Tracing the evolution of India’s labour laws Premium

The nature of India’s labour force has been changing, so has been the country’s economy. There have been allegations of dilution of labour rights with the spotlight moving to ‘growth’ and ‘ease of doing business’ post liberalisation. The labour codes introduced in 2019 and 2020 have faced opposition from trade unions including the BMS. 

Karnataka recently saw two major developments which are significant milestones for the labour movement in the state. On May Day, services of more than 12,000 pourakarmikas were regularised. In another significant development, the Karnataka Platform-based Gig Workers (Social Security and Welfare) Bill, 2024, was cleared by the cabinet in April which is now expected to be introduced as an ordinance. Once passed, the Act is expected to bring a certain level of social security to the 20-lakh odd platform-based gig workers of the state. 

The nature of India’s labour force has been changing, so has been the country’s economy. There have been allegations of dilution of labour rights with the spotlight moving to ‘growth’ and ‘ease of doing business’ post liberalisation. The labour codes introduced in 2019 and 2020 have faced opposition from trade unions including the BMS. 

“How do we see the labour force as well as the idea of gig workers and platform workers along with the idea of ease of doing business? How does it attract capital? How do we ensure there is more employment and look at protection of labour rights?”  

These were some of the questions posed by Poornima Hatti, Senior Partner at Samvad Partners, who moderated a session on Evolution of Labour Laws in India on May Day.  

It was in 1990 that the India adopted the new economic policy which embraced liberalisation, globalisation and privatisation. Simultaneously rose a demand for changes in the labour laws.   

“The argument put forth by the World Bank, the economic think tanks and others who are pro-industrial was that India’s labour laws were framed in colonial times, and are antiquated,” said Ramapriya Gopalakrishnan, advocate, Madras High Court.  

Some of these laws included The Industrial Disputes Act 1947, The Trade Unions Act of 1926, and The Workmen’s Compensation Act 1923.