Reforming the Labor Administration in Bhutan
At the end of a long reform process, Bhutan adopted the labor and employment act of Bhutan on January 5, 2007. The act constitutes the first comprehensive labor market legislation adopted in Bhutan. As part of a wider reform of labor administration...
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| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/12/9880490/reforming-labor-administration-bhutan http://hdl.handle.net/10986/10626 |
| Summary: | At the end of a long reform process,
Bhutan adopted the labor and employment act of Bhutan on
January 5, 2007. The act constitutes the first comprehensive
labor market legislation adopted in Bhutan. As part of a
wider reform of labor administration policy, it is a major
step in the modernization of the country's labor
market. The new law mandates a certain minimum level of
occupational health and safety standards and establishes a
comprehensive inspection regime to enforce them. It also
improves the bargaining position of workers vis-a-vis
employers, allowing them for the first time to organize at
the enterprise level. Moreover, the act achieves this
without introducing rigidities that might hamper employment
growth. The reform was essential to accommodate emerging
social trends, such as growing rural-urban migration, the
high rate of population growth, and the resulting increase
in unemployment. The author aim is to channel the expanding
labor force into the private sector, and the author
therefore had to make employment in the private sector more
desirable. The author expects these changes to encourage
private sector development, stimulate entrepreneurship, and
lead to more job creation. |
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