Labour Laws : Sector-Wise Ecosystem

Between 47 central labour laws and 200 state labour laws, India has an over regulated and poorly governed labour law system. Our labour laws have remained dysfunctional, disharmonized, protracted and overreaching. These multiplicity of rules and procedural delays impose unreasonable legislations and transaction cost on businesses. The complex anatomy comprising harassment, corruption and compliance overreach chokes businesses on productivity and competitiveness. TeamLease Labour Law Report 2017 also profiles the labour law ecosystem by State and by laws v/s demand and supply of skills. With a few exceptions (notably, Andhra Pradesh), States scoring well on their labour law regime parameters carry Demand-Supply surplus as well. These States are well positioned to reap handsome rewards from reforming their labour law regimes. 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%. The result of the assessment demonstrates that States have increasingly risen to addressing the challenge of making it easier to do business.

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