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Labour policy in India has been evolving in response to specific needs of the situation to suit requirements of planned economic development and social justice and has two fold objectives, namely maintaining industrial peace and promoting the welfare of labour.

Labour Policy Highlights

1. Creative measures to attract public and private investment.

2. Creating new jobs

3. New Social security schemes for workers in the unorganized sector.

4. Social security cards for workers.  

4. Unified and beneficial management of funds of Welfare Boards.

5. Reprioritization of allocation of funds to benefit vulnerable workers.

6. Model employee-employer relationships.

7. Long term settlements based on productivity.

8. Vital industries and establishments declared as `public utilities  

9. Special conciliation mechanism for projects with investments of Rs.150 crores or more. Ø Industrial Relations committees in more sectors.

10. Labour Law reforms in tune with the times. Empowered body of experts to suggest required changes.

11. Statutory amendments for expediting and streamlining the mechanism of Labour Judiciary.

12. Amendments to Industrial Disputes Act in tune with the times.

13. Efficient functioning of Labour Department.

14. More labour sectors under Minimum Wages Act.

15. Child labour act to be aggressively enforced.

16. Modern medical facilities for workers.

17. Rehabilitation packages for displaced workers.

18. Restructuring in functioning of employment exchanges. Computerization and updating of data base.  

19. Revamping of curriculum and course content in industrial training.

20. Joint cell of labour department and industries department to study changes in laws and rules.

Purpose of labour legislation Labour legislation that is adapted to the economic and social challenges of the modern world of work fulfils three crucial roles:

· it establishes a legal system that facilitates productive individual and collective employment relationships, and therefore a productive economy;

· by providing a framework within which employers, workers and their representatives can interact with regard to work-related issues, it serves as an important vehicle for achieving harmonious industrial relations based on workplace democracy;

it provides a clear and constant reminder and guarantee of fundamental principles and rights at work which have received broad social acceptance and establishes the processes through which these principles and rights can be implemented and enforced.

But experience shows that labour legislation can only fulfills these functions effectively if it is responsive to the conditions on the labour market and the needs of the parties involved. The most efficient way of ensuring that these conditions and needs are taken fully into account is if those concerned are closely involved in the formulation of the legislation through processes of social 6 dialogue. The involvement of stakeholders in this way is of great importance in developing a broad basis of support for labour legislation and in facilitating its application within and beyond the formal structured sectors of the economy.