ABSTRACT
India has a widespread network of labor laws which are believed to be too rigid. Due to this, wages do not necessarily respond to unemployment and productivity. Globalization warrants that areas are identified that require attention for infusing greater flexibility in the formal labor market; labor law is one such area. A large percentage of Indian managers (61.5 percent) have been found to believe that Indian national labor laws influence their HRM practices the most, for their actions and prerogatives are constricted by these laws (Budhwar, 2001: 82).
