India Ranks Poorly In Labour-Employer Relation: Morgan Stanley

Looking at labour laws across countries, most other nations do not have such a stringent requirement of prior approvals and consultations, apart from Pakistan and Sri Lanka, the report said.

"Indeed, according to the World Bank's index on hiring and firing practices, Bangladesh ranks at 25, China at 28, and Pakistan at 35 compared to India's rank of 52," it added.

In labour market efficiency ranking among 148 countries, India is placed at 99th spot compared to China (34), Brazil (92) and Philippines (99), the Morgan Stanley report said.

It said, India needs to amend provisions which allow outsiders to be office bearers.

Currently, one-third of the office bearers or five can be outsiders.

"India also needs to introduce a strike ballot such that a strike can be called only if it is supported by a qualifying majority," it said.

On contract labour, it said, there is a need to allow free use of contract labour while ensuring that the rights of contract labour are protected.

Though countries such as China, Malaysia and Vietnam do not prohibit the use of contract labour for permanent tasks, other Asian countries prohibit the use of fixed-term contract labour for permanent tasks - such as Bangladesh, Indonesia, Pakistan, the Philippines and Thailand.