employment. This is crucial in India, where there is a high unemployment
rate and a lack of employment opportunities for many.
Increases entrepreneurship: By enabling people to launch their own businesses with little financial
commitment, gig employment can contribute to the rise of entrepreneurship.
Job creation: Job creation and economic expansion may result from this.
Efficiency gains: Unorganised workers give businesses access to a larger talent and skill pool,
boosting efficiency and production.

Answer 3(iv)
The new Social Security Code 2020 is based on Unorganised Workers’ Social Security Act, 2008
which recognizes unorganised workers, such as home workers, gig workers, and self-employed
workers. It distinguishes between regular employees and temporary workers. The temporary workers
are unable to get the status of regular employee, as they are hired only for a particular purpose on
temporary basis and certain benefits can be given to them like the social security Code provide
for mandatory provision of gratuity, employee compensation, insurance, provident fund, and
maternity benefit to employees. On the other hand, it has provided for framing of suitable social
security schemes by the Central and State Governments for them on matters relating to life and
disability cover, accident insurance, health and maternity benefits, old age protection, etc. If the
regular status will be given to them then the object of the temporary workers will be defeated.

Answer 3(v)
The directive principles of our constitution reflect the concern of the state to protect and promote
the interests of weaker sections of our population.
a) Article 38: The state shall strive to promote the welfare of the people by securing and
protecting as effectively as it may, a social order in which justice, social, economic and
political shall inform all the institutions of the national life.
b) Article 39A: The operation of a legal system shall be secured by the state which promotes
justice on the basis of equal opportunity and shall in particular provide free legal aid by
suitable legislation of schemes or in any other way, to ensure that opportunities for securing
justice are denied to any citizen by reason of economic or other disabilities.
c) Article 42: The state shall make provisions for securing just and humane conditions of work
and for maternity relief.

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d) Article 43: The state shall endeavour to secure by suitable legislation or economic organization
or in any other way to all workers, agricultural, industrial or otherwise, work, a living wage,
conditions of work ensuring a decent standard of life and full enjoyment of leisure and social
opportunities and in particular, the state shall endeavour to promote cottage industries on
an individual or cooperative basis in rural areas.

Question 4
(i) The United Nations Agency has published a report on profits and poverty. The profits through
forced labour is generated by the exploitation of the labour. Elaborate the role of International
Labour Organisation to protect the forced labour from exploitation.
(5 marks)
(ii) Solutia Company is engaged in the cotton mill business. It has challenged the revision
and fixation of minimum wages done by the State Government. Decide whether the said
notification is within the intra vires of Minimum Wages Act, 1948 based on the following
contentions and facts.
(a) The present revision has been made after three years of previous revision.
(b) The cotton mill gives employment to not more than 950 people in the entire state.
(c) The revision was made adopting the committee method. However, no representative
from the Solutia company’s employee was taken. Among the representatives from
employer, Mr. Pranav, the Chairman of Solutia Company was a member of the
committee.
(d) Solutia Ltd. is not expected to earn any profit in next ten years. The State Government
did not consider this aspect while revising wages.
(e) The State Government fixed dearness allowance in excess of the amount required to
neutralize the effect of inflation.
(5 marks)
(iii) Neither the desire of the members, nor registration or any other formality, but the principles
object of the union or combination is the only test to ascertain as to whether the combination
is a trade union or not.
Who among the following can be registered as trade union ? Justify your answer with
appropriate reasoning :
(a) A resident welfare association
(b) The Delhi Automobile Manufactures’ Association
(c) Teachers’ Association
(d) All India Bank Employees’ Association
(e) Delhi Union Journalist.
(5 marks)
(iv) A jeep driver of the Bank took the officers of the Bank to a village in connection with recovery
proceedings conducted by the Bank. He rested the jeep in the rest house and went to the
market, where he was assaulted by some unknown persons. Subsequently he was found
dead. Is the employer liable to pay compensation ? Explain.
(5 marks)

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(v) A workman when he was on his way to the place of work, was murdered in a communal
riot. Whether the widow of the deceased workman will succeed in getting compensation ?
Explain.
(5 marks)

Answer 4 (i)
International Labour Organisation (ILO) is a nodal agency coming under the ambit of the United
Nations (UN). Its primary objective is to deal with issues related to labour, namely, maintaining
international labour standards, ensuring social protection and providing work opportunities to all.
The ILO, the only tripartite united nation agency to promote social justice and internationally
recognized human and labour rights pursuing its founding mission that social justice is essential to
universal and lasting peace. The main aim of the ILO is to grant social protection and to promote
rights at work, encourage decent employment opportunities and to protect from exploitation
and forced labour. It has been closely reflected in labour standards and in shaping policies and
programmes. India and ILO have an enduring and vibrant relationship which is marked by close
and dynamic cooperation over the years.
Its primary objective is to deal with issues related to setting up labour standards, developing policies
and chalking out programmes promoting decent work for all men and women. It is based upon
social justice whereas conditions of labour exist 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 and improvement of those conditions is urgently required.
The ILO works towards providing such a decent work and productive employment to the labour
force worldwide. This is towards achieving globalisation throughout. To achieve this task, ILO looks
at methods for job creation, providing rights at work, ensuring social protection, enabling channels
for dialogue all this with a basic objective of maintaining gender equality. These all are integral
elements of the UN General Assembly’s 2030 agenda for sustainable development.
The role of ILO also helped through the declaration of Philadelphia.

Answer 4 (ii)
a. According to Section 3(1)(b) of the Minimum Wages Act, 1948 the appropriate Government
shall review the minimum rates of wages so fixed and revise the minimum rates, if necessary,
at such intervals not exceeding five years. This means that minimum wages can be revised
earlier than five years also. In the given case the revision has been made after three years of
previous revision. Thus, this is an intra vires of the Minimum Wages Act, 1948, as the maximum
time period for review of wages is 5 years.
b. Section 3(1)(a) the Minimum Wages Act, 1948 lays down that the appropriate Government
shall fix the minimum rates of wages, payable to employees employed in an employment
specified in Part I or Part II of the Schedule, and in an employment added to either part
by notification under Section 27. Notwithstanding with the provisions of Section 3(1)(a), the
appropriate Government may not fix minimum rates of wages in respect of any scheduled
employment in which less than 1000 employees in the whole State are engaged. But when it
comes to its knowledge after a finding that this number of employees has increased to 1,000
or more in such employment, it shall fix minimum wage rate. In the given situation, there are
not more than 950 people in the employment in the entire state. Thus, it is an ultra virus of the
Minimum Wages Act, 1948.
c. As per Section 9 of the Minimum Wages Act, 1948, each of the committees, sub-committees
and the Advisory Board shall consist of persons to be nominated by the appropriate

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