Class- SY-BALLB

SUBJECT:Economics (2022-23)
UUnit :1 Economic Laws and its ImportanceUnit -1
Economic Laws and its Importance .
 Economic Legislation
The concern of the government in today's world is to regulates the affairs of
public and private businesses with the intent of protecting consumer rights, to
maximize their satisfaction, to maximize the profit of project(businesses)
andwelfare of society as well as the overall health of their economy.
Need and Importance of Economic laws :

1.To control and regulate the economy :(a)Prevent unfair concentration

of economic power. (b) Protection against possible evils of MNCs
2. To deal with copyright issues: (a)Set rules for patent protection in
India. (b)Copy right protection.(c)Provide legal protection or goods
originated in a particular area or region within India. (d)Trade mark
protection in India. (e)Protection of designs.
.
 Definitions
1 . Patent : A patent is an exclusive right granted for an invention, which is a product or a process that
provides, in general, a new way of doing something, or offers a new technical solution to a problem.

2. Trademark : A trademark is a sign capable of distinguishing the goods or services of one enterprise from
those of other enterprises.

3. A geographical indication (GI) is an indication, whether in the form of a name or sign, used on goods that
have a specific geographical origin and possesses qualities or a reputation that are due to the place of origin.
3.For improving Labour and Industrial relations and outcomes:
(a)To resolve industrial disputes. (b)To ensure minimum wages
for labours. (c)Establish the framework for industrial contract to
be executed and enforced.
4. For improving the Welfare of Nations: (a) To tackle poverty.
(b) to fight Unemployment .(c)Price policies .
5. To promote competition, protect consumers to ensures
freedom of trade.
 Types of Economic Laws :
The various measures taken by the government to control and regulate
the economy to bring its activities in alignment to economic goals.
The main aim of these measures is to attain economic growth,
economic stability, and equitable employment.
1) Tax Laws 2)Property and Protection Laws 3)Labour and Industrial
law 4)Company or Corporate Law. 5) Consumer Law 6)Copyright
laws 7) Unfair Competition laws
 Tax Laws
Tax law : Tax are related to amount of fund dedicated from individuals, institution and like
corporation ,which is transferred to public treasury to finance public expenditure and public
project for social and economical welfare.

Examples: 1) Income tax act : The income tax act passed in the year 1961.It is an act to levy,
administrate, collect & recover Income-tax in India.

2) Goods and Services tax :The tax came into effect from 1 July 2017 through the
implementation of the One Hundred and First Amendment of the Constitution of India by the
Indian government. The GST replaced existing multiple taxes levied by the central and state
governments in different slabs for different commodities and services.
 2. Property Rights and Protection law:
Property law is group of related legal rights which pertain to the acquisition,
ownership and transfer of property.

Example :

1) According to the Act, 'transfer of property' means an act by which a person

conveys the property to one or more persons, or himself and one or more other
persons. The act of transfer may be done in the present or for the future.
 3. Labour and Industrial Laws
Labour laws (also known as labor laws or employment laws) are those that mediate
the relationship between workers, employing entities, trade unions, and the
government. Collective labour law relates to the tripartite relationship between
employee, employer, and union.Example:

1) The Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour
law that sets the minimum wages that must be paid to skilled and unskilled labours.

2)The Factories Act, 1948 is a legislation which has been enacted for occupational
safety, health and welfare of workers at work places.
3) Industrial Disputes act 1947

The Industrial Disputes Act, 1947 extended to the whole of India and
regulated Indian labour law so far as that concerns trade unions.The
objective of the Industrial Disputes Act is to secure industrial peace and
harmony.
4. Company Or Corporate Law:
The body of law governing the rights, relations, and conduct of persons,
companies, organizations and businesses.

1) Companies Act 2013:

The Companies Act 2013 is an Act of the Parliament of India on Indian

company law which regulates incorporation of a company, responsibilities
of a company, directors, dissolution of a company.The Act has replaced The
Companies Act, 1956
 5. Consumer Law
Consumer protection is the practice of safeguarding buyers of goods and services,
and the public, against unfair practices in the marketplace.
Eg: The Consumer Protection Act 1986 : The Consumer Protection Act,1986
(COPRA) was an Act by the Parliament of India enacted to protect the interests of
consumers in India.It was replaced by the Consumer Protection Act, 2019.It was
made for the establishment of consumer councils and other authorities for the
settlement of consumer's grievances and matters connected with it.
6. Copyright laws.
1.) Patent Act : Patents Act, 1970. Under this law, patent rights are granted for inventions
covering a new and inventive process, product or an article of manufacture that are able to
satisfy the patent eligibility requirements of having novelty, inventive steps, and are capable of
industrial application.

2.)The Copyright Act 1957: The Indian copyright law protects literary works, dramatic works,
musical works, artistic works, cinematograph films and sound recordings. It provides three
kinds of remedies - administrative remedies, civil remedies and criminal remedies.

3) .The Geographical Indications of Goods (Registration and Protection) Act, 1999: (GI Act) is
a sui generis Act of the Parliament of India for protection of geographical indications in
India.The GI tag ensures that only those registered as authorised users (or at least those
residing inside the geographic territory) are allowed to use the popular product name.
 7Unfair Competition laws:
1.)Competition Act 2002:
Under this the Competition Commission of India was established to
prevent the activities that have an adverse effect on competition in
India.It replaced the archaic The Monopolies and Restrictive Trade
Practices Act, 1969.It is a tool to implement and enforce competition
policy and to prevent and punish anti-competitive business practices by
firms and unnecessary Government interference in the market.
 Labour and Industrial legislations.
Workers are the weaker class of industrial society and have suffered long at the hands of
employers. Therefore, these sets of legislations go out of way in protecting workers and
securing justice to them. The influences of 'discriminative justice' and ' distributive justice'
can be clearly seen over them. All the labour legislations are heavily skewed towards labour
and they are specifically designed like that.
Labour legislation seeks to deal with problems arising out of occupational status of the
individual. Consequently, such problems as hours of work, wages, working conditions, trade
unions, industrial disputes etc. come to be the main, subject matter of labour legislations.
Thus, the behavior of the individual or his groups is the function of labour legislation as of
any other legislation. But under labour legislation, the individual is affected in the capacity of
a worker or an employer. Therefore, the persons who are neither the employers nor the
workers are least affected directly by labour legislation
 Labour and Industrial legislations
As labour legislations are to regulate the conditions of labour, in the industrial
sector, it is required to be adjusted as per the changing requirements of industry.
This has to be done more frequently than the general legislation.

All these legislations try to meet the specific objectives of their respective target
groups- that is (a) to provide subsistence, (b) to encourage equality, and (d) to
maintain security

labour legislations are subjected to frequent revision and not left to continue as
they are, they become obsolete and irrelevant.
 Why do we need Labour and industrial
legislations?
Industrial Revolution is a epoch-making event, which completely changes the lifestyles
of society from agricultural and rural to industrial and materialistic one.

The industrial society brought about, in its wake, excessive exploitation of the working
classes by the employer who took advantage of the worker and wanted maximum
profit on his investment. The golden rule of capitalism "hire and fire”

Longer hours of work, low wages, no safety and welfare provisions, and no insurance -
the exploitation at large. State was adopting the policy of Laissez-faire (let not
interfere) and employers abused workers, taking advantage of the situation.
 Objectives of industrial and labour laws.
(1) Establishment of justice- Social, Political and Economic
(2) Provision of opportunities to all workers, irrespective of caste, creed,
religion, beliefs, for the development of their personality.
(3) Protection of weaker section in the community.
(4) Maintenance of Industrial Peace.
(5) Creation of conditions for economic growth.
 Objectives of labour and Industrial laws :
(6) Protection and improvement of labour standards.
(7) Protect workers from exploitation:
(8) Guarantee right of workmen to combine and form association or
unions.
(9) Ensure right of workmen to bargain collectively for the betterment of
their service conditions.
(10) Ensure human rights and human dignity.
 Landmark labour Judgement :
Syndicate Bank and Ors v. K. Umesh Nayak, 1995 AIR 319, 1994 SCC (5) 572

The SC held that the strike is a result of a long struggle between the employer and the
employee. It is the last weapon available to the employees in order to allow their
demands to be fulfilled by the industry. The court stated it as an abnormal act and the
Industrial Legislation doesn’t deny the worker’s right to protest and it seeks the
concept of the strike to be regulated with the right of the employer to lockout and
provide machinery for peaceful inquiry and settlement of disputes between them. The
court ordered the employer to pay the workers for the “strike period”.
 Classification of labour and Industrial law:
On the basis of specific objectives which it has sought to achieve, the labour legislations can be
classified into following categories-

(1) Regulative

(2) Protective

(3) Wage-Related

(4) Social Security

The four labour codes — the Code on Wages, Industrial Relations Code, Social Security Code and
the Occupational Safety, Health and Working Conditions Code — are set to replace 29 labour laws.
Over 90% of India’s 50 crore workers are in the unorganised sector. And through these codes the
government wants to ensure that all of them enjoy the benefits of labour laws related to
minimum wages and social security.
. The Regulative Labour & industrial
Legislations
The Regulative Labour & industrial Legislations

The main objective of the regulative legislations is to regulate the relations

between employees and employers and to provide for methods and manners
of settling industrial disputes. Such laws also regulate the relationship between
the workers and their trade unions, the rights and obligations of the
organizations of employers and workers as well as their mutual relationships

The Trade Unions Act, 1926 The Industrial Disputes Act,1947

 Trade Union act 1926,
Trade Union is a combination, whether temporary or permanent, formed for regulating the relations not
only between workmen and employers but also amongst workmen or between employers and
employers.

The objective of the Trade Unions Act of 1926 was to:

Ensure Security of Workers: This ensured continued employment of workers, prevent retrenchment, lay
off or lock-outs. Controlled application of “fire” or dismissal or discharge and VRS.

Obtain Better Economic Returns: This ensured wages hike at periodic intervals, bonus at higher rate, other
admissible allowances, subsidized canteen and transport facilities.

Secure Power To Influence Management: This ensured workers’ participation in management, decision
making, role of union in policy decisions affecting workers, and staff members.
 Industrial dispute act 1947
The objectives of the Industrial Disputes Act are as follows:

To support measures for securing and preserving good relations between employers and
employees.

To provide suitable machinery for the equitable and peaceful settlement of industrial disputes.

To prevent illegal strikes and lockouts.

To afford relief to workers against layoffs, retrenchment, wrongful dismissal and victimisation.

To promote collective bargaining.

To improve the conditions of workers

. To avoid unfair labour practices.

 The Protective labour and industrial legislations
Under this category come those legislations whose primary purpose is to protect labour
standards and improve the working conditions. Laws laying down the minimum labour
standards in the areas of hours of work, supply, employment of children and women etc.
in the factories, mines, plantations, transport, shops and other establishments are
included in this category. Some of these are the following :

Factories Act,1948 The Mines Act,1952 The Plantations Labour Act,1951 The Motor
Transport Workers Act,1961 The Shops and Establishments Acts
 Factories act 1948 :
The following are the objectives of the Act:

1.Working hours It has been provided that no worker should be allowed to work for more than 48
hours per week and that there should be a weekly holiday.

2.Healt It provides that the premises of the factory shall be kept clean and all the necessary
precautions should be taken. They should have proper drainage system, ventilation, temperature,
etc.

3.Safet It provides that no young person should work with the dangerous machinery and the
machinery should have a proper fencing. There should be manholes so that in case of an
emergency, the workers can safely escape through them.

4.Welfare Facilities for washing, drinking, first aid, lunch room, etc should be provided.

5.Penalties The Act also provided for the penalties in case of any default or violation of the
provisions of the Act.
The Mines Act, 1952

contains provisions for measures relating to the health, safety and welfare of workers in the coal,
metalliferous and oil mines. The Act prescribes the duties of the owner to manage mines and mining
operation and the health and safety in mines. The Act prescribes the duties of the owner to manage mines
and mining operation and the health and safety mines.

The Plantation labour Act 1951,

to provide for the welfare of labour, and to regulate the conditions of work, in plantations. The Act shall
apply to any land used or intended to be use for growing tea, coffee, rubber, cardamom which admeasures 5
hectares or more and whereon thirty or more persons are employed on any day of the preceding twelve
months.

Motor Transport Workers’ Act, 1961

It is intended to take care of the welfare of the motor transport workers and to regulate the conditions of
their work. The main provisions of the Act, is relate to 1.welfare and health (ii) hours of work (iii)
employment of young persons (iv) wages, over-time payment and leave.
The Shop and Establishment Act 1948 :

It regulates a number of aspects relating to the operation of a shop or commercial establishment.This act regulates
areas such as working hours, rest interval for employees, opening and closing hours, closed days, national and
religious holidays, overtime work, rules for employment of children, annual leave, maternity leave, sickness and
casual leave, etc.,
 Wage-Related Labour and industrial
Legislations
Legislations laying down the methods and manner of wage payment ,
bonus payment as well as the minimum wages and equal payment
come under this category:
The Payment of Wages Act,1936 The Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
The payment of Wages act 1936:

The Payment of Wages Act, 1936 regulates payment of wages to employees (direct and indirect).
The act is intended to be a remedy against unauthorized deductions made by employer and/or
unjustified delay in payment of wages.

The minimum wages act 1948:

To secure an adequate living wage for all the labourers in the interest of the public. To fix the
daily working hours of the employees. To prevent exploitation of the workers by the employers.
To ensure that the labourers can maintain a decent standard of living.The Act lays down the
minimum rates of wages and fixing of minimum wage rates for both skilled and unskilled labour
and aims to provide a decent standard of living for them.
 ● The Payment of Bonus Act 1936: is applicable to any establishment with 20 or more
employees or any factory with 10 or more employees

To impose statutory liability upon an employer of every establishment covered by the Act to pay
bonuses to employees in the establishment.

To define the principle of payment of bonus according to the prescribed formula.

Provide for payment of minimum and maximum bonus and linking the payment of bonus with
the scheme of ‘set-off and set-on.

To provide machinery for enforcement of the liability for payment of bonus

● Equal remuneration act 1976 : An Act to provide for the payment of equal remuneration to
men and women workers and for the prevention of discrimination, on the ground of sex,
against women in the matter of employment and for matters connected therewith or
incidental thereto.
 Social Security Labour Legislations
They cover those legislations which intend to provide to the workmen social security
benefits under certain contingencies of life and work.

The Workmen's Compensation Act, 1923

The Employees' State Insurance Act, 1948

The Coal Mines PF Act, 1948.

The Employees PF and Miscellaneous Provisions Act, 1952

The Maternity Benefit Act, 1961

Payment of Gratuity Act, 1972

 ● Workmen’s Compensation act 1923 :

The Act also goes further to ensure the prevention of accidents by giving workmen a relief from
anxiety and renders the industry more friendly and desirable.The Act aims to see workmen have a
sustainable life after an employment-related accident. The scope of this Act is largely specific to
compensate the employees or to their dependents in case of injury, death, illness as a result of job
undertaken, etc.

● Employees State Insurance act 1948:

securing financial relief in cases of sickness, maternity, disablement and for providing medical
benefits to employees of factories and establishments, and their dependents.

● Coal mines PF act 1948:

An Act to make provisions for the framing of a Provident Fund Scheme, a Pension Scheme, a
Deposit linked Insurance Scheme and a Bonus Scheme for persons employed in Coal Mines.
 ● Employees PF and miscellaneous provision act 1952:

The Act mainly provides retirement or old age benefits, such as Provident Fund, Superannuation Pension,
Invalidation Pen- sion, Family Pension and Deposit-Linked Insurance

To provide money to the dependents of industrial worker after early death.

To provide a kind of social security to the industrial workers.

To provide the retirement and old age benefits.

To provide risk free deposit acceleration .

It also inculcate healthy habit of saving

● Maternity Benefit Act 1961:

1.) to provide for maternity benefit to women workers in certain establishments;

2) to regulate the employment of women workers in such establishments for certain period before and after child
birth.
Payment of Gratuity Act, 1972:

The Act provides for payment of gratuity at the rate of 15 days wage s for each completed year of service. An employee
becomes eligible for gratuity only after completion of 5 years of continuous service with the same establishment.monetary
award given for services provided to the employees working in the factories, oilfields, mines, plantations, railway
companies, shops . Also pay old age retirement amount, etc.
Miscellaneous
The Contract Labour (Regulation & Abolition) Act, 1970: Contract labour is the system of employing labourers through a contract by a
contractor for a specified period. A workman is known as a contract labourer when they are assigned to a work of an establishment
for a specific period through a contract by a contractor with or without the knowledge of the principal employer.It is the
responsibility of the contractor to hire, supervise and remunerate contract labourers.

In India, contract labourers are used in various industries varying from skilled to semi-skilled jobs.it was found that the major
characteristics of contract labour are poor economic conditions of the workers, casual nature of employment, lack of job security,
etc. Therefore the legislature enacted the Contract Labour (Regulation & Abolition) Act, 1970 (which came into force on 10th
February, 1971) to regulate the adequate functioning of the contract labourers and to prevent the exploitation of contract labourers
by the hands of management.

To prevent exploitation of contract labour.

To provide proper and habitable working conditions.

To regulate the functioning of the advisory boards.

To lay down the rules and regulations regarding the registration procedure of the establishments employing contract labour.

To state the necessary requirements and the procedure of licensing of contracts.

To provide the penal provisions in case of violation of offences under the Act.
 Miscellaneous
Child Labour (Prohibition and Regulation) Act 1986:The Indian Constitution lays emphasis on the fact that no child
below the age of 14 is allowed to work in any mine or factory as per Article 39.The right to free elementary education
that was made compulsory under Article 21 A of the Indian Constitution.

Right to protection till the age of fourteen years from any kind of hazardous employment which is provided under
Article 24 of the Indian Constitution.Article 39(e) of the Constitution protects children from any kind of abuse or forced
employment which is not suitable for their age and ability.

Child Labour (Prohibition and Regulation) Act, 1986 aims to eradicate any kind of child abuse in the form of
employment and prohibit the engagement of children in any kind of hazardous employment, who have not completed
14 years of age. The Act prohibits the employment of children in certain occupations and processes

According to the Act, the employer cannot make a child employee work between 7 p.m. and 8 a.m. and no overtime is
allowed for them. It is not allowed for an employer to make a child work for more than 3 hours without an interval of at
least one hour and in total, an employer should not make a child work for more than six hours a day
Miscellaneous
Occupations that are related to the transport of passengers, goods or mails by railway;

Cinder picking, clearing of an ash pit or building operation in the railway premises;

Working in a catering establishment which is situated at a railway station and if it involves moving
from one platform to another or from one train to another or going into or out of a moving train;

The occupation which involves work related to the construction of a railway station or any other work
where such work is done in close proximity to or between the railway lines;

Any occupation within the limits of any port;

Work which involves the selling of crackers and fireworks in shops having a temporary license;

Working in Slaughterhouses.process involving the making of Bidi; involves carpet-weaving; Cloth

printing, dyeing, and weaving; Manufacturing cement. Mica-cutting and splitting;
Miscellaneous
Building and other construction workers (Regulation of Employment and Conditions of
Service) Act 1996:

The construction industry is majorly labour-intensive, and most of the workers are unskilled,
unorganized and generally work in inhuman and miserable conditions. These construction
workers are part of the vulnerable segments of the unorganized sector in India.

Most of the construction workers are educated, unskilled, migrants, socially backward, and
have low bargaining power, so the employer usually looted them by giving fewer wages for
the work Also, construction workers tend to work with uncertain working hours with an
inherent risk of life.

BOCW Act, 1996 deals with the responsibility of the employer for the payment of wages and
compensation to each construction worker employed by him
 Miscellaneous
Building and other construction workers (Regulation of Employment and Conditions of Service) Act 1996:

The construction industry is majorly labour-intensive, and most of the workers are unskilled, unorganized and generally work in
inhuman and miserable conditions. These construction workers are part of the vulnerable segments of the unorganized sector in
India.

Most of the construction workers are educated, unskilled, migrants, socially backward, and have low bargaining power, so the
employer usually looted them by giving fewer wages for the work Also, construction workers tend to work with uncertain working
hours with an inherent risk of life.

BOCW Act, 1996 deals with the responsibility of the employer for the payment of wages and compensation to each construction
worker employed by him.

Apprentice Act 1961:

An apprentice is someone who takes training in some company to master the competencies and crafts of a specific craft. The
Apprenticeship Act explains apprentices to be the ones who receive apprenticeship or practical training under an apprenticeship
scheme for a specified duration.

The main objective of the Apprentices Act, 1961 is to meet the rising need for proficient craftsman. Giving experimental training to
the people who’re specialized in their crafts is the primary aim of the Apprentice Act. Candidates holding Diploma and Engineering
Graduates can likewise benefit from this plan.As per the announcement of Central Government any industry or any area the
provisions of the act are applicable.
 Miscellaneous
Emigration Act, 1983India has the largest immigrant population in the world, recording at a staggering eighteen million.
The Draft Emigration Bill, 2021 aims to replace the existing Emigration Act 1983.

emigrate” and “emigration” mean the departure out of India by a person with a view of taking up any employment, with
or without assistance from recruitment agencies.

The Emigration Act, 1983 limits the service fee chargeable and establishes government clearance of travel and
work-related documents. Migrants face problems at various stages, corruption and involvement of middlemen.

The Emigration Act, 1983 was passed to address concerns related to defrauding and exploitation of workers by the
recruiting agents and other problems they might face upon going abroad

Employment Exchange (Compulsory Notification of Vacancies) Act, 1959 :

Employment Exchange refers to an office of the central or state government, which collects and furnishes information on
the prospective employers, available vacancies and job seekers, thereby facilitating job seekers to find a suitable job and
for industry to find the suitable manpower

To assess the employment potential in various categories of establishments. To have a better appreciation of labour
market.
 Miscellaneous
Inter State Migrant Workmen (Regulation of Employment and Condition of Service) Act, 1979: The term ‘migrant workers’ is
defined under International Labor Organization (ILO) which described the condition of a worker who moves from one place to
another or who has already migrated to another place than their own, in search of work.

In addition to the general labour laws applicable to all workers, the interstate workers are entitled with:

displacement allowance (Section 14), home journey allowance (Section 15) including payment of wages during the period of
journey,

suitable residential accommodation and medical facilities free of charge on mandatory basis.

Termination of employment after the contract period without any liability.

Right to lodge compliant with the authorities within three months of any incident, a ccident, etc.

Sales Promotion Employees (Condition Of Service) Act 1976: The Act is concerned with regulating certain conditions of services
of sales promotions employees engaged in pharmaceutical industries. Under the provisions of this Act, the employers are
required to allow earned leave or medical leave to sales promotion employees, issue appointment letters to these employees
and to maintain certain records in respect of these employees.
 Miscellaneous
Working Journalists and other Newspapers Employees (Condition of Service and Miscellaneous Provision) Act, 1955

A large number of people are employed in newspaper establishments because it’s quite a big business.It was made
with the view to settle industrial labour disputes, regarding gratuity, a period of notice, provident funds, and for the
payment of equal wages and remuneration to the working journalists and those employees who work in the
newspaper establishments

.This act was implemented to fix their wages, hours of work, sick leaves, gratuity entitlement, etc. Working journalists
include all the contractual workers and labourers
Special Features of Labour and Industrial
Laws
A significant feature of our labour and industrial law system is that they do not take into account the industrial
sector in which

they operate, i.e. whether public, private, joint or cooperative sector. All sectors are treated equally in the matter
of operation of labour laws.

Another important feature of our labour legislation is that they also do not take into consideration the size of the
industries to which they apply, i.e. whether tiny, small, medium or large scale industry. Here again all sizes or
scales of industries are treated on par.

A third material feature of our labour statutes is that both the manufacturing and service sectors of the industry
are treated alike, despite the tremendous difference in the ‘work cultures’ obtaining in these two sectors
Generally labour laws are made applicable to industries in India on the basis of two fold criteria.

1] employment-limit within the unit in the industry

2] wage-limit of the employees in that unit.

 Conclusion:
The evolution of labour and industrial legislation due to of the struggle waged by the
workers', all over the world for just and better conditions of work as well as security of
their job. Labour and industrial legislations have now acquired the status of a separate
branch of legislations because of its special features and changing juristic ideas.
Therefore, an idea about its concept, origin, development, objectives and classification
etc. will be help to understand its principles.
Trade Unions Act 1926:
The setting up of textile and clothing mills around the port cities of Bombay (now Mumbai), Calcutta (now
Kolkata), Madras (now Chennai) and Surat in the second half of the 19th century led to the beginnings of
the industrial workforce in India. Several incidents of strikes and protests by workers have been recorded
during this time. The credit for the first association of Indian workers is generally given to the Bombay
Mill-Hands Association founded by N.M. Lokhande in 1890. However, The first organised Trade Union in
India named as the Madras Labour Union was formed in the year 1918.

the Trade Union Act (1926) was passed which created the rules for the regulation and closer monitoring of
Trade Unions. In the first year of the law's operation, 28 unions registered and submitted returns with a
total membership 100,619.

A trade union is an organized group of workers who strive to help the workers in the issues relating to the
fairness of pay, good working environment, hours of work and other benefits that they should be entitled
to instead of their labour. They act as a link between the management and workers. In spite of being newly
originated institutions, they have turned into a powerful force because of their direct influence on the
social and economic lives of the workers.
Trade Unions Act 1926:
Before the emergence of industrialization on a massive scale, there were personal contracts between the
workers and employers. Therefore, no requirement for the evolution of any machinery governing the
relationship between workers and employers arose until then. But after the establishment of modern
factory system this relationship lost its significance due to large scale industrialization which enticed
employers to reduce the cost of production in order to withstand the cut-throat competition in the market
and maximize their profit by using technologically more sophisticated means of production which in turn
resulted in the rise of a new class of workers who were completely dependant on the wages for their
survival which changed the existing employer and employee relationship in which the employees were
exploited by their employers. The conflict of interest between workers and employers and the distress of
workers resulted in the growth of various trade unions.

industrial dispute refers to any dispute which arises between the employers and the workers and it is
usually in connection with any one of the following:

->employment or non-employment, ->the terms or conditions of the employment,

->Something which affects the employment of any person.

Trade Unions Act 1926:
Following objectives were closely associated with Trade UnionAct,1926;

1) To protect workers against exploitation by employers.

2) To represent the grievance of employees on behalf of them to the management.

3) To protect & safeguard rights of workers provided to them under labour laws.

4) To increase participation in management for Decision Making.

5) To take disciplinary action against workers.

6) To secure worker for better condition.

7) To secure bonus for the worker from the profits of organization

8) To improve the economic condition of workers by providing them better wages.

Trade Unions Act 1926
9). To secure the organizational efficiency and high productivity.

10). To ensure opportunities or promotions and training.

11). To inculcate discipline, self respect and dignity among the workers.

12). To secure for the workers better safety and health welfare schemes.

13). To ensure that workers get as per rules provident funds, pensions, and other
benefits.

14). To provide legal assistance to workers in connection with disputes regarding work
and payment of wages.

15). To generate a committed industrial work force or improving productivity of the

system.
 Trade Unions Act 1926
Functions of trade union

1). Collective bargaining with the management for the securing better

work environment to the workers/ employees.

2). Providing security to workers and keeping checks over the hiringand firing of workers.

3). To represent the grievance of employees on behalf of them to the management.

4) To develops the cooperation with employers.

5). To negotiable with management certain matters like hours of work, wage and medical
facilities, and other welfare schemes.

6). To raise public opinion in favour of workers.

Trade Unions act 1926
Purposes of collective bargaining

To provide an opportunity for the workers to voice their complaints and grievances regarding the working
conditions.

To pave the way for the employer and workers to reach an amicable solution peacefully without having any
ill will towards one another.

To sort out all the disputes and conflicts between the employer and worker.

To prevent any dispute which is likely to take place in the future by mutually agreeing on the contract.

To foster a peaceful and stable relationship between the workers and the organization.

However, collective bargaining is not provided to all the trade unions but is only provided to those trade
unions which are recognized. Therefore, the demand for mandatory recognition of trade union which has
not been provided under the Trade Union Act 1926 has been raised time and again by the workers.
Trade Unions Act 1926
On a closer view of the labour laws in India indicate that mostly the workers who are employed in
the organized sectors of the economy are protected under the various labour legislations.
According to the Fifth Economic Census of 1999, it was revealed that more than 97 per cent of the
enterprises employ less than ten workers, and most of these employ less than five workers. This
clearly shows that labour laws apply to less than 3 per cent of enterprises.
❖Limitation and Problems of Trade Unionism in Trade in India
1. Limited representation 2. Small size and increasing number
3. Multiplicity of unions 4. Inter- union and intra- union rivalries
5. Political infiltration 6. Lack of funds. 7. Low income
8. Illiteracy. 9. Lack of integrity 10.Unhealthy attitude of employers.
Bharatiya Mazdoor Sangh (BMS) , Indian National Trade Union Congress (INTUC) ,All India Trade Union Congress (AITUC) ,
Hind Mazdoor Sabha (HMS) ,Centre of India Trade Unions (CITU) , All India United Trade Union Centre (AIUTUC) –
formerly UTUC (LS) are few major Trade unions in India