Prelims level : Polity Mains level : GS-- II Governance, Social Justice and International Relations
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  • Indian Staffing Federation has asked the government to completely scrap the archaic labor laws.
  • ISF is an apex body of staffing or the outsourcing industry. It is yet to be recognized by the government. India has 463 million workforces, of which 94% are in informal sector employed with small and micro firms.
  • Such enterprises tries to remain small since they enjoy tax benefits in India as they employ less than 20 people. Therefore, such a ceiling on the number of employees has restricted the growth of the industries as well as the growth of employment in the country.
  • Once a company employs more than 20 labourers it is subjected to unrealistic labour laws and compliances. Labour laws in India is framed by both the Central government and the State government as it comes under the Concurrent list of the constitution.
  • This  has  created  lot  of  ambiguity  in  laws  and  confusion  in  its  implementation.  For example, existing labour laws define worker and wage in 17 different ways.
  • This has made India a hostile place for investments.
  • The ISF recommends new labour laws that suits the modern times and needs of an emerging economy.
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