Labour” Industrial Laws With Latest Amendments SSRIS LN CENTRAL LAWGeneral Introduction INDUSTRIAL JURISPRUDENCE During the twentieth century a new branch of jurisprudence known as Industrial Jurisprudence has developed in our country. Industrial jurisprudence, is a development of mainly post-independence period although its birth may be traced back to the industrial revolution. Before independence it existed in a rudimentary form in our country. The growth of industrial jurisprudence can significantly be noticed not only from increase in labour and industrial legislations but also from a large number of industrial law matters decided by the Supreme Court and High Courts. It affects directly a considerable population of our country consisting of industrialists, workmen and their families. Those who are affected indirectly constitute a still larger bulk of the country’s population. This branch of law modified the traditional law relating to master and servant and had cut down the old theory of laissez faire based upon the ‘freedom of contract’ in the larger interest of the society because that theory was found wanting for the development of harmonious and amicable relations between the employers and employees. Individual contracts have been in many respects substituted by a standard form of statutory contract through legislation and judicial interpretation. The traditional right of an employer to hire and fire his workmen at his will has been subjected to many restraints. Industrial Tribunals can by their award make a contract which is binding on both the partie’ creating new right ahd imposing new obligations arising out of the award. There is no question of the employer agreeing to the new contract, it is binding even though it is unacceptable to him. The creation of new obligations is not by the parties themselves. Either or both of them may be opposed to it, nevertheless it binds them. Thus, the idea of some authority making a contract for the workmen and employer is a strange and novel idea and is foreign to the basic principle of the law of contract.! Similarly there is change in the concept of master and servant. One who invests capital is no more a master and one who puts in labour is no more a servant. They are employer and employees, the former may hire the latter but he can no more fire them at his will. The interest of the employees is in many respects protected by legislation. Both are now parties in an enterprise, without ‘one yielding to the higher status of another but as co-sharer in the partnership. Even the right of labour participation in the management has been given legislative recognition to the utter despair of the capitalist. Most of the benefits claimed by a workman are not part of his bargain with the employer when the latter employed him or are not due to them on account of any contract but of Ty *lndustial arbitration may involve the extension of an existing agreement or the making ‘of @ new one, of in general the creation of new obligations, or modification of okt ‘nes... Ludwig Teller, Labour Disputes and Collecive Bargaining, Vol. 1p. 536. qa)2 ebow od Indstia Lan "status". The industrial society all over the world has been moving during the present century from contract to status’ and this status is a politico-socio-economic juristic status.” What were the factors that lead to this departure from the old theories of the law of contract, and the law of Master and Servant ? Industralisation in India, as in other countries, brought with it some new socio-economic problems Those who control the industry have a natural tendency of multiplying their wealth and if this tendency is not checked the rich grows on richer and the poor becomes poorer day by day. The gap between the rich and the poor ultimately grows on to this extent that it develops into two distinct classes in any industrial society, a few of whom are ‘Haves’ and others are ‘Have-nots’. This economic disparity leads to a struggle between ‘Haves’ and ‘Have-nots’, the latter exploited. Although this situation continues for some time and it had continued to be so in our country too, but gradually the workmen realised that they could put a better fight if they get united. This realisation was closely followed by a period of industrial unrest leading to strikes and lock-outs. In conditions so disturbed the world has witnessed the horrors of the two world wars resulting, in spiral rise in the cost of living. With the rise in the cost of living there has been consistent demand from labour for increase in wages. Democratic ideas have also grown simultaneously with the growth of industrialisation in our country. These democratic ideas have pleaded for and have also helped in mass awakening and consciousness for greater power amongst the working class. Out of the struggle between workers, demanding for better share in the production and profit of the industry and the employers’ hesitation to part with it beyond a certain limit, have grown the recognition of certain principles which are considered to be fundamental in almost all developed countries of the world, ‘The basic principles are (1) The right of workmen to combine and form associations or unions. (2) The right of workmen to bargain collectively for the betterment of their conditions of service (3) The realisation that economic struggle is inevitable because it is but natural that labour would agitate for better conditions. (4) A shift from the doctrine of “laissez faire” to a “welfare state" () Tripartite consultations iz., solution of the industrial or labour disputes through the parficipation of workers, employers and the Government. (6) The State can no more be a neutral onlooker but must interfere as the protector of the social good. (7) Minimum standards must be guaranteed through State legislation, The concept of industrial jurisprudence in our country developed only after independence. Until indepencience the change in attitude of the government and the benevolent labour legislation only aimed at amelioration of the conditions of labour and it could hardly be said to be a deal in social justice to the working class.’ The birth of industrial jurisprudence in our country may “TT. According to Sir Henry Maine “the muman society has hitherto moved from status w 2, Mabesh Chandra, Industrial Jurisprudence (1976), p. 4. Mahesh Chanda, Indusval Jurspradence (1976), p. 31 be ascribed the industr afforded th jurispruder industrial | shaping inc interpreter Indus developing problems # of factory Proper reg for planne instrument jurisprudes are directly In sp limited in people wh contract bs concept. I changing. and polit Industrial jurisprude concept of and arbitr be correct jurisprude stands in socaefa(Goreraitroccion 3 be ascribed to the Constitution of India which made more articulate and clear the industrial relations philosophy of the Republic of India. This philosophy has afforded the broad-and clear guidelines for the development of our industrial jurisprudence and has thus taken India one step forward in her quest for industrial harmony.? The Parliament and the Supreme Court have helped in shaping industrial jurisprudence, the former through legislation and the latter as interpreter of the labour laws. Industrial jurisprudence is of great importance to all developed or developing countries of the world because it is concerned with the study of problems relating to human relations arising out of a large scale development of factory system which has emerged in consequence of industrial revolution. Proper regulation of employer-employee relationship is a condition precedent for planned,’ progressive and purposeful development of any society. As an instrument of social policy in the present day body-politic the role of industrial jurisprudence has still gained importance.’ Industrial workers and their families are directly concerned with it. In spite of its widening scope it cannot be forgotten that jts application is limited in certain respects. For example, there are still a vast majority of the people who in their relationship are still governed by the ordinary law of contract based on iaissez faire doctrine. Industrial jurisprudence is a developing concept. It derives its main strength from social justice which is dynamic and changing. The concept of social justice itself changes with the social, economic and political changes in society. Therefore, it has yet to take its final shape. Industrial jurisprudence carinot, with all its high ideals, displace general jurisprudence just as no amount of social justice can abrogate altogether the concept of legal justice. Even while dispensing social justice the Courts, tribunals and arbitrators, whoever it may be, cannot ignore the law. Therefore, it would be correct to say that industrial jurisprudence is a species of the same genus jurisprudence* and industrial jurisprudence in relation to industrial society stands in the same way just as general jurisprudence in relation to the total society Labour Policy in India After independence it was largely felt that the labour policy must ‘emphasise upon self-reliance on the part of the workers. Since independence till 1954, the period when V.V. Giri was the Labour Minister, all official pronouncements emphasised that labour should become self-reliant. An equally forceful view had been to prefer reliance upon. the Government. This cross-current of approach to the labour policy gave place to a new approach known as “Tripartism”. Thus ‘Tripartism’ became the central theme in the so-called “Nanda-period” that began in 1957. During this period the Government paid reliance on three party approach, namely the trade union representing the Th this conection the Preamble wo the Consituion and Part II and Par IV of the Constitution dealing with Fundamental Rights and the Directive Principles of State Policy respectively need special mention, Report of the National Commission on Labour, (1968), p. 56, . Industral jurisprudence is the corner stone of the fabric of the entre human race". Mahesh Chandra, Industrial Jurisprudence, (1976), p. 49. Bid, p. 5 Samant, Industrial Jurisprudence, p. 4.4 Labour and ine La workers, the employers, and the Government. In this kind of approach the representatives do not decide anything but their role is mainly advisory. They meet together, discuss the points in dispute and strive to reach a consensus and if they agree they make recommendations. Out of the three, the role of the Government is more important. Annual Labour Conferences and the permanent standing Labour Committees served as the chief instrument of Tripartism. These conferences advocated, amongst many: things; workers’ participation in management, workers’ education, works committees, and minimum wage legislations. At the sixteenth conference held in 1958 a momentous advancement was made by adopting a Code of Discipline in industry. The Code pledged the parties to avoid strikes and lock-outs without notice, and to eschew unilateral actions, and to rely on settlement of disputes by discussion by voluntary arbitration or by adopting to such measures as the law may provide. It also pledged them to avoid coercion and victimisation, to avoid partial strikes and lock-outs, and to follow grievance procedure. Tripartism is an approach which lays stress on the identity of interests between labour and’ capital i, they are the partners in the maintenance of production and the building up of the national economy. The labour policy has proceeded on a realisation that the community as a whole, as well as individual employers are under an obligation to protect the welfare of workers and to secure to them their due share in the gains of economic development.’ This led to enacting of the Payment of Bonus Act, 1965 which aimed at providing for the payment of bonus on the basis of profits or on the basis of production or productivity? ‘The main postulates of labour policy may be summed up as follows (1) Recognition of the State as the custodian of the interests of the community, as the catalyst of “change” and welfare programmes. 2) Recognition of the right of workers to peaceful direct action if justice is denied’ to them. (3) Encouragement to mutual settlement, collective bargaining and . voluntary arbitration 5 (4 Intervention by the State in favour of the weaker party to ensure fair treatment to all concerned. () Primacy to maintenance of industrial peace. (©) Evolving partnership between the employer and employees in a constructive endeavour to promote the satisfaction of the economic needs of the community in the best possible manner. (7) Ensuring fair wage standards and provisions of social security. (8) Co-operation for augmenting ‘production’ and increasing ‘productivity’. (9) Adequate enforcement of legislation. (10) Enhancing the status of the worker in industry (11) Tripartite consultation. ‘See Fourth Five Year Plan—Draft Oulline (1966), p. 386. In view of amendment of the Act in Dec. 1977 payment of bonus is mere based on profits, production or productivity. (See section 10 of the Bons. Act) 3. Report of the National Commission on Labour, 1969, pp. 29, 30, HOE, ae RE. ti — WELL, Tt mi we(General itocction Industrial Revolution of India Industrialisation in India as in any other country implies the growth of a factory system with employers and wage earners in varying circumstances and with varying characteristics, yet having some common features and it is the ‘common features that are of interest.’ As a consequence of the introduction of factory system production became concentrated in a few selected places, resulting in the increase of labour population at all such places. The village workers migrated to the industrial towns because of the difficulty of finding adequate livelihood in their native place. This resulted in disappearance of the popular village handicraft system because they could not compete with machine made goods. The goods produced on a mass scale with the help of machines in the industries were cheaper than the goods produced by handicraft method. But the development of industry in India brought with it a great evil inasmuch as it changed the status of a craftsman into wage-earer. Therefore, the craftsmen hhad to migrate from village to industrial cities in search of employment in factories. Evils of Industrialisation The factory system had some inherent evils to which the factory workers ‘were exposed in the beginning, These may be divided into two heads, namely, economic and social. Economic Evils (2) The artisan who in the handicraft system had the psychological satisfaction of producing the goods himself became in the factory system only a tender of the machine. He had to produce the goods with the help of tools and raw materials supplied by his employer and in the workshop of the employer. In the factory system of production only a part of goods were produced by a certain category of workers. Different categories of workers produced different parts of the sarne goods. Thus, the goods came in the final shape by the composite labour of many categories of workers. The workman in this system, did not get full psychological satisfaction of manufacturing a product by himself and this indirectly arrested his mental development and creative talents” (2) The wages paid to factory workers were quite inadequate to meet their barest needs in the new environment which was different from their rural life. (3) The employment of factory workers was not secure in the beginning. They had to suffer occasionally from periodic unemployment and underemployment as a consequence of over-production or trade cycles. A worker could be discharged by his employer at any time without assigning any reasons therefor. Social Evils (1) The factories were sick not only of economic evils but also of social evils. Overcrowded cities with insanitary slums, and acute housing shortage because of large scale migration of village population to industrial towns had its natural effect on health, morality and social life of workers. 2) Work in factories was very hazardous and strenuous with long hours 1. Indian Law Insite + Labour Law and Labour Relations, p. 6. 2. V.V. Giri, Labour Problems in Indian Industry, p. 115.6 Labour ard Ie Las duty, no rest, and no facility for recreation. Machines were taken care of by the factory owner who had little regard for the safety and welfare of the workers @) Workers were exposed to serious accidents because machines were not properly screened. Accidents were considered as normal risk incidental to employment in a factory and the worker who was unfortunate victim of an accident lost his employment and had no right to compensation. (4) The wages paid to the workers were very low. Wages were the only source of their income. The workers found it extremely difficult to live with the wages so earned by them. Therefore, they had to find out ways and means to supplement their earnings. Consequently the wives and children of workmen starfed secking employment. The factory owners exploited this situation and employed them in large numbers at extremely low wages without any regard to their physical conditions ‘The workers found it difficult to adjust with these conditions. These evils of industrialisation and the lack of adjustment and harmonious relationship between the employer and the labours created problems in the industry, which we call labour problems. Labour Problems Labour problems constituted a serious menace to the society, and needed solution, if not to eradicate then at least to mitigate them in the very beginning. Employers paid their sole attention to the maintenance of machines and the improvement of the technical know how to the utter neglect of the human hands employed to man the machines because they were readily available and could be easily replaced.' Workers were illiterate and poor and therefore unconscious of their rights. The socio-economic status of the workers was far below the status of their employer. As such they could not exercise their free will in negotiating with the employer for employment. The employer taking advantage of the poor condition of the workers dictated their own terms and conditions with regard to wages, hours of work, leave, etc. The workers were left with no choice but to accept such terms because service was the sole means of earning their livelihood. Neither the Government nor the law courts took special notice of these problems because they laid too much emphasis on the policy of the nominterference and freedom of contract. Thus, with the lapse of time the situation turned out to be so worse and the society became so much adversely affected that the Government was compelled to take some action to remedy these problems. Ultimately some philanthropic agencies like Servants of India Society, Social Service League and some industrial social workers raised their voice against these problems. They were successful in mobilising the public opinion in support of their view point. Workers also started to form their own organisation to fight against exploitation at the hands of industrialists. In the beginning the effort of the workers was not very successful because of their ‘weak bargaining power and lack of resources on which they could rely for theit livelihood in the absence of wages. Some employers also realised the seriousness of the problem and the 1. VV. Gin, Labour Problems in Indian Industry, p. 115. RELATL ERE LES wawoeereeag(Corer Introduction 7 evils for they affected the production of the bour welfare was a policy worth necessity of mitigating these ter yields and would industry, they felt that investment on la pursuing because a contended worker would produce bet increase the efficiency. “The Government too later on realised the gravity of the problem and could not remain a spectator for the workers constituted a large section of the society Morvover, the government had to intervene to settle the disputes in the interest Moretioral economy and the welfare of the society at large.’ If some key tnductry is thrown out of gear, the whole system is paralysed. Frequent bres une’ of even a part of the economic system tend to impoverish the soerunity, The prevention of industrial strife thus assumes an important role SR'hational policy and the State, therefore, cannot afford to remain indifferent to the problems leading to industrial conflict. " vAfter independence the national government paid-much attention to the Improvement of the conditions of labour in industry, for the prosperity of 9 Country depends upon the development and grovth of industry. No industry seevflesish unless there is industrial peace and co-operation.” Industrial peace fe posible only with the co-operation of labour and capital, To ensure better Copperation the wage eamer who is a partner in the production shoud be sTovped to have his due share of the profit for increased production. Therefore, sre have to shape our economic policy in such a manner as to give labourer his Nhe status by offering him reasonable working conditions and due share in production. That means social justice and socal security has to be restored 9 Ere labourer. Our Constitution y-iarantees social justice to the people of India. Social justice means achievement of socio-economic objectives. Labour legislation is one of the most progressive and dynamic instruments for achieving weirreconomic progress. "There is no other branch of law which embraces such sovide and effective role in social engineering and social action. It is here that the industrial law distinguishes itself from other branches of law and awaits the Gevelopment of wholly different jurisprudence to explain and expound it"? Industrial Peace and Industrial Harmony “industrial Peace" and “Industrial Harmony” may have the same meaning but the concept of industrial peace is somewhat negative and restrictive. It emphasises absence of strife and struggle. The concept of industrial harmony is poative and comprehensive and it postulates the existence of understanding, Poperation and a sense of partnership between the employers and employees. quest for industrial harmony is indispensable for economic progress of the country. Economic progress is bound up with both industrial harmony and Sndustral peace. Industrial harmony leads to more co-operation between temployees and employers which results in more productivity. It is founded ©” healthy industrial relations. Healthy industrial relations cannot, therefore, be regarded as a matter in which only the employers and employees are concerned: ite of vital significance to the community as a whole. Therefore, industrial OWN. Git, Labour Problems in Indian Industry, p. 119 2. GM. Kothari, A Study of Indusrial Law, p- 38. 3. Bid., p- 39.8 (Labour and inti Lave harmony involves the co-operation of employees and the community at large.’ Industrial Relations An industry is a social world in miniture? Industries help in production and provide employment to the people of society. Different categories of human elements are involved in an industry. The relations of these groups inter se constitute the subject matter of industrial law. Industrial relations play a vital Part in the establishment and maintenance of industrial democracy. The ‘economic activity is the central field of industrial relations, The economic system of any nation affects the industrial relations, which in turn affects the social order. A man has to struggle with his environment for earning his bread and satisfaction of his material wants, Industrial revolutions are nothing more than the struggle of men for their material satisfaction. The industrial revolutions create an imbalance in the society as they prejudicially affect the rights and interests of those sections who work in such industries but do not control it. It results in inequitable distribution of wealth because means of production are controlled by the dominant section of the society, who exploit the labour to their ‘own maximum benefit: It is because of these far reaching consequences of the imbalance and disorder in industrial relations and becatise of the fact that it affects such a large and varied complex of group relationship that it was soon realised that the very existence of the State as protector of the community and as arbitrator of conflicting interests may be jeopardised if it was not to intervene in industrial matters to maintain social morality which was necessary for a healthy social order.’ Economic progress is also bound up with industrial peace. Industrial relations are, therefore, not a matter between employers and employees alone, but a vital concern of the community which may be expressed in measures for the protection of its larger interest State intervention is also justified to prevent exploitation of the weaker section of the society by the stronger section. Industry owners are not the only party to be blamed for the industrial disorder, but the State whose duty it is to establish a just social order is equally to be blamed. Social justice requires that the State for its own existence ‘owes an obligation to the community to bridge the gap between the two classes and evolve a healthy social order. It is from this fountain of social justice that the necessity of legal regulation of industrial relations has flown.’ The scope of governmental legal regulation of the industrial relations depends upon the socio-economic objective that State seeks to attain and these would be reflected in the socio-economic planning and national labour policy:* It is further conditioned by the degree of the existing social imbalance which needs social Te-adjustment and the conceived picture of ideals which feed the programme of social justice in the given socio-economic situation” We in our country are ‘mainly embarking upon industrial and technological advancement. But mere technological advance will widen the social imbalance. Advancement. of 1. Peace in industry has a great significance as a force for world peace if we edniider wider Implication of the question. See First Five Year Pn, p. 372. * 2. GM. Kothari, A Sudy of Industria) Law, p. 1 3. Ibid, pp. 23. 7 4 Fist Five Year Plan, p, 572 5. GM. Kothari, A Study of Industrial Law, p. 3. S 6 Bid.. p. 4 7. id knowledge of Therefore, the sciences which principles of s Labour | social justice, Social j distribution of and workers. effects to thei worker was th days he actual connected wit Workmen's C accident takir ‘Compensation caused by an Minimum Wa few other legi fix the hours safety, health has a special welfare of pe full employm ‘social justice occur in any ¢ The con from the fanci a more solid concept of sc import, it giv the idea of social justice 2 wides that securing and social, econon life’. Article 3 principles of : Social ju of the doctrin subordinate t Secondly, it i 1 VV. Gini, 2. When the swords “soe 3. Muir Mile 4 Sate of M(Genera Irion 8 knowledge of social science is necessary for reshaping social relationship. Therefore, the State must endeavour to promote studies and researches in sciences which will help in reshaping social relationship in accordance with the principles of social justice and socio-economic objectives. Principles of Labour Legislation Labour legislation in any country should be based on the principles of social justice, social equity, intemational uniformity and national economy. Social justice—Social justice implies two things. First equitable distribution of profits and other benefits of industry between industry owner and workers. Secondly, providing protection to the workers against harmful effects to their health, safety and morality. In the beginning, the position of a worker was that of a daily wage-eamer, which means he was paid only for the days he actually worked. A workman was expected to accept all the hazards ‘connected with his work as incidental to his employment. Until the passing of Workmen's Compensation Act, 1923 no compensation was paid in case of an accident taking place in the course of employment. But the Workmen's Compensation Act, 1923 guarantees to workmen compensation for any injury caused by an accident arising out of and in the course of employment. The Minimum Wages Act, the Factories Act and the Payment of Wages Act are a few other legislations based on the principle of social justice. These legislations fix the hours of work, make provision for payment of over-time, leave rules, safety, health and welfare of labour in industry. Labour welfare in our country has a special significance for our Constitution provides for the promotion of welfare of people, for humane conditions of work and securing to all workers full employment of leisure and social and cultural opportunities.’ The word ‘social justice’ is neither defined in any of the labour legislations nor does it occur in any of them except the Industrial Disputes Act, 1947? ‘The concept of social justice, according to Bhagwati, J., does not emanate from the fanciful notions of any particular adjudication but must be founded on a more solid foundation? In the opinion of Justice Gajendragadkar : "The concept of social and economic justice is a living concept of revolutionary import, it gives sustenance to the rule of law and meaning and significance to the idea of welfare State’.* The Indian Constitution enshrines the concept of social justice as one of the objectives of the State. Article 38 of the Constitution provides that "the State shall strive to promote the welfare of the people by securing and protecting as effectively as it may, social order in which justice, social, economic and political, shall inform all the institutions of the national life’. Article 39 ordains that it shall be the duty of the State to apply certain principles of social justice in making laws. Social justice is justice according to social interest. So far as the application of the doctrine of social justice in the sphere of adjudication is concerned, it is subordinate to the fundamental rights and law contained in the Constitution, Secondly, it is also subservient to the statutory Industrial law. Thirdly, social 1 V.V, Gin, Industrial Relations. 2 2 When the Industrial Disputes Act, 1947 was amended in 1956, Section 17-A(1) uses the words “sccial justice’ 3. Muir Mis Lid. ¥. Sut Mil Mazoor Union, (1985) I LLI 1 (SC). 4. Shute of Mysore V. Workers of Gold Mines, AIR 1958 SC 923,10 Labour ard insti Lave justice cannot be done in disregard of law laid down by the Supreme Court Social justice does not mean doing everything for the welfare of labour to the utter disregard of the employer. The balance of social justice leans neither side.’ The labour policy of a country should, in the national interest, prevail over the rival economic policies in cases of conflicts.” "Social justice" is designed to undo the injustice of unequal birth and ‘opportunity, to make it possible that wealth should be distributed as equally as possible and to provide that men shall have the material things of life should be guaranteed to each man. President Roosevelt has rightly said that "there are some whose adverse circumstances made them unable to obtain the mere necessities of existence without the aid of others. To these less fortunate men and women, aid must be given by government not as a measure of charity but as social duty”. This duty is to be performed by the society through the State. Social justice, therefore, is dealing equitably and fairly not between individuals but between classes of society; the rich and the poor. ‘The concept of social justice has become an integral part of industrial law. It is founded on the basic idea of socio-economic equality and its aim is to assist the removal of socio-economic disparities and inequalities. The Constitution of India has also affirmed social and economic justice to all its citizens. Althov gh a number of legislation have been passed with that end in view but still some more important measures need to be taken. Provisions relating to fundamental Fights and directive principles of State policy provide sufficient guarantee against exploitation. Social justice has thus been made object of State policy and governmental action. Social justice though not defined in our Constitution, ‘means attainment of the socio-economic objectives by removing existing evils and enacting new legislation to achieve these objectives. ‘The concept of social justice is not narrow or limited to a particular branch of legislation or adjudication although it is more prominent and conspicuous in industrial legislation and adjudication. Its sweep is comprehensive and is founded on the basic ideal of socio-economic equality and it aims at assisting the removal of socio-economic disparities and inequalities of birth and status and endeavours to resolve the competing claims especially between employers and workers by finding a just, fair and equitable solution to their human relation’s problem so that peace, harmony and co-operation of the highest order prevails amongst them which may further the growth and progress of nations.? Social justice is different from legal justice. The difference is not of objective but aim at dispensing justice. The difference is due to two reasons : (i) Social justice aims at doing justice between classes of society, and not between indvidual, (i) the method which it adopts is unorthodox compared to the methods of municipal law. Justice dispensed according to the law of Master and Servant, based upon the principle of absolute freedom of contract and the doctrine of laissez faire, is legal justice. Social justice is something more than mere justice, it is a philosophy super-imposed upon the legal systems.‘ Social equity.—Any legislation which is based on social justice prescribes Panjab National Bank Lid. v. P.N.B. Employees Federation, AIR 1960 SC 160. G.L. Kothari, Labour Law and Practice in india, p. 13, Matesh Chandra, Industrial Jurisprdence (1976), p47. Industrial Labour in India, p. IX., V.B. Singh Ed., 1963, Quoted in Labour Law and Labour Relations ILI p. 9.(Gover Itroion " a definite standard for adoption in future. Such standard is fixed after taking into account the past and present circumstances. Once a standard is 30 fixed by legislation it remains in force until it is changed or modified by ‘another legislation passed in conformity with the legislative procedure. No discretion is given to change such law to the authority administering such law. However, where it is felt that the law should be flexible and should be changed as the circumstances and conditions change, the law empowers the Government to make such changes. This-is generally done by giving the Government rule ‘making power under the provisions of the Act. When power under the Act is given to the Government the rules may be modified to suit the changed conditions. Such legislation is said to be based on social equity. Social Security ‘The mutual conflict between the employer and the employees over the question of adequacy of their respective shares in social produce, constitutes the ‘crux of the labour problem, of which collective bargaining and industrial conflict are the two most important aspects. As industrialisation advances the worker is increasingly alienated from his previous socio-cultural world and thus faces various insecurities with regard to income and employment in addition to the natural ones (ie, sickness, maternity and old age) for which the new order does not have structural provision. This is how the problem of social security arises and revolution has meant urbanisation. In ancient times if a person was unable to work on a particular day, he was cared for by the village community or by the members of his family. But now urbanisation has so deeply uprooted these values that in times of sickness, unemployment, old age and other similar contingencies a worker has nothing to fall back upon. In modern times social security is influencing both social and economic policy. Social security is the security that the State furnishes against the risks which an individual of small means cannot, today, stand up to by himself even in private combination with his fellows” ‘The quest for social security and freedom from want and distress has been the consistent urge of man through the ages. This urge has assumed several forms according to the needs of the people and their level of social consciousness, the advancement of technology and the peace of economic development? "Social security envisages that the members of a community shall be protected by collective action against social risks causing undue hardship and privation to individuals whose private resources can seldom be adequate to ‘meet them. It covers through an appropriate organisation, certain risks to which a person is exposed”? "These risks are such that an individual of small means cannot effectively provide for them by his own ability or foresight alone or even in private combination with his colleagues’.* The concept of social security is based on ideals of human dignity and social justice. The underlying idea behind social security measures is that a citizen who has contributed or is likely to contribute to his country’s welfare 1. V.V. Giri, Labour Problems in Indian Industry, p. 247. 2 Report of the National Commission on Labour, 1969, p. 162. 3. Report of the National Commission on Labour, 1969, p. 162. 4. LLO., Approaches t Social Security, 1942, p. 80, quoted in Report of the National Commission on Labour (1965), p. 162