In an age of globalisation, the concept of flexible labour laws has gained widespread acceptance. These laws allow employers to cut costs by eliminating surplus workers and protecting jobs. Tightening the rules of employment can also have unintended consequences. Some firms may be reluctant to hire full-time employees due to the risk that they will be liable for worker’s compensation claims. They may instead opt for short-term contract workers. These restrictions also affect outside workers.
As a result of flexible labour laws, the working conditions of workers have improved. Despite the economic crisis, more workers are finding it difficult to maintain their job security. In fact, many workers are losing their jobs as a result. In the U.S., more than half of all jobs are now part-time, and some employees don’t work at all. Nevertheless, a third of the workforce is still in need of work, and this is where flexible labour laws come in handy.
Flexibility laws have been a major concern for workers in the U.S. and Europe for several decades. MNCs are increasingly using temporary workers to save money and don’t pay them at all. This leads to long hours and night shifts, and low wages. Furthermore, MNCs are preventing new hiring because they expect further protections. Ultimately, the result is that more flexible labour laws mean more layoffs, and little or no change in new hiring.
In terms of flexibility, the European Commission addressed this issue in its Joint Employment Report and introduced the Flexicurity approach, which aims to improve the flexibility of employers and workers. This will help both the employee and the employer achieve a work-life balance. The ETUC also notes the importance of external and internal flexibility. Some examples of flexible work arrangements include temporary employment, part-time work, and flexible schedules.
Despite the benefits, a flexible labor market is not without its risks and disadvantages. For example, if an MNC hires workers for a single season, they are liable to pay less in the following year. Moreover, if the workers don’t get paid, the MNCs may also cut their wages and increase their hours in order to make their profits even higher. The MNCs are limiting their flexibility by ensuring that they pay their workers a fair wage and they are not tempted to take on more employees.
While it is important for employers to protect their employees, a flexible labour law will also benefit companies. Often, the more flexible labour laws are good for business and the economy, the more likely it is that workers will be benefited. This will allow firms to recruit more people while reducing their expenses. However, more flexibility will result in fewer new jobs and increased unemployment. As a result, the flexibility in the labor market will increase the number of layoffs, but a more stable economy will benefit from a more competitive environment.