Law and Poverty

Assignment
Topic: The Concept of
Bonded Labour

Submitted By-Taiyeba Noor Fatima

B.A. LL.B(Hons.)
Self Finance
Roll No.-57
Introduction
The bonded labour is a social system and one of the major problem faced by the people living in
rural areas. This system constitutes the lowest class of the agricultural and other labourers who
even after 70 years of independence are still being exploited in one form or the other. The most
striking and significant features of this system are obligations, obligations that force them to be a
part of this system and most importantly it result in curtailment of liberty. The bondage through
obligation may include debt bondage attachment to land, attachment to house site or customary
obligation. In the case of debt obligation, a labour usually takes a loan or advance from an
employer, and in consequence thereof he mortgages his labour with that particular employer until
the loan is repaid. In many situations the loan may involve interest as well. His wages are so
fixed that he can hardly make both ends meet and is not in a position to pay back the loan. This
way the situation of debt bondage ties a labour to a particular master and he is not in a position to
come out of the domain of his employer.
The other type of bondage by means of obligation is attachment to land. The labourer is given a
piece of land to cultivate and is required to share the produce with his master. In fact, the value
of the share of the produce from the land is much below the minimum wage though, the labourer
renders service to the employer for the whole year at his back and call. Since the income from
this source is not sufficient to meet the daily requirements of the labourer, he has to seek loans
from the employer for consumption, customary social ceremonies like marriage, death, etc. As
he has no capacity to pay back the loan thus contracted, he is forced to work for the same
employer until the loan is fully paid back.
The other type of obligation for which the labourer can be bonded to the master is by way of
getting homestead plot in master's land. In lieu of that the labourer is required to work for his
master whenever the latter needs it. The wages given to him for the work are very nominal.
When the work of the employer is over no other work is available in that particular locality. This
way the labourer remains without work for that part of the year when the employer does not need
him.
The customary obligation also force the people of low castes and tribes to perform certain
customary services to the upper caste such as carrying the dead animals, burning the dead,
beating the drum during birth and funeral, etc.
Such type of obligations acquire more oppressive character where debt bondage is perpetuated
on inter-generation basis. The son has to work for the employer because of the loan taken by his
father which he fails to repay. Sometime such loans are linked to the marriage of the bonded
labourer or the sons and daughter of the bonded labourer. These are such obligations where the
labourer has to remain bonded to the employer for his whole life. Finally, bondage may also
include situations where the powerful landlords and money lenders forcibly grab the property of
the tribals, scheduled castes and other lower castes. A situation gets created when these deprived
peoples are left with no alternative except mortgaging their labour. Since these people can never
free themselves from the vicious circle of poverty, they have to continue in bondgage.
This system which was largely confined to the agricultural sector is now seen among workers in
stone quarries, brick kilns, construction sites, forestry, carpet weaving, fishing, bidi making,
match box etc. The entire conceptual framework of the system of bondage shows that it has its
roots in the socio-economic structure in the rural areas are characterised by feudal and semi-
feudal conditions, hierarchical caste system, extreme poverty and ignorance coupled with social
customs.
Meaning and Definition of Bonded Labour
In simple terms Bonded Labour means a man keeping another man in perpetual bondage for his
selfish and personal designs is a kind of man’s cruelty to man which is not confined to a
particular country or a particular region but is found as a global phenomenon for thousands of
years, right from the Biblical days to the present era. The nomenclature changed from period to
period and place to place: slave, serf, and bonded labour.1
We have to understand the terms ‘bonded labour system’ and ‘bonded labour’. The bonded
labour system’ refers to the relationship between a creditor and a debtor who obtains loan owing
to economic compulsions confronting his day-to-day life, and agrees to abide by the terms
dictated by the creditor.The important term of agreement is that the debtor agrees to mortgage his
services or services of any or all the members of his family for a specified or unspecified period.
The relationship built on the agreement is on such unequal terms that while for every labour or
service, there must be some fair remuneration equivalent to the price of labour in the market,
under the bonded labour system the service is rendered for the debt or in lieu of the interest
accruing to the debt. The debtor either works without receiving any remuneration or if at all there
is any remuneration, it is much less than the minimum wage (notified under the Minimum Wages
Act) or the prevailing rate of market wage.2

1
Bonded Labour Definition, available at:www.collisiondictionary.com (Last visited on March 24, 2019)
2
M.L. Upadhyay, Law , Poverty and Development, (Taxman Publications Private Limited, New Delhi)
The Bonded Labour System in India

In the Constitution of India, there are a few safeguards which address the system at hand.

1. Article 21 – This is the most important and foremost safeguard against any exploitation
of human lives and their liberty. It is part of the Basic Structure of the Constitution and
cannot be amended. It secures the right to life and right to live with human dignity to
every person in India. So, any practice of bonded labour would be in contravention of this
Constitutional provision since bonded labour deprives a person of numerous liberties.
2. Article 23 – As discussed above, the Constitution of India expressly provides for the
abolition of forced labour and prohibits this form of forced labour in the territory of India.
This not only prohibits bonded labour but also covers the practice of Begar and other
forms of human trafficking in India.
3. Article 39 – This is covered in Part IV of the Indian Constitution which deals with the
Directive Principles of State Policy is albeit not enforceable but are considered irrefutable
for the purpose of governance. This constitutional provision directs the State to secure the
right to an adequate livelihood. It also directs the state to formulate its policies with an
object that no citizen is forced out of economic necessity to enter into avocations which
are not suited to them.
4. Article 42 – This is also a Directive Principle of State Policy which states “The State
shall make provision for securing just and humane conditions of work…” This means
that the state must ensure that every person has a working condition which are just and
humane for them. However, since it is part of Part IV, it cannot be enforced.

Article 43 – This directive directs the State to secure i.a. – conditions for work ensuring a decent
3
standard of life.

Apart from the above mentioned constitutional provisions and safeguards, there are also a few
legislations which deal with the subject at hand. However, the major law governing the practice
of bonded labour is The Bonded Labour System (Abolition) Act 1976. In addition to this, there
are a few more legislations in consonance with this major law in India such as Contract Labour
3
What is Bonded Labour, available at: www.antislavery.org (Last visited on March 25, 2019)
(Regulation and Abolition) Act 1970, Minimum Wages Act 1948 and the Inter-State Migrant
Workmen (Regulation of Employment and Conditions of Service) Act, 1979 and even the Indian
Penal Code 1860.

 The Indian Penal Code recognizes the offence of unlawful compulsory labour and
imposes a punishment of imprisonment for a term extendable to 1 year or with a fine
or both.
 The Minimum Wages Act 1948 sets the minimum wage for certain enumerated
occupations and requires that overtime be paid to whoever working beyond the
‘normal working day.’
 Similarly, the Bonded Labour System (Abolition) Act 1976 prescribes imprisonment
for a term upto 3 years as well as a fine upto Rs. 2000/-. This punishment is for
whoever compelling a person to render their service under bonded labour and
whoever advancing the bonded debt. Every offence under the Act is cognizable and
bailable. 4

Outcomes of Bonded Labour System after Bonded Labour System

1. All the bonded labourers are freed and discharged from all the obligations to render
their bonded labour.
2. All of the customs, traditions, contracts, agreements or any instruments by virtue of
which a person (or any member of the family) is required to render bonded labour to
someone will now be deemed as void.
3. Every obligation of a bonded labourer to repay any bonded debt shall be deemed to be
extinguished.
4. All the decrees for recovery of bonded labour debt which was not fully satisfied shall
be deemed as fully satisfied after the commencement of the Act.
5. Every property of a bonded labourer which was removed from his possession or
forcible taken from him, shall be restored to him.5
6. Every bonded labourer who has been detained in Civil Prison shall be released.

4
Bonded Labour in India, available at: www.researchgate.net (Last visited on March 25, 2019)
5
Bonded Labour, available at: www.manupatrafast.com (Last visited on March 25, 2019)
 7. Freed bonded labourers shall not be evicted from their homestead.6

Supreme Court Cases

There have been cases in India even after the enactment of the Act which the Apex Court has
dealt very deftly.

In the case of Neerja Chaudhury v. State of Madhya Pradesh, the Supreme Court ruled – “It is
the plainest requirement of Articles 21 and 23 of the Constitution that bonded labourers must be
identified and released and on release, they must be suitably rehabilitated… Any failure of action
on the part of the State Government[s] in implementing the provisions of [the Bonded Labour
System (Abolition) Act] would be the clearest violation of Article 21 and Article 23 of the
Constitution.” As
mentioned above, there are a few constitutional provisions that safeguard the system of bonded
labour from being practised. In this case, the Apex Court did very well by relating the issue of
bonded labour system with the person’s fundamental right enshrined in Article 21 of the
Constitution and gave a clear thrust to the State to implement Article 21 and Article 23 of the
Constitution.

Also, in the case of People’s Union for Democratic Rights v. Union of India, the Supreme Court
of India delivered the judgement stating –  ‘Where a person provides labour or service to another
for remuneration which is less than minimum wage, the labour or service provided by him
clearly falls within the scope and ambit of the word `forced labour’

As seen, the Court has tried to expand the scope of forced labour and protect the rights of
citizens time and again and have effectively protected the rights of citizens and made full efforts
to free them from Bonded Labour.7

6
The Removal of Bonded Labour, available at: www.legalserviceindia.com (Last visited on March 26, 2019)
7
Supreme court cases, available at: www.manupatra.org (Last visited on March 26,2019)
Conclusion

There are several factors which are causing the continuance of this system of forced labour.
Often, the usurious rate of interest is one of the leading factors which contribute to its
continuance. Apart from that, faulty system of adjustment of wages with the amount lent,
prevalent ignorance, illiteracy, being socially backward, lack of debtor’s organisation etc. are all
factors contributing to the continuance of bonded labour.
The system of bonded labour is an agreement between two parties; an agreement which in
today’s date, stands void in the eyes of law and is also a punishable offence under numerous
legislations of India. Due to the gravity of this offence, it has also been addressed in numerous
international conventions.

Bonded labour is probably the least known form of slavery in today’s date and yet, ironically, it
is most widely performed form of slavery. There have been several initiatives by the National
Human Rights Commission to curb this practice. Apart from that, even the Supreme Court has
condemned this practice in India and has given it an expansive meaning so that it is not practised
in any form whatsoever.

But is this enough? No, we must take steps against any system of forced labour and should voice
out if a person is being oppressed due to his status. This is a system which degrades a human to a
commodity or an asset. It should not only be prohibited by law but also be seriously punished.
Thus, forced labour, whatever form it may be, should be condemned by anyone and everyone.