Thursday, October 25, 2018

Why Do We Need Labour Laws?







Law and Christian Witness

Why do we Need Labour Laws?


Are people just tools to fulfill our vision?

An advertisement by Microsoft in the year 2006 drew my attention: ‘Is your business a people-ready business? People can solve problems before they happen, invent new ways to do business and build strong relationships with customers and partners. They know the business inside and out – what’s working and what’s not. They’re the robust, scaleable, cutting-edge business solution you’ve had all along’ (Microsoft.com/peopleready). One of the largest employers in the software industry believes that people are important. Infosys, another large employer of young people based in India, believes in providing world-class recreational facilities as part of the working environment. The founder Mr. Narayanmurthy loved to be known as the chief mentor and not the founder-chairman or CEO of his huge multinational business venture.

Whenever we talk about stewardship, we often understand it as the responsibility over resources like money, materials, time, etc. We often forget that the most important of all resources are people. People come under our influence, especially when we are fulfilling our various leadership roles. They are entrusted to us by God and we, as stewards, are accountable for how we lead and care for them. Moses, as a leader, stood by His people even when God himself wanted to destroy them for their sins. He stood in the gap and pleaded for forgiveness and for a second chance for the people he was leading (Exodus 32: 30-35, Numbers 14: 1-25). Solomon, early in his kingship, understood the enormous task of ruling the people and when God gave him an opportunity to ask for a gift, he chose to ask for wisdom to judge the people rather than riches, enlargement of territory or the lives of his enemies. God commended his desire and blessed him with wisdom that knew no limits (1 Kings 3:4-15).

Many of us who are leaders in organisations are so driven by tasks, that we often just use people to achieve our goals and never think about their lives. An Information Technology Consultant Steve P, in his report after a visit to a mission/NGO office commented, ‘A common failure of non-profits is to value money more than people: they pinch pennies for capital expenditure on tools which ends up costing them dollars every day because staff are hampered by poor usability. It is a false economy’. In the corporate and business world, there has been a paradigm shift of focus from money to people in their organisations but there are very less examples of this among Christian establishments.

From Personnel Management to Human Resources Development to Talent Management 

One of the first lessons in management is often drawn from the life of Moses and his father-in-law Jethro (Exodus 18:9-27). Jethro had advised Moses to learn and practice the art of delegation. However, when technological inventions created more opportunities for making money, labour was needed to operate and maintain the machinery and engines that were produced. Personnel management has come a long way from the times of the Industrial Revolution in Europe a few centuries ago to the recent Information Technology revolution. It started on the assumption of increasing production through division of labour and specialisation that amounted to treating a worker almost like a machine. People were just labor that were disposable. People, who worked as labourers in those times, went about their lives without much meaning, barely surviving. They were often treated as bonded slaves. Therefore, governments have passed laws to ensure that workers, employees, staff and labourers are given their due.

In recent times, as the value of the life and personhood of a human being increased, personnel management has become HRD – Human Resource Development. Welfare measures or charity given by management has now changed to a focus on total care for the person and his family. In the past, management viewed people as a tool to be used to fulfill their goals and objectives. Currently, management views people as talent and assets that can make a vital difference to the attainment of the goal of the organization, more than money and other resources. Tommy Hilfiger, one of the corporate management leaders says that ‘We focus our efforts on empowering our people – getting them the resources they need to succeed; to get the job done’.

Christian organisations are most often slow to understand the transitions taking place in the science of management and in the area of labour laws. Visionary leaders most often believe that God has given them the vision and expect all the others to follow them blindly. There is also an assumption that the followers share an equal commitment and vision for the task. Many organisations continue to practice the old ways of personnel management. Some have changed their vocabulary and terms but are yet to change the actual practices of their leadership style.

Therefore, as good stewards, let us briefly discuss some important legal issues concerning managing or developing our God-given human resources that they may effectively assist us in our efforts. This is what we can call as stewardship of people.

Recruiting People: 

People Management is based on the fact that the future growth and prosperity of any organisation largely depends on the knowledge, skills, expertise and motivation of its human resources. The aim of people management is to provide the organisation with human resources of quality, and to provide individuals with a healthy work environment and job satisfaction. This process starts at the time of recruiting people and ends when they leave the organisation. 

Many Christian organisations have no standard, written policy for recruitment. People are selected randomly, as and when they come. Often employment is given on compassionate grounds. There is also an unhealthy trend of not trusting people who are different from them. Many unconsciously select those who speak their own language, come from their hometown and are part of their extended family or clan. Recruiting people according to our whims and fancies is not good stewardship of people. We must optimise the number and utilisation of people in our organisation. We must provide growth and educational opportunities for individuals, accepting people regardless of race, colour, caste, nationality, sex, marital status and disability. Although there is no specific law on recruitment in India for private establishments, there are several decisions of the courts that question the practice of recruitment.

Just recruiting people is not enough. There are around 18 enacted laws of the central and state governments and rules framed under the same, depending on the nature of our operations, which needs to be complied with as we handle people. Recently emphasis is made on compliance with the laws and rules on sexual harassment against women and children in all work places and especially in care giving institutions run by NGO’s.




Central & State Government laws applicable in Maharashtra

Bombay Shops & Establishments Act, Minimum Wages Act, Equal Remuneration Act,  Employment Exchange Act, Payment of Wages Act, Contract Labour Act, Employees Provident Fund Act, Employees State Insurance Act,  Payment of Bonus Act, Maternity Benefit Act, Industrial Disputes Act, Employees Compensation Act, Bombay Labour Welfare Act, Payment of Gratuity Act, Maharashtra Tax on Professions, Trades, Callings and Employments Act, Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, The Protection of Children from Sexual Offenses (POCSO) Act, 2012, Child and Adolescent Labour (Prohibition & Regulation) Act, 1986.  

                                                   Please check the laws applicable in your own state.



Religious organisations, institutions and establishments are not ordinarily exempted from compliance to these laws. Educational, Healthcare and Care-giving institutions have more stringent laws and rules that they need to comply with. Registration with the appropriate authority and compliance to inspections are mandatory.  It is a healthy practice to get a senior HRD Professional or a labour lawyer to audit the compliance of the organisation to all the relevant laws on an annual basis.

All employees must be informed of the expectations of the organisation and their superiors. Whether we designate them as Pastors, Missionaries or Evangelists, etc., by law they are all considered as employees. The conditions of employment like salary and allowances, working hours, leave privileges, housing, travel, transfer, disciplinary proceedings, termination of employment, retirement, etc. must be preferably in writing in the appointment letter. It is always best practice to put every instruction in writing even if the organisation is small. Individual files of all correspondences must be maintained. Written leave applications, joining reports, salary payment slips, full and final settlement are important documents. Many organisational crises owe their origin to unwritten expectations, rules and regulations.  
It is also important to review the performance of every person in the organisation regularly - every quarter or at least once a year. Performance appraisal is not a tool to reward or punish, but an important process of formal communication of each other’s expectations. It also provides opportunity for identifying the training and developing needs of a person to help them grow.  There is a requirement to establish statutory internal committees to hear complaints on sexual harassment.  Training and documentation for protection against child abuse for care givers in institutions are mandatory. All staff service & HR policies should be vetted by a labour lawyer and copies given to all employees.

Compensating People: 

Another important issue in caring for people which has legal implications is in the area of providing salary and allowances. There are many laws that need to be complied with in making policy decisions on salary payments. Many Christian organisations come under the category of faith missions and on that basis, claim that they can offer only a meager sum as salary or allowances. A few organisations keep the salary lower than the prescribed Minimum Wages Act of the state, so that they can increase the number of workers by distributing the limited resources they receive or assume they are encouraging self-supporting financial policies. The Biblical principle that we should not muzzle an ox, while it is treading[i] is equally applicable to the lowest grade staff as it is to the top managerial personnel. (1Timothy 5: 17-18, Deuteronomy 25:4, Luke 10:7) We use the services of the spouses and quantify them in our propaganda but neglect to compensate them adequately for their labour. Children’s education is not given priorities when parents are required to be serving in remote locations.  Churches and Organisations should not require their people to sacrifice. Alternatively, the organisation and its governing board should own the responsibility to provide holistic care for all their people which includes economic and social security needs. We are also responsible to provide for those who serve life-long during their retirement season and their old age. Making provisions for provident fund, gratuity, medical insurance, personal accident insurance, pension etc., are important measures that show we care for our people.

Disciplining People:

Another aspect in good people stewardship is the area of exercising discipline. Generally in Christian organisations, any talk of disciplinary action is considered to be very harsh. People expect sympathy and grace from the management. Management ignores, tolerates and even neglects disciplinary issues out of false guilt. The effectiveness of the organisation suffers. However, when the management is forced to do something, they act hastily and ignore the general principles of natural justice and other legal provisions. Disciplinary action is a spiritual act and is a process of redeeming people and not only punishing them. Most conflicts within organisations are due to lack of a written policy on disciplinary proceedings and action. One of the important legal principles is the right to be heard. Before any action is taken, an employee is expected to be given an opportunity to be heard before the authority.  Many conflicts can be resolved if opportunities for grievance redressal is provided within the organization. It is important that written policies on grievance procedure, disciplinary action, enquiry etc., are put in place with legal advice. 

Letting People Go:

For everything there is a time. Just as there is a time for joining an organisation, there is also a time for leaving an organisation. There are many grounds for a person to leave an organisation. Many take great care when a person joins the organisation but fail to show similar care when they leave. A graceful exit is an honor for the organisation. We need to let people go, when they want to. Difference of opinions on methods, strategy, plan and implementation is very common. Conflicts arise when there are personality clashes. Sometimes, it is true that when the organisation is unable to provide career growth or meet the welfare needs of the person, people will look for other opportunities. Management must learn to graciously let go of such persons. There are many procedures to be followed as required by law.

In recent times, the ‘hire and fire’ system has become very common among many organisations. Downsizing is also increasing as projects close down, funding begins to decrease, and goals are being accomplished. We cannot have more people than we actually need. But when faced with a situation where a person needs to be shown the door – we can be gracious and yet firm. Christian organisations should not be treated as places of charity. Retrenching workers is normal in the industry and corporate sector. This provision can be used to close down projects and downsize the staff strength with legal advice. Some multinational companies have begun to practice a system called “outplacement”. The management takes the responsibility to organise a counseling session and help the person to find alternative employment elsewhere. In some cases, they also help the person to get further training that will help him/her to get better opportunities. Outplacement helps both the management and the people avoid the pangs of separation. (Business Today, pg. 98 – August 6, 2001) 

Mentoring People: 

We are often so enthusiastic about fulfilling the great commission and confine our understanding to just the task of discipling the nations (Matthew 28:19). It is also important for us to look at how John has recorded the great commission with an emphasis on people. John records the words of Jesus as saying As the father has sent me so I send you”. (John 20:19). The ministry of Jesus was people-focussed. How do we care for the people God has entrusted in our care? One day we need to give account for the way we have cared for our people. Do we use and throw them or do we care and nurture the people who work along with us and under our leadership? If the task of leadership is a gift and a calling from God, then leading people is a solemn responsibility. This is the right attitude in stewardship of people.

As long as we have formal structures, it is imperative to comply with the legal requirements, however burdensome it may seem. Running an organisation or institution is no longer easy. Do we really need a formal vehicle for ministry? Jesus taught his disciples to follow Him they need to pay the cost. It is important that before a builder chooses to build a tower, he will first sit and estimate the cost and see whether he has enough money to finish the tower. So that he will be able to finish the building. (Luke 14:25-33). The same is true when a king makes a decision about whether to make war or peace. The lesson for us is that there is always a cost in following and serving Christ. One of the costs for both individuals and organisations is legal compliance to authorities. Before we start a new establishment for ministry, we need to count the cost.

The scripture, especially the epistles, has so much to teach about the relationships between a master and a servant/slave. In today’s context – it is employer-employee relationship. (Ephesians 6:5-9, Colossians 3:22-4:1, 1 Timothy 6:1-2, Titus 2:9-10, Philemon 10-16, 1 Peter 2:18-20). As believers, we are called to set an example in the way we conduct our relationship in the domain of compliance to labour laws within our churches, mission organizations and institutions. I have always wondered at the beautiful picture of Boaz greeting his workers The Lord be with you and the harvesters respond The Lord bless you (Ruth 2:4). This picture will go beyond the requirements of law, witnessing to the redeeming love of Christ in our workplaces and in our ministries.




Published in Christian Manager, Chennai, August - September 2018, Vol. 18, Issue 2