India’s surge within the global economy has been almost unprecedented. Although a relatively late starter compared with countries like China, Thailand and Brazil, India has shown remarkable growth in recent years.
The vast opportunities, exponential growth rates and current business environment are all serving to integrate India into the global economy. Most international corporations have realized, and openly acknowledged, that having a global footprint means having an India strategy and presence in the country to ensure future growth. When expanding overseas, one critical issue that confronts corporations relates to labour. Human resources and their management play a unique role in the success of any industry or organization. It is important to understand that prior to the era of globalization, India fundamentally gravitated toward socialism, and the existing labyrinth of labour laws are a legacy of this socialist past that continues to be primarily pro-employee and places enormous obligations on employers. Judicial activism is also focused on protecting the interests of workers. The philosophy behind having elaborate laws is to check the exploitation and oppression of labour so as to have industrial harmony and to curb unfair labour practices, strikes, lock-outs, breaches of discipline, etc. Knowledge of labour laws is, therefore, essential for both Indian and foreign employers. Moreover, noncompliance may prove disastrous for it can subject the employer to heavy penalties and even imprisonment.
In this paper I have tried to address the human resource issues that need to be evaluated and considered in Indian acquisitions like:
- Transfer of an undertaking
- Transfer of an employee
- Retrenchment
- Contract labour
- Trade unions
Post Contributed By:
Abhishek Bhargava
Indian Institute of Legal Studies
