Question

How would flexibility in labor laws help companies?​

Answer 1

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companies are the backbone of the economy.

Their productions are imported and exported worldwide which boosts the economy.

The government brings flexibility in the labor laws to help companies in making profits.

1. Socioeconomic Zones are one such flexibility.

These are the regions where the companies are freed from paying taxes if they set up a production unit in these areas.

2. The government eased the law of hiring workmen.

The companies are allowed to hire people for short periods.

This is done to reduce the cost of labor for the company.

Answer 2

Flexibility in labour laws will help companies in being competitive and progressive. In recent years, government has allowed companies to ignore many of the labour laws in force. Instead of hiring workers on a regular or permanent basis, companies can hire workers flexibly for short periods when there is intense pressure of work.

The companies can negotiate wages and terminate employment, depending on market conditions. This will lead to an increase in the company’s competitiveness.