Supporting the Policy Environment for Economic Development
SPEED+

Reform of the Labor Law

Employment regulations are necessary for the proper functioning of labor markets. They are needed to protect workers from arbitrary or unfair treatment and to ensure efficient contracting between employers and workers. Labor market regulations can help correct market imperfections, support social cohesion and encourage economic efficiency. The challenge for governments is to avoid the extremes of over- and under-regulation by balancing labor flexibility with worker protection.