- Negative Impact (Old Laws):
- ID Act’s rigidity (permission for layoffs/retrenchment) deterred hiring.
- Kept Indian enterprises small (below 100 workers).
- Left no room for free contracting.
- Contract Labour Act restricted hiring for core activities.
- Multitude of laws created confusion, non-compliance, and corruption.
- Made India one of the most rigid labour markets.
- Positive Impact (New Codes):
- Aim to simplify laws and reduce complexity.
- Increase flexibility for industries in hiring and firing.
- Reduce cost and complexity in compliance.
- Promote investment and harmonious industrial relations.
- This is expected to improve ease of doing business.