Labour laws social security employment challenges from "summary" of Indian Economy: Performance and Policies by Uma Kapila
Labour laws in India have been a subject of debate for a long time. These laws govern the relationship between workers and employers, regulating aspects such as working conditions, wages, and benefits. The social security system is also an essential component of labour laws, providing a safety net for workers in case of unemployment, disability, or old age. However, the implementation of labour laws and social security measures in India has faced numerous challenges. One of the main challenges is the informal nature of the Indian economy, where a significant portion of the workforce is employed in the unorganized sector. These workers often do not have access to formal employment contracts or social security benefits, leaving them vulnerable to exploitation and economic insecurity. Another challenge is the complexity and rigidity of labour laws, which can make it difficult for businesses to comply with them. This has led to a situation where many employers prefer to hire contract workers or outsource work to avoid the regulatory burden associated with formal employment. Furthermore, the enforcement of labour laws in India has been weak, with many employers flouting regulations with impunity. This has resulted in widespread violations of workers' rights, including non-payment of wages, unsafe working conditions, and lack of social security benefits. In recent years, the Indian government has taken steps to reform labour laws and improve social security measures. The introduction of schemes such as the Pradhan Mantri Rojgar Protsahan Yojana and the Atal Pension Yojana are aimed at expanding social security coverage and promoting formal employment. However, more needs to be done to address the deep-rooted challenges facing the Indian labour market. Strengthening enforcement mechanisms, simplifying labour laws, and expanding social security coverage to all workers are essential steps towards creating a more inclusive and equitable labour market in India.
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