One of the present debates in India is whether companies should have flexible policies for employment. Based on what you have read in the chapter, summaries the point of view of the employers and workers.

Question

One of the present debates in India is whether companies should have flexible policies for employment. Based on what you have read in the chapter, summaries the point of view of the employers and workers.

Philoid · Accepted Answer

Point of View of Employers: They prefer to have flexible hire and fire policy wherein they would employ labours according to the demand of the situation. This will ensure profit maximization for them, as they can then optimize their cost of production.

Point of View of Workers: Will always prefer permanent employment as it gives them a sense of security. Also formal employment gives them access to various social benefits like provident fund, gratuity etc.