Trade Union Development and Labor Relations Policy in India

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2 pages /

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965 words

Downloads: 34

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The Trade Union Act, 1926 encourage the composition of multiple trade unions in an establishment as it sanctions that any seven or more workers can not only compose a trade union but they also apply for registration under the Act, which can reduce industrial peace and harmony, and increase inter and intra union riveleary. This Act withal provide auspice to the trade union leadership from malefactor and civil legal responsibility when advancing the intrigues of the union. The trade union leaders utilized this licensed protection to create industrial unrest, which can obstruct the horizontal running of industries. This Act additionally provides a license to the outsiders to interfere into the functioning of trade unions as the office bearers. He finally conclude that the subsisting Labour legislation in India has not regulated to embolden comprehensive labor-accelerated manufacturing and both the above mentioned Acts, must be ammended at the earliest to make them more contemporary for job creation.

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Saini D.S. (2014) expounds that since 1991 the industrial paradigm in India is moving in the direction of ecumenical competition, organizatiomal effectiveness, good organization and joint teamwork. By the avail of this research paper, she looked at the approach to theTrade union Act, 1926/ the Industrial Employment (Standing Orders) Act, 1946/ and the Industrial Disputes Act, 1947, have been functioning and up to which extent they are contemporary in todays business environment in India.

Sarkar P. and Deakin S. (2011) have been discussing about the correlation between labour regulation, industrial output and unemployment by utilizing Leximetric Methods. On the substratum of a time-series econometric analysis, they acknowledged inverse relationship between labour law and unemployment in border perspectives, while stumpy unemployment leads to the implementation of pro-worker labour laws. However, India’s eccentrically pro-worker labour laws have befallen a main obstruction to industrial intensification and to the development of the formal sector (registered employment) at the cost of the informal sector (unregistered employment).

Deakin S. and Haldar A.(2015) verbalized that the worker-protective labour laws in India are not contemporary in present age and frequently expressed as rigid/ traditional/ old-fashioned. Thus, they are not able to fulfill today’s need and generally create a hindrance, in our fast-growing economy. Such labour laws are discouraged investors to invest in India and this certainly intensifies of problem of unemployment in India. India’s labour laws are set at an inappropriately high caliber for a developing economy, which would otherwise be in a position to utilize cheaper labour as an internal environmental factor, which definitely gives a comparative advantage over the business rivals. In the last general election, the focal point of Narendra Modi’s campaign was the promise that he would make for India just like that what he did in Gujarat as Chief Minister. The ‘Gujarat model’ of development has described as the pro-business approach, by offering a package of ameliorated infrastructure with good governance and minimum intervention of the State Govt. The Gujarat model accentuates the reformation of governance structures as the corridor to progress, with the deregulation of labour laws a main aspect of this progression. For Govt. of India, labour law reform poses the question of whether magnification is to be seen as an end in itself or a means to other ends.

Shah H. (2014) mentioned that following formal economic liberalisation in 1991, Indias' journey to become a modern contemporary growing economy commences through transition from agriculture to industry, informal to formal sector, and shift to urbanization, by simultaneously establishing the design of infrastructure and quality jobs as a proper magnification potential. However, at the same time, one of the key enablers is the modernization of the labor market, which has regulated by profounder preventive laws. In India labor legislation is a subject matter in the Concurrent List, thus both the Federal Govt. and the State Govt's. could personate laws relating to the germane category. These have been grouped in four categories:

  1. Labor laws personated, and imposed by the sundry State Govt's.
  2. The labor laws enacted and enforced by the Federal Govt.
  3. The labor laws personated by the Federal Govt. but imposed by both Federal and State Govt's.
  4. The labor laws personated by the Federal Govt. but imposed by the State Govt's.

He further added that even as India necessitates a foremost renovate in the existing labor laws, the Indian Dispute Act, 1947 necessitates reform at the earliest because of Chapter V-B and Section 9A. The Factories Act, 1948 and the Contract Labour (Regulation and Abolition) Act, 1970 additionally necessitate to relax their lid on margins. With six decades of impasse on labor law reforms, it is time to come across a feasible approach by accounting for perceived short-term fascinates of those favoring the existing conditions and those authoritatively mandating instantaneous restructuring.

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Jha S. (2014) highlights that India surely overlooked the prospect of being manufacturing hub of the world as a result of firmness in the labour market, antiquated labour legislation and conspicuous adeptness scarcity. However, the labor market in India vestiges straight-faced when it comes to magnetizing FDI, particularly in labour-intensive sectors. It is very consequential, that labour law reforms are outlook as comprehensive sense, so that India is capable of incrementation demographic surplus by fetching a industrialized destination of the globe on account of higher labour productivity, lower labour cost and elastic labour market performance devoid of finding the middle ground on labour standards. Outdated labour laws are the furthermost blockade in comprehension of an industry-friendly labour market in India. Labour laws perpetuate to keep the workers’ prerogatives together, while the defensive shelter of the industry, which secured the domestic industries outside the competition has vanished after the liberalization/ globalization and privatization in India, since 1991. A complete appraisal of all the proximate to obsolete labour laws is unquestionably desirable in India. They need to be simplified and brought in order with existing economic pragmatisms, including particularly recent worldwide practice.

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Trade Union Development and Labor Relations Policy in India. (2019, April 10). GradesFixer. Retrieved September 28, 2023, from
“Trade Union Development and Labor Relations Policy in India.” GradesFixer, 10 Apr. 2019,
Trade Union Development and Labor Relations Policy in India. [online]. Available at: <> [Accessed 28 Sept. 2023].
Trade Union Development and Labor Relations Policy in India [Internet]. GradesFixer. 2019 Apr 10 [cited 2023 Sept 28]. Available from:
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