ASSIGNMENT

OF
INTERNATIONAL LABOUR
ORGANIZATION AND INTERNATIONAL
LABOUR LAW

TOPIC: - LABOUR LAWS FOR UNORGANISED

SECTOR IN INDIA

(2018-2023)

SUBMITTED BY SUBMITTED TO

AMAN KUMAR Dr. MONIKA KHAROLA

18FLICDDNO2020 ICFAI LAW SCHOOL
BA LLB ‘A’ DEHRADUN
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 Acknowledgement

On the completion of this project I find that there are many persons to whom I would like to
express my gratitude, since without their help and co-operation the success of this educative
endeavour would not have been possible. I welcome this opportunity to express my sincere
gratitude to my teacher and guide Dr. Monika Kharola, who has been a constant source of
encouragement and guidance throughout the course of this work. I am grateful to the IT Staff for
providing all necessary facilities for carrying out this work. Thanks are also due to all members
of the Library staff for their help and assistance at all times. I am also grateful to all my friends
and colleagues for being helpful in their differences and for their constant support.

AMAN KUMAR
(18FLICDDN02020)

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Introduction

The unorganized sector in India is a vast and diverse section of the workforce that is not

protected by the formal labour laws. This sector comprises around 93% of the workforce in

India, including self-employed workers, casual labourers, and migrant workers. The unorganized

sector is characterized by low wages, poor working conditions, lack of social security, and

limited access to legal protection. The aim of this research paper is to explore the labour laws for

the unorganized sector in India and identify the improvements that can be made to address the

issues faced by the workers.

The unorganised sector in India plays a significant role in the country's economy, accounting for

a substantial proportion of the workforce. However, workers in this sector often face several

challenges, including low wages, job insecurity, lack of social security, and limited access to

basic amenities. To address these issues, the Indian government has enacted several labour laws

that provide protections and benefits to workers in the unorganised sector. These laws aim to

ensure that workers in the unorganised sector are able to access basic rights, such as minimum

wages, safe working conditions, and social security benefits. Despite these efforts,

implementation and enforcement of these laws have been challenging, and many workers in the

unorganised sector remain unaware of their rights and entitlements. Therefore, there is a need to

improve the implementation of these laws and increase awareness among unorganised workers to

ensure that they can access their rights and protections under these laws. This paper aims to

provide an overview of the specific labour laws for the unorganised sector in India, their

implementation and enforcement, and the improvements needed to ensure that these laws are

effective in protecting the rights of workers in the unorganised sector.

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Current Labour Laws for the Unorganized Sector in India

The labour laws in India are divided into two categories: the formal sector and the informal or

unorganized sector. The formal sector comprises workers who are employed in registered

companies and establishments, and they are protected by various labour laws such as the

Minimum Wages Act, the Factories Act, and the Industrial Disputes Act. However, the

unorganized sector is not covered by these laws, and they are left to fend for themselves.

The unorganized sector is covered by the Unorganized Workers' Social Security Act, 2008,

which aims to provide social security to the workers in this sector. However, this Act has limited

coverage and has not been implemented effectively. The workers in the unorganized sector are

also protected by the Labour Laws (Exemption from Furnishing Returns and Maintaining

Registers by Certain Establishments) Act, 1988, which exempts certain establishments from

maintaining registers and furnishing returns under various labour laws. This Act has been

criticized for its narrow coverage and limited protection to the workers.

In India, there are several specific labour laws for the unorganised sector that provide protections

and benefits to workers. Some of these laws include:

● The Unorganised Workers' Social Security Act, 2008: This law provides for social

security measures, including life and disability cover, health and maternity benefits, old

age protection, and skill development opportunities for unorganised workers.

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 ● The Minimum Wages Act, 1948: This law sets minimum wages for workers in various

sectors, including the unorganised sector. State governments are responsible for enforcing

this law and ensuring that workers receive the minimum wage.

● The Payment of Wages Act, 1936: This law regulates the payment of wages to workers

and ensures that wages are paid on time and without any unauthorized deductions. The

law applies to workers in the unorganised sector as well.

● The Contract Labour (Regulation and Abolition) Act, 1970: This law regulates the

employment of contract labour and ensures that workers receive the same benefits and

protections as regular employees. The law applies to workers in the unorganised sector

who are engaged as contract labour.

● The Bonded Labour System (Abolition) Act, 1976: This law prohibits bonded labour,

which is a form of forced labour where workers are forced to work to pay off a debt. The

law applies to workers in the unorganised sector who may be vulnerable to bonded

labour.

● The Inter-State Migrant Workmen (Regulation of Employment and Conditions of

Service) Act, 1979: This law regulates the employment of inter-state migrant workers and

ensures that they receive the same benefits and protections as local workers. The law

applies to workers in the unorganised sector who may be inter-state migrant workers.

These are some of specific labour laws for the unorganised sector in India. However, the

implementation of these laws can be challenging, and many unorganised workers are not aware

of their rights and entitlements.

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Issues Faced by Workers in the Unorganized Sector

The workers in the unorganized sector face a range of issues, including low wages, poor working

conditions, lack of social security, and limited access to legal protection. The wages in the

unorganized sector are significantly lower than those in the formal sector, and many workers are

not paid the minimum wage prescribed by the government. The working conditions in the

unorganized sector are often hazardous, with workers exposed to chemicals, dust, and other

pollutants. The workers in this sector also lack access to basic facilities such as clean drinking

water, sanitation, and healthcare.

The workers in the unorganized sector are also not covered by any social security schemes, such

as health insurance, pension, or gratuity. They are also not eligible for any government benefits

or subsidies, and they do not have any legal protection against unfair treatment or exploitation by

their employers. The workers in the unorganized sector are often forced to work long hours, with

no overtime pay or breaks. They are also not provided with any safety equipment or training,

which puts them at risk of accidents and injuries.

Improvements Needed in Labour Laws for the Unorganized Sector in India

To address the issues faced by the workers in the unorganized sector, there is a need for

comprehensive labour laws that provide social security, legal protection, and minimum wages to

the workers. Some of the improvements that can be made in this regard are as follows:

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1. Extension of Labour Laws to the Unorganized Sector: The labour laws that apply to the

formal sector should be extended to the unorganized sector. This would provide legal

protection to the workers and ensure that they are not exploited by their employers.

2. Implementation of the Unorganized Workers' Social Security Act, 2008: The

Unorganized Workers' Social Security Act, 2008, should be implemented effectively to

provide social security to the workers in the unorganized sector. The Act should be

expanded to cover a larger number of workers, and the benefits provided under the Act

should be increased.

3. Coverage and Implementation: One of the key challenges faced by unorganised workers

is the lack of coverage under labour laws and regulations. While the Unorganised

Workers' Social Security Act, 2008 provides for social security measures, its

implementation has been limited. Therefore, there is a need to expand the coverage of

labour laws to include unorganised workers and ensure their effective implementation.

4. Access to Justice: Unorganised workers often face challenges in accessing justice due to

various barriers such as lack of awareness, resources, and language barriers. There is a

need to establish special mechanisms such as mobile courts and legal aid clinics to

provide easy and affordable access to justice for unorganised workers.

5. Minimum Wage: While there are minimum wage laws in India, they are not effectively

implemented for unorganised workers. Many unorganised workers earn below the

minimum wage, which leads to exploitation and poverty. Therefore, there is a need to

enforce minimum wage laws for unorganised workers and ensure that they receive a fair

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 wage for their work.

6. Occupational Safety and Health: Unorganised workers are often engaged in hazardous

and risky occupations without proper safety equipment and protective gear. There is a

need to establish safety standards and regulations for hazardous industries and provide

safety equipment to workers.

7. Skill Development: The lack of skills and education is a major challenge faced by

unorganised workers in India. There is a need to provide skill development training to

unorganised workers to enhance their employability and enable them to access better job

opportunities.

8. Social Security: Unorganised workers lack access to social security measures such as

health insurance, old age pension, and maternity benefits. There is a need to provide

social security benefits to unorganised workers to ensure their well-being and protection

against risks and vulnerabilities.

9. Contract Labour: Many unorganised workers are engaged as contract labour, which often

leads to exploitation and violation of their rights. There is a need to regulate contract

labour and ensure that they receive the same benefits and protections as regular

employees.

10. Collective Bargaining: Unorganised workers lack collective bargaining power due to

their dispersed nature and lack of formal organisation. There is a need to provide

platforms for collective bargaining and enable unorganised workers to negotiate better

wages, benefits, and working conditions.

11. Digitalisation: The use of technology and digitalisation can provide opportunities for

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 unorganised workers to access formal employment and social security measures. There is

a need to promote digitalisation and e-governance in the unorganised sector to enhance

their access to benefits and services.

12. Awareness and Education: Lack of awareness and education is a major barrier for

unorganised workers to access their rights and entitlements. There is a need to conduct

awareness campaigns and provide education to unorganised workers to enable them to

assert their rights and access formal employment and social security measures.

Conclusion

In conclusion, the labour laws for the unorganised sector in India have been put in place to

ensure that workers in this sector are protected and provided with basic rights and benefits. These

laws aim to address the challenges faced by workers in this sector, including low wages, job

insecurity, and lack of social security. However, despite the existence of these laws, their

implementation and enforcement remain inadequate, and many workers in the unorganised sector

continue to face exploitation and abuse. To address these issues, it is necessary to improve the

implementation and enforcement of these laws and increase awareness among workers in the

unorganised sector about their rights and entitlements. There is a need for greater coordination

between various stakeholders, including the government, employers, trade unions, and civil

society organizations, to ensure that the labour laws are effectively implemented and enforced. In

addition, there is a need for ongoing research and evaluation to identify areas for improvement

and ensure that the labour laws for the unorganised sector remain relevant and effective in

addressing the changing needs and challenges faced by workers in this sector.

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REFERENCES

● NCEUS. (2007). Report on Conditions of Work and Promotion of Livelihoods in the

Unorganized Sector. National Commission for Enterprises in the Unorganized Sector.
Retrieved from http://nceuis.nic.in/Condition_of_workers_sep_2007.pdf

● Government of India. (2008). The Unorganized Workers' Social Security Act, 2008.
Ministry of Labour & Employment. Retrieved from
https://labour.gov.in/sites/default/files/TheUnorganisedWorkersSocialSecurityAct2008.p
df

● International Labour Organization. (2018). Working in the informal economy.

International Labour Organization. Retrieved from
https://www.ilo.org/global/topics/informal-economy/lang--en/index.htm

● Basu, K. (2019). The unorganised sector: A reality check. The Hindu. Retrieved from
https://www.thehindu.com/opinion/lead/the-unorganised-sector-a-reality-check/
article26731751.ecemmm/

● Government of India. (2010). National Policy for Skill Development and

Entrepreneurship 2015. Ministry of Skill Development and Entrepreneurship. Retrieved
from https://www.msde.gov.in/assets/images/policy/National-Policy-for-Skill-
Development-and-Entrepreneurship-2015.pdf

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