Rethinking Labour Laws

As start-ups and tech firms push for hiring flexibility, a middle path is needed to ensure fair employment practices without stifling business growth

- RAAVI BIRBAL

New-age industries, especially start-ups, tech, and e-commerce companies, often emphasize the need for easier employment laws, and flexible hiring, and firing. Flexibility allows the management of costs. Times have changed. The earlier practice of seeking a job and aspiring for security in that job for wage increments is not relevant any more in many places. In fact, the trend is a greater rate of attrition. Employees gain experience and suddenly jilt employers, even ditching the notice period. While there aren't many provisions for forcing employees to work, except filing a civil suit for damages, employers in many circumstances while terminating are required to follow stringent provisions and compliances.

On close reading of labour laws, there are some middle-path solutions available, such as fixed-term employment. The option of fixed-term employment allows companies to hire employees for specific projects or specified durations without the complexities associated with regular employment contracts. Foreign companies, start-ups, or tech-based industries where there is a higher rate of attrition can take advantage of these flexible provisions. Employees too get to part away respectfully.