ECONOMICS

ROLE OF LAW IN ACHIEVING SOCIO-ECONOMIC OBJECTIVE IN INDIA

ECONOMICS AND LAW

Objectives mentioned in the preamble of our constitution are:

Justice – social, economic and political Our economy is a market based

economy so to achieve these objectives and development of the economy we need laws to regulate the socio economic ethos of the country

LAW AND ECONOMICS

As economics has influenced law. Law has also influenced economics.

Prof. Barker: ”If economic factors and economic interests have partly determined the legal framework it is even more true that law has furnished the whole general framework of rules within which and under which the factors and interests of economics have had to work,

DEVLOPMENT PROCESS IN INDIA

Introduction of various acts in socio economic subject: agriclture, industries, labour, social welfare etc.

Laws that helped in achieving socio economic objectives in India:

I. Land Reforms LegislationII. Bonded Labour law

Land Reforms Legislation

1) Abolition of Zamindari and during away of middlemen:- As soon as the popular Govt came to power in various states the

Zamindari system, due to which the middlemen earned a lot from the farmers, were do away with. Now crores of farmers who were under these middlemen came in direct contact of the Govt. These middlemen child get lot money, as a result of compensation but it gave a thought of relief to crores of agriculturists in this country.

As a result of Zamidari abolition, the farmers got a lot of economic relief. Now the farmers after depositing certain prescribed land revenue all the categories of the farmers who under took the job of dealing the land were given the right to cultivate the land various measures were enacted that made it impossible for the Govt, and other authorities to reject these farmers.

Those persons who are in possession of land were given the right to have control over the land. They could cultivate the field that was under their possession, various conditions were improved but they were also given relief. If the agricultural production has improved the credit goes to abolition of zamindari, mahalbari, zagirdari and other such systems which made the life of the farmers uncertain.

2) Charge in the land revenues and Bhumidari right of the Farmers:

As a result of the abolition of Zamindari, the farmers got the relief in land revenue. In most of the cases the land revenue was reduced. The farmers were required to deposit and revenue of certain years at a time, and this thing give them a lot of relief. They also got the ownership of the land. As a result of the Bhumidari right which was nothing but ownership of land, they secured the right to sell it or mortgage or do something for improving, their system of agricultural production.

3) Determining the cerling of the land: After the abolition of Zamindari cerling was imposed

on Zamidari in regard to their sir land. Later on ceiling was imposed on the agricultural land. Now a person can not passes land beyond prescribed limit. Because of these most of the farmers who did not possess the land are now getting it. This gives relief to them in regard to their condition and agricultural situation.

4) Consolidation: In order to give the farmers economic holding

the process of consolidation was resorted to. Through this method, the farmers got one chauk and land instead of their scattered holdings. This process has been going on for several years and is now radically at the end. This consolidation of holding in spite of the various drawbacks caused by consolidation of holding in spite of the various drawbacks caused by corruption amongst the agency responsible for it has given relief to the farmers.

They have now their field at one place and do not have to run various places. This has improved their condition economically and also in other respect. As result of consideration of holding, the land tenure system has improved land reform has been completed.

5) Providing land to the landless: Right from the beginning of the story of the Five Year Plans, every

attempt has been made to provide land to landless. The surplus land that was secured as a result of imposition of ceiling has been given away to these landless. The land that has been made cultivable has also been given to these people. The land that was secured as a result of Bhudan has also been distributed to these people.

In the recent years this programme has been very much accelerated and it is expected that very soon most of the landless people shall get land and they shall add to the agricultural production of this country.

6) Co operative farming: In various Five Year Plans and in other progress of the Govt for the

improvement of agriculture, the co operative forming has been included. Several co operative societies were set up for the purpose and certain pilot projects were also launched. As a result of these programmes the farmers at various places have got the relief.

Those who are having un economic holdings or small holding are able to join others and have mechanised forming at low cost. As a result of these, the mechanisation of agriculture has taken place and the farmers have been able to get better yield.

Bonded Labour law India is a federal form of government. Labour is a subject in the concurrent list

of the Indian Constitution and therefore labour matters are in the jurisdiction of both central and state governments. Both central and state governments have enacted laws on labour relations and employment issues. Some of the major laws relevant to India are:

1) Trade Unions Act of 1926: This Act enacted the rules and protections granted to Trade Unions in India. This law was amended in 2001.

2) Payment of Wages Act of 1936: The Payment of Wages Act regulates by when wages shall be distributed to employees by the employers. The law also provides the tax withholdings the employer must deduct and pay to the central or state government before distributing the wages.

3) Industrial Employment (Standing orders) Act of 1946: This Act requires employers in industrial establishments to define and post the conditions of employment by issuing so-called standing orders. These standing orders must be approved by the government and duly certified. These orders aim to remove flexibility from the employer in terms of job, hours, timing, leave grant, productivity measures and other matters. The standing orders mandate that the employer classify its employees, state the shifts, payment of wages, rules for vacation, rules for sick leave, holidays, rules for termination amongst others

3) Industrial Disputes Act of 1947:The Industrial Disputes act 1947 regulates how employers may address industrial disputes such as lockouts, layoffs, retrenchment etc. It controls the lawful processes for reconciliation, adjudication of labour disputes.The Act also regulates what rules and conditions employers must comply before the termination or layoff of a workman who has been in continuous service for more than one year with the employer. The employer is required to give notice of termination to the employee with a copy of the notice to appropriate government office seeking government's permission, explain valid reasons for termination, and wait for one month before the employment can be lawfully terminated. The employer may pay full compensation for one month in lieu of the notice. Furthermore, employer must pay an equivalent to 15 days average pay for each completed year of employees continuous service. Thus, an employee who has worked for 4 years in addition to various notices and due process, must be paid a minimum of the employee's wage equivalent to 60 days before retrenchment, if the government grants the employer a permission to layoff.

4) Minimum Wages Act of 1948: The Minimum Wages Act prescribes minimum wages in all enterprises, and in some cases those working at home per the schedule of the Act. Central and State Governments can and do revise minimum wages at their discretion. The minimum wage is further classified by nature of work, location and numerous other factors at the discretion of the government. The minimum wage ranges between  143 to 1120 per day for work in the so-called central sphere. State governments have their own minimum wage schedules.

5) Industries (Regulation and Development) Act of 1951: This law declared numerous key manufacturing industries under its so-called First Schedule. It placed many industries under common central government regulations in addition to whatever laws state government enact. It also reserved over 600 products that can only be manufactured in small scale enterprises, thereby regulating who can enter in these businesses, and above all placing a limit on the number of employees per company for the listed products. The list included all key technology and industrial products in early 1950s, including products ranging from certain iron and steel products, fuel derivatives, motors, certain machinery, machine tools, to ceramics and scientific equipment.

6) Employees Provident Fund and Miscellaneous Provisions Act of 1952: This Act seeks to ensure the financial security of the employees in an establishment by providing for a system of compulsory savings. The Act provides for establishments of a contributory Provident Fund in which employees’ contribution shall be at least equal to the contribution payable by the employer. Minimum contribution by the employees shall be 10-12% of the wages. This amount is payable to the employee after retirement and could also be withdrawn partly for certain specified purposes.

7) Maternity Benefit Act of 1961: The Maternity Benefit Act regulates the employment of the women and maternity benefits mandated by law. Any woman employee who worked in any establishment for a period of at least 80 days during the 12 months immediately preceding the date of her expected delivery, is entitled to receive maternity benefits under the Act. The employer is required to pay maternity benefits, medical allowance, maternity leave and nursing breaks.

8) Payment of Bonus Act of 1965: This Act, applies to an enterprise employing 20 or more persons. The Act requires employer to pay a bonus to persons on the basis of profits or on the basis of production or productivity. The Act was modified to require companies to pay a minimum bonus, even if the employer suffers losses during the accounting year. This minimum is currently 8.33 percent of the salary.

9) Payment of Gratuity Act of 1972: This law applies to all establishments employing 10 or more workers. Gratuity is payable to the employee if he or she resigns or retires. The Indian government mandates that this payment be at the rate of 15 days salary of the employee for each completed year of service subject to a maximum of  350,000 (US$ 6350).

THANK YOUBY:

PRIYA ARORAROLL NO: 6