But it is often realised that employers might use their power and abuse employees. Hence, to safeguard employee from such situations, employment and labour laws are crucial. For instance, Fair Labour Standards Act 1967 and Age Discrimination in Employment Act intend to balance the master-servant relationship. This is to ensure that employers don’t abuse their employees by any means. Under some legislation, employees also get the opportunity to get compensation for any kind of abuse or equal chance to work in safe environment (Cawthorne, 2004). Experts believe that the purpose of employee protection laws is not to abolish the master-servant relationship instead make it equal for employees to get full benefit of the services that they are offering to their master. Further, this legislation give an opportunity to employers also that business owners can engage in doing commerce which is profitable. Hence, labour laws intend to protect the rights of the employers as well. For example, employer enjoys the right to hire anyone and there is no hard and fast rule about hiring employees.
Hence, labour laws, ultimately provides an opportunity to maximise his productivity and become capable to remain competitive in marketplace. These laws are highly necessary and effective. Some experts do believe that these laws restrict the ability and control of the managers. However, this is wrong to say this. With these laws, managers can manage effectively and also ensure that employees are satisfied and stay loyal to the company for longer. A loyal employee is an asset for an organisation (Hill, 2009). Hence, an employee can become loyal if and if he is satisfied with his job. This can be ensured with the help of these employee protection laws. When employees know that their managers and organisation protects them and take every possible step to safeguard their interest, employees are likely to become loyal automatically. In nutshell, employee protection laws are highly crucial and help to develop economic stability. On one hand, it provides an opportunity to employer to make significant profits while on other, it helps employee to get compensated as per his services given to employer. Employee protection acts keep updating with changing times and changing businesses.
Cawthorne, M. (2004). “Of Networks and Markets.”, World Development 43
Hill, E. (2009). “The Indian Industrial Relations System: Struggling to Address the Dynamics of a Globalizing Economy.”, Journal of Industrial Relations, pp. 395-410
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