May Day: A Corporate Perspective and the Role of Company Secretaries

May Day, observed on May 1 and internationally recognised as Labour Day or International Workers’ Day, commemorates the struggles and achievements of the labour movement. Its origins trace back to the Haymarket affair in Chicago, United States, where workers protested for an eight-hour workday—a demand that laid the foundation for labour rights globally.

May Day continues to underscore the importance of labour protections and ethical business practices within legal frameworks. In countries like India, labour reforms and CSR mandates reflect a growing alignment between corporate governance and social welfare. Key labour laws—such as the Industrial Disputes Act, 1947, the Factories Act, 1948, and the recently introduced Labour Codes—demonstrate how governments aim to balance economic growth with worker welfare.

From a corporate law perspective, May Day highlights the evolving responsibility of companies to ensure fair wages, safe working conditions, and equitable labour practices. In an increasingly globalised economy, businesses face growing expectations to comply with international labour standards—not only to avoid legal sanctions, but also to attract investors and preserve brand value.

In the era of ESG (Environmental, Social, and Governance) frameworks, the well-being of workers has become a critical metric for organisational performance. Frameworks such as the Business Responsibility and Sustainability Reporting (BRSR) further reinforce disclosures around employee welfare, working conditions, and human rights practices. In parallel, Corporate Social Responsibility (CSR) initiatives are increasingly focusing on community welfare, skill development, and livelihood generation, thereby extending the impact of labour welfare beyond the workplace. Respecting labour rights fosters workplace stability, reduces industrial unrest, and enhances productivity. May Day thus serves as a vital reminder that sustainable corporate growth is deeply rooted in the well-being and rights of the workforce.

The Indian Perspective

May 1 was first celebrated as Labour Day in Chennai in 1923, marking the rise of organised labour advocacy in India. Over the decades, several laws have been enacted to protect labour rights, including the Factories Act, Industrial Disputes Act, Workmen’s Compensation Act, and more recently, the Labour Codes. These laws aim to ensure fair wages, safety, and social security.

In the Indian context, labour welfare is increasingly recognised as a key driver of industrial harmony and productivity. As businesses expand and formalisation increases, the focus on employee well-being continues to gain prominence in corporate governance frameworks.

Indian Labour Codes: Current Status

The objective of the Labour Codes in India is to modernise labour laws, enhance ease of doing business, and ensure improved working conditions and social security for workers. The four Labour Codes are:

• Code on Wages, 2019

• Industrial Relations Code, 2020

• Occupational Safety, Health and Working Conditions Code, 2020

• Code on Social Security, 2020

These Codes consolidate 29 existing labour laws to simplify compliance and promote labour welfare. While the Codes have been enacted, their full implementation remains pending, as several states are still in the process of finalising rules and operational frameworks. Once fully implemented, the Codes are expected to improve formalisation of the workforce, increase transparency in employment practices, and attract investment—aligning labour regulation with India’s broader vision of balanced economic growth and social equity.

Role of Company Secretaries

Company Secretaries, as key compliance officers and governance professionals, play a crucial role in navigating this evolving regulatory landscape. Their responsibilities include interpreting legal provisions, ensuring alignment of company policies with labour laws, and advising the Board on labour-related obligations.

Company Secretaries also assist in updating employment contracts, maintaining statutory records, and ensuring timely filings with regulatory authorities. In addition, they facilitate communication between management and labour representatives, promoting transparency and industrial harmony.

With the increasing emphasis on ESG compliance, BRSR disclosures, and CSR initiatives, the role of Company Secretaries has expanded further. They are now instrumental in integrating labour welfare considerations into sustainability reporting and corporate strategy. By ensuring adherence to labour laws and ethical standards, they help mitigate legal risks and contribute to building compliant, inclusive, and employee-centric organisations.

Conclusion

May Day is not merely a historical commemoration; it is a continuing reminder of the need to uphold dignity, fairness, and equity in the workplace. For corporates, it reinforces the idea that growth and governance must go hand in hand with employee welfare.

For Company Secretaries, it highlights an opportunity—and a responsibility—to act as custodians of ethical governance, ensuring that organisations not only comply with the law but also contribute meaningfully to a just and sustainable corporate ecosystem.