Much of the burden for India’s dismal job creation performance has been attributed to its rigid employment protection legislations, which make dismissal of permanent workers very onerous. Over the past 15 years, India has seen a sharp increase in contract workers, as firms have increasingly hired them to circumvent labour market rigidities. However, this has resulted in significant informalisation of the workforce, as contract workers can be fired easily, do not enjoy benefits such as health, safety, welfare and social security, and receive significantly lower wages than permanent workers.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Already a premium subscriber? LOGIN NOW
SUBSCRIBE TO INSIGHTS
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- 26 years of website archives.
- Preferential invites to Business Standard events.