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Why labour law rejig is no reform
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HYDERABAD : Labour law in India is rigid, and restricts mobility. It often has vague provisions, gives a great deal of discretionary power to the executive and, therefore, is extremely debilitating.
Several surveys and studies that have asked investors what they are most worried about often come up with a familiar list: labour laws, land acquisition costs and bureaucratic delays.
The list of laws that govern India’s workforce is itself formidably large—at least 40 central laws and more than a 100 state-level acts and regulations.
These laws almost guarantee that no formal sector employee can be removed from his job. The law also stipulates firms which employ more than a 100 employees to seek prior approval from labour authorities for a
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