Question

How would flexibility in labour laws help companies?

Answer 1

Labour law flexibility enables businesses to engage workers on a short-term, contractual basis during high seasons and lay them off when demand falls, significantly lowering overall operational expenses. It enables management to alter salaries and workforce size dynamically in response to changing market conditions. This legal loosening helps domestic enterprises in surviving tough global pricing competition and makes the business environment more appealing for Foreign Direct Investment (FDI) from multinational corporations.