A newly released TeamLease Labour Law Report states that domestic and global economic factors have impeded job creation.
The survey states that the Central Government should overhaul the labour laws in order to reach to its goal of creating 120 million jobs in 24 sectors by 2020.
The report states that the number of jobs created in 2015 stood at a mere 135,000 which was also an effect of the demonetisation.
Manufacturing and its allied sectors are burdened the most by this regressive labour law regime. Equally impacted are Textiles & Garments, Automobile and Leather & Footwear industries. According to the report, Single Window Clearance is the most commonly needed change across all states and it suggests structural reforms at three levels:
* Abolition of archaic laws: Industry wish list in permission to layoff, retrench, close; permission to employ and thresholds of contract labour; involuntary imposition of employee benefits and advance notice for change in service conditions
* Rationalisation: The need to give advance notice for closure of a firm, multiplicity of unions, employment limits as per Factory Act, time limit for raising disputes and filing claims, payment of bonus as linked to productivity and requirement of strike notice
* Unification: A unified definitions of the labour market entities and consolidation of registers, returns and notices
TeamLease Labour Law Report 2017 also profiles the labour law ecosystem by State and by laws v/s demand and supply of skills.
At least 32 State and Union Territory governments submitted evidence of implementation of over 7000 reforms.
A total of 6069 reforms were approved and implemented. The national implementation average has increased from 32 to 48.93 per cent.
The result of the assessment demonstrates that states have increasingly risen to addressing the challenge of making it easier to do business.
Gujarat tops the list of Indian states with the most demand supply surplus with Andhra Pradesh and Odisha having a big lead in the ease of setting up business.
Courtesy: www.peoplematters.in
