Between 47 central labour laws and 200 state labour laws, India has an over regulated and poorly governed labour law eco-system. Multiplicity of rules and procedural delays impose unreasonable legislations and transaction costs on businesses. The top three laws which require reforms are: The Trade Unions Act, 1926; The Contract Labour (Regulation & Abolition) Act, 1971 and the Industrial Disputes Act, 1947.

1. e TM
Teamlease
Putting India to Work

2. - ------------------------------------------------------------------ -, 1
l ., Executive Summary 1 J
~ ------------------------------------------------------------------- ~
------------------------------------------------------------------- -,
l .,What ails !labour laws in India 3
- ------------------------------------------------------------------ -; '
t • Challlenges fac@d by the industry due to convoluted and ineffective !laws 16 1
' ------------------------------------------------------------------- ~
J
~ ------------------------------------------------------------------- ~
- ------------------------------------------------------------------ -(
l ., LegisIations and Transaction Costs cr~ ppling indIJstry
~ -----------------------------------------
4 J________________ /
-- ------------------------------------------------------------------ ~
,' •·Tlhe elephant in the mom: What progressive regimes are doing albout
I I 18 ), r@gr,essive Iaws ,
; ----------------------------------------------------------------- ~ - ~,
l .,Profiling the ecosystem by sector-state llaws, demand and supply 5 }
~ -------------------------------------------------------------------
( ~, -Ad-d~r;~si~g ti~~ ~~~fria-ti~n-~i~r~ch~ic-1~~~~ ~~d~n_o_n~~~~p,Ji~~~~; ---------------- -io-~
' ------------------------------------------------------------------- ~
,
l .,.Assessment of State llmplementa1tion of IBuslness Re~orms report- 2016 8 J
~ -------------------------------------------------------------------~
------------------------------------------------------------------- -, .
( • Transforming the ecosystem what each state mIJSt do 21 1
~ ------------------------------------------------------------------- J
------------------------------------------------------------------- -
( ., Labour laws applicabillity 9 J
~ -------------------------------------------------------------------~
------------------------------------------------------------------- -
( •·Ecosystem transformation: The payoffs 26 ~
~ -------------------------------------------------------------------~
--------------------------------------------------------------------
( ., Ecosystem inflluerwe on sector-state dusters counter-effects of a1weak !labour ~
,
1•·Sources 27 J
11, regime 1
~ ------------------------------------------------------------------- ~
~ ------------------------------------------------------------------- '
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider

3. • T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
>!Lack of sta11dardization ln docu1mentatrion across states, multiplicity of state level permissro ns,
a11d inspections from multiple officers tnat increase the compliance burden, persist.
>States scoring well on their labour regime parameters carry demand-supply surpluses as well
and are well posltloned to benefit fmm transformation
> Gujarat, with a 25% demand-supp,ly su1rpluJs ls tlhe most complia11,t state. It is also amongst the
four states that are usheri11g in radical reforms~ the other three belng Maharashtra~ Rajasthan
and Madhya Pradesh

4. • T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
>Abolition o archaic laws: Permission to layoff I retrench/ dose, Permission to employ and
thresholds of contract labour, Involuntary imposition of employee benefits and Advance notice for
change in service cond itions.
> Rationalisation: Tile need to give Advance notice for closure of a firm, Multiplicity of unions,
Employment limits as per Factory Act, Tlme Limit for raising disputes and 11Hng claims1 Payment of
bonus as linked to productivity, Requirement of strike notice
>Unification: It further requires a unified Definitions of labour market entities and consolidation of
registers, returns and notices

5. 2%o the working population 1n the unorganized sector
Overtime restrictions
and Nightshi t restrictions for women
D SEASE
out of countries
,- ------------------------------------ -
: Businesses incentivized to operate in Quasi- ~egal 1
1 I illegaIfra meworlk ; ,
~ ------------------------------------ -
; ------------------------------------ -,
1 Labour demand largely informa~ and main~y 1
: from sma~II businesses wijth low pmdiuctivity ;
~ ------------------------------------ -~
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Analytirs S.OIUJ1Jion ProYider
4
central labour laws
Protracted
about
over!appi ng1 rigid
and isolated acts
1laws on work
conditions and
industrial
relaJtions
Overreaching
Dystum:tional
2
state labour laws
Dishar monized
14
~aws on social
security and
labour welfare
::c
0
0
-1

6. P'Ot CY STANCES/ POL CAL ENV RO ··... ME T
~ ------------------- ,
I I
1 Administrativ,e·decisions
bestow immense power
1 on petty functionarilE!:s,
encouraging corruption
and rent-seeking
- - - - - - - - - - - - - - - - - - -
- -----------------r · '
~ Leg"slations multiplic!ty,
1
inspections and
harassments ·f1rom
multiplle offioers,
1 11ncrease compllianee
I
I
~
~
1
costs ~
' ~
, __________________ _
• T L Hll
. (...--) · 1earn ease valuvoH
Y Putting India to Wonk Amiil'flirs solution ProYider
r ------------------------------------------ -1 '
: Rigid n:lgullatlons sUflle labour deploym,ent1 reduce :
I
production effieiency and diminish oompetitiveness
~ ------------------------------------------ ~
Implemenit:ait:io1n
Lac1.1nae
IInJormait:io1n
con:st raints
- ------------------------------------------ -I ....
I
: Lack of sitandard·sation of documentation requirements 1
: - manua~ and not electronk - from ineept ion to e:dt ~
~ I
~ ------------------------------------------ -
IE V IRO~NM E NTAL UNCERTAI NTY
Burea1.1cracy I
Power
~ - --------------- -
~ s~veraII ~nspectors
can descend on a
factory under
I
, assorted Iabour IIaws 1
j
~ ---------------- ;
Adminisit:rait:ive
Comple·xity
,.
• Large number of
registers, periodic
: retums ra1ise cost of
'L
: complianoe1 especlallly 1
L for MSMIEs 1
~- --------------- -;

7. :;.,.
0:.
0:.
::1
Sl!ttlng Up llllsinl!!i!i
I I I
200 - - - L - - t- - - .L -I I
200
150 - - ....1 - - I - - ....1.. - -
1,1'1• 100 _ _ ....1 - - I _ _ ...L __
I
50 I
---t---r--+--
•
I I I
_...L __ t- __ J._ _
I I
--t--~--_..L--
I
I
--r--+--
I I I
-...L--f---.L-1 I
I
I--t--, __ _..L __
I
I
-,--r--+--
LA -OUR REG ME PARAMETERS
I I I
-...L--L-- + -1 I
- _J __ __L_ _ _ _ - -
--t--+--....1..--
I
I
-,--r--+--
canyfng out Inspections
I I I
-.....l...--L--+-1 I
_....J __ __L_ __ , __
--l-- +-----
•
I
I
--r--+--
I I I
-...L--L--+-1 I
_ __L __ _..L-- ---
1
I
--t---+-- __L_ __
I
I
-,--r--+--
I I I
_...L __ L __ _L_
I I I
--t--+- - _..L--
I
-•I
I
I
-,--r--+--
40 BO 120 160 40 30 no 160 40 30 12!0 160 40 12!0 160 40 30 12!0 160 40 SCI 120 160 40 30 120 160
As per iatest rdata availalb!le in t e 'Assessment ofState llmplementaticm of Busin,ess Refo:rms' report oema111d i111 OOO's
• T L Hll
.('~~-). 1earn ease
Y Putting India to Wonk
valuvoH
I I I
- ....1...-- ·b.--.L-I I
•I
• I• •
I
I
I
-,--r--+--
•I •
.I
•
40 30 120 160
Se:ore
• 0
• 25
• 50
• 7!5
• 100
State
Andhra Prndes;h
ohand'igarh
Gujarat
lharHlarull
Madlh'{al Pradesh
Maharas;h ra
odisha
Rajasthan
Uilritar PradEsh

8. • T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
-------- .....
Gujarat % with the most Demand-Suppllysurplus, and Andlhra Pradesh - %
with the biggest defidt, both r;emk highlly on most Iabour regime parame'ter-s ________ ..,.
------------------------------------------------------------------------ ~
Andhra Pradesh and Odisha 7 %
I
I
I
l
------------------+------1-..,...._-i
have a big lead on the Ease of setting up business
I
------------------------------------------------------------------------ ~
------------------------------------------------------------------------ '
States fa liter most on Enf:ord![lg Contracts, with
Maharaslhtra1 and Madhya Pradesh 4 % being notable ex;oeptions
------------------------------------------------------------------------ ~
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
---------------~------------------~---------
W1th a few exceptions (notably, Andh ra
Pradesh), states scoring well on their
regime parameters carry Demand-Supply
surpluses as well. These states are well
positioned to reap handsome rewards from
reform ing their labour law regimes
~ -------------------~-----------------------

9. • T L n:~
. (...--) · 1earn ease
Y Putting India to Wonk
Jharkhand and Chatfsgarh score on complianoe and
have a % demand-supply surpIIus each1 but are the poorest 1 % on S9tt1ng up business
I
I
I
- - - - - - - - - - - - - - - - - - - - - - - - - - - ,_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ , - - _ , I
Gujarat
r----------------------------------------------------------------------------
I
I
I
I
,_
!Maharashtra 7% ,Madhya Pradesh and Gujarat 7 % each llead on
infrastructure and have the [best demand-supply surpluses 8%, 7... %
0% and Andhra Pradesh 85% !lead on 'I
I
environmentaIcompiiance, and Gujarat and Jharlkhand
---------------------------------------------------------------------------- ~
~ - - - - - - - - - -
~
Maharashtra 3% , Madhya Pradesh and (i ujara1t 7 % each
liead on Land and Gonstruction I~m nts
~ - - - - - - - - - - - - - - - - - _, - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
---------------------------------------------------------------------------- ,
and Andhra P'rafllesh 0 lead Tax Complliance and
I
cany demand-supplly deficits of • a1nd 5% respectivelly
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -P"
valuvoH
Amiil'flirs solution ProYider

10. - - --------------------------------------------------------------------------------------- ------------------------------------------------------- -- ~
The Business Reform Action Plan inclludes recommendations for re~orms on regulla1tory prm::ess@s, policies1 pl'acth:es or procedures spread across reform areas
spanning the 111iecyde of a1typical!business
~ - - -----------------------------------------------~----------------------------------------------------------------------------------------------- --~
At lreast
32 State and
IUT Govemments
srulbmitte.d evid~en ce
of implementation
of 7, 24 ret:orms
Source: Department of lru:h.1s.trial Polic~y &. Promotion~ 2016
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Anal'flirs S.OIUJ1Jion ProYider
Andhra fradesh
GU'jarat
chhabisgarn
Madh,ya Pradesh
.!harldla ndl
RajastJhan
··aharaS'hha
adislha1
uttar P«Hfe~'h
Top 10- 2016 State Rankin,gs
--------------------lilllll~8.73%
~8.2.ll.%- - - - - - - - - - - - - - - - - - - - - - -
97.3.2%
~7.0ll.%
!96.57%- - - - - - - - - - - - - - - - - - - - -
-..-------------11111!1----96.43%
Atotalof
6, reforms
were approved
as implement-
ed
2.80%
90.00% ~:S.OO% ll.OIJ.OO%
... - ----------------
T1he national
impIementati,on
av~erage· stands at
48..93%
~ -------------- -,
/ Significantly higher I
than Iast yei31'
1
's
nationall
av@rage of 32%~ ,
~ - - - - - - - - - - - - - - --
I
I
f ---------------- ~
The results of the
assessment
demonstrnte that
States have
inen~asinglly risen to
addressing 1ehe
cha1ilenge of mak1ing it
easier to do business
- --------------- -~
I
I
J

11. Co 0 for al l sectors
r - ------------------------------------------- ----------------- ,
[ • lhe Trade llnions Act1 19.2!6 ~
~ -------------------------------------------------------------- ;
, - -------------------------------------------------------------~
[ •Shops &EstabIishments .Act (Bombay Shops &IEstablishments Act, 1948) l
~ -------------------------------------------------------------- ;
,- ------------------------------------------------------------- ,
[ • lhe Shops & Establlishments Act, 1953 1
~ ------------------------------------------------------------- - ;
,- ------------------------------------------------------------- ,
r •Tihe Payment of 1GratLl ity Act, 1972 l
- ------------------------------------------------------------- E
, - -------------------------------------------------------------~
[ • lnhe Employees' Providenrt fund & M isc@[llaneous Provisions .Act, 19S2 ~
~ -------------------------------------------------------------- ;
r - -------------------------------------------------------------~
• The !Employees' 1Compensa1t•on Jrct, 1923 ,_J ~---
~- ------------------------------------------------------------- ;
~ - -------------------------------------------------------------~
[ • llhe IEmploy@es' State llnsLirance .Act, 1948 ~
~ -------------------------------------------------------------- ;
- -------------------------------------------------------------,
( • llhe Contract Labour (!Regulation .& Abollition) Act, 1'970 & 1'971 l
~ -------------------------------------------------------------- ;
- -------------------------------------------------------------, '
[ •lnhe IPayment of Bonus Act, 196S 1
~ ------------------------------------------------------------- -~
,- ------------------------------------------------------------- ,
r •Tihe IEqual Remuneration Act,1976 and IRules 1976 l ______________________________________________________________ ~
- -------------------------------------------------------------, '
[ • Indust r~aI Emplloy1ment (Standing 0 rd ers) Act , 1946 1
' ------------------------------------------------------------- -$
, - ------------------------------------------------------------ -~
[ • lihe !Employment IExchanges (CompuIIsory Noti1liication of Vacancies) Act, 195'9 l
~ -------------------------------------------------------------- ;
- ------------------------------------------------------------- ~
t • lhe Minimum Wages Act1 1948 1
~ ------------------------------------------------------------- -;
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs solution ProYider
~ - ------------------------------------------------------------- ,
• lhe IMat,ernity Benefit Act, 1961 I
~ -------------------------------------------------------------- ;
, - ------------------------------------------------------------- ,
l • l the Motor Transport Workers Act, 1961 & Rules, 1'9164 :
~ -------------------------------------------------------------- ;
~ - ------------------------------------------------------------- ,
• Motor Veh1des Act1• 1988 l
~- ------------------------------------------------------------- ;
, - -------------------------------------------------------------
l • Central Motor Vehides RLIIles 1989 l
~ ------------------------------------------------------------- -;
- -------------------------------------------------------------, '
• The Apprentioes Act, 1961 l
~ - ------------------------------------------------------------- ~
, --------------------------------------------------------------,
l • llndustr~al rrrsputes Act1 1947 1
~------------------------------------------------------------- -~
~ - ------------------------------------------------------------- ,
• The Payment of Wages Act, 1936
~ -------------------------------------------------------------- ;
~ - ------------------------------------------------------------- ~
I
I
l • lihe w ,eeklly HoIiidays Act, 19316. ~
~ -------------------------------------------------------------- ;
~ -------------------------------------------------------------
' 'J • llhe linter-Stat@ M igrant Workmen ~
I
(Regulation of Emplloyment and Conditions of Service) Act, 1'979
1
' - ------------------------------------------------------------- ~
, - ------------------------------------------------------------- ,
l • lihe Small!enterprises {Employment Rellations) .Act, 2002 ~
~ -------------------------------------------------------------- ;
, - -------------------------------------------------------------,
• Child Labour (Prohibition and RegL1Iation)1.Act 1986 l
~- ------------------------------------------------------------- ;

12. MAJOR
,- ------------------------------------------------------------------------------------ -~
~ ~ !~~-~~c_k_~_?~~~r~J~~f~!Y!~H~e_a!~h-~~d~ ~e~~a_r~:l~~~ ~~~~~- ________________________________________ _}
,- ------------------------------------------------------------------------------------ -
.,The Dock 'Workers (Safety, IHealrth a1ndl Welfare) Regu ll at~ons1 1.98'9 1
' I
------------------------------------------------------------------------------------- -.1' '
, .,Bu i lld~ng and Other Construction Worker-s(Regulat ion of Emplloyment & Conditions of Service) Act, 1'996 }
- ------------------------------------------------------------------------------------ -
.J' '
... .,Builld1ng and Other Construction Workers(Regullat ion of Emplloyment & Conditions o' Service) Ce11tral Rules~ 1998 }
- ------------------------------------------------------------------------------------ -
a - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --
~ "
~ ~~ _!~~_B_uJI~~~~ ~~~ 9!~,~~~~~~t!~~~O_!l_~o!~~~s~ ~~~!a_r~-~e~~ ~?__,_1~~~~-a_n~d-~~~~~~ ~~~~~- ___________________ _}
,- ------------------------------------------------------------------------------------ -~
,- ------------------------------------------------------------------------------------ -
.,The 6 as Cylinders Rulles, 2004 1
' -------------------------------------------------------------------------------------- '
,- ------------------------------------------------------------------------------------ -
.,The Petroleum Act1 1934 & Rules 2.002 1
' - I
.1' - ------------------------------------------------------------------------------------ -
.,The Dangerous Machines {Regulation} Act, 1983 1
..., I
- ------------------------------------------------------------------------------------ -
.J' '
.,The Indian Boilers Act 1923 1A1mended 1960l I'- ----------------~ ____ ) ___________ } __________________________________________________ _~
.J'
,:,!~~_c:_h~e-~i~~~~~~~c~~~~~t~ ~~~~~~~~~C.YJP~I~~~i~~~~~~e_p~~~~~~~s~_a~~-~~~sp~~~~)_~~~~~·~~~~~~~~- __________________ _}
; ~ ------------------------------------------------------------------------------------ -
., Food Safety··.. and Standards Act - 2006 I
' . .J"
- -------------------------------------------------------------------------------------
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs SOIUJ1Jion ProYid.er

13. I=======
MANUFACTURING
.....
'1 Unlflr,ee /Dec@ptive
recru ~tm ent
Maharashtra
Tamfl Nadu
Karnataka
Ch hatisgarh
Uttarakhand
I I
Work and life und@lr dllress ;'
' J
- --------------------- r
~ ---------------------- ~
,.- !Mild !human rights violaritions "
I I
(verbaI abus@ and th1neats)I
especiallly when prodllction
, _~ tarrgets are not met~: r-arelly
/ physical abuse is also prevalent....)
~- --------------------- -
Poor firm dynamism
-11nfrastmcture cornstraints~
power shortag~e~ poor logistics
IL.abour productivity and
wag~es :suiler beca IJ:se~ of a
skewed firm :siZ!e di.st riblltiorn
Intrinsic I ingrained gender
divisiorn of llaboiJr- women
given the slhort :shrift
~ - ----------------- -
-- ..
..
tInvoIunta11ry or even lJn10aid'
I
""
. r:-" I
: overtime andlpenallties ·t:or 1 /
: resisting (inelluding Iayoffs ; - ...
1
._ against aibs@!tu :e) )
~ - - - - - - - - - - - - - - - - - - ~
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
TEXTILE & GARMENTS
~~ ----------------------- ~ Karnataka
Tamil Nadu
Gujarat
Madhya Pradesh
Rajasthan
- - - - - - - - - - - - - - - - - - - - -- ....
/ uwage lh@ft11
:: e1mployer-s
I
"'-.J
deduct but do not remfrt IEPIF
amounts
Termination and re-hire of
I Iong-servung empioy@@S under
new ID to arvoid IEPF payout ,.,
~ --------------------- -
~
I
_ __________ I__________ _
~ '
: (Ne:2n) impossibillity of quitting 1
:tlhe job at the wor~er's time of :
1
choosing along wiith :
1 oonseqllences of abuse or lloss :I
'... of pay /
- -------------------- -
/-~ld~sp~~~~dl ~~ltr~r~-~;f ',
Lack of technical
m arn power - only 30
programmes '(erngJin~ee rimg
/diploma) and jllst 1000
st:Ju dents graduatirng
Art'fi " II . ...fJM 1 1 1cra y mmp o~S~eu
capacity r~estrictiorn s -
fears of linionizatnon
incentivizatiorn of small
scale
Closllre of IJrba n m ilis - ·
IIand arnd urlbarn izatLon
laws
disrespect of workers by
their sU[p @rvisors (a
variety of abuse ranging
from mild verbal 1(80%
cases) to physicaI
viollence and detentions
(5% - 10%) to sexuall
~(20% against women
and 10% algainst men) /
'~ ---------------- - ~I
I
I

14. ,.
AUTOMOBILE
Tamil Nadu
Andhra Pradesh
Maharashtra
Haryana
"'I
I
,. ----
~ ---------~-------- -
1 Plagued by high inc1denoe '
: of stri~es due to outdated
'
IIalbour Iaws
'~ ~
~ ------------------ -
• T L n:~
. (...--) · 1earn ease
Y Putting India to Wonk
Complex taxation; High
customs duties; laboi!Jr
unrest; Insufficient
i'nfra:str uc.ti!Jr~e; Incr,easingfy
strong ~environ menta l
reg1.1Iations
valuvoH
Amiil'flirs solution ProYider
....
I
I
~ - ----------------- ~
f
...
t Major caL!lse o unreslt or ~
I
: protest has risen from the 1
: fact that t he companies
1
: resi'st formation of llalbour
.
... umons J
~ -- - - - - - - - - - - - - - - - -~
LEATHER & FOOTWEAR
~ --------------------- ~
Maha rashtra
Tamil Nadu
Delhi
West Bengal
i" ......
~ Piece-rate system encourages ~
/ --..., e:mploy,ees t o ov,erwork with :
r : often illllusory monetary gains :
I ~- --------------- ~
~- -------------------- - ;
F
/ INon-contractuaI
' . I
- ---------------,
Prominent sector in Indian
economy for employ ment
generat]on and export
.eam1ngs
IEmploys 3.09 million which is
set to S~cal,e to 6.8millIion by
2022
employment, blanket :
exJdusion of social ~- - ..
security lbenefits {IESI1. :
'.. EPIF1 etc...) /
~ --------------- ~ ~
~ ------------------------------ ~
"' ....
Gender discrimination - ]lesser recognition '
to women's worlk atnd skills. Women
oonfined to r-ellartively unskmed and IIow
paying posirt ions. Se'.xuaI harassm@nt
issues also p~revaiII' /
~- ----------------------------- ~
'

15. RETAIL
- ------------- -, '
" Employees are held ~
responsible for
shrinkage or
wastage &
merchandise that
goes missing, pay
out of pocket for
count,erfefrt notes' ~
- ------,------- -
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
Modern r~etaiI :stymi~ed with
different compliance procedur,es in
diffe~renil: :stail:e:s - oorm pIianoe cost:s,
r~ecords maint,enance, sysit,ems
cha ll,eng~e
location fea:sibillity a challlenge-
fmgmente-d private hoIding,s,
ilnlfr,eq,uenil: auctioning o1f Iarge
gov~em ment owned vacant Iands
and Iitigail:ion
,. ~ - - - - - - - - - - - - - - - - '
t very few courses speolfiic: '~
: to tlhe retailsector and : ...
1
gradiJates/post graduates :- ..
from other streams are 1
• d I
merIJite , i
----------------- ~
valuvoH
Amiil'flirs SOIUJ1Jion ProYider
/.- --!PooI"-WQ~king looridnti,olnS [!No ~ 'I
Health & Safety Measures,. I
Iittle persona1l independenee] )
~- --------------------- ~~
- ----
~ ---------~-------- -~ ~
I
Smaller and m1 d-slz~d IT
companies see the
effects of the act as 1IIhf:?!Y
are being contacted by
the labour department
for certification of
standing orders
' - - - - - - - - - - - - - - - - - - - ~
J
fh,e :sector was r~ecenUy
brought under the,Indu:striaI
Emplo~y ment (Standing·
Order s) Act
Tlhe llaw mandates oormpanies
ito ll'define w irith sufficient
preci:sion ithe condi ions of
employmenil:
11
and make t he:se
condit ion:s kn~ow1n to
employees
.r
IT/ ITeS
....
,
I
~- ------- - ------- -~
, encourages na111- 1
1
performing employees to
1
cnte the llaw iIll 0 rder to
ereate the scope for a
~ unionised approac:h ~
'- ---------------- -~

16. TRAVEL, TOURISM & HOSPITALITY
Jl!" ----
~ ---------~-------- ~/ ~
' chilldren as domest ic I
1 servants and workers in
roadside eateries1
restaurants, hotels, and
shops etc. to save ithem
from physical!v iolenoe~
1
psychological!trauma and :
1
, sexL!lal abuse }
~ -- - - - - - - - - - - - - - - - - -~
•
The
Industria I
....
, Employment
(Standing
rders) Ac
•I
I
--~---- ~ ----------~-
Tlhe SJector is plagued by
women's ~exploitation and
rampant practioes of child
Iab01.1 r; affects at Iea:st 13
million childre111 across India
~- --------------- -,
;- II.' h e
~ wor~1ng rours 10r women '
: can be odd and irr-egula~ :
: induding night duties and :
: working on wee ~ends arnd :
1
hollidarys _,
'~ ---------------- - i
'
- -~~-------------------- -,
,' wor~ers dismissed when ithe
1
actua wages are reported by 1
... __ ~ them to the labour inspector and :
' : penalised for approaching labour :
courts ). ~
- ----------------------- -
lack of proper
impllementation as wella:s
lack of awaPene:ss about
labour rughts among the
workers regarding existenoe
of labour laws
IEnf,oroement machin~ery
cannot match large and
dispersed int:ormalwork.t:oroe
~ ----------------------- -
~ '
~ 0@nied minimum wages, ~
I I
equall remu1n@!rart ion1 overtime
- ---------------, compensation, basic ameniti@s,
and temporary ~1 vi ng
Amiil'flirs S.OIUJ1Jion ProYider
• T L H/1
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
I
J
accommodation ).
'- -----------------------'
CONSTRUCTION
Karnataka
Andhra Pradesh
Tamil Nadu
Gujarat
Karnataka
Madhya Pradesh
~ --------------- ~
~ '
/ Even wit h pmjects '
. ~
'
'
: commissioned by and 1
,
broadlly overseen by the r- - - ~
1
government emplloyers :
display rampanrit non-
' complliiance ,
~ -~
- ---------------

17. I========
GEMS & JEWELLERY
J- ---------------------- ~,
' Thousands of Children who ~
I work fullIItime in such industries
an:!: denied education and good
'-.. : Iiving standards,. Som's'are aIso--..,
, abused I sexually exploited J
~ I
~ ----------------------- ~
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk Amiil'flirs SOIUJ1Jion ProYider
valuvoH
;~ ------------------------ ,
: .Artisans often work in unhealthy '; ----------------- ...,
: environments without proper : ~ ~
1 Iight..1Most worlk!ers are fo roed to 1
I I
1 work in artific~allight and in 1
I . I
1 remote, darlk a1nd dingy moms 1
~ I
~- ---------------------- -~
85% of the world's diamond (57% by
value} are cut a111 d po.lish,ed in
Gujarat. Low wages and good
inf1rastructure are t he primary
facto rs behind this stature
- ---------------------------------- ~
~ '
' The primary healith haza1rd of gem work is ~
da1mage to t he v1sion. [)ozens of fa1cets are cut
on each Uny gem1 a1nd both the cutting and
polishing processes requires close and
1
, meticulous examination of ths stone )L - - - - - - - - ......
.. ;
- ---------------------------------- -
I
I

18. 0~0.,..,
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
There is an inherent Emplloyee- and
Trade Union-bias.
Restrictions on women fmm working ln
night shifts, with am pie safety and
security arrangements.,
Complex laws have caused the
1ndlustry to activelly discm.m-age
unionization.,
The archaic laws ha1ve resullted in
salary disparirty between Permanent
and Contractua~ ·workers, and
misrepresentation o :the former as
the latter.
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
Complexities in laying off, shutting down, modify] ng
job descriptions~ wages, hours of work and in
effecting tra nsfers.
!Induced infllexibfllity and led]to fragmented
operations.
By making it hard to term inate permanent
employees~ the regime effectively promotes
contract labour an.d i1ts exploitation.
Effectively promotes informality, with
cum bers.ome com pIii:nu::e
requl rements.
!Inflexibility of Labour Laws has dented
the competitive ness of the industry
and adversely affected its expansion.

19. -
• •
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
State regulation of working hours (and
restrictions in case of women) and
weekly hollidays hampers the normal
functioning of the industry.
Overtime wage provisions by the state
equates tallent 1n the ITeS industry with
manual IIabo ur and hampers ~ts normall
functioning.
ChHd Labour Pmhi bit1on and Regi..Jiat1on
Act has1 in realirty, been counter-
productive because of the convoIuted
manner 'in which it is drafted.,
Hazardous working conditions and llow
wages1 due to ineffective
im plementat1on of la~ bour laws1 have
constricted Ia bour supplly.
valuvoH
Analytirs S.OIUJ1Jion ProYider
Restrictions on women1
s working hours and their
safety anangements makes nt relatively unviablle to
employ women.,

20. THE MOST REGRES.SI1 LAWS
RAD1E
UNION
ACT
DISPUTES
ACT
ONTRACT
LABOUR
ACT
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
2S%notfmm
same
organization
Layoffs
Redeplloylng
Permanent
emplloyees fur work
of regulla~r nature
valuvoH
Amiil'flirs SOIUJ1Jion ProYider
THE CEN -RAL GOVER ENT HAS EF ECTED
APRENTICE-
SHIP'ACT:
FACTORIES
ACT:
LABOUR
LA'WS ACT:
l
No anests for non-1m plementation
Addition of 500 new trades
Companies free to add new trades
Overtime hours to be incr-eased
from SO to 100 - 12S
Sa1fer, healthier and hygienic
working conditions to employees
·women to be alllowed night duty,
safety and transport pmvision
Exemption from filing co~ mp liance
reports to sma1111firms with up to 40
workers
Amendments to the Child Labour
(Regullation and Abolition)1Act,
1986, andlthe Minimum Wages Act
m . ' ed
CHANGES N-
------~~'
"
Much needed boost to
apprenticesh1ps, heIps the
National Apprenticeship
Pmmotional Scheme create 50
llac a rentices · 2019-2.0
lm proves Ease of Huslness and
benefits workers, aiding the
primary objective of Make in
India in raising the contribution
of the manufacturing sector to
25% of GIDP by .2025
Facilitates smalllbusi111esses and
start-ups with smooth scaling up
and aims to reduce corruption
and e111 minate ha1rassment

21. • T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
Trade Union .Act
STAT 5 AR USHERING IN RADIIGAL REFOR .s,
IndustriaIDisputes Act
labol!.Jr Union membership: 30% (fmm
1S%)
Minimum Wages Act
payment of min1m urn wa~ges through
bani< aceo unt when >20 em plloyees are
emplloyed
N/A
layoffs I shutdown 11m1t: 300 employees (fmm 100)
Worker objection window: 3 months (from
unspecified)
lndustri,aI Disputes Act
compounding amount for employers: maximum of
Rs. 21,000; for ~a bourers: Rs.. 150 and Rs. 3,000
IndustriaIDispu es Act
layoffs I shiutdown ~1m1t: 300 employees (fmm 100)
Contract Labour Act
Contract workers threshold: 50 (from 20)
Employees Compensation Act
Apply at the Employees Compensation
Comm1ssion w~thin 90 days in case of
fatal injury
Factories Act
Contract workers threshold: 50 (from 20)
Shops and E.st.ablishments Act IndustriaI Disputes Act
layoffs/ shutdown 11m1t: 300 emplloyees
(from 100)
Contract Labour I Min Wages Act
Registration and grant of licenses
Factones Act
Night shlft for women
Earned leave benefits after 6
months (from 8 months)
Higher compensation, 3 months notice, 3
months sallary
~~~9=~~~~~~~~~~~~~~~~~~~~~~~
valuvoH
Analytirs S.OIUJ1Jion ProYid.er
expedited
l1ndustrial and Commercial
Establ1lsh ments to file a slngle return
and maintain a single register
(government to
provide security)
Overtime hours: 125 per
quarter (from 75)

22. POL CY: MAKE LABOUIRA STATE ,SUBJECT ,STRUCTURAL REFORMS NIEEDEDI
SYMPTOMS,
r
*Central Gov~ernment Amendments**State Government initiated reforms
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
... ------------------------------,
IRational'iz.ation
Advance not ice for d osure of firm
Mulrtipllicity of unions
ReqLl ir-ement of strike notice
Emplloyment IIimits as per !Factory Act
Time Limirt for raising disputes and
filling daims
I
I
Volluntary Arbitration I
Tr-ea1t Contr-actors as separate establlishment :
Payment of bonus as 11n~ed to productivity ,1
- -
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 - - - - - - -
~ '
I IDe~letio n
Pf!rmission to IIayoff /retrench / cllose :
Permission to emplloy and threshollds of contract labour
Involuntary imposit ion of employee benefii'ts
Advance notice for change in servioe condutions
Day-of-week dosure and working hours regulations 1
Gender discrimination across shifts1 industry and wages )
' ~
~ - -------------------------------.------- -
ROOT CAUSES
Dyd undiona1ll
-Archaic & Vague
Disharmonized
- IRedundant ,&.lOisparate
P'rotraded
- !Inefficient & Time consllmirng
Over1reachin,g
- Stat~e Interntention & CIJmberStome
- ---------------- ~~ '
t' Uniificatiion '1
Definirtions of !labour
market entities
I
Numbfir of registers1
retums and notioes
' ~
... ----------------- -1
I
---------------r-------------- 1
~-----------------------------------------------------------------------1
I

23. -------
• Rat~ona lize pn-operty registration
• Make setting up business easier
• Rat~onaIize construction permits
'
•
I
I
I
I
- - - - - - - - - - - - - - - - - - - - - - - - - - - l---------------
----------------------------------------
. Set up ellectronic courts ~
• Rati01naIize-,Eonstructio A p·ermits
• MSW Authorization
• Single w indow d earanee mechanism
• BLiilding plan inspection
------------------------------------------ -
--------------------------------------- ~
• Single window d earanee mechanism
• IEllectricity connections
• Rat~onaIize construction permits
,
I
- - -- - - - - - - - - - - - - - - - - - - - - - - - - - ------------ -~
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs solution ProYider
---------------------------------------
• Singlle w indow ellearanee mechanism
• OnIine / Computerize tax returns
• Set up electronk oomts
'
I
I
- - - - - - - - - - - - - - - - - - - - l----------------------
--------------------------------------- ....
1
--------~~~ --~--~----~I
• Reform env1ironmentaI regu!lations
• Make setting up business easier
• BLiilding plan inspection
• RationaIize construction permits
----------------------------------------- -
--------------------
• Single window deara~c~-~~~~h~1~i~~--------- -
• RationaIize property registration
• Reform env1ironment reguIatio ns
• Reform inspections as per Factories Act
• Set up electronic: oourts
I
----------------------------------------- -

24. ----------------------------------------~
• !Rationalize construction permits ,
• !Reform land availabilhy
• !Reform luxLl ry tax registH'J1tions
• Tree fellling inspections
• Water act inspections
---------------------------------------
• Single window clearance mechanism i
~--~------------------~~
• !Rationalize construction permits
• !Rationalize property regisitration
• Tr~e feIlling inspections
• Seit up ell~ctron ic courts
I
I
I
j
·- - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
--------------------------------------- ~
• !Minimum wages/ equal remunera1tion ~
inspection
• !Rationalize property registration
• IEllectrJicity connections I
I
----------------------------------------- -
• T L n:~
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs S.OIUJ1Jion ProYider
---------------------------------------~
• Single window deeuau11ce mechanism
• Setting up business
• !Rationall:ze construction permits I
I
l
--------------------------------------- ,1
~-------~~ ~ -.......-----+---1
I
• Single window deara1nce mechanism
• !Rationali:ze property registrntion
• VAT r€gistrat1on inspection
• !Reform tax regime
----------------------------------------- -
--------------------------------------- ~
• !Rationalize property registration
• !Reform tax regime
• !RationaliZ!e construction permits
• Setting up business I
I

25. ---------------------------------------
• Single window clearance mechanism
• !Reform judicial administration
• IBuiliding pian I Tr-ee felling inspection
'
•
I
I
I
I• !Reform Iand availabi111 ty
- - - - - - - - - - - - - - - - - - - - - - - - - - - l---------------
------------- --------------------------- ~
• Setting up electronic courts ,I
• !Reform luxUJry and entertainment tax: registrations
• IRaitionalize property regisil:ration
1
• Single window clearance mechanism
I
------------------------------------------- . I
• !Reform judicial! administration
--------------------------------------- ~
• !Reform tax regi me ~
• IRaitionallize environmental regulations
• Shops and Establishment inspections
• Single window clearance mechanism
- - -- - - - - - - - - - - - - - - - - - - - - - - - - - ------------ -~
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs solution ProYider
---------------------------------------
• Single wh1dow clearance mechanism
• !Reform tax regime
• IRaitionalize property regisil:ration
'
I
I
- - - - - - - - - - - - - - - - - - - - l----------------------
--------------------------------------- ....
1
• Single window dearar111c:e m@Ch21 nism ~------~~ ~ -......----+---1
I
• IRaitionalil!e construction permits
• !Reform environmental regullait1ons
----------------------------------------- -
--------------- ------------------------ ,
• Singl~e window de~ara1nce mechanism
• .Air I Water Act Inspection
• !Reform lland availability
I
----------------------------------------- -~

26. --------------------------------------- ,
• Single window clearance mechanism 1
I
• Rationalize property regist ration 1
• Online / Computerize tax returns 1
• !Minimum wages I @quailrem Lmeration !inspection:
I
• l re@ fellling and Buillding pllan insiPections ;
------------------------------------------ ~
• Bonus1 Wag,es and Gratuity payment inspection
• Contr-act labour inspection
• Setting up business
• l re@ fellIing inspections
• Setting up el@Ctronic courts I
r
---------------------------------------- ~
• Single w'indow clearance mechanism ~
I
• Rat ionalize construction permits 1
• Bonus1 Wages and Gratuity payment inspection
• Eqm11ll r~e·muneration inspection
• Set up el@Ctronic courts I
I
--------------------------------------------
• . Hl1
·(- )• Teaml ease
Y Putting India to Wonk
valuvoH
Amiil'flirs SOIUJ1Jion ProYider
--------------------------------------- ~
• Single window d earau11ce mechanism
• !Rat ionalize property r-egist ration
• !Rat ionall:ze construction permits I
I
l
--------------------------------------- ,
• Single window d eara1nce mechanism :-...------+---1
I
• Setting up business
• !Rat ionali:ze property regist ration
• !Rat ionali:ze construction permits
----------------------------------------- -
--------------------------------------- ,
• Single window clearance mechanism
• !Rat ionalize environmental! regulations
• Shops and Establishment 1 nspec:tion~s
• !Reform tax reg1me I
I

27. -------
• IRaitionaIIize property regisil:ration
• SeUing up ellectmnic courts
• IRaitionaliZ!e construction permits
• !Reforms in nudicialadminisil:rail:ion
'
•
I
I
I
I
l
------------------------------------------
--------------------------------------- ....
~
• Single window de21rarnce m~dh 21nism ~------~1 ----~--------------------·I
• !Reform Tax regime
• IRaitionalize property regisil:ration I
I
I
I
----------------------------------------- -
----------------------------------------~
• IR@form Tax regim@ ~
• !Minimum wages I S&IEI Equal! remuneration
inspection
• IBu ilding pIan inspectio111
• IFactories Act Inspectio111
r
------------------------------------------ -
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs solution ProYider
----------------------------------------- ,
· • Single window clearance mechanism. I
• !Reform !land availabil~ty
1
• !Reform judida1l administration
• Minimum wages I equal remunerartion
1nsp@ction
• Tree fell!ing inspections
------------------------------------------- -
I
I
I
--------------------------------------- ....
1
~-------~~ ~ -......-----+---1
I
• Single window dearaunce m@chanism
• IRaitionalize property regisil:ration
• SeUing up business
• !Reform !land availability
----------------------------------------- -
---------------------- ----------------- ,
•Single window dearanee mElchanism
•Setting ~p business
• B~ilding pian I IPaymenit of wages inspection
I
----------------------------------------- -~

28. •
I
•
a our a state su ject ~ets each state compete and attract capital and labour on its own merit
Fundamenitalllly, Labour Reforms wm rationalize the regime, unslhackh~ business from needlless regulations and pro~ide an impetus ito job creait:1ion and formalization.
Reforms wm significaJnitlly imp rove llndia1
's rank on lEase of setting up a1nd doing business1 auract !foreign invesitm,ents and de,liver on income growith projections,.,
Competitiveness} Scalle, beuer producUvity and p,ay, beuer employment relaUons and humane working conditions are immediate benefits of !labour law rationalizaitijon.
Even the low hanging fruits of Labour Reform significantly help reduce Transaction Costs, improve Comp,liance and bump up Judicial efficiency ,.
Government init iatives such as Make lin lnd1a1 Startup llndia andiiDigitall lndia need labour reforms ito be able to a1chieve their respective objectives and boost national income.
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk
valuvoH
Amiil'flirs SOIUJ1Jion ProYider

29. 1. India Brand !Equity !Foundation, IBEF, MSIMF's and the growing m le of !I ndustri a~ Clusters, .2013 .21. P~anning Commission Govt. of llndia1, Tw@lfth IFiv,e·Year Plan (2012- .201i)
.2. Nationa~ Crime Investigation Burea1U1 INCIB, lalbour Laws in India !Economic Sectors Volume 111 pllblished in 2013
.. Compt roller and aud1itor general (CAGj of lndia1 CAG Transaction cost of Trade fadntail:ion 2.015 .22.. EY lndia1 India attractiveness survey Read}I' set~row_~ .2015
4. legall Servioes India, IPerspecitlves on Contract Labour Act1 2.013 .23. Lexology, Government of India Llnveills new llalbour reforms, .2014
5. labour Law IHub1 Does labour laws of India need a change, .2016 .24. Business Today~ Goldman Sachs says reforms ito create 110 mn jobs for
6. Daily News & .Analysis, IDINA llndia1, country•s top job creating states, .2016 economy in10 y1rs., .20141 Summer of discont@nit, .2014
7. Indian Cound IIfor Resean:h on InternationaI IEconomic IReIail:Ions1 ICRIER Labour Regulations .25. LlW IIndia CommiUee, IIndia IExdusion Report .2013-2014
and Growth of Manufactur~ng a1nd Employment 1n India: Ba lla1~dng IProitection and IFIIexibility, .2015 .26. Press ll n~ormation Burea1U1 PIB, Violait1on of labour·Laws lf:or Contract labours, .201.2
8. lawQuest lntemaitlonaJI1 Labollr Law Changes in India .27. Trading !Economics, India Lalbor !Force IParticipail:ion Raite, 2011-2.017
9. Uve mint, ease of doing busin@ss ranlking1 NDA nudge to states on Iabour reforms, .2015 28. Department of Industria1l Policy & Promotiion, IDIPIP, Assessmenit of State
10. !InsightsliAS, labour Issues and Need for labour Reforms in !India, 2.014 lmplementail:mn of Business !Reforms, 2016
11. Businessline1 The biggest problem wiith llabour laws, 20141 Labour llaws in llndia1need to be I .2'9. National Slkiiii Developmenil: Corpora1tion NSIDC
amended, 2015 --~------- I 30. Eederation o_f lndia1n Chamlbe1~ of Commen: · & Industry_, IFlOCI
12.. The Economic T1mes1 Impact of Make in India campa1ign on sectors, .2014 I 31. lnitemail:ijonall Labour Organization~ IILO
13. Mondaq, Online Contracts Vallidity {IE-com merce), .2014, Rising Tide Of Labour !Reforms lin India, I 32.. CRISil
2o15 I
.4. Daily Hunt1 Labour-rich, yeil: IEconomicaJIIy Poor, 2015 I 34. National Com mission for Women, NCW
15. Indian Express, Streamlline labollr ~aws to make India bllsine~s-friendly, 2.016 I 35. Forbes !India Magazine
16. !India Today~ Text1iles: Sti~~ feelling siclk1 2015.1 Am,endments in Chilld labour Act regr,essive, 2015 I 36. Lin!<Jedln
17. Shodhganga, IProb~ems and Challenges Fac~ng the Text ile Industry~ and lnit1aii:1Ves of Various I 37. Indian lnsil:iitute of Ecology a11nd Environment
0 rganisail:1ions1 Role of Trade Unions ,& Managemenit .Associjations and itheir Present Trend in India
18. The H i ndu~ looming crisis1 2016, liT industry ha1s to adher'e to ~abour ~aws now, .2012, Labour in
the twenty-first cenil:ury1 2.016, Understanding labour llaws easilly, 2015
19. The Win~~ Behind the (]littering facade, India's IRetaillWorlk,ers Face Poor Pay, Poorer Prospects~
2015
20. Business Sitandard1 Labour pains for e-,oommeroe pllayers1 20151 Labour reforms: Govt. to ease
rulles on apprentices, women1 2014
• T L Hll
. (...--) · 1earn ease
Y Putting India to Wonk Amiil'flirs SOIUJ1Jion ProYid.er
valuvoH

30. •'
•
e TM
Teamlease
Putting India to Work
valu
Analytics solution Provider
~,;a i..J-Oll..c:m