Page 12 - DMGT516_LABOUR_LEGISLATIONS

Unit 1: Labour Welfare and Concept

1.5.3 Principle of Regulation Notes

The principle of regulation seeks to regulate the relationships between the employers and their
associations and workers and their organizations. As the relationships between the two groups
have repercussions on the society, the law aims at safeguarding the interests of the society
against the adverse consequences of collusion or combination between them. Thus, the principle
of regulation seeks to regulate the balance of power in the relationships of the two dominant
groups in industrial relations. When the employers were the stronger side, laws were enacted to
confer upon workers' organizations, new rights and privileges. On the other hand, when the
workers' organizations started misusing their strength, laws were enacted to curb their
undesirable activities.

When industrial actions – strikes, lock-outs – started causing hardships to consumers and society
at large, the state had to intervene and enact laws to provide for machineries for the settlement
of industrial disputes. The specific areas in which state regulation through legislative measures
have become necessary includes: workers' right to organize, registration of trade unions and
rights of registered trade unions, recognition of representative unions, collective bargaining,
settlement of industrial disputes, conciliation, adjudication and arbitration machineries, redressal
of grievances and grievance procedure, industrial actions such as strikes, lock-outs, picketing,
unfair labour practices, workers' participation in management and tripartite bodies.

Example: Laws enacted on this principles are: Trade Unions Act, 1926; Industrial Disputes
Act, 1947 and Industrial Employment (Standing Orders) Act, 1946 in India; Industrial Courts Act,
1919; Industrial Relations Act, 1971 and Trade Union and Labour Relations (Consolidation) Act,
1992 of Great Britain; and National Labour Relations Act, 1935 (Wagner Act).
1.5.4 Principle of Welfare

The protective and social security laws have the effect of promoting labour welfare, special
labour welfare or labour welfare fund laws have also been enacted, with a view to providing
certain welfare amenities to the workers and to their family members. The main purpose behind
the enactment of labour laws on this principle is to ensure the provision of certain basic amenities
to workers at their place of work and to improve the living conditions of workers and their
family members.

Example: Laws enacted with this principle in view are: Mica Mines Labour Welfare
Funds Act, 1946; Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare
Fund Act, 1976; Beedi Workers Welfare Fund Act, 1976; Dock Workers (Safety, Health and
Welfare) Act, 1986; State Labour Welfare Fund Acts and Welfare Provisions under the Factories
Act, 1948; Mines Act, 1952 and Plantation Labour Act, 1951.

1.5.5 Principle of Social Security

In industrial societies, income insecurity resulting from various contingencies of life such as
disablement, old age and death has become a serious problem. During such contingencies, the
income of the earners either stops altogether or is reduced substantially or becomes intermittent
causing hardships to the earners and their family members. Social security legislation may be
kept under two broad categories – social insurance legislation and social assistance legislation.
In social insurance, benefits are generally made available to the insured persons, under the
condition of having paid the required contributions and fulfilling certain eligibility conditions.
The fund for social insurance schemes usually comes from contributions of the beneficiaries and
their employers, often supplemented by state grants.

LOVELY PROFESSIONAL UNIVERSITY 7