Workplace Discrimination Laws and Employee Rights in India

Published on 12th June 2025

Authored By: Nithya LR
KLE Law College, Bengaluru

Introduction 

In India, workplace discrimination laws and employee rights have evolved within a strong constitutional and legal framework. These laws not only protect workers but also reflect the values of justice, equality, and dignity. The Indian Constitution provides the foundation for many of these protections, especially through its Preamble, which promises justice—social, economic, and political—to all citizens.

Several Fundamental Rights are central to ensuring fairness in the workplace

Article 14 – Equality before law – The State shall not deny to any person equality before the law or the equal protection of the laws within the territory of India. 15. Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth. [1]

Article 16 – Equality of opportunity in matters of public employment. – (1) There shall be equality of opportunity for all citizens in matters relating to employment or appointment to any office under the State. [2]

Article 21 – Protection of life and personal liberty. – No person shall be deprived of his life or personal liberty except according to procedure established by law.[3]

Complementing these rights, the Directive Principles of State Policy (Part IV of the Constitution) guide the state in making laws that aim to promote social and economic justice. For example, Article 39 directs the state to ensure that citizens have the right to an adequate means of livelihood and that wealth is not concentrated in the hands of a few.[4]

Article 42 calls for just and humane conditions of work and maternity relief, while Article 43 emphasizes a living wage and decent standard of life for all workers.[5]

India’s labour laws, such as the Industrial Disputes Act, the Factories Act, the Minimum Wages Act, and the Maternity Benefit Act, have been framed in line with these constitutional ideals.

These laws regulate wages, working hours, workplace safety, and protect workers from unfair treatment and exploitation. The judiciary has also played a pivotal role in expanding the reach of these protections.

One of the most important examples is the Vishaka Guidelines, laid down by the Supreme Court in the landmark case of Vishaka & Others v. State of Rajasthan (1997). The Vishaka ruling by the Supreme Court was a landmark ruling in Indian women rights and constitutional law. A vicious gang rape of a social worker in Rajasthan gave rise to the case, bringing attention to the risks faced by working women and the lack of any legislation shielding from sexual harassment at workplace.

In order to enforce fundamental rights under Articles 14 (equality before the law), 15 (prohibition of discrimination), 19(1)(g) (freedom to practice any profession), and 21 (protection of life and personal liberty), social activists and non-governmental organizations filed the petition under Article 32 of the Constitution. The Court ruled that these fundamental rights are violated by sexual harassment in the workplace.

At the time, there was no specific law to address sexual harassment at the workplace.

Recognizing this legal vacuum, the Supreme Court used its powers under Articles 14, 15, 19(1)(g), and 21 of the Constitution to frame guidelines that would remain in force until Parliament enacted a suitable law.

The Vishaka Guidelines defined sexual harassment broadly and made it mandatory for all workplaces, whether in the public or private sector, to prevent and redress complaints of sexual harassment. It established,

The Court issued detailed norms including:

  • Employer’s Duty: Employers must prevent, prohibit, and redress acts of sexual harassment.
  • Definition: Sexual harassment includes physical contact, advances, demand for sexual favours, sexually coloured remarks, and showing pornography.
  • Preventive Steps: Prohibit harassment through rules, create safe working conditions, and display anti-harassment policies.
  • Complaint Mechanism: Establish a complaints committee headed by a woman, with at least half the members being women, and include an external NGO or similar third party.
  • Disciplinary Action: Initiate appropriate action in case of misconduct under service rules or criminal law.
  • Awareness and Reporting: Promote awareness, allow employee discussions on harassment, and mandate annual reports to relevant government departments.

These guidelines were revolutionary for their time and were later codified in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, which gave them statutory backing.[6]

After India gained independence, a major shift occurred in how the government approached labour and worker rights. Moving away from colonial-era policies that prioritized industrial profit over worker welfare, the post-independence Indian government embraced the idea of a welfare state. This was reflected in the Directive Principles, which emphasized equitable distribution of wealth, equal pay for men and women, protection against exploitation, and improved working conditions. These ideals became the moral compass for new labour legislation in India.

A series of key reforms followed, including the introduction of minimum wage laws, compulsory health insurance, provident fund schemes, and the Factories Act of 1948, which significantly expanded protections for workers in industrial settings.  

Minimum Wages Act, 1948

The push for minimum wage laws in India began in 1920 with a proposal by Shri K.G.R. Choudhary to establish wage boards for different industries. This led to a series of national and international recommendations, eventually resulting in the enactment of the Minimum Wages Act in 1948. The Act was designed to protect vulnerable workers, especially in the unorganized sector, from exploitation due to illiteracy and lack of bargaining power. It mandates that employers must pay at least the legally fixed minimum wage, which cannot be reduced by any contract or agreement. Importantly, the Act is gender-neutral, ensuring equal treatment for male and female workers.

Under Section 3 of the Act, both the Central and State Governments are required to fix and review the minimum wage rates for scheduled employments. This review must take place at intervals not exceeding five years, and revisions can be made sooner if necessary. The law allows for flexibility, enabling governments to set different rates for specific areas or types of employment based on regional and industry-specific needs. If the review is delayed, the current wage rates remain valid until new ones are notified. The most recent revision of minimum wages in the Central sphere was carried out in 2017.[7]

Factories act of 1948

The Factories Act, 1948 is one of the earliest and most important labour welfare legislations in India. It was enacted to consolidate and amend previous factory laws dating back to the colonial period, beginning with the Factories Act of 1881, which was initially introduced to regulate the working conditions in textile mills. Over time, the need for more comprehensive protection for industrial workers grew, especially with the rise of manufacturing and industrialization in India.

The 1948 Act was introduced post-independence to ensure health, safety, welfare, and humane working conditions for workers employed in factories. It applies to factories employing 10 or more workers with power and 20 or more without power. Key provisions include regulation of working hours, prohibition of child labour, provisions for canteens, restrooms, and crèches, and strict safety measures for hazardous processes. The Act also empowers state governments to appoint inspectors and enforce compliance.

Overall, the Act plays a crucial role in safeguarding the rights and well-being of industrial workers across India.[8]

The government also introduced the Plantations Labour Act, which for the first time brought oversight to conditions in tea, coffee, and rubber plantations—industries where women and child labour were common. These laws aimed to ensure not just fair wages, but also proper working hours, rest periods, access to medical aid, housing, and education for workers’ children.

Despite these ambitious reforms, implementation faced serious obstacles. One key issue was the economic capacity of industries and the government itself. Many employers resisted the new laws, arguing that they couldn’t afford to meet the wage and benefit requirements without hurting their businesses. Meanwhile, enforcement was difficult due to a lack of trained inspectors and inadequate resources at the state level. For instance, many factories and plantations went uninspected for years, weakening the impact of the laws.

Another challenge was India’s vast informal sector. While the new laws helped workers in large, organized industries, the majority of Indian labourers—especially those in agriculture, domestic work, and small-scale businesses—remained outside the protection of formal labour laws. Even within formal sectors, implementation varied by region and industry, and the lack of standardization made it hard to maintain fairness across the board.

Trade unionism also saw significant growth in the early years of independence. As workers became more aware of their rights, union membership rose sharply. This enabled labour to negotiate more effectively, but it also led to frequent industrial disputes. The government responded by encouraging the use of industrial tribunals to resolve conflicts. While these tribunals helped prevent strikes and maintain production, they couldn’t substitute for consistent policies or strong employer-employee relationships. Moreover, differing decisions from tribunals across states created confusion about wage norms and benefits.

Efforts were also made to improve worker welfare beyond wages. Initiatives were introduced to provide housing for industrial workers, and technical training programs were established to build a more skilled workforce. However, due to funding limitations, shortages of materials, and disagreements between employers and the state, these programs had limited success. The government’s ambitious goal of building one million workers’ homes within ten years, for example, fell far short due to practical and financial challenges.

One major lesson from this period was that raising labour standards in a country like India requires not just legislation, but a stronger economic foundation. Increased production and investment are necessary to sustain improvements in wages and working conditions. This realization led to more emphasis on productivity, technical training, and creating systems that reward both labour and capital fairly.

Discrimination in Indian workplaces continues to be a pressing concern. Many workers face bias based on caste, gender, religion, or disability. Even though laws exist to prevent such discrimination, enforcement remains a challenge, especially in the informal sector, where most Indian workers are employed. Legal protections are often weak, and access to justice is limited. In the formal sector, discrimination can be more subtle, showing up in unequal pay, fewer promotions, or biased hiring practices.

While the Constitution and legal system do provide tools to fight discrimination, their effectiveness depends heavily on implementation. There must be political will, administrative efficiency, and greater awareness among workers about their rights. Development must also be reimagined—rather than being driven solely by market forces, it must include goals like equity, dignity, and social justice. Law should be used not just to protect the interests of businesses, but also to uplift those most vulnerable in the workforce.

One of the most powerful ideas that emerge from scholarly discussions on this topic is the concept of an “emancipatory trajectory.” This means that labour laws should not only aim to protect workers but also enable them to grow and improve their quality of life. Unfortunately, in many cases, reforms driven by global economic institutions have prioritized deregulation and ease of doing business over worker empowerment. This trend shifts focus away from human dignity and places market efficiency at the center of development.[9]

To move forward, it’s essential to expand the reach of labour laws, especially to sectors that remain largely unregulated. Strengthening the enforcement system is equally important. More trained labour inspectors, better data on employment conditions, and active support for trade unions can make a significant difference. Employers must also view their workers as partners in progress, not just a cost to manage. When businesses and workers collaborate, productivity rises, and the benefits of growth can be shared more equitably.

Conclusion 

In conclusion, India has a solid legal and constitutional foundation for workplace rights and anti-discrimination protections. But there is a growing gap between the ideals set out in the

Constitution and the reality on the ground. As the country continues to grow economically, it must ensure that its development model includes all sections of society, especially workers. Lawmakers, courts, and civil society must work together to ensure that labour laws do not become tools for only economic efficiency but continue to serve their primary purpose— ensuring fairness, dignity, and justice for every worker.

 

References

[1] The Constitution of India

[2] Ibid

[3] Ibid 

[4] Ibid 

[5] Ibid 

[6] Supreme Court of India, 1997 (6), 

https://digiscr.sci.gov.in/view_judgment?id=MzA5MDA=  

[7] Ministry of Labour & Employment, Government of India, 

https://labour.gov.in/introduction1  

[8] Ministry of Labour & Employment, Government of India, https://labour.gov.in/sites/default/files/factories_act_1948.pdf   

[9] Routh, Supriya. “The Judiciary and (Labour) Law in the Development Discourse in India.” Verfassung Und Recht in Übersee / Law and Politics in Africa, Asia and Latin America 44, no. 2 (2011): 237–57. http://www.jstor.org/stable/43239609. 

 

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