Bonded Labour in India

PWOnlyIAS

May 01, 2025

Bonded Labour in India

On May 1, as the world commemorates International Labour Day to honour the dignity of work and workers’ rights, the stories of millions in India trapped in bonded labour cast a dark shadow.

About Bonded Labour

  • Bonded Labour System (Abolition) Act, 1976: It defines bonded labour as forced work by a debtor (or their family) for a creditor due to a loan, social obligation, or hereditary debt, often without wages or for nominal pay, either for a fixed or indefinite period. 
  • National Commission on Labour: The term ‘bonded labour’ has been defined as “labour which remains in bondage for a specific period for the debt incurred”. 

International Labour Day 2025 (May Day)

  • Celebrated every year on May 1.
  • Origin and Historical Background
    • Roots in the 19th-century global labour movement.
    • Workers fought for fair wages, safer work conditions, and shorter working hours.
    • The first Labour Day parade was held in New York City in 1882 by the Central Labour Union, which became a turning point for global recognition of workers’ rights.
  • Labour Day in India
    • Known as Kamgar Divas, Kamgar Din, or Antrarashtriya Shramik Divas.
    • First celebrated on May 1, 1923, in Chennai under the leadership of Malayapuram Singaravelu Chettiar, a prominent communist leader.
    • Chettiar petitioned the government to officially recognise May 1 as a national holiday.

Scale of the Problem

  • Global Slavery Index 2023: Among the G20 nations, India tops the list with 11 million people working as forced labourers, followed by China, Russia, Indonesia, Turkey and the U.S.
    • 50 million people are estimated to be living in conditions of modern slavery, marking a 25% rise over the last five years.
  • India aims to eliminate bonded labour by 2030, in line with SDG Target 8.7.
    • To meet the 2030 target of eradicating bonded labour, around 11 lakh individuals would need to have been rescued annually since 2021.

Types of Bonded Labour in India

  • Debt-based Bonded Labour (Debt Bondage): When a person or their family works to repay a loan or advance given by the employer or landlord, often for an indefinite period.
  • Caste-based or Customary Bonded Labour: When a person is forced to work because of their caste or social status, irrespective of loans.
    • Known systems/customs: Adiyamar, Baramasia, Bhagela, Cherumar, GarruGalu, etc.
  • Hereditary Bonded Labour: When bonded status passes from parent to child due to non-repayment of ancestral debts.
  • Forced Labour without Debt (Coercion-based Bondage): Labour extracted using physical force, threats, or restrictions on movement, without debt or advance.
  • Sexual Exploitation-linked Bondage: Women and children forced into prostitution or sexual work under bonded conditions.
  • Child Bonded Labour: Children trapped in bonded situations due to family debts or trafficking.
    • Sectors: Brick kilns, carpet weaving, zari work, domestic work, begging rings.

Constitutional Provisions on Bonded Labour

  • Fundamental Rights
    • Article 21: Right to Life and Personal Liberty
      • Ensures the right to live with dignity.
      • Any system like bonded labour that deprives a person of dignity violates Article 21.
    • Article 23: Prohibition of Traffic in Human Beings and Forced Labour
      • Explicitly prohibits Human trafficking, Begar (forced unpaid labour) and Other forms of forced labour, including bonded labour.
      • Violation is an offence punishable under law.
    • Article 24: Prohibition of Employment of Children in Hazardous Jobs
      • Prohibits employment of children below 14 years in factories, mines, or hazardous occupations.
      • Important for addressing bonded child labour.
  • Directive Principles of State Policy
    • Article 39: Directs the state to secure the right to adequate means of livelihood for all citizens.
      • Indirectly linked to preventing economic compulsion that leads to bonded labour.
    • Article 42: Ensures just and humane conditions of work and maternity relief.
      • Calls on the state to create labour conditions that rule out exploitative practices.
    • Article 43: Directs the state to secure Living wage, Decent standard of life and Social and cultural opportunities for workers.
    • Article 46: Promotes educational and economic interests of Scheduled Castes (SCs), Scheduled Tribes (STs), and other weaker sections.
      • Helps address the social roots of bonded labour among marginalized groups.

Causes of Bonded Labour in India

  • Economic Causes
    • Poverty: Millions of bonded labourers in South Asia, including India, come from the poorest sections. 
      • Scheduled Castes, Scheduled Tribes, religious minorities, and migrants.
    • Indebtedness: Debt typically starts with small loans or salary advances for medical bills, weddings, or religious ceremonies, which spiral into larger debts and lifelong bondage .
      • Advances taken from landlords or labour contractors bind the entire family over time.
    • Unemployment and underemployment: Lack of local employment pushes workers into exploitative arrangements, especially in rural areas like brick kilns, stone quarries, and mining .
      • ILO India Employment Report 2024 states approximately 90 percent of workers are informally employed with no social security.
    • Lack of access to formal credit: The interlinking of credit and labour markets forces the poor to rely on informal creditors, worsening over-indebtedness and exploitation .
  • Social Causes
    • Caste system and social hierarchy: Bonded labour is concentrated among lower castes and marginalized groups, historically compelled into forced work (e.g., Dalits and Adivasis in agriculture, stone quarries) .
      • 80% of rescued bonded labourers are SC/STs
    • Customary obligations and social traditions: Customs like Adiyamar, Jeetha, Kamiya, etc., enforce hereditary bondage, often passed across generations .
    • Illiteracy and lack of awareness: Poor awareness about minimum wages, labour rights, and abolition laws (1976 Act) allows employers to exploit workers .
  • Systemic and Structural Causes
    • Ineffective implementation of laws: Despite the Bonded Labour System (Abolition) Act, 1976, highlight poor ground-level implementation and lack of proactive state action .
      • Only 12,760 bonded labourers were rescued (2016–2021) out of an estimated 1.84 crore.
    • Corruption and lack of accountability: NHRC reports suggest that local enforcement authorities often neglect or cover up cases; vigilance committees are weak or nonfunctional.
    • Migration and lack of social protection: Migrant workers are highly vulnerable, often recruited through contractors with deceptive promises, especially in brick kilns and construction sectors .
  • Employer-Driven Causes
    • Labour shortages and demand for cheap labour: Employers in mining, brick kilns, and agriculture recruit bonded workers to ensure cheap and reliable labour supply .
    • Control over land and resources: Landlords provide loans during crises, tying entire families to agricultural work without clear repayment terms .
    • Profit maximization: Contractors advance small loans or wage advances to tie workers to exploitative contracts and maximize profit with minimal cost .
  • Political and Governance Failures
    • Lack of political will: While laws exist, the National Human Rights Commission (NHRC) and ILO have repeatedly reported poor identification, weak rehabilitation efforts, and slow fund disbursement .
    • Absence of effective rehabilitation schemes: Although the Central Sector Scheme offers ₹1- 3 lakh for rehabilitation, many victims fail to get timely support due to administrative gaps .
  • Special Vulnerabilities
    • Children and women: Children are often trafficked or forced into bonded work; women and transgenders face extreme deprivation, sometimes linked to sexual exploitation (e.g., brothels, massage parlours) ​.
    • Marginalized communities: Bonded labour systems like ‘Kamaiya’ in Nepal and similar systems in India disproportionately affect Adivasis, Dalits, and minorities .

Link Between Bonded Labour and the Informal Sector

  • Dominance of Bonded Labour in Informal Workspaces: Bonded labour overwhelmingly exists in the informal, unorganised sector where labour relations are undocumented and unregulated.
    • India’s total employment is approximately 47 crore, with 8 crore in the organised sector and 39 crore in the unorganised sector, as per a National Sample Survey Organization report.
  • Lack of Legal Contracts and Social Protection: Informal workers generally have no written contracts, no job security, no minimum wage protection, and no social benefits.
    • According to the NHRC, bonded labourers often work without wages or only for nominal wages below minimum wage levels.
  • Prevalence of Migrant and Marginalised Workers: Informal sectors heavily depend on migrant, Dalit, Adivasi, and minority workers, who are particularly vulnerable to bonded labour.
    • ILO reports highlight that migrant workers are often recruited through middlemen or contractors, offered wage advances, and then trapped in forced labour systems .
  • Interlinking of Labour and Credit Markets: In informal settings, employers and moneylenders are often the same, meaning workers who borrow during crises are forced to repay through their labour.
    • According to ILO, lack of formal credit access leads to over-reliance on wage advances, loans, and employer-controlled debt, deepening bondage.

International Perspective on Bonded Labour

  • Definition of Bonded Labour in International Law
    • The International Labour Organization (ILO) defines bonded labour (debt bondage) as a form of forced labour, where a person is forced to work to repay a loan or advance and loses control over employment conditions, often indefinitely.
    • Bonded labour is internationally recognized as a form of modern-day slavery.
  • Key ILO Conventions
    • ILO Forced Labour Convention, 1930 (No. 29):  Calls for the suppression of all forms of forced or compulsory labour.
    • ILO Abolition of Forced Labour Convention, 1957 (No. 105):  Requires member states to suppress and not make use of any form of forced or compulsory labour.
    • ILO Worst Forms of Child Labour Convention, 1999 (No. 182):  Recognizes bonded child labour as one of the worst forms of child exploitation and calls for its immediate elimination.
  • Sustainable Development Goals (SDGs)
    • SDG Target 8.7:  “Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labour by 2025.”
  • International Best Practices
    • The ILO’s PEBLISA (Promoting Effective Bonded Labour Interventions in South Asia) project (2006–2008) implemented in India, Nepal, and Pakistan emphasizes:
      • Providing flexible savings, credit access, and insurance.
      • Promoting microfinance, asset transfer, and sustainable livelihoods.
      • Strengthening legal enforcement and community empowerment .
  • International Human Rights Framework
    • Universal Declaration of Human Rights (1948), Article 4:  Prohibits slavery and servitude.
    • International Covenant on Civil and Political Rights (ICCPR), Article 8:  Prohibits slavery, the slave trade, and forced labour.

Government Efforts to Address Bonded Labour in India

  • Legislative Framework
    • Bonded Labour System (Abolition) Act, 1976: Abolishes the bonded labour system.
      • Provides penalties: Up to 3 years imprisonment + ₹2,000 fine for enforcing bonded labour. ​
  • Rehabilitation and Relief Schemes
    • Central Sector Scheme for Rehabilitation of Bonded Labourers, 2021: Released bonded labourers receive financial aid of up to ₹3 lakh, complemented by non-monetary support to sustain their livelihoods.
    • Link with other welfare schemes (housing, land, education, health, livelihood).
  • Institutional Mechanisms
    • Vigilance Committees (under the 1976 Act): Set up in every district and sub-division. 
      • Functions:
        • Advise on implementation of the Act.
        • Oversee economic and social rehabilitation.
        • Coordinate rural banks, cooperatives for credit access.
        • Conduct surveys and defend freed bonded labourers.
  • Other Laws
    • Bharatiya Nyaya Sanhita (BNS), 2023, Sections 143, 143(2) and 374: Punish human trafficking, slavery, and forced labour.
    • Minimum Wages Act, 1948: Ensures fair wage to prevent exploitation.
    • Contract Labour (Regulation and Abolition) Act, 1970: Regulates employment of contract labour.
    • Inter-State Migrant Workmen Act, 1979: Protects migrant workers, who are highly vulnerable to bonded conditions.
    • Child and Adolescent Labour (Prohibition and Regulation) Act, 1986: Prohibits bonded child labour.
    • SC/ST (Prevention of Atrocities) Act, 1989: Protects marginalized communities, often victims of bonded labour.

Supreme Court Judgments on Bonded Labour

  • Bandhua Mukti Morcha v. Union of India (1984): The organization Bandhua Mukti Morcha filed a petition about bonded labourers working in stone quarries in Haryana.
    • SC said that forced labour includes any labour for less than minimum wage.
      • The right to live with dignity under Article 21 is violated when people are forced into bonded labour.
  • Neerja Chaudhary v. State of Madhya Pradesh (1984): The case dealt with the state’s failure to rehabilitate bonded labourers even after their release.
    • SC said, It is a constitutional requirement that bonded labourers, once released, must be suitably rehabilitated.
      • Failure by the state to implement rehabilitation violates Articles 21 and 23.
      • Rehabilitation is not a charity but an obligation.
  • People’s Union for Democratic Rights v. Union of India (1982): Concerned with labourers employed for construction during the Asian Games in Delhi.
    • Judgment highlighted when a person works for remuneration less than the prescribed minimum wage, it amounts to forced labour under Article 23.
    • Even if a worker consents, employment below minimum wage is unconstitutional.

Ethical Principles Violated in Bonded Labour

  • Human Dignity: Every individual has inherent worth and deserves respect, freedom, and autonomy.
    • Bonded labour violates dignity by reducing people to instruments of labour, stripping away their choice, voice, and self-respect.
  • Justice and Fairness: Justice demands fair treatment, fair wages, and equality before the law.
    • Bonded labour traps people in unjust, exploitative conditions, depriving them of wages, opportunities, and access to justice.
  • Equality: Ethical governance is built on equal respect for all, irrespective of caste, class, or gender.
    • Bonded labour disproportionately affects Dalits, Adivasis, women, children, and migrants, deepening structural inequality.
  • Freedom and Autonomy: Freedom to choose one’s work and autonomy over one’s life are fundamental ethical principles.
    • Bonded labourers lose this freedom, often confined to work under threat, debt, or custom.
  • Compassion and Empathy: Ethical governance and leadership require compassion toward the suffering of vulnerable groups.
    • Indifference by employers, society, and sometimes the state reflects a grave failure of empathy.
  • Integrity and Responsibility: Employers, government officials, and society have a moral responsibility to protect vulnerable people.
    • Collusion, negligence, or corruption in bonded labour cases show a breakdown of integrity.
  • Social Responsibility and Common Good: Ethical societies balance individual interests with the collective good.
    • Bonded labour violates the common good by perpetuating poverty, exploitation, and social instability.

Way Forward to Eradicate Bonded Labour

  • Strengthen Identification and Rescue Mechanisms: Activate and empower district vigilance committees to proactively identify bonded labourers through regular surveys, especially in high-risk sectors like brick kilns, mines, and agriculture. 
    • Use technology (e.g., digital tracking systems) to monitor rescued workers.
  • Ensure Effective Law Enforcement and Accountability: Strictly implement the Bonded Labour System (Abolition) Act, 1976, ensure prosecution of offenders, and fast-track cases in special courts. 
    • Hold district officials accountable for delays or negligence in addressing bonded labour.
  • Improve Rehabilitation and Livelihood Support: Disburse Central Sector Scheme rehabilitation funds (₹1–3 lakh) promptly and ensure access to housing, land, education, healthcare, and skill development. 
    • Provide employable skill training to rescued workers to prevent return to bondage.
  • Expand Access to Institutional Credit and Social Security: Improve access to formal credit, insurance, and microfinance for vulnerable groups, reducing dependence on informal moneylenders. 
    • Integrate bonded labourers into government social security schemes like PDS, MGNREGA, and health insurance.
  • Address Caste and Social Discrimination: Launch targeted social awareness campaigns to break the acceptance of caste-based bonded labour systems (e.g., Holya, Jeetha, Padiyal). 
    • Empower Dalits, Adivasis, women, and children through education and community organizing.
  • Strengthen Interstate Coordination on Migration and Trafficking: Create joint task forces and data-sharing systems between sending and receiving states to track and protect migrant workers. 
    • Monitor labour contractors and regulate recruitment practices.
  • Involve Civil Society and Community Organizations: Partner with NGOs, workers’ unions, and grassroots groups to raise awareness, monitor bonded labour, and support victims. 
    • Build local leadership and community vigilance to challenge exploitative practices.

Conclusion

Bonded labour remains a stark violation of human dignity and constitutional rights, perpetuating systemic exploitation in India’s informal sector. Eradicating it demands robust enforcement, effective rehabilitation, and addressing socio-economic disparities to ensure freedom and justice for all workers.

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Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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