Exploitation of Labour and Its Different Patterns -

Introduction

Exploitation of labour refers to the unfair treatment of workers where employers extract maximum output with minimal compensation, often violating basic human rights, dignity, and legal protections. In the Indian context, this phenomenon is deeply intertwined with the country’s socio-economic fabric, industrial laws, and labour regulations. Rooted in colonial legacies and perpetuated by rapid industrialization, globalization, and informal sector dominance, labour exploitation manifests in various patterns such as wage theft, forced labour, child labour, bonded labour, gender-based discrimination, and unsafe working conditions.

Indian labour laws, consolidated under four major Codes post-2020—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Occupational Safety, Health and Working Conditions Code, 2020; and the Code on Social Security, 2020—aim to regulate these issues. However, enforcement gaps, coupled with social hierarchies like caste, gender, and migration, exacerbate exploitation. This article explores the historical evolution, major developments, current scenarios, and potential remedies, highlighting patterns like contractualization, migrant worker vulnerabilities, and gig economy abuses.

Short Note on Historical Background

Labour exploitation in India traces back to the colonial era under British rule (1757–1947). The indentured labour system, introduced after the abolition of slavery in 1833, saw over 1.5 million Indians shipped to plantations in Fiji, Mauritius, Caribbean, and Africa under deceptive contracts with abysmal wages and harsh conditions—often akin to slavery. Domestically, the factory system emerged with the first cotton mill in 1818, leading to exploitation in jute, tea, and coal industries.

The Assam Tea Plantations recruited workers through sardari (contractor) systems, involving debt traps and physical coercion. The Workmen’s Compensation Act, 1923, and Trade Unions Act, 1926, were early responses, but primarily benefited organized sectors. Post-independence in 1947, the Constitution (Articles 23–24) prohibited forced labour and child labour, influencing laws like the Minimum Wages Act, 1948, and Bonded Labour System (Abolition) Act, 1976. Yet, feudal agrarian structures and caste-based discrimination perpetuated patterns like begar (forced unpaid work) in rural areas, setting the stage for modern industrial exploitation.

Major Developments

Post-independence, India witnessed significant legislative and judicial milestones to combat labour exploitation, though implementation lagged.

Legislative Reforms (1940s–1980s): The Industrial Disputes Act, 1947, allowed worker protections against arbitrary dismissals, while the Factories Act, 1948, mandated safety standards. The Contract Labour (Regulation and Abolition) Act, 1970, targeted exploitative contractor systems in industries. The Equal Remuneration Act, 1976, addressed gender wage gaps. The Supreme Court’s People’s Union for Democratic Rights v. Union of India(1982) case expanded Article 21 (right to life) to include dignified work, declaring minimum wage violations as forced labour.
Liberalization Era (1990s–2010s): Economic reforms in 1991 spurred FDI and export-oriented growth, but led to “flexible” labour practices. Contractualization surged; by 2000s, over 50% of factory workers were contractual (per NSSO data), earning 30–50% less than permanent peers with no job security. The Unorganised Workers’ Social Security Act, 2008, aimed at informal sector (93% of workforce), but remained underfunded.
Recent Codification (2019–2020): The four Labour Codes subsumed 29 central laws, introducing universal minimum wages, fixed-term employment, and social security for gig workers. The Occupational Safety Code mandates inspections and prohibits employment of children under 14. Judicial interventions, like the Vishaka Guidelines (1997) on sexual harassment and the 2021 Supreme Court ruling on equal pay for contractual women workers, marked progress.

Despite these, patterns evolved: bonded labour shifted to brick kilns and construction; child labour persisted in agriculture (ILO estimates 5.8 million in 2011); and migrant crises, exemplified by the 2020 COVID-19 exodus of 40 million workers, exposed interstate vulnerabilities under the Inter-State Migrant Workmen Act, 1979.

Current Situation

Today, labour exploitation affects over 90% of India’s 500 million workforce in the unorganized sector (Economic Survey 2022–23). Key patterns include:

Wage Theft and Underpayment: Minimum wages vary by state (e.g., ₹178/day in Bihar vs. ₹538 in Delhi for unskilled workers, 2023 notifications), but non-compliance is rampant. NSSO 2019 data shows 45% of regular wage workers earn below minimum. In garments (Tiruppur) and electronics (Noida), piece-rate systems lead to 12–16 hour shifts for ₹8,000–12,000 monthly.
Bonded and Forced Labour: National Crime Records Bureau (2022) reported 1,200+ bonded labour cases, mostly in Uttar Pradesh, Bihar, and Odisha’s brick kilns. Migrant workers from these states face advance payments trapping them in debt cycles, violating the Bonded Labour Act.
Child and Adolescent Labour: Despite the Child Labour (Prohibition and Regulation) Amendment Act, 2016, banning under-14 work in hazardous occupations, 10.1 million children (5–17 years) work (Census 2011; updated ILO 2023 estimates ~5 million). Patterns in beedi-making, fireworks (Sivakasi), and domestic work involve family debt.
Gender-Based Exploitation: Women comprise 30% of the workforce but face 20–30% wage gaps (Periodic Labour Force Survey 2022–23). Sexual harassment persists; only 26% workplaces have Internal Complaints Committees (POSH Act, 2013). Maternity benefits under the 2017 Amendment are denied to contractual workers.
Contractualization and Gig Economy: 60%+ industrial workers are contractual (CMIE 2023), lacking PF, ESI benefits. Platforms like Uber/Swiggy classify workers as “partners,” evading Industrial Relations Code protections. During 2020 lockdowns, gig workers faced income loss without social security.
Unsafe Conditions and Migration: Construction (50 million workers) sees 48,000+ annual deaths (DGMS data). Inter-state migrants (100 million+) endure poor living conditions, wage deductions, and no accident compensation.
Caste and Regional Disparities: Dalits and Adivasis dominate hazardous jobs; social boycotts enforce exploitation in rural areas.

Enforcement is weak: only 18% factories inspected annually (Labour Ministry 2022), with corruption and inspector raj issues.

Suggestions

To curb exploitation, a multi-pronged approach is essential:

Strengthen Enforcement: Increase labour inspectors (current ratio 1:50,000 workers) and digitize compliance via portals like Shram Suvidha. Impose heavier penalties under the Codes (up to ₹10 lakh for violations).
Universal Social Security: Extend ESI/PF to unorganized and gig workers via Aadhaar-linked portable benefits. Fund the 2008 Act adequately; introduce unemployment insurance.
Skill Development and Formalization: Integrate PMKVY with apprenticeship laws to reduce contractualization. Mandate 50% permanent hires in firms >100 workers.
Target Vulnerable Groups: Rehabilitation funds for bonded labour victims (₹3 lakh/rehabilitated per 2023 guidelines). Strict POSH implementation with awareness campaigns. Ban hazardous child work entirely; link education via RTE.
Migrant-Specific Measures: One Nation One Ration Card expansion; portable health cards. Regulate contractors digitally.
Judicial and Civil Society Role: Fast-track labour courts; empower NGOs for rescues (e.g., Bachpan Bachao Andolan model).
Corporate Accountability: Mandate CSR for supply chain audits; promote ethical sourcing.
Data and Research: Annual labour surveys; AI for hotspot mapping.

Conclusion

Exploitation of labour in India, manifesting in wage disparities, forced conditions, and systemic vulnerabilities, undermines the nation’s constitutional promise of social justice (Directive Principles, Articles 39–43). From colonial indenture to modern gig precarity, patterns persist due to economic inequalities and lax enforcement. The 2020 Labour Codes offer a framework for dignity, but realization demands political will, inclusive growth, and worker empowerment. By addressing root causes like informalization and social biases, India can transition to equitable industrialization, ensuring “labour is not a commodity” as envisioned in the ILO’s Philadelphia Declaration. Sustained reforms will foster a just society where work uplifts, not exploits.