Context:
The central trade unions condemned a statement by the chairman and managing director of Larsen & Toubro, S.N. Subrahmanyan, favouring a 90-hour work week with employees working on Sundays too.
Labour Laws in India
The labour laws of India are designed to protect workers and ensure fair treatment, but most employees are still exploited, underpaid, and have a poor work-life balance. The gap between law and practice is wide, with outdated regulations, weak enforcement, and the growing influence of large corporations complicating the protection of workers’ rights.
- Factories Act, 1948:
- Sets health, safety, and working environment in a factory.
- Limits working hours up to 48 hours a week, and provides paid annual holidays after working 240 days.
- Minimum Wages Act, 1948:
- Provides for minimum wages with regard to the respective regions and industries.
- Prevents the employer from exploiting employees by recovering minimum wages rates.
- Payment of Wages Act, 1936:
- Ensures that the employees receive wages on time for work done.
- Maternity Benefit Act, 1961:
- It provides 6 months of maternity leave with full pay.
India New Labor Codes
- Industrial Relations Code, 2020:
- Easy union registration procedure, resolution of disputes, and strike regulation procedure.
- Code on Social Security, 2020:
- Consolidates social security provisions for workers in unorganised sectors.
- Occupational Safety, Health, and Working Conditions Code, 2020:
- This code sets new standards for worker safety and welfare.
- Code on Wages, 2019:
- This code will make wage-related laws easier, provide timely payment, minimum wages, and overtime.
Exploitation of Employees in India Despite Labour Laws
- Weak Enforcement of Labour Laws
- Labour laws are not implemented properly because of the lack of proper monitoring and accountability.
- Corruption and bureaucratic inefficiencies do not allow swift action against violators.
- High Unemployment Rates and Population
- High Unemployment rates always leads to lesser jobs, which means too many chasing a fewer jobs. So the employees are always afraid of loosing their jobs if they raises their voice.
- Population also play a vital role in Rising Unemployment rate.
- Informal Employment Sector
- High prevalence of informal workers in sectors like construction, domestic work, and agriculture.
- Lack of written contracts makes them vulnerable to exploitation.
- Lack of Awareness and Education
- Workers, especially in rural areas or less educated sections, are ignorant of rights given through labor laws.
- Employees who are afraid of retaliation could not raise their voice against exploitation.
- Labour Inspections Are Not Tightly Done
- A lack of inspectors causes difficulties in implementing the labour laws.
- Employer resistance to unions, thus the ability of workers to bargain for their rights is curbed.
- Low Wages and Job Insecurity
- Low wages and Job insecurity leads to Overwork and unpaid labor.