Indian MSMEs are significantly constrained by a complicated regulatory environment and labour market rigidity characterised by archaic and multiple labour laws. Almost every act requires enterprises to meet a plethora of regulatory requirements. There also exists a lot of duplication and overlapping of these paper work formalities. This background paper addresses the need for the simplification of labour laws, statues, and regulations to ensure their easy access, comprehension and implementation by MSMEs.
The key highlights of this paper include:
- Overview
- Labour Laws: Overview and Scope
- History of Labour Laws in India
- List of Compliances under Various Labour Acts
- Labour Laws and Indian MSME Sector
- Significant Labour Law Challenges Faced by Indian MSMEs
- Recent Reforms in Indian Labour Legislation & Status of Implementation
- CII Recommendations on Important Labour Laws and Acts Applicable to MSMEs
This paper was prepared against the backdrop of CII MSME Policy Dialogue Series.