Master and Servant Acts or Masters and Servants Acts were laws designed to regulate relations between employers and employees during the 18th and 19th centuries. The UK's Master and Servant Act 1823 described its purpose as "the better regulations of servants, labourers and work people". This particular act greatly influenced industrial relations and employment law in the United States, Australia (an 1845 act), Canada (1847), New Zealand (1856) and South Africa (1856). These acts are generally regarded as heavily biased towards employers, designed to discipline employees and repress the "combination" of workers in trade unions.
The law required the obedience and loyalty from servants to their contracted employer, with infringements of the contract punishable before a court of law, often with a jail sentence of hard labour. It was used against workers organising for better conditions from its inception until well after the first UK Trade Union Act 1871 was implemented, which secured the legal status of trade unions. Until then, a trade union could be regarded as illegal because of being "in restraint of trade".
A 2013 study found evidence suggesting that:
"Master and Servant law allowed workers to insure themselves against labor market risk by allowing them to credibly commit to stay with an employer despite a higher outside wage; when employees did breach their contracts in hope of higher wages, employers used prosecution to retain labor. The elimination of penal sanctions for breach of contract in 1875 was associated with shorter contracts and higher, but more volatile, wages." [1]
During the 1860s, punitive provisions were extended by judicial interpretation, leading to the imprisonment of union officials who led strikes or issued verbal calls challenging an employer's hiring practices such as only using non-union workers. A revised Master and Servant Act 1867 was passed, which supposedly limited imprisonment to "aggravated" breaches of contract (where injury to persons or property was likely to result), but it was clear that only workers were subject to its provisions. Imprisonment, even for non-aggravated breaches of contract, continued when working people failed to comply with court orders for specific performance or for non-payment of monetary damages and fines. [2]
Between 1858 and 1875 on average 10,000 prosecutions a year took place under the act in Britain. Ernest Jones, a barrister, estimated that, "[I]n one year alone, 1864, the last return given, under the Master and Servants Act, 10,246 working men were imprisoned at the suit of their masters — not one master at the suit of the men!" [3] There is some evidence, however, that this may not universally have been the case; at least one scholar has shown that local courts enforced causes of action in the early-to-mid-19th century against masters as well, in at least some instances, albeit in Canada. [4]
As little as one hour's absence by a free servant without permission could precipitate a punishment of prison or the treadmill. In 1840, employees in Australia who left their employment without permission were subject to being hunted down under the Bushrangers Act. In the Melbourne jurisdiction, between 1835 and 1845, when labour shortages were acute, over 20% of prison inmates had been convicted under the New South Wales Act 1823 for offences including leaving place of work without permission and being found in hotels. [5]
By 1902, the 1823 act had been modified to include forfeit of wages if the written or unwritten contract for work was unfulfilled. Absence from place of work was punishable by imprisonment of up to three months with or without hard labour. There were also penalties of up to 10 pounds for anyone who harboured, concealed or re-employed a 'servant' (i.e. worker) who had deserted or absconded or absented himself from his duty implied in the 'contract'. [6]
The 1823 act is not a widely remembered part of Australian political history (although there is a more general association of unacceptable exploitation of workers with the Victorian period). In 2006 a group of trade unionists referred to the 1823 act in their criticism of the "WorkChoices" industrial relations policies of the Howard government, claiming that "Our rights as workers are back where they were in the early 1800s - the only thing now missing is a Master - Servants Act." [7] Similar comparisons have been made by social commentators, unionists and politicians. [8] [9]
A trade union or labor union, often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages and benefits, improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees and protecting and increasing the bargaining power of workers.
Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.
Workers' compensation or workers' comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence. The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as "the compensation bargain.” One of the problems that the compensation bargain solved is the problem of employers becoming insolvent as a result of high damage awards. The system of collective liability was created to prevent that and thus to ensure security of compensation to the workers.
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.
Employment is a relationship between two parties regulating the provision of paid labour services. Usually based on a contract, one party, the employer, which might be a corporation, a not-for-profit organization, a co-operative, or any other entity, pays the other, the employee, in return for carrying out assigned work. Employees work in return for wages, which can be paid on the basis of an hourly rate, by piecework or an annual salary, depending on the type of work an employee does, the prevailing conditions of the sector and the bargaining power between the parties. Employees in some sectors may receive gratuities, bonus payments or stock options. In some types of employment, employees may receive benefits in addition to payment. Benefits may include health insurance, housing, and disability insurance. Employment is typically governed by employment laws, organization or legal contracts.
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".
An employment contract or contract of employment is a kind of contract used in labour law to attribute rights and responsibilities between parties to a bargain. The contract is between an "employee" and an "employer". It has arisen out of the old master-servant law, used before the 20th century. Employment contracts relies on the concept of authority, in which the employee agrees to accept the authority of the employer and in exchange, the employer agrees to pay the employee a stated wage.
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.
Trade unions in Malaysia are regulated by the Trade Unions Act of 1959 and the Industrial Relations Act of 1967.
The Australian labour movement began in the early 19th century and since the late 19th century has included industrial and political wings. Trade unions in Australia may be organised on the basis of craft unionism, general unionism, or industrial unionism. Almost all unions in Australia are affiliated with the Australian Council of Trade Unions (ACTU), many of which have undergone a significant process of amalgamations, especially in the late 1980s and early 1990s. The leadership and membership of unions hold and have at other times held a wide range of political views, including socialist, democratic and right-wing views.
The duty of fair representation is incumbent upon Canadian and U.S. labor unions that are the exclusive bargaining representative of workers in a particular group. It is the obligation to represent all employees fairly, in good faith, and without discrimination.
Japanese labour law is the system of labour law operating in Japan.
A collective agreement, collective labour agreement (CLA) or collective bargaining agreement (CBA) is a written contract negotiated through collective bargaining for employees by one or more trade unions with the management of a company that regulates the terms and conditions of employees at work. This includes regulating the wages, benefits, and duties of the employees and the duties and responsibilities of the employer or employers and often includes rules for a dispute resolution process.
The Court of Arbitration was the first court in New South Wales, Australia, which dealt exclusively with industrial relations disputes in the early twentieth century. Justice Lance Wright claims that it perhaps was the first court of its type in the world. The court was unique at that time as it was the first court of its type to deal with labour relations between employer and employees on a compulsory basis. Previous arbitration measures between employer and employee had been on a voluntary basis or had been based on the criminal justice system through the use of criminal penalties. The conventional economic model is that both employer and employee enjoy equal bargaining power to set wages and conditions. This asserts that both parties are able to agree on a fair market price for the cost of labour free from distortions. However, where employers or employees group together, these outcomes can be distorted particularly in “boom” or “bust” economic conditions. The purpose of the court was to change the manner in which employers and employees negotiated pay and conditions. It was an attempt to reduce the power imbalances between employer groups or employee unions that arose from using collective bargaining, and the resulting use of that market power to influence wages, and also to reduce the threat of lockout or strikes to achieve those ends.
The history of labour law in the United Kingdom concerns the development of UK labour law, from its roots in Roman and medieval times in the British Isles up to the present. Before the Industrial Revolution and the introduction of mechanised manufacture, regulation of workplace relations was based on status, rather than contract or mediation through a system of trade unions. Serfdom was the prevailing status of the mass of people, except where artisans in towns could gain a measure of self-regulation through guilds. The law of the land was, under the Act of Apprentices 1563, that wages in each district should be assessed by justices of the peace. From the middle of the 19th century, through acts such as the Master and Servant Act 1867 and the Employers and Workmen Act 1875, there became growing recognition that greater protection was needed to promote the health and safety of workers, as well as preventing unfair practices in wage contracts.
The history of labour law concerns the development of labour law as a way of regulating and improving the life of people at work. In the civilisations of antiquity, the use of slave labour was widespread. Some of the maladies associated with unregulated labour were identified by Pliny as "diseases of slaves."
Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 18 working days of fully paid vacation or earned leaves and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019. Despite having one of the longest working hours, India has one of the lowest workforce productivity levels in the world.
The Wage and Hour Division (WHD) of the United States Department of Labor is the federal office responsible for enforcing federal labor laws. The Division was formed with the enactment of the Fair Labor Standards Act of 1938. The Wage and Hour mission is to promote and achieve compliance with labor standards to protect and enhance the welfare of the Nation's workforce. WHD protects over 144 million workers in more than 9.8 million establishments throughout the United States and its territories. The Wage and Hour Division enforces over 13 laws, most notably the Fair Labor Standards Act and the Family Medical Leave Act. In FY18, WHD recovered $304,000,000 in back wages for over 240,000 workers and followed up FY19, with a record-breaking $322,000,000 for over 300,000 workers.
The Office of the Australian Building and Construction Commissioner (ABCC) (2005–2012) was an independent, statutory authority, responsible for monitoring and promoting workplace relations in the Australian building and construction industry. The ABCC provided education, investigated workplace complaints and enforced compliance with national workplace laws in the industry. The ABCC did this by:
The Master and Servant Act 1867 was an Act of Parliament of the United Kingdom which sought to criminalize breach of contract by workers against their employers. Although it did still give employers and prosecutors warrant to prosecute breach of contract the act was more progressive than the former standard set by the Combinations of Workmen Act 1825 whereby employees seeking to form labor unions and such could be prosecuted for criminal conspiracy in restraint of trade. Under the new standard employees could only be charged for "aggrevated cases" and breach of contract, which was at the time seen as an improvement. The Employers and Workmen Act 1875 was passed in substitution for this Act.