“SELF EMPLOYMENT ON ROAD SIDE PAVEMENTS”

FINAL DRAFT SUBMITTED IN THE PARTIAL FULFILMENT OF THE COURSE TITLED

–

LABOR LAWS - 2

SUBMITTED TO:

Dr. S.C. ROY

PROFESSOR OF LAW

SUBMITTED BY:

NAME: RAJ KRISHNA

COURSE: B.A., LL.B (Hons.)

ROLL NO: 1359

SEMESTER: 5th

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR,

MITHAPUR, PATNA - 800001

1
DECLARATION BY THE CANDIDATE

I hereby declare that the work reported in the B.A., LL.B (Hons.) Project Report entitled “Self
Employment on Road-side Pavements” submitted at Chanakya National Law University is an
authentic record of my work carried out under the supervision of Dr.SC Roy. I have not
submitted this work elsewhere for any other degree or diploma. I am fully responsible for the
contents of my Project Report.

SIGNATURE OF CANDIDATE

NAME OF CANDIDATE: RAJ KRISHNA

CHANAKYA NATIONAL LAW UNIVERSITY, PATNA.

2
ACKNOWLEDGEMENT

I would like to thank my faculty Dr. SC Roy whose guidance helped me a lot with structuring
my project.

I owe the present accomplishment of my project to my friends, who helped me immensely with
materials throughout the project and without whom I couldn’t have completed it in the present
way.

I would also like to extend my gratitude to my parents and all those unseen hands that helped me
out at every stage of my project.

THANK YOU,

NAME: Raj Krishna

COURSE: B.A., LL.B. (Hons.)
ROLL NO: 1359
SEMESTER – 5th

3
INDEX

INTRODUCTION ………………………………………………………………………….pg5

* AIMS AND OBJECTIVES

* RESEARCH METHODOLOGY

* SOURCES OF DATA

* MODE OF CITATION

1. INTRODUCTION………………………………………………………………………….pg7

2. PROBLEMS……………………………………………….……………………………….pg8

3. LEGISLATIVE MEASURES……………………………..…………….………………..pg9

4. COMPARITIVE ANALYSIS………………………………………………………….…pg.14

5. CONCLUSION ……………………….…………………………………..……………...pg 16

BIBLIOGRAPHY……………………………………………………………………………..pg17

4
INTRODUCTION:

Street vending is an important activity related to informal sector in urban areas. Majority of street
vendors are illiterate or educated at primary level. They have low skill and poor economic
condition. Street vending provides job opportunity and means of livelihood to the urban poor but
Urban Local Bodies consider it as illegal activity so far. In 2004, first time, Government of India
recognizes vendor’s role in local economy after so many litigations and Supreme Court verdict in
favour of vendors. National Policy on Urban Street Vendor, 2004 and 2009, Model Street
Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2009 are some of the
initiatives taken by the Government. Other agencies like NASVI and SEWA have played major
role to push vendors issue and formulation of policies in favour of street vendors.. The present
study comprehensively covers the social economic and spatial issues for the Patna City.

AIMS AND OBJECTIVES:

1. To analyze the existing concentration of informal shopping and street vendors,

2. To understand the socio- economic profile of the street vendors,

3. To identify issues and required provision for vending,

4. To develop the strategy for inclusion of street vendor in formal planning process.

HYPOTHESIS:

The researcher tends to presume that road side vendors should be included in formal planning
process.

RESEARCH METHODOLOGY:

5
The researcher will be relying on Doctrinal and Non- Doctrinal method of research to complete
the project.

SOURCES OF DATA:

The researcher will be relying on both primary and secondary sources to complete the project.

1. Primary Sources: Acts and Statutes

a. Model Street Vendors (Protection of Livelihood and Regulation of Street Vending)

Bill, 2009

2. Secondary Sources: Books and Websites

a. Books: S.N. Mishra, Labour and Industrial Laws (28th edition), Central law publications

LIMITATIONS OF THE STUDY:

The researcher has territorial, monetary and time limitations in completing the project.

TENTATIVE CHAPTERIZATION:

1 Classification of Road/ Street vendors

2. Problems Faced by the road-side vendors

3. Legislative provisions and authorities controlling road/ street vendors

4. Case study of street/ road side vendors in Patna

5. Conclusion and Suggestions

6
1. INTRODUCTION:

Urbanization refers to the growth of towns and cities, often at the expense of rural areas, as
people move to urban centers in search of jobs and what they hope will be a better life. The
majority of the people migrated or planning to migrate from rural to urban areas for earning their
livelihood, greater variety of educational and recreational facilities, larger and more specialized
healthcare facilities. Urban centers are able to provide a variety of services that small rural
centers cannot. India is a developing country and stands second in terms of population in the
world. India is poised with rapid urbanization. The urban settlement’s ability of economic
development induces migration for all kinds of people as the development require all kind of
skilled semi skilled and unskilled workforce for generating economy and developing urban
infrastructure (Jain P., 2013). These migrated people are absorbed in formal and informal sectors
in various development works in urban settlement for earning their livelihood. Once these
development works are bunged, the literate and illiterate people have to make self-employment
through various aspects including informal sectors (Yatmo, Y. A., 2008). As all these migrants
do not possess the skill set or the education required for urban development so, secure
employment in the formal sector cannot be provided (Yatmo, Y. A., 2009). Also, due to large
population and hasty urbanization, it is impossible for the government to provide employment to
everyone (Fig. 1). So, most of them have to settle for work in the informal sector.1

1
S.N. Mishra, Labour and Industrial Laws (28th edition), Central law publications

7
2. CONDITION OF ROAD –SIDE SELF EMPLOYED WORKER

2.1 Working Conditions of Street Vendors

The street vendors spend nearly 10 hours a day in their business. Most of them take up to 5 hours
every day for preparations. It includes visit to the wholesale markets for vegetable vendors,
thereby later sorting and cleaning the vegetables. During their working time vendors are facing
many problems from the public and police personnel. They are not protected from the harmful
weather conditions like heat, rain, dust and lack of storage facilities. Those people selling
nonperishable household articles too have to go to the wholesale market to procure their goods at
lower prices. Taking into account both preparation time and the time for selling we find that at an
average a street vendor spends up to 15 hours every day in his or her activities in order to earn a
hundred or two hundred rupees.2

2.2 Problems Faced by Street Vendors

Street vending is related with uncertainty in income (Kumar, R., & Singh, A. 2013). On one side,
because of the low socio-economic profile of street vendors customer behavior is common, and
on other side street vendors faces harassment by police officials for occupying important traffic

Junctions. 3 (They have long hour of work without rest and lack of urban amenities. Climate adds
to their woes through rain, searing heat and chilly winter’s blustery weather by goods damage
and extra peripherals requirement (Jacques Charmes, 2002; Widiyastuti, D., 2013). Uncertainty
of site allocation make street vendors difficult in pushing vending carts from one place to another
on damaged roads. Street vendors also face problems of lack of shelters and storage space
(Kurniawati, W. 2012).

Most of these problems are result of non-consideration of street vendors while planning urban
streets or land-use planning. So, this work looks into socio-economic condition of the street
vendors for developing a strategy targeting various issues and challenges faced by for its
inclusion into formal planning process of urban transportation infrastructure and landuse with
objectives to analyze the existing concentration, working condition, socio-economic profile of

2
CUE Report, 2014.
3
Karthikeyan, R., & Mangaleswaran, R., 2013.

8
informal shopping street vendors and suggest the strategies for inclusion of street vendors during
formal urban planning process targeting various issues and challenges faced by street vendors.4

3. POLICIES IN PLAN AND ACTION

3.1 Street Vendors Act 2014

Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 is an
Indian legislation aimed to regulate street vendors in public areas and protect their rights with
following key highlights.

Town Vending Committee will be responsible for conducting of survey of all the vendors under
its jurisdiction, and such survey must be conducted every five years. No street vendor will be
evicted until such survey has been made and a certificate of vending has been issued.

•All street vendors will be accommodated in a designated vending zone. In case, all the vendors
cannot be accommodated in the same vending zone, allocation of space will be made by drawing
of lots. However, those who fail to get space in the same vending zone, will be accommodated in
adjoining vending zones

•All street vendors above fourteen years of age will be granted a certificate of vending. However,
such certificates will be granted only if the person gives an undertaking that he will carry out his
business by him or through the help of his family members, he has no other means of livelihood
and he will not transfer the certificate. However, the certificate can be transferred to one of his
family member if such vendor dies or suffers from permanent disability.

•The certificate may be cancelled if the vendor breaches the conditions of the certificate.

•No vendor will be allowed to carry out vending activities in no-vending zones.

4
Mishra, supra note 1.

9
•In case of declaration of a specified area as a no-vending zone, the vendors will be relocated to
another area. Vendors, who fail to vacate such space after a notice has been given, will have to
pay a penalty and local authority may physically remove the vendor and make seizure of goods
of such vendors who have not relocated to the vending zones.

•There shall be a dispute resolution body.5

3.2 Unorganized Worker Social Security Act, 2008.

According to the commitments of the Government of India, right of workers to social security
has been recognised as inalienable and, therefore, must accrue to every worker under any system
of labour law or labour policy. Provision of social protection is enshrined in Articles 38 (securing
a social order for the promotion of welfare of the people), 39 (certain principles of policy), 41
(right to work, education and public assistance in certain cases), 42 (just and human conditions
of work and maternity relief) and 43 (living wage etc.) of the Constitution of India as a part of
the Directive Principles of State Policy. Important social security, poverty alleviation and social
welfare measures are being implemented by various Ministries/Departments of State
Governments and by civil society organisations.

However, the reality on the ground today is that workers don’t have access to essential social
security services. Though the Unorganized Workers Social Security Act was passed in 2008,
there has been dismal progress on the ground. The Act itself has been criticized for not defining a
minimum social security floor that is enforceable by law and for not providing institutional
powers to ensure effective implementation. The National Social Security Board for Unorganised
Workers, constituted in August 2009, is limited to an advisory role, and does not have sufficient
powers to implement, monitor or enforce social security. With the exception of a few states such
as West Bengal, Chattisgarh and Karnataka, a majority of the states have not even set up their
state level welfare boards.

5
Street Vendors Act 2014.

10
As of February 2012, the RSBY health insurance scheme has covered 2.5 crore Below Poverty
Line families and is being extended to other categories of workers. While the success of the
scheme is commendable, the over emphasis on RSBY has resulted in lack of any attention to the
other schemes outlined as part of the social security cover for all unorganized workers.6

Coverage

The term unorganized worker should be as inclusive as possible since the impact of exclusion
errors are far higher than the impact of inclusion errors. This is also emphasized by the Standing
committee – “any class of worker, who is otherwise entitled for social security coverage, should
be not be left out merely because his class of workers have not been included in the definition.”
Given that 90% of the working population is unorganized, it will be prudent to have a definition
that declares unorganized workers as everyone excluding organized workers. For instance, NAC
defined unorganized workers as everyone excluding those already registered with and covered by
the existing PF and ESIC schemes, are self-employed but well off (e.g. doctors and lawyers) or
are income tax payers.

Secondly, migrant workers, women workers and disadvantaged groups should be explicitly
mentioned in the initial coverage of workers. The sections on registration and delivery should
keep in mind the challenges faced by these workers and address them appropriately. Essential
working condition needs of these workers such as security and physical safety should be
considered and covered in the Act.7

Thirdly, access to social security should be universal across all unorganized workers irrespective
of the financial status of the workers or position vis-à-vis the poverty line. This change is already
reflected in one of the key decisions taken by the National Social Security Board in its initial
meetings – It was decided that basic minimum social security which should include life and
disability insurance, health and maternity benefit and old age pension should be applicable to all
unorganised workers/ occupational groups irrespective of whether they belong to APL/BPL

6
Unorganized Worker Social Securities Act, 2008.
7
Id.

11
category. States have started extending programmes such as RSBY to construction workers and
NREGA beneficiaries irrespective of their BPL status.8

Benefits

The Act should have a clear definition of social security as measures by the government in
collaboration with employer, worker or otherwise, designed to meet the contingencies in life of a
worker including old age pension, unemployment benefits, maternity , livelihood loss
compensation , accident and medical care and child care support.

The State should provide hard commitments on the social security cover for workers. It is
understandable that the list of schemes will continue to evolve and there is need for making
modifications to address changing needs. However, in order to ensure that the Government
provides schemes to unorganized workers, the following recommendations by the Standing
committee are very relevant –

• The National Minimum benefits should be made part of the Act with the State governments
being able to add on the benefits.

• While minor changes can be done by the government on the scope and delivery of the schemes
offered, it is important to seek the approval of legislature to add/remove/alter schemes.

• The National Minimum benefits should be extended to all the unorganised workers and should
be extended within a period of three years.

The Act should have an additional chapter to include the Right to Working Conditions as an
essential right of the worker.9

Financing

8
Id.
9
Id.

12
The Act should have a separate section that defines the existence and nature of the National
Social Security Fund and appropriate mechanisms at the state level to ensure that there’s clear
financing support to address the social security needs of the workers. It is also important to
define an enforceable timeline realize the fund both at the national and the state level.

It is critical to institutionalize a welfare board-based approach across all unorganized workers to

ensure uniform access to benefits. Welfare boards should strive to achieve financial
independence through institutional mechanisms such as cess from the employers, levy on export
duty, and contributions from the unorganized workers.

Delivery

There should be a new chapter in the Act that addresses the issue of Grievance Redressal (with
penalties) and dispute settlements. The grievance redressal should be based on the tripartite
model of employers, worker representatives and the government. Such a grievance redressal
mechanism should not only be limited to the district level but should also extend to the block
level so that it is accessible to the workers. Worker Facilitation Centres can be leveraged to
combine both awareness generation and grievance redressal support, thus providing holistic
support to the workers.

The Act should provide a clear definition of the responsibilities of employers and a strong
enforceable mechanism to ensure adherence. There should also be emphasis on the role of
Worker Facilitation Centres and defined modalities on how WFCs can be run collaboratively by
the Government and local community organizations.10

Administration

10
Id.

13
It should be clearly stated that the State and the National Social Security Board shall be
responsible for the overall administration, finance, annual report, enforcement, RTI and to the
parliament or state legislature as the case may be. In addition, the National and the State social
boards will be vested with enough powers to administer the social security schemes and to bring
coherence, monitoring and consistency to the delivery of social security. In order to realize this,
it is important to set up a social security fund that the board is responsible for and is used to
finance schemes and benefits to the workers.

Secondly, all essential schemes that comprise the social security cover will be brought under the
ambit of the Ministry of Labour so that there’s a clear and one point accountability for delivery.
The Ministry of Labour should own the holistic responsibility of addressing the social security
needs of the workers.11

4. COMPARATIVE ANALYSIS

The analysis of application of national policy on street vendors of different urban centers located
in different parts of India has revealed that solutions for problems faced by street venders (Sharit
K. Bhowmik, 2008). The case of Bhubaneswar (Kumar, R., & Singh, A. 2013) resulted in
evasion of conflicts between municipal committee and street vendors through vendor’s survey
and allocation of designed vending spaces and unique identity cards, with responsibility to keep
the vending zones clean on street vendors. Municipal authorities harnessed stakeholders from the
private sector and the community under the banner “city for all, and all for the city,” forging
several public-private partnerships to facilitate cost sharing among the stakeholders.

The Karnataka Municipalities Act, 1964 states that municipal councils / corporations in the state
are obliged to make adequate provisions for constructing, altering and maintaining public streets
and markets and provide suitable places for vegetable vending by permitting them temporarily
and a monthly or daily fee may be charged. Though there are provisions in the law for granting
licenses, most street vendors in Bangalore are denied this. Restrictions on vending areas, vending
hours and license fee with restricted number of licenses failed in Bangalore.

11
Mishra, supra note 1.

14
Vendors tend to concentrate at 142 Natural markets in Ahmadabad at places with high traffic and
high residential densities. The spatial dimensions at the macro level are guided by forces of
factors, which create demand at particular locations, extent of demand, and the reasons for
choices of location. In Ahmadabad the municipal law in Gujarat prohibits the hawking of goods
without a license. The Municipal Corporation is also empowered to remove any encroachments
and obstruction made on the streets. The Bombay Police Act 1950 empowers the police to arrest
hawkers for obstructing free flow of traffic under sections 102 and 107 (Bhowmik, S. K., &
Saha, D. 2012). Street vendor-licensing scheme was taken up in Vadodra in 1992. The city was
divided into 10 wards and each ward comes under the purview of one ward officer. The Supreme
Court of India passed an order directing the Municipal Corporation to formulate a scheme for
‘Hawking and Non-Hawking Zones’ in each ward of the city of Baroda in 1987.

As per the Urban Street Vendors and Hawkers (Registration and Regulation) Bye Laws, 2010 of
Chhattisgarh, natural markets (Street Vendors Act, 2014) are exempted from the ambit of these
bye-laws. Provided, however that the Corporation shall endeavour at all times to improve the
infrastructure in the Natural Markets and to strengthen the health, hygiene, sanitary conditions
therein.

The Patna Municipal Corporation Act of 1951 lays down certain rules relating to street vending.
According to section 527 of the Act no stalls can be set up, no goods can be displayed or sold on
public streets without prior permission of the CEO(the only competent authority who can permit
sale through street vending is Chief Executive Officer (viz. Municipal Commissioner)). In case
the rules are flouted (i.e., in the case of unlicensed street vendors or those who construct
permanent structures) the CEO may remove the impediments without prior notice and charge
rent for the use of the space. Even when licenses are provided, the vendor has to fill in elaborate
details in a form. Section 138 states that the licensed vendor has to state the names of the articles
sold, provide a description of the place of sale, time of sale, state the validity of the period of
his/her license, describe the booth or stall through which the sale will be conducted, among other
details. Section 34 states that the police can punish anyone causing obstruction, annoyance or
inconvenience to the public. Two actions come under the purview of this section, namely,
slaughtering of animals in public and exposing goods for sale. One wonders how these two acts
(one involving slaughter and the other involving sale) can be equated as the same intensity of

15
public disapproval. It should be noted that Bihar is perhaps the only state in the country that
gives the police the right to arrest street vendors. In all other states municipal authorities are
permitted to deal with street vendors, with the assistance of the police, if needed. (Sharit K.
Bhowmik, Saha, D. 2012).

The laws for Bombay are regulated by the Bombay Municipal Corporation Act 1950 which was
in force when the two states, till 30 April 1960, were one state, namely Bombay. The municipal
laws do not provide for the erection of any structure or stall on the streets which will obstruct the
passage of the public, or impede the working of a drain or open channel. Such a structure is
liable to be removed by the municipal commissioner and the person responsible for the creation
of the structure is to incur the expenses of its removal. There is also a provision whereby the
commissioner has the authority to inspect any of the goods being hawked. If they are found to be
unsound in nature they can be seized and destroyed. (Sharit K. Bhowmik, Saha, D. 2011)

5. CONCLUSION

The survey looked at the various aspects of street vending, the problems of street vendors, and
the shift of consumers to purchasing at malls as against roadside vendors. Many vendors are
stressed due to less number of people visiting them in recent times due to large number of shops
and malls. Even the government undertaking for many urban infrastructure developments
without the consultation or the compensation to these vendors , so they have to live a miserable
life as they are in the fear of being evicted from their places that would result in looking out for
new places. Moreover, there is a great need in beginning again from scratch, because that would
mean they have to start right from setting up the new shops to deal with a completely new set of
police, and authorities thereby also building a regular customer base for themselves. As far as
possible, most consumers agreed that road widening should not be undertaken without
consultations with local people and harming the environment. In case there is no other option
then the vendors should be given the proper compensation and allot some other places to sell
their goods. The concerns of street vendors need to definitely be considered when such a large
project is being planned in a city. These vendors have been part of the history and culture of the
city that should be given as much as any other resident of the city.

16
BIBLIOGRAPHY:

The researcher has consulted following sources to complete the proposal:

PRIMARY SOURCES:

1. Model Street Vendors (Protection of Livelihood and Regulation of Street Vending)

Act, 2014.

2. Unorganized Worker Social Securities Act, 2008.

SECONDARY SOURCES:

1. WEBSITES:

a. http://articles.economictimes.indiatimes.com

b. www.cept.ac.in

BOOKS:

1. Books: Mishra S.N., Labour and Industrial Laws (28th edition), Central law publications

17