Going back to basics: Make labour laws simple, protect workers' rights

It's not just the inability to downsize that constrains it but opaque hiring practices and the illogic of size-based legal thresholds that encourage companies to stay small

When the Second National Co­m­m­ission on Labour made a study tour to China in 2002 to understand the highly-acclaimed and liberalised labour law regime, it was in for a major surprise.

In its report to the then National Democratic Alliance government, which suggested dividing India’s 44 labour laws into four codes (which is being implemented now), the commission wrote a detailed note on “misconceptions about Chinese laws” after it received scores of suggestions from employers to follow the Chinese model.

“Perhaps those who advised us to recommend labour laws similar to what China has, may have to undergo a second