In a developing country like India, labour legislation is needed because of the following reasons:
Weak Labour Organisations
Labour organizations are relatively weak and in most cases, they depend merely on the mercy of the employers. The individual worker is economically very weak and is unable to bargain his terms with the employers. Now the prior payment of wages, lay-off, dismissal, retrenchments, etc., is all governed by legislation. The economic insecurity of the workers is removed to a great extent.
As per the Occupational Act, and Employees State Insurance Act, certain benefits are mandatory to be given to workers by employers, but in reality, the workers may not be given the amount of compensation in case of accidents, death, etc. Hence, in many organizations, workers may feel occupational insecurity.
Hazardous Working Conditions
Workers’ health and safety are always in danger due to harmful working conditions in some factories. The Factories Act contains a number of provisions relating to the health, safety, and welfare of workers. Special provisions have been made for women.
Law and Order
Labour legislation is also necessary from the viewpoint of the law and order situation and the national security of the country. State plays a vital role in the continuing production. It helps in the economic development of the country. The idea of the welfare state is embodied in the Directive Principles of the Constitution and for this reason; various labour laws have been enacted to protect the various sections of society.
Achieving Socio-Economic Progress
Labour legislation is one of the most progressive and dynamic instruments for achieving socio-economic progress.