Introduction
Workers are an essential part of every company. The companies won’t be able to survive without the Workers. They work hard not only for themselves but for the company, and we often hear the news of the exploitation of the workers. During economic downturns, workers face different kinds of and unique challenges, but the law is there to safeguard their interests and their rights. These rights try to ensure that despite such unique challenges, workers should not feel vulnerable. They are not alone. Law is there to save them from any such exploitation. These rights and protections include various kinds of employment contracts, notice periods, access to unemployment benefits, maintenance of their health and safety at the workplace, and safeguarding against any discrimination based on caste, gender, or skin colour. Understanding all these protections will help the workers to navigate economic challenges while ensuring their rights are protected.
What are those rights?
There are several rights which the employee enjoys, and hampering such rights would lead to legal consequences.
Right to fair compensation
According to the Minimum Wages Act 1948, it is the legal right of the workers to receive a minimum wage, which was prescribed by the government and, more importantly, must be paid on time. Workers are providing services, so they are entitled to receive the wage which they deserve.
Payment of Wages Act 1936: This act ensures that payments are made on time and complete, with penalties for any unauthorized deduction.
Job security
The Industrial Disputes Act of 1947 provides safety against arbitrary terminations. There is a process which has to be maintained, for example, giving notice in lieu of notice and following a fair procedure for such a process
Health and safety of the workers
The Factories Act of 1948 ensures the maintenance of the safety and security of the workers at the workplace, which also includes providing basic & necessary protections like first aid to the workers working at a company or a factory.
Benefits such as social security
According to the Employees Provident Fund Act 1952, it provides benefits such as a provident fund, pension benefits, etc.
The right of workers to join trade union
As per the Trade Unions Act 1926, “workers got the right to form and join trade unions” for their rights & interests.
Right to approach labour Courts or tribunals: In case of violation of their rights, workers can appeal to the labour courts or tribunals in case of any wrongful actions taken against them by the company where they are working, such as unlawful termination, any harassment or unhygienic working place.
These rights are applicable for workers even during economic downturns, even though there are issues of corruption and issues related to the implementation of these laws and rights. The government makes laws to support the rights of the workers, but there is a need for checks or supervision of these rights, whether they are maintained or not, and whether they are appropriately implemented in the workplace. The workers can seek legal remedies from the government labour department and labour unions to ensure that their rights are adequately maintained.
Case Laws Which Focuses on this Issue
Delhi Transport Corporation vs D.T.C Mazdoor Congress 1991: This case focuses on the rights of workers during economic crises or economic downturns affecting the transport sector. The Supreme Court stated that “worker’s rights to job security and fair compensation should be protected”, even when the employer faces economic downturns.
Sk Verma vs Union of India, 1983
In this case, The Supreme Court examined the procedure for reduction & layoffs. The Supreme Court held that even during economic downturns, employers needed to follow the mentioned guidelines, which include providing “adequate compensation & adherence to the principle of justice & fairness”.
Air India Statutory Corporation vs United Labor Union, 1997
This case focused on the issue of reduction, which includes the case of a public sector company facing economic or financial difficulties. The Apex Court ruled out that even though the company is facing such difficulty during economic downturns, the employees are entitled to “fair treatment & statutory benefits prescribed under law”.
Challenges in Worker’s Rights during Economic Downturn
There needs to be more awareness among workers. There are a lot of workers in our country who need to be fully aware of the rights that they are entitled to, and the company must provide them to them even during economic downturns. Still, as they are not aware of these rights, they fail to claim this right, which often leads to the exploitation of the workers. Another important point is even if workers go to court to seek legal remedies, the corruption & bureaucratic delay make it hard to receive the remedies. It makes it challenging for the workers to access justice. Another issue is that a large portion of India is in the informal work sector, and the laws need to apply correctly here because there is a lack of adequate supervision, especially on the village side. There is also a structural issue in the legal framework. Some areas of labour law may focus on something other than the challenges imposed by economic downturns. Reforms shall make it better.
Addressing these challenges requires a more structured approach, adequate supervision of the implementation, and a better mechanism & reforms, which shall make the labour laws more effective and accessible to all workers.
Government’s Support to Workers during Economic Downturn
When economic downturns take place, the government often introduces several schemes and financial support such as ‘direct cash transfers, subsidies’ or various kinds of unemployment benefits to the workers so that they can handle such hardships. The government may enact or amend the existing law during the economic downturn to support the workers. The government labour department plays a vital role in handling such problems, providing legal aid or legal assistance in case of a hamper of the rights of workers. Various kinds of public awareness campaigns are also held to increase awareness among workers and how they can access such support during such hardships.
Future Recommendations
If the existing laws do not help, that time there is a need for revision of the existing rules. As the informal work sector of our country is in a more vulnerable situation, there is a need to ensure their rights and protection of those rights & safeguarding their interests. There is a need to strengthen the capacity and frequency of supervision. Employers also need training in how to handle layoffs, termination, and workers’ rights during the economic downturn. To conduct various types of surveys and to seek feedback from the employer and employee. These are some future recommendations regarding such a crisis.
Conclusion
I want to conclude by saying that in order to maintain a healthy relationship between the employer and employee, the protection of workers’ rights is essential even during economic downturns. The workers are an asset to the company or an industry. They work hard; they work overtime in order to achieve the company’s target. They play a crucial role in developing a company or a factory, so ensuring fairness or justice is essential to maintain the stability of the labour market. The workers also can seek legal protection in case their rights are hampered. To address this kind of issue, it is also vital for the government to take the initiative, and by focusing on such areas as checking labour law, increasing awareness among workers will help create a more structured and safe workplace. This stable economic environment will ultimately benefit both the employer and the employee.
