IMPACT OF RECENT LABOUR LAW AMENDMENTS IN INDIA

Coronavirus Pandemic: An Introduction

COVID-19 is an infectious disease whose primary cause is the potentially harmful corona-
virus. Most of the individuals who are infected with this virus only experience moderate to
mild respiratory illness but it must be noted that the older people are more susceptible to
develop serious illness especially who are already diagnosed with cardiovascular disease,
diabetes and chronic respiratory disease.

The virus finds it way mainly through the droplets of saliva or nasal discharge which happens
through coughing and sneezing.

It is significant to understand that there are no specific vaccines or treatments available at the
present time but trials of vaccines are going on in various countries.

3.2. Present Scenario W.R.T. Labour Laws

In the wake of Covid-19 and the worsening situation of economy, several State Governments
have decided to make amendments in the labour laws which are mostly negligent at best and
lukewarm at worst towards the workers. The justification which has been given by several
states is that there has been a significant loss of income for many individuals and businesses.1
This research studies the effect of amendments made to the State labour laws in the country.

3.3. Regulation of Labour Laws in India

Both the Parliament as well as the State Legislatures have the power to make laws pertaining
to labour as the subject falls under the Concurrent List of the Constitution.2 In the cases
where there exists any kind of inconsistency between the Centre and the State labour laws,
the Central Law will prevail.3

1
“Important Decisions Taken by State Government of Uttar Pradesh”, Government of Uttar Pradesh, May, 06
2020.
<http://information.up.nic.in/attachments/CabinetDecisionfile/7c223b50d3fdc5a2c4a53863012ed0b0.pdf>
2
No. 22: Trade unions; industrial and labour disputes.
No. 24: Welfare of labour including conditions of work, provident funds, employers’ liability, workmen’s
compensation, invalidity and old age pensions and maternity benefits.
No. 25: Education, including technical education, medical education and universities, subject to the provisions
of entries 63, 64, 65 and 66 of List I; vocational and technical training of labour. [Seventh Schedule, Concurrent
List, Constitution of India]
3
Article 254 of Constitution of India

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 3.4. Recent Amendments

Uttar Pradesh government had recently passed an ordinance where there was exemption of
most of the labour laws which are applicable in the country for the coming three years. 4 The
Acts which were still applicable are stated as following:

1. Building and Other Construction Workers Act, 1996

2. Workmen Compensation Act, 1923
3. Bonded Labour Act, 1976
4. Section 5 of the Payment of Wages Act, 1933

This means that the Central laws as well as the State laws will not be applicable in Uttar
Pradesh. Further, other states (Gujarat, Rajasthan, Haryana, Uttarakhand, Himachal Pradesh,
Assam, Goa, Madhya Pradesh, Karnataka) were encouraged to pass laws on the similar lines.5

A lot of protests have been taking place across the country because of this and the Central
Trade Unions have sought the intervention of the President to provide relief to the workers. 6
The dilemma can be explained through the example of the state of Madhya Pradesh where the
extension of working hours have taken place straight from eight to twelve which amounts to
seventy-two hours in a week. Further, the changes are in such a way that the factories and
industries are free to operate without following any safety and health norms. Furthermore, the
workers will be entirely at the mercy of the industries. At a time when the lockdown
measures have left the poor to no avail, the workers are the most vulnerable and would be
willing to work even if the conditions worsen.

Changes in work hours

The Factories Act, 1948 allows state governments to exempt factories from provisions related
to work hours for a period of three months if factories are dealing with an exceptional amount
of work.  Further, state governments may exempt factories from all provisions of the Act in
the case of public emergencies.  The Gujarat, Himachal Pradesh, Rajasthan, Haryana, Uttar
Pradesh, Goa, Assam and Uttarakhand governments passed notifications to increase
maximum weekly work hours from 48 hours to 72 hours and daily work hours from 9 hours
4
The Uttar Pradesh Temporary Exemption From Certain Labour Laws Ordinance, 2020,
https://www.livelaw.in/pdf_upload/pdf_upload-374550.pdf (last visited July 27, 2020).
5
Anya Bharat Ram, “Relaxation of Labour Laws across states”, Policy, May 2020,
<https://www.prsindia.org/theprsblog/relaxation-labour-laws-across-states> (last visited July 27, 2020).
6
ENS Economic Bureau, “Central Trade Unions seek President intervention in providing relief to workers”, The
Indian Express, July 26, 2020, <https://indianexpress.com/article/business/economy/central-trade-unions-seek-
president-intervention-in-providing-relief-to-workers-6523505/> (last visited July 27, 2020).

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to 12 hours for certain factories using this provision.  Further, Madhya Pradesh has exempted
all factories from the provisions of the Factories Act, 1948 that regulate work hours.
These state governments have noted that an increase in work hours would help address the
shortage of workers caused by the lockdown and longer shifts would ensure fewer number of
workers in factories allowing for social distancing to be maintained.   Table 1 shows the
state-wise increase in maximum work hours. 

Table 1: State-wise changes to work hours

Maximum Maximum Overtime Pay

State Establishments weekly work daily work (2x ordinary Time period
hours hours wages)
Increased from Increased
Gujarat7 All factories 48 hours to 72 from 9 hours Not required Three months
hours  to 12 hours 
Increased from Increased
Himachal
All factories 48 hours to 72 from 9 hours Required Three months
Pradesh8
hours  to 12 hours 
All factories
distributing
essential goods Increased from Increased
Rajasthan9 and 48 hours to 72 from 9 hours Required Three months
manufacturing hours  to 12 hours 
essential goods
and food
Increased
Haryana10 All factories Not specified   from 9 hours Required Two months
to 12 hours 
Uttar Pradesh11 All factories Increased fromIncreased Not required Three months*

7
“Notification”, Labour and Employment Department, Government of Gujarat, April 17, 2020
https://prsindia.org/files/covid19/notifications/3373.GJ_Lockdown_Relaxations_Factories_Apr%2017.pdf
8
“Notification”, Labour and Employment Department, Government of Himachal Pradesh, April 21 2020
https://prsindia.org/files/covid19/notifications/4997.HP_factories_rules_apr_21.pdf
9
“Order”, Factories and Boilers Inspection Department, Government of Rajasthan, April 11 2020
https://prsindia.org/files/covid19/notifications/RJ_Increase_Working_Hours_Factories_Apr%2011.pdf
10
“Notification”, Labour Department, Government of Haryana, April 29 2020,
https://prsindia.org/files/covid19/notifications/5154.HR_working_hours_apr_29.pdf

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 48 hours to 72 from 9 hours
hours  to 12 hours 
All factories and
continuous
Maximum 6 Two shifts of
process industries
Uttarakhand12 days of work a 12 hours Required Three months
that are allowed
week each.
to function by
government
Increased
Assam13 All factories Not specified from 9 hours Required Three months
to 12 hours 
Increased
Approximately
Goa All factories Not specified from 9 hours Required
three months
to 12 hours 
Madhya
All factories Not specified Not specified Not specified Three months
Pradesh14

3.5. Jurisprudence regarding Labour Laws in India

Labour laws have come into existence so as to provide a voice to the workers and they can
have a floor of rights. In the case of State Bank of India v. N. Sundara Money, it has been
stated that the function and purpose of labour laws is to protect the weak against the strong.15

The anti-exploitation agenda of several enactments has been categorically highlighted in the
case of Bijay Cotton Mills Ltd. v. State of Ajmer where the Supreme Court held that the
“employers cannot be heard to complain if they are compelled to pay minimum wages to

11
“Notification”, Uttar Pradesh Shram Anubhag-3, May 8, 2020
http://shasanadesh.up.gov.in/GO/ViewGOPDF_list_user.aspx?id1=MTMjMjEjMyMyMDIw
12
“Notification”, Government of Uttarakhand, May 5, 2020,
https://prsindia.org/files/covid19/notifications/5185.UK_factories%20Notification__5_May,_2020.pdf
13
“Notification”, Order of Governor, Labour Welfare Department, Government of Assam, May 8, 2020,
https://labour.assam.gov.in/sites/default/files/swf_utility_folder/departments/iof_labour_uneecopscloud_com_oi
d_76/menu/document/notification_8th_may_2020.pdf
14
“Notification”, Labour Department, Government of Madhya Pradesh, May 5, 2020,
https://prsindia.org/files/covid19/notifications/4989.MP_exemptions%20under%20labour%20laws_May05.pdf
15
(1976) 1 SCC 822

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their labourers even though the labourers on account of their poverty and helplessness are
willing to work on lesser wages.”16

In the case of Chandra Bhavn Boarding & Lodging, Bangalore v. State of Mysore, it was held
that:

"Freedom of trade does not mean freedom to exploit. The provisions of the Constitution are
not erected as the barriers to progress. They provide a plan for orderly progress towards the
social order contemplated by the preamble to the Constitution. They do not permit any kind
of slavery, social, economic or political."

In other words, the Constitution does not leave the working class to be the victims of an
asymmetric power relationship. There are three aspects of the Constitution that exemplify this
vision.

First, Article 23 guarantees fundamental right against exploitation. The Supreme Court
in People's Union for Democratic Rights v. Union of India,[ (1982) 3 SCC 235, para. 15],
held

"it is the constitutional obligation of the State to take the necessary steps for the purpose of
interdicting such violation and ensuring observance of the fundamental right by the private
individual who is transgressing the same….a person provides labour or service to another
for remuneration which is less than the minimum wage, the labour or service provided by
him clearly falls within the scope and ambit of the words ‘forced labour’ under Article 23”

Second, Article 21 guarantees the fundamental right to life and personal liberty. Meaning of
life under Article 21 is very wide and means a life which is "meaningful and liveable with
human dignity". A three-judge bench of the Supreme Court in Consumer Education &
Research Centre v. Union of India, [(1995) 3 SCC 42, para. 25], while dealing with the issue
of occupational health hazards and diseases of the workers employed in asbestos industries,
held that: 

“Right to health, medical aid to protect the health and vigour of a worker while in service or
post-retirement is a fundamental right under Article 21, read with Articles 39(e), 41, 43, 48-
A and all related articles and fundamental human rights to make the life of the workman
meaningful and purposeful with dignity of person."

16
AIR 1955 SC 33

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Third, the Part IV of the Constitution (Directive Principles of State Policy). enjoins on the
State certain duties, namely securing to all workers work, a living wage, just and humane
conditions of work, and a decent standard of life 17. In short, these provisions are aimed at
improving the working conditions of labour.18

3.6. Conclusion

Through these changes, it is clear that workers will have to work in deplorable conditions,
possibly for less than minimum wage and will not be able to raise their voice against it
allowing companies to do as they wish. It seems to be an opportunity to empower industries
while also taking away the rights of the workers through a back door. It is not only a violation
of human rights but is also in contradiction to the Conventions that India is party to and has
ratified.19 In a crisis situation such as the pandemic, as is today, it is the duty of the
government to protect its workers. However, the government seems to be acting as the devil
by taking away their absolute basic rights. Several studies have shown the deteriorating
conditions of workers in the informal sectors, The British Council Report of 2017, also
recorded at least forty-eight thousand worker deaths due to work related accidents in India.
At a time, where thousands of migrant workers have been rendered jobless and are going
back to their hometowns without any basic resources, taking away labour laws seems to be a
low blow, one that clearly paves way for modern day slavery and must not be promoted.

17
Article 38, 39, 39-A, 41, 42, 43, 43-A and 47 of Constitution of India
18
Dr. Minal H. Upadhyay, “Industrial Labour Laws with Reference to Directive Principles of State Policy”,
Research in Humanities and Social Sciences, Vol. 2, Issue. 1, (2014), <http://www.raijmr.com/ijrhs/wp-
content/uploads/2017/11/IJRHS_2014_vol02_issue_01_08.pdf>
19
Forced Labour Convention, 1930, Abolition of Forced Labour Convention, 1957, Equal Remuneration
Convention, 1951, Discrimination (Employment and Occupation) Convention, 1958, Minimum Age
Convention, 1973, Worst Forms of Child Labour Convention, 1999

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