Bonded Labour in India: Prevalent, Yet Overlooked

In 1976, India stood out as the first country in South Asia to enact legislation prohibiting bonded labour. However, the system has not been uprooted owing to the different barriers posed by socio-cultural norms and administrative and legislative incompetency. The country’s most vulnerable and disadvantaged sections of society are at risk of being trapped into such a form of modern slavery. The prevalence of this system over the decades necessitates the need to understand the root causes of the emergence of such bonded labour situations and why it is still prevalent in the country.

Bonded labour in India

The Bonded Labour System Abolition Act (1976) defines a bonded labour system as a relationship evolved out of a debtor-creditor agreement. It is identified as a form of forced labour where the debtor comes into an agreement, oral or written, with the creditor and receives a loan amount in exchange for his labour or that of his family members. The obligation need not just be an economic consideration such as a loan or an advance amount received from the creditor. People also become bonded with social, customary, hereditary or caste obligations and often agree to enter service with no wages or for nominal wages. The labourer finds it difficult to settle the debt amount as the provided wages are too low even to meet their basic sustenance needs. Eventually, they end up in the same form of labour again and again. Thus their choice to join such a system is out of distress or coercion to some extent. They may also be restricted from switching to another job or to ask for the provision of minimum wages given the conditions of the contract and the lack of awareness of their rights.

Indebtedness is identified as a major trigger for people to join as bonded labour, especially migrants from poor rural households. However, the need for money arises out of the existing disadvantages in society that these communities are subjected to. Caste, unequal distribution of resources, increased dependence on agriculture, low levels of education and food insecurity pushes them into such unfree labour choices.

We can identify that this system was prevalent in the country from the pre-colonial era characterised by class hierarchies. Such class hierarchies and high caste exploitations are continuing to function even in this democratic era and consequently, has pushed certain groups of the society to be economically weaker; weak in terms of assets, income and bargaining power. Globalisation and industrialisation have only resulted in the further exclusion of such groups of labour from mainstream jobs. Indebtedness is identified as a major trigger for people to join as bonded labour, especially migrants from poor rural households. However, the need for money arises out of the existing disadvantages in society that these communities are subjected to. Caste, unequal distribution of resources, increased dependence on agriculture, low levels of education and food insecurity pushes them into such unfree labour choices. Owing to these social and economic factors, marginalised communities in the lower strata of the society, especially the women and children, are trapped in such a system.

Over the years, the system of bonded labour has existed and evolved under different names and forms across India. Bonded labour arising out of traditionally accustomed social relations is one of the oldest forms and is still prevalent in the country. For example, the system of “jajamani” wherein the workers receive food grains in exchange for working as barbers and washermen for the upper caste. Labourers in agriculture, seasonal inter and intrastate migrants and child labour in informal sectors of brick kiln, rice mills, quarries, domestic work etc. are the other areas where debt bondage is currently more persistent. There has been a considerable shift from traditional debt bondage relation to aneo-bondage labour system among migrant workers. The former was characterised by an element of patronage amongst the considerable amount of exploitation. However the latter is at a higher tone of exploitation and eliminates patronage relations. This has made employers deny the responsibility of employee’s welfare and the labourers have lost the minimum livelihood security which they had secured under the patronage system. The neo-bondage system is further manipulated by the role of intermediaries.

Thus, with structural transformation in the economy, the system of bonded labour has evolved into a much worse form of exploitation in the country and specifically marginal and backward communities are the main victims of this system.

Interventions to abolish bonded labour

Upon identifying the prevalence and exploitation of bonded labour in the pre-independence era, constitutional provisions prohibiting forced labour were assigned under Article 23. Under the Directive Principle of State Policy, Article 42 and 43 ensured fair and humane working conditions and living wages to workers.

Post-independence, legislation against bonded labour was enacted at a regional level. Orissa, Rajasthan and Kerala were the first states to enact state legislation against bonded labour. In 1954, India ratified the International labour organization (ILO) Convention on forced labour (C029). Despite the constitutional provisions, regional and international interventions in bonded labour, construction and implementation of a uniform law took time.

In 1976, the Bonded Labour System (Abolition) Act was enacted to abolish any form of bonded labour system arising out of debt, customary or hierarchical obligations. In brief, the act has identified and defined bonded labour, provided for extinguishment of past or existing debt, established duties of district magistrate in implementing the provisions of the act, sanctioned the state governments to form a vigilance committee in each district to guide and ensure competent implementation of the act by the magistrate and stated the penal actions against those compelling people into bonded labour. The act was amended in 1985 to bring contract and migrant workers under its ambit.

In 1978, a new centrally sponsored scheme for Rehabilitation of Bonded Labour was enacted to provide financial assistance to the state government for rehabilitating rescued bonded labourers, to conduct surveys, evaluation studies and awareness campaigns across districts. In 2016, the government restructured the scheme. The restructuring involved an increase in the provision of funds to bonded labour for rehabilitation and to states for conducting surveys. Under the restructured scheme, rescued bonded labour is only provided with the full amount of financial assistance after the conviction of the accused and a Bonded Labour Rehabilitation Fund corpus was to be created at every district.

The interplay of caste-based exploitation and subsequent impoverishment in terms of resources and assets combined with underdeveloped rural areas devoid of standard education, health and employment opportunities push marginalised people into bonded labour.

Why and how does the system still sustain?

Many factors contributing to the prevalence of bonded labour continue to prevail despite after years of legislative action to abolish the same. The interplay of caste-based exploitation and subsequent impoverishment in terms of resources and assets combined with underdeveloped rural areas devoid of standard education, health and employment opportunities push marginalised people into bonded labour. Such an environment accompanied by the inept implementation of legislations and schemes further aids in sustaining bonded labour systems.

BLS(A) act 1976 failed to be effectively implemented owing to apathy, corruption, lack of administrative and political will. The vigilance committees were often defunct and working for the employer. The act was criticised on the grounds that it stated only mediocre and minor punitive actions and the rates of prosecution were also low. Moreover, some states remain in denial of accepting the existence of bonded labour. This indifference results in the loss of comprehensive data on bonded labour hindering the further implementation of provisions of the act.

The Central Sector Scheme for Rehabilitation of Bonded Labour also has its loopholes. After the restructuring of the scheme, financial aid is provided only after the accused is convicted and convictions are rare owing to poor implementation of the BLS(A) Act and the absence of a review of cases. Thus, in most cases the rescued labourers do not receive the full financial aid they are entitled to immediately after the rescue. Often, it takes years to receive the full amount or may not even receive any.

The situation is even grave as the rescued labourers have asymmetric knowledge of the rights and entitlements they can avail themselves of. Even when they are fully aware, most of them lack the will to attain these entitlements due to the dismal behaviour of officials and delayed processes.

Moving towards Abolishment

First and foremost, recognition and acceptance of the prevalence of bonded labour should be ensured. Only then the bonded labourers could be identified, rescued and rehabilitated effectively. The collection of comprehensive data is essential for further implementation of the provisions of the legislation. Also apart from the vigilance committee, a new committee composed of the magistrate, members of the marginalised communities, NGO’s and other civil bodies working in the field would enable to get a more comprehensive view of the issues in the sector.

From a long term perspective, there is a need to address the caste induced structural inequalities. One way through which this could be attained is through land redistribution.

Mere financial aid is not sufficient for the rescued labourers to foster a livelihood plan. The Human rights law network suggests the same and recommends a comprehensive rehabilitation package providing for education and job security.

From a long term perspective, there is a need to address the caste induced structural inequalities. One way through which this could be attained is through land redistribution. Apart from this, the government should also focus on skill development and training of rural poor, especially migrants caught up in bonded labour. Varied skills can enhance their employment opportunities and provide more freedom to move towards other areas of work.

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