Key Reforms Can Raise Share Of Formal Employment To 40%, Says TeamLease
Few key, but impactful regulatory reforms can create 1 crore jobs, says TeamLease
Regulatory changes are critical to increasing labour force participation in the formal sector, and a few key reforms can raise the share of formal employment to nearly 40 percent while creating one crore jobs, says TeamLease Services.
According to the staffing firm, a revamp of the regulatory ecosystem is extremely important to further improve the ease of doing business and raise the labour force participation in the formal sector.
“A few key but impactful regulatory reforms can raise the share of formal employment from the current 10 percent to nearly 40 percent and create one crore jobs," TeamLease Services Vice-President Sonal Arora said.
The top 10 regulatory changes that can bring about a shift in labour participation include consolidation of 44 central labour laws into four labour codes and a Unique Enterprise Number -- a unique identifier at the company/legal entity level.TeamLease Services
Other reforms include salary choice for employees. Under this, employees should have a choice of whether or not to contribute the 12 percent employee contribution to the Provident Fund, and should have an option between Employees' State Insurance or private insurance.
Other reforms recommended by TeamLease:
- Factories Amendment Bill 2016
- Small Factories Act
- Amendments in Contract Labour and Regulation Act 1970
- Amendments in Industrial Disputes Act 1947
- Amendments in Trade Union Act 1926
- Adoption of the Model Shops and Establishment Act