Question

How would flexibility in labour law help companies?

Answer 1

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.

Answer 2

The government has allowed flexibility in the labour laws to attract foreign investment.In recent years,the government has allowed the ignorance of labour laws by the companies.Globalisation and competition among producers have changed the life of the workers.Earlier the workers were employed permanently but now the workers are employed flexibly which means their jobs are no longer secure.When there is pressure of work they are employed otherwise are dismissed.This help the companies as it reduce the cost of labour thereby decreasing cost of production and ensuring more profits for themselves.