Immediate overhaul of most regressive labour laws in India needed -Rajasthan, Gujarat, Maharashtra & Madhya Pradesh ushering in radical reforms to create job surplus

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Boosting employment generation is the key electoral plank of the current government, which is mid-way through its five-year term. Domestic and global economic factors have impeded job creation. The number of jobs created in 2015 stood at a mere 135,000. A cash crunch following demonetization of high-value currency notes has led to job losses in the informal economy, impacting many small manufacturing units. In the last 2 years the Central Government has effected 54 changes in the Apprenticeship Act, Factories Act and Labour Laws Act. 

However, these initiatives are too late and too little. It does not address the core of the problem. To kick start the job creation engine the government must immediately overhaul the most regressive labour laws in India, viz., Trade Union Act, Industrial Disputes Act and Contract Labour Act, concluded TeamLease Labour Law Report 2017. 

Between 47 central labour laws and 200 state labour laws, India has an over regulated and poorly governed labour law system. Sonal Arora, Vice President, TeamLease Services said, “Our labour laws have remained dysfunctional, disharmonized, protracted and overreaching.

 These multiplicity of rules and procedural delays impose unreasonable legislations and transaction cost on businesses. The complex anatomy comprising harassment, corruption and compliance overreach chokes businesses on productivity and competitiveness.” TeamLease Labour Law Report 2017 also profiles the labour law ecosystem by State and by laws v/s demand and supply of skills.