Unjust Employment Practices under Labour Laws: Bargaining & Compliance Guide

Introduction 

Unjust Employment Practices under Labour Laws have become a growing concern in modern workplaces, especially with the rise of gig work, contract labour, and informal sector jobs. These practices not only violate statutory protections but also weaken the integrity of industrial relations. Alongside, the role of bargaining, especially collective bargaining, plays a vital part in safeguarding worker rights and ensuring compliance with India’s labour legislation. This article explores both these elements and their legal implications.

By giving employees the ability to legally and systematically defend their rights, collective bargaining helps to prevent possible exploitation and makes sure that employers don’t arbitrarily set terms of employment. 

Concept of Collective Bargaining

The legal framework for collective bargaining in India is mainly regulated by various labour laws and industrial relations statutes. 

These regulations manage the relationship between employers, employees, and trade unions, ensuring that the collective bargaining process is adjudicated fairly, remains transparent, and with legal safeguards.

  1. The Trade Unions Act, 1926 
  2. The Payment of Wages Act, 1936
  3. The Minimum Wages Act, 1948
  4. The Industrial Relations Code, 2020

The Trade Unions Act, 1926 

The Trade Unions Act governs the formation, registration, and entitlements of trade unions in India. Through this Act, unions obtain legal acknowledgement, which is essential for collective Bargaining. 

The Payment of Wages Act, 1936

The Payment of Wages Act guarantees that employees receive fair and timely compensation. It forms the basis for collective bargaining concerning wage and salary-related topics. 

The Minimum Wages Act, 1948

The Minimum Wages Act represents a vital statute for collective bargaining as it guarantees that workers are paid at least the minimum wage for their labour. 

The Industrial Relations Code, 2020

The Industrial Relations Code (part of India’s labour law reforms) amalgamates and updates former laws, including the Industrial Disputes Act. 

Legal protection for collective bargaining 

In India, a number of laws safeguard the fundamental right to collective bargaining and organization. 

Through the protection of fundamental freedoms necessary for collective action, such as the ability to organize associations, which is crucial to trade union activities, the Indian Constitution indirectly secures these rights.

  • The 1926 Trade Unions Act
  • The Industrial Relations Code, 2020

The 1926 Trade Unions Act

The right of workers to organize trade unions is acknowledged by this Act. It enables workers to legally represent themselves in collective bargaining by registering their unions. 

The Industrial Relations Code, 2020

The Code combines clauses pertaining to collective bargaining, trade unions, and labour disputes. It encourages employee involvement in decision-making processes and requires union recognition in specific companies. 

To guarantee that workers have a formal voice in the negotiation process, the Code, for instance, mandates that unions that represent a sizable number of employees be recognized for collective bargaining.

Unfair Labour Practices (ULP) 

In India, Actions taken by employers, trade unions, or employees that go against the fundamentals of reasonable and fair labour relations are referred to as unfair labour practices (ULPs).

In order to safeguard workers’ rights and preserve industrial harmony, these behaviours are expressly forbidden by Indian labour regulations. The legal foundation for recognizing and resolving ULPs is established by the Industrial Disputes Act of 1947 and the Industrial Relations Code of 2020.

In the workplace, both employers and employees are held to high standards, and breaking these norms can have legal repercussions.

ULPs frequently take the form of discriminatory actions directed at union members.

  1. Suspension or Termination
  2. Benefit Denial
  3. Harassment or Intimidation

Suspension or Termination

Employees may be unlawfully suspended or terminated by their employers due to their participation in union activities or union membership. This is an unfair labour practice and a violation of workers’ rights.

Benefit Denial

Just because a worker is a union member does not mean that their employer can refuse them promotions, bonuses, or other benefits.

Harassment or Intimidation

Employers may use tactics to harass or threaten union members, particularly those participating in collective bargaining or leadership positions. Workers’ rights to freely associate and organize are violated, and a hostile climate is created for union activity.

Legal consequences of unfair labour practices

Unfair labour practices (ULPs) are grave transgressions of employee rights and industrial relations standards in India. The law requires trade unions and employers to refrain from actions that jeopardize workers’ rights or disturb workplace harmony.

There are legal repercussions for ULPs, such as the enforcement of collective bargaining agreements, damages for impacted workers, and sanctions for unions or businesses involved in the activity. 

Conclusion

For workers, companies, and governments around the world, the confluence of globalization, collective bargaining, and labour legislation offers both opportunities and difficulties. Even though globalization has linked markets and boosted economic progress, it has also made workers more vulnerable, especially in poorer nations where transnational companies (TNCs) frequently have substantial influence over working conditions. 

Since workers must increasingly defend their rights in a globalized society, the emergence of global supply chains and cross-border negotiating has complicated collective agreements while also making them more important.



RIMI AGARWAL
 (Manipal University Jaipur – 3rd Year )

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The 11th D.D. Basu Essay Writing Competition is proudly announced by the Constitutional Law Society (CLS) and the Vidhi Centre for Legal Policy, under the auspices of NUJS Kolkata. Dedicated to the legacy of Shri Durga Das Basu, a renowned jurist and author of India’s most authoritative constitutional law treatise, this prestigious competition offers law students across India a unique platform to demonstrate their expertise and analytical abilities on significant constitutional law issues.

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