As states differ in employments laws, it impacts the hiring strategy also

As states differ in employments laws, it impacts the hiring strategy also

(IANS): Exploring the landscape of employment laws across Indian states reveals a nuanced tapestry that shapes hiring practices for private companies.

While a foundational similarity exists, divergences also emerge, influencing employer-employee dynamics.

From variations in notice periods to regional distinctions in dismissal grounds, these legal nuances impact decisions on workforce management and organisational strategies.

Edited excerpts from an interview with Advocate Minu Dwivedi on how employment laws vary across different states, and how these impacts hiring practices for private companies.

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The scheme of local labour laws is generally the same in most states. However, there are some variations which affect hiring practices followed by private companies. Certain states like Maharashtra have done away with statutory notice period in commercial establishments thereby giving greater autonomy to employers to contractually negotiate the same with their employees.

On the other hand, in Uttar Pradesh, the grounds on whic commercial establishments can dismiss an employee from service are statutorily prescribed which would restrict an employer’s ability to separate with his employees.

Threshold limit of exemption from taking prior approval for retrenchment  or closure from Govt also differs from state to state. In some states it is 100 whereas in others it is 300.  It also  impacts the decision on total workmen headcount. Certain states like Telangana require employers of commercial establishments to submit appointment and termination orders of employees to the jurisdictional inspectors. Although these provisions are not strictly implemented or enforced, they can be perceived as undesirable.

Declaring  the Haryana job reservation in private Employment law as unconstitutional  will lead to a more competitive job market in India as the job seekers will not only need to upskill and prove their merit to land a job but will need to consistently maintain their performance to continue in employment and cater to the ever-evolving business needs.

In the absence of state-imposed constraints, private companies prioritise local talent acquisition, cost-effectiveness, and alignment with organisational culture. Yet, as seen in the potential repercussions of the Haryana Employment Act’s cancellation, the evolving regulatory environment continually reshapes the job market’s competitiveness.

Job seekers navigating this landscape must not only showcase their skills but also adapt to dynamic industry needs, heralding a future where resilience and constant upskilling become paramount for sustained success.

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