India: Laws and Legacies
Outmoded labor Laws India's labor laws have been only slightly revised since its independence in 1947. They still impose many obstacles. For instance, it is difficult to fire workers even if a company hits hard times; India's Industrial Disputes Act, for example, requires any company employing 100 or more workers to get the state's permission before firing anyone. Permission, often requires extensive negotiations and settlements. Consequently, "companies think twice, 10 times, before they they hire new people," said the CEO of India's Hero Group. Finally, some of India's labor laws discourage flexibility. MNEs, for example, are prohibited from allowing manufacturing workers to clock more than 54 hours of overtime in any three-month period, even if workers are willing to do so.