Labor Law Reforms: A Big Overhaul

The 1991 economic reforms accelerated the pace of economic growth in India but failed to bring any noteworthy change in labor laws. Restrictions on hiring and firing of workers in medium and large enterprises are one of the greatest challenges of doing business in India. The firms are unable to adjust their workforce due to the rigid labor laws. The present article cast light on the debate going on with regard to the labor law reform in India and how these rigid laws have made India a very difficult place of doing business. The initiatives taken by our Prime Minister to improve India‘s rank in ease of doing business and amendments in the three laws namely, Factories Act, 1948, Apprentices Act, 1961 and The Labor Laws Act, 1988 have also been discussed in detail. The article, however, suggested to make these laws less stiff while keeping in mind the legitimate rights of the workers.