How Can Workers Fight Back Against Exploitative Companies Ignoring Labor Laws?

Hello,

My close friend is working at a company in Mumbai which has been running successfully for more than 15 years. Nobody working in that company has ever been given any appointment letter. There are more than 15 employees in that company. Nobody gets any leave except on Sundays. Sometimes even on Sundays, workers are called to work. Nobody is given any overtime pay. Everyone is made to work from 10 am in the morning to 11 pm at night or till midnight. Sometimes, if the work is not completed, a worker is made to work overnight. If anybody objects, he is immediately dismissed from the company. How do these companies manage to manipulate the workers in this way? What action can be taken against this company, and how?

Regards,
Pravin

Dear Pravin,

As per the words, it clearly states that you are not an employee of that company. In this case, you shall file a complaint with the regional labor office in this regard. Again, it is absurd how the company engages its employees based on your description. I really wonder how these companies have managed to exist for the past 15 years.

I hold a different opinion on this issue; it makes me feel sick about people who only think from one perspective. Why can't we grow and broaden our horizons? I am sure very few people know that India is among the only few countries in the world where starting a business is extremely difficult, especially due to the outdated rules established by the British long ago, which we're still following.

In India, the moment a businessman thinks about starting his business, he starts worrying about the hundreds of laws that will be imposed on him. God only knows what else?

I remember a time when Bombay used to be the city of textile mills, providing employment to more than 20% of India's total population. However, with the emergence of trade unions, we now see the consequences—unemployment at its peak.

I am not saying this is entirely wrong, but rather suggesting that India should implement more liberal laws and abolish old labor laws, etc. The laws should provide more flexibility to SMEs and be applicable to large industries only.

Some time ago, an officer visited my place for Diwali gifts. I gave him sweets and bid him goodbye. Later, I found out that he was upset because I only gave him sweets. The next time he came with a few officers and informed me about several laws I wasn't aware of. I then understood his intentions and resolved it over a cup of coffee.

I realized that Dhirubhai Ambani's policy is practical and should be followed now too.

I recall making a project on ESIC during my first year of college. I received much appreciation, an article in the Times of India, and accolades in my college, which made me very happy. However, I later realized that the happiness was short-lived. It would have been better if they had implemented some of the suggestions I had made, encouraging people like me to take more interest and work harder on these issues.

Regarding employment, it's better if people are at least employed somewhere rather than staying unemployed. If your friend is unhappy, advise him to find another job rather than becoming a whistleblower, as this could have serious consequences for the company, potentially leading to shutdowns or large bribes.

If whistleblowing interests him, suggest he join the media and conduct sting operations instead. Apologies if I sound rude.

Dear Pravin,

As pointed out by you, since no appointment letters have been issued, how will your friend prove that he is an employee of the company and that he is being treated unfairly to the labor commissioner?

Secondly, it is not possible to run for 15 years without managing the officers.

Thirdly, the longer your friend stays in such an organization, the more difficult it will become to prove to a future employer the duration of service in this company, as he may not have the supporting documents.

Regards,
Rajesh Singh

Dear Ansarisamir,

I agree with your statement that it is better to be employed in some way rather than unemployed. But at the cost of your physical and mental health? I don't think so. Even machines need rest. We are human beings after all. If the person wants to move out, how can he gain employment in another place without documents to support his appointment and experience?

Your points are very valid regarding the bribes that may run to several lakhs and with regard to being employed, but this is definitely not the way the system should be. Is there no way out?

Thank you.

To add to my previous post, I received a call from a friend of mine who works in a leading private general insurance company. Earlier, the teams used to work with just two Sundays off a month. But recently, an email had been received from the HR stating that they would work only 5 days a week with the weekends off.

This was followed only for the first week after the email had been received. Thereafter, the business teams were compelled to work on Saturdays, and now they are forcing the employees to come on Sundays as well (like before).

Despite shedding light on the issue to the senior management, there has been no action from their side. My friends who are actually working there are hesitant to complain to the labor office because they feel it's of no use due to the 'adjustment' factor that is most likely to take place between the company and the concerned officials. Above all, they might also lose their jobs due to this.

I do not think that changing jobs is a solution to this. Because once they leave, the replacements would also suffer. This would be a never-ending hassle.

Is there anything that I/they can do?

Hi,

This culture is followed in most of the organizations. I agree with the point that it is very difficult to run a company and provide employment, but at whose cost? Working overtime and not getting paid for that, not receiving statutory leaves as per the law, is not acceptable. The issue of the appointment letter is somewhat okay, but still, the employee should have proof of employment like a work certificate, salary certificate, etc., else this will be similar to a daily wage worker, applicable in construction.

Kindly check whether other statutory obligations are followed in the company, such as bonuses, ESI, PF, etc. If not, then it is a serious issue that needs to be legally addressed. If the issue is only about the appointment letter, then check with the HR there for clarification.

Regards,
MK

I partly agree with Mr. Ansari, but there should be some limit for the working hours. Till now, I also worked in the same type of organizations. There will be no Sundays, no holidays, and they don't even pay the overtime (OT) either. If the company has been running for the last 15 years, it shows how the owner managed the government officials with bribes and other means.

I think the company may not provide payslips either, so they are showing more expenses to avoid taxes. The ultimate gainer is the owner, while the losers are the employees and the government.

Dear Pravin,

What you have cited is the unpalatable truth of "Liberalization" and how Indian companies are doing well despite the worldwide slowdown.

In fact, there are many such horrible companies that are flourishing and which will make Marx cry in his grave - sheer exploitation of labor. Now, this trend has seeped into the educated class of employees.

I know of a company where the workers have a 12-hour shift and OT is paid after 12 hours of work.

In another company, the "appointment order" is the mobile SIM card given to employees. If an employee's services are to be terminated, he is simply asked to hand over the SIM.

There is rampant exploitation in traditional industries and those located in rural areas and hinterland. The companies enjoy several tax exemption benefits as well as cheap labor.

It is really shocking to find that such medieval practices abound in our country, which is being complimented worldwide for its industrial achievements. The only consolation that one has is, maybe things are not as bad as in China. Labor reforms have a long way to go. Let us hope someday the world's focus will be on this; till then the grim picture will continue to haunt us, who bask in the glory of how well we have done during the downturn.

Warm regards.

So, what Mr. Samir has to say is that exploiting your employees to earn maximum profit is okay, and there is nothing wrong in doing so.

Finally, people are talking about it-

Let me start with an example-

I am sure you must be knowing that in Apparel, especially western outfits for ladies, there's no Indian brand which is doing well. Why? Because the cost of production increases the moment you are affected by tons of laws/taxes/a zillion funds and whatnot, which in many cases the implementing officers are not aware of. The increased cost of production leads to an increase in price, competition from unorganized SSIs makes the products exorbitantly priced, and so the product doesn't get sold. So now the company usually ends up shutting down. Now, guys, tell me who's suffering. I am sure the company/employer is not, because they will move elsewhere and do something else since they have the money with them.

I am not saying that we should exploit every employee and deprive them of their benefits. Let large organizations do it, and small organizations be exempted from it. Like the Government does to promote industries in backward areas, the most recent example is the benefits Narendra Modi offered Ratan Tata, and he shifted his plant from West Bengal to Gujarat. Let the large organizations do it because they have resources.

And one thing we should always remember is that India is a developing economy and not a developed economy. When something is developing, it needs support in terms of financial/labor/know-how, etc., and not restrictions.

Someone above spoke about China; let me tell the person that the coin always has two sides. If their labor is troubled at one end, on the other hand, it is the only country in the world whose GDP is growing more than 10% every year, it's a member of G7, their infrastructure is superb, and the Olympics were never hosted in India but were in China.

I am not of the opinion that employees should have no value. Yes, they should have value because they are the people who make a company what it is. But at the same time, I want everyone to think about the old laws we have, the system in which our companies are running, and think on a broad perspective.