Labour in the Concurrent List

Labour matters in India are largely a Concurrent List subject, which means that both Parliament and State Legislatures can make laws on them. Legislative competence is determined by Article 246 read with the Seventh Schedule, while certain labour matters are specifically reserved for Parliament and conflicts between concurrent laws are governed by Article 254.

Constitutional allocation of legislative power

Article 245 establishes the territorial scope of legislation: Parliament may legislate for the whole or any part of India, while a State Legislature may legislate for the whole or any part of its State. Article 246 distributes legislative subjects through the three lists in the Seventh Schedule.

• Parliament has exclusive legislative competence over Union List subjects, while both Parliament and State Legislatures can legislate on Concurrent List subjects, subject to Parliament's exclusive Union List competence.
• Union List Entry 55 covers regulation of labour and safety in mines and oilfields.
• Union List Entry 61 covers industrial disputes concerning Union employees.

Labour subjects in the Concurrent List

Three entries provide the principal constitutional basis for shared legislative competence over labour. Their coverage extends beyond workplace disputes to employment, social protection and workers' welfare.

• Entry 22 covers trade unions and industrial and labour disputes.
• Entry 23 covers social security and social insurance, and employment and unemployment.
• Entry 24 covers welfare of labour, including conditions of work, provident funds, employers' liability, workmen's compensation, invalidity and old-age pensions, and maternity benefits.

Resolving conflicts between Union and State laws

Article 254 governs repugnancy between State legislation and parliamentary legislation on Concurrent List matters. Shared competence does not mean that every difference between their laws invalidates the State law; the issue is whether the provisions are legally inconsistent.

• Under Article 254(1), the parliamentary law ordinarily prevails, whether enacted before or after the State law, and the State law is void to the extent of repugnancy.
• Under Article 254(2), a State law repugnant to an earlier parliamentary law or an existing law on a Concurrent List matter can prevail within that State if it is reserved for the President's consideration and receives Presidential assent.
• Parliament retains the power to override such an assented State law by subsequently legislating on the same matter, including by adding to, amending, varying or repealing it.
• Presidential assent under Article 254(2) addresses repugnancy; it does not grant a State Legislature competence over a Union List subject.