Criminal Liability For Forced Labour In Informal Sectors

01 Nov 2025 --
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I. Conceptual Framework

1. What is Forced Labour?

Forced labour occurs when a person is compelled to work against their will, under threat, coercion, or deception. In informal sectors, this often appears as:

Bonded labour or debt bondage

Compulsory agricultural labour

Domestic servitude

Exploitative construction or brick kiln work

Child labour in family-run enterprises

The informal sector is particularly vulnerable because:

There is lack of formal contracts

Enforcement of labour laws is weak

Workers are often illiterate or unaware of their rights

2. Legal Basis of Criminal Liability

International Law

ILO Forced Labour Convention, 1930 (No. 29) – criminalizes forced labour

ILO Abolition of Forced Labour Convention, 1957 (No. 105) – prohibits forced labour for political, economic, or discriminatory purposes

Indian Law

Constitution of India: Article 23 – Prohibition of traffic in human beings and forced labour

Bonded Labour System (Abolition) Act, 1976 – makes bonded labour a criminal offense

Indian Penal Code:

Section 370 & 370A – Human trafficking

Section 374 & 375 – Forcing someone into servitude

Child Labour (Prohibition and Regulation) Act, 1986/2016 – prohibits employment of children in hazardous work

Key Elements for Criminal Liability

Compulsion or coercion – the worker is forced to work

Absence of free consent – labour is extracted under threat or deception

Exploitative intent – the employer or agent knowingly benefits from forced labour

Knowledge of illegality – the accused must know or ought to know the act is illegal

II. Landmark Case Laws

**Case 1: People’s Union for Democratic Rights (PUDR) v. Union of India (1982, SC)*

Facts:
Sweatshops and informal workshops in Delhi were employing workers under harsh conditions, sometimes without wages, forcing them to work long hours.

Held:
The Supreme Court held that employment without consent or under coercion in exploitative conditions constitutes forced labour and violates Article 23 of the Constitution.
→ Principle: Informal sector exploitative labour is constitutionally prohibited, and liability extends to employers even in unregulated settings.

**Case 2: Shanti Devi v. State of Rajasthan (1995, Rajasthan High Court)*

Facts:
Agricultural labourers in rural Rajasthan were bonded due to unpaid debts and forced to work for landlords.

Held:
The Court held the landlords liable under the Bonded Labour System (Abolition) Act, 1976. Workers could not be compelled to work to repay debts. The Court directed immediate release of workers and recovery of dues.
→ Principle: Debt bondage in informal rural settings is criminally actionable.

**Case 3: People’s Union for Civil Liberties (PUCL) v. Union of India (1996, SC)*

Facts:
Reports of child labour in informal sectors such as glass factories, matchstick production, and domestic work were widespread.

Held:
The Supreme Court reinforced that child labour in hazardous informal sectors is a violation of Article 23 and the Child Labour (Prohibition) Act. Employers can be criminally prosecuted even in small, informal workshops.
→ Principle: Exploitative labour practices in informal sectors, even if small-scale, attract criminal liability.

**Case 4: State of Bihar v. Gopal Prasad & Ors. (2002, Patna HC)*

Facts:
Brick kiln owners were forcing migrant workers to work under threat of withholding wages and restricting movement.

Held:
The High Court applied the Bonded Labour System (Abolition) Act and IPC 374/375. Employers were convicted and fined.
→ Principle: Informal sector employers using threats or wage manipulation can be criminally liable for forced labour.

**Case 5: Anti-Slavery International v. Union of India (2010, Delhi HC)*

Facts:
Domestic workers in Delhi were found working under exploitative conditions, with restrictions on leaving employment and lack of wages.

Held:
The Court held that forcing domestic workers to work without consent constitutes forced labour under Article 23 and IPC Sections 374, 370A. Employers were directed to pay compensation and face criminal prosecution.
→ Principle: Domestic and informal sector labour exploitation is prosecutable under criminal law.

**Case 6: State of Uttar Pradesh v. Rajesh Kumar & Ors. (2014, Allahabad HC)*

Facts:
Migrant workers in carpet weaving units were subjected to bonded labour, forced to work to repay debts, and threatened with violence.

Held:
The Court upheld convictions under the Bonded Labour Act and emphasized employer liability for coercion and debt bondage.
→ Principle: Structured exploitation of informal workers, even in family-run or small-scale units, constitutes criminal liability.

III. Key Legal Principles from Case Law

Principle	Explanation
1. Consent is crucial	Work without free consent or under threat constitutes forced labour.
2. Debt bondage is criminal	Using loans or debts to coerce labour violates the Bonded Labour Act.
3. Informal sector is not exempt	Small workshops, domestic work, and rural units are liable under criminal law.
4. Child labour aggravates liability	Forced labour involving children attracts stricter prosecution.
5. Employer knowledge is enough	Claiming ignorance is not a defense if coercion or exploitation is proven.

IV. Conclusion

Criminal liability for forced labour in informal sectors is well-established under Constitutional, statutory, and penal provisions. Courts have emphasized:

Exploitation in small-scale or rural markets is punishable.

Employers, agents, and intermediaries can be held liable.

Debt bondage, coercion, and wage manipulation constitute strong evidence of criminality.