CS Executive · Setting Up of Business, Industrial and Labour Laws
Constitution and Labour Laws: formula sheet
Key formulas
- Article 14 and 16
- Art. 14 = equality before law; Art. 16 = equal opportunity in public employment
- Used against arbitrary action and discrimination in service matters.
- Article 19(1)(c) and 19(1)(g)
- Right to form associations or unions; right to practise any profession, trade or business
- Both are subject to reasonable restrictions in Article 19(4) and 19(6). No fundamental right to strike.
- Article 21
- Life and personal liberty = includes livelihood, dignity and safe working conditions (judicial interpretation)
- Source of the courts' protection for workers' health, safety and dignity.
- Articles 23 and 24
- Art. 23 = no forced labour or human trafficking; Art. 24 = no child below 14 in factory, mine or hazardous work
- Article 23 protects against the State and private persons alike. Article 24 is narrower than a ban on all child work.
- DPSP on labour
- Art. 39(a), (d), (e), (f); Art. 41; Art. 42; Art. 43; Art. 43A; Art. 47
- 39(d) equal pay for equal work; 41 right to work; 42 just and humane conditions and maternity relief; 43 living wage; 43A workers' participation in management.
- Concurrent List labour entries
- Entry 22 = trade unions, industrial and labour disputes; Entry 23 = social security, employment; Entry 24 = welfare of labour
- Both Parliament and States can legislate. Central law prevails in conflict under Article 254, subject to its proviso.
- Fundamental Duties
- Article 51A (Part IVA)
- Duties of citizens. Not directly enforceable, but they guide interpretation.
- Four-group classification
- Labour laws = Industrial relations + Wages + Social security + Safety and welfare
- Each group now matches one Labour Code. Use it as the skeleton for any classification answer.
- Four Labour Codes
- Code on Wages + Industrial Relations Code + Code on Social Security + OSH Code
- In force from 21 November 2025. Name all four when asked about the present position.
- Constitutional position
- Labour = Concurrent List (Seventh Schedule)
- Both Parliament and State legislatures can legislate on labour.
- ILO instruments
- Convention = binding after ratification; Recommendation = guidance only
- Do not say that every ILO Convention automatically binds India.
- Objectives of labour legislation
- Protection of workers + Industrial peace + Social justice + Productivity and economic growth
- A handy list of objectives to open any answer on why labour laws exist.
- Code on Wages, 2019: laws replaced
- Payment of Wages Act, 1936 + Minimum Wages Act, 1948 + Payment of Bonus Act, 1965 + Equal Remuneration Act, 1976
- Four laws merged into one Code. Question: "which Acts are subsumed under the Code on Wages" - give these four.
- Industrial Relations Code, 2020: laws replaced
- Trade Unions Act, 1926 + Industrial Employment (Standing Orders) Act, 1946 + Industrial Disputes Act, 1947
- Three laws merged. It deals with unions, standing orders, strikes, lay-off, retrenchment and dispute resolution.
- Code on Social Security, 2020: laws replaced
- Employees' Compensation Act, 1923 + ESI Act, 1948 + EPF and Miscellaneous Provisions Act, 1952 + Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 + Maternity Benefit Act, 1961 + Payment of Gratuity Act, 1972 + Cine-Workers Welfare Fund Act, 1981 + Building and Other Construction Workers' Welfare Cess Act, 1996 + Unorganised Workers' Social Security Act, 2008
- Nine laws merged. Covers PF, ESI, gratuity, maternity benefit, compensation and schemes for gig and unorganised workers.
- OSH Code, 2020: laws replaced
- Factories Act, 1948 + Plantations Labour Act, 1951 + Mines Act, 1952 + Working Journalists and other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955 + Working Journalists (Fixing of Rates of Wages) Act, 1958 + Motor Transport Workers Act, 1961 + Beedi and Cigar Workers (Conditions of Employment) Act, 1966 + Contract Labour (Regulation and Abolition) Act, 1970 + Sales Promotion Employees (Conditions of Service) Act, 1976 + Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 + Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 + Dock Workers (Safety, Health and Welfare) Act, 1986 + Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
- Thirteen laws merged. Learn the main ones: Factories, Mines, Contract Labour, Inter-State Migrant Workmen, Plantations, Dock Workers and Building Workers.
- Count check
- 4 + 3 + 9 + 13 = 29 central laws
- Use this total to check that your lists are complete.
- Constitutional basis
- Labour = Concurrent List subject → Centre and State both legislate and administer
- Trade unions, industrial and labour disputes, social security and welfare of labour are concurrent subjects. Say 'appropriate Government' for who acts in a given case.
- Dispute machinery
- Bipartite forum → Conciliation (failure report) → Industrial Tribunal (or National Industrial Tribunal for questions of national importance or disputes likely to affect establishments in more than one State)
- Learn the order of the early stages. The two Tribunals are alternative adjudicating forums, not successive rungs. After the conciliation officer submits a failure report, a party may apply to the Tribunal. Voluntary arbitration is also open to the parties.
- Enforcement officer
- Inspector-cum-Facilitator = inspect + advise
- One designation under the Codes replaces the older inspector concept. The dual role is a common exam point.
- Tripartite composition
- Government + Employers + Workers
- Indian Labour Conference and similar bodies advise. They do not adjudicate.
- Tribunal composition
- Industrial Tribunal and National Industrial Tribunal = each has a judicial member + an administrative member
- Under the Industrial Relations Code, 2020, each Tribunal has a judicial member and an administrative member. The Code allows certain matters to be decided by a single member, so do not say that a Tribunal must always sit with both.
Quick revision
- Labour is a subject on which both Parliament and State legislatures can legislate, so know the concurrent power.
- Fundamental Rights and Directive Principles both shape labour law, in different ways.
- Labour laws can be grouped by purpose: wages, social security, working conditions and industrial relations.
- There are four Labour Codes, and they have been in force since 21 November 2025.
- The four Codes are Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions.
- Each Code consolidates and replaces several earlier Acts, so link each Code to its predecessors.
- Always check the Code's own definition before applying a term to facts.
- Know the authorities that administer each Code and what each one does.
- Know the sequence of dispute settlement, from the first level to the final forum.
- In answers, state the provision, apply it to the facts, then give a clear conclusion.
- Cite the Code and section only when you are sure of it.
Common mistakes
- Saying Directive Principles are enforceable in a court of law. Fix: State that Directive Principles are non-justiciable, but courts use them to interpret rights and to uphold labour laws.
- Claiming Article 19(1)(c) gives workers a fundamental right to strike. Fix: Write that the right is to form associations or unions, subject to reasonable restrictions. The right to strike is a statutory right, not a fundamental one.
- Saying the four Labour Codes replaced laws in 2020 or 2019 only Fix: Say they were enacted in 2019-2020 and came into force on 21 November 2025.
- Saying every ILO Convention is binding on India Fix: Write that a Convention binds only after the country ratifies it, while Recommendations only guide.
- Writing that the Code on Wages replaced the Factories Act or the Payment of Gratuity Act. Fix: Link by theme. Pay, bonus and equal pay go to Wages. Gratuity, PF, ESI and maternity go to Social Security. Factories and mines go to OSH.
- Saying the Codes are still not in force or quoting old enforcement dates. Fix: State that all four Codes came into force on 21 November 2025, and use the Codes, not the old Acts, in answers.
- Saying labour is only a Central subject or only a State subject. Fix: Always write that labour is a Concurrent List subject, so the 'appropriate Government' may be Central or State.
- Saying the Indian Labour Conference decides industrial disputes. Fix: State that it is a tripartite advisory forum. Disputes are decided by tribunals after conciliation.
Exam tips
- Learn the Article numbers with a keyword each. Examiners award marks for the correct Article number beside the point.
- In short notes, always split your answer into Fundamental Rights, Directive Principles and Fundamental Duties, then add the Concurrent List.
- For case-based questions, state whether the provision is enforceable. This one line often separates good answers from average ones.
- Do not use Article 19(1)(c) to claim a right to strike or recognition of a union. Say it is subject to reasonable restrictions.
- Link the Constitution to the Labour Codes in your conclusion: the Codes draw their legislative power from Concurrent List entries 22, 23 and 24.
- Always write the four-group list and match it to the four Labour Codes. It earns marks in many question types.
- Give the date 21 November 2025 for the Codes coming into force, and do not confuse it with the enactment years.
- In history answers, write stages in time order and add one cause for each.