Context: The origin of bonded labour can be traced back to ancient times whereby, the Hindu society was divided into caste structures.
What is Bonded Labour?

• Bonded labour, also known as debt bondage and peonage, happens when people give themselves into slavery as security against a loan or when they inherit a debt from a relative.
• It can be made to look like an employment agreement but one where the worker starts with a debt to repay – usually in brutal conditions – only to find that repayment of the loan is impossible. Then, their enslavement becomes permanent.
• Bonded labor is used across a variety of industries in order to produce products for consumption around the world.

Bonded Labour in India

• The lower caste strata did not have sufficient means for their own sustenance due to which they often depended on higher castes for their own survival.
• Due to extreme scarcity of resources on the part of debtor, he has nothing to offer as security.
• Thus, the creditor and debtor enter into an agreement where the debtor pledge his person and work in lieu of unsatisfied debt.

Constitutional Provisions against Bonded Labour

• Article 21: No person shall be deprived of his life or personal liberty except according to procedure established by law.
• Article 23: Prohibition of traffic in human beings and forced labour.
• Article 24: No child below the age of fourteen years shall be employed to work in any factory or mine or engaged in any other hazardous employment.
• Article 39: The State shall secure that the operation of the legal system promotes justice, on a basis of equal opportunity, and shall, in particular, provide free legal aid.

Bonded Labour System (Abolition) Act 1976
Objective: To provide for the abolition of bonded labour system with a view to preventing the economic and physical exploitation of the weaker sections of the people.

• The aggrieved person or any person on his behalf can approach to the District Magistrate who is chairman of the Vigilance Committee constitute under the Act.
• A rehabilitation grant of Rs. 20,000/- to each of the bonded labour is granted and assistance for his rehabilitation is provided.

Centrally Sponsored Plan Scheme for Rehabilitation of Bonded Labour:
Financial assistance is provided for rehabilitation of a rescued bonded labourer at the rate of:

• Rs. 1 lakh for adult male beneficiary.
• Rs. 2 lakhs for special category beneficiaries such as children including orphans or those rescued from organized & forced begging rings, and women.
• Rs. 3 lakhs in cases of bonded or forced labour involving extreme cases of deprivation or marginalization such as trans-genders, or women or children rescued from ostensible sexual exploitation.

The financial assistance for rehabilitation is 100% funded by the Central Government.

• The Scheme provides for creation of a Bonded Labour Rehabilitation Fund at District level with a permanent corpus of at least Rs. 10 lakhs at the disposal of the District Magistrate.

Global Slavery Index

• The Global Slavery Index is a global study of modern slavery published by the Minderoo Foundation’s Walk Free initiative.
• Four editions have been published: in 2013, 2014, 2016 and 2018.
• The 2018 edition builds on the Global Estimates of Modern Slavery, which estimated that 40.3 million people were in some form of slavery.
• As per the 2018 report, 8 million people live in ‘modern slavery’ in India.