Overhaul of regressive labour laws essential: Report

In order to boost job creation process, the government should overhaul the "most regressive" labour laws in India, a TeamLease report says.
Immediate overhaul of most regressive labour laws like the Trade Union Act, Industrial Disputes Act and Contract Labour Act is essential to kick start the job creation engine, according to the TeamLease Labour Laws Eco-system Report 2017.
In the last two 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 and do not address the core of the problem, the report said.

"Our labour laws have remained dysfunctional, disharmonised, protracted and overreaching. These multiplicity of rules and procedural delays impose unreasonable legislations and transaction cost on businesses," TeamLease Services Vice President Sonal Arora said.
In 2015, the number of jobs created stood at 135,000. Various domestic and global factors impeded job creation. Moreover, a cash crunch following demonetisation of high-value currency notes has led to job losses in informal economy.

The TeamLease report noted that the sectors that are burdened the most by this regressive labour law regime are manufacturing. Equally impacted are textiles and garments, automobile and leather and footwear industries.

The report provides state-wise labour law ecosystem on various parameters, including demand and supply of skills. Gujarat tops the list with highest demand supply surplus, while Andhra Pradesh and Odisha having a big lead in the ease of setting up business.
It further noted that Maharashtra, Madhya Pradesh and Gujarat lead on infrastructure and have the best demand-supply surpluses.