Author(s) :

NIRAJ KUMAR SETH.

Volume/Issue :

Abstract :

Employee productivity measures the output produced in physical or monetary terms on an average by each employee per unit time. Labour laws across the world have mainly been driven by the concern for labour welfare and to put an end to labour exploitation. However, the economic rationale behind such laws have not been fully explored. Some nations around the world have enacted labour laws on maximum standard work hours allowed per week. Such laws are justified mostly on the grounds of emancipation of workers and as a step towards labour welfare. This research work goes beyond purely welfare-based arguments and explores the socio-economic basis of such laws. The paper studies labour laws on work hours around the world as the first step. Secondly, it measures employee productivity in top five OECD economies and the five BRICS nations by a quantitative tool known as ‘The National Employee Productivity Ratio’. Thirdly, it extends the analysis by measuring employee productivity in the 4 largest Information Technology companies in the U.S. and India each, with the help of another tool known as ‘The Company-wide Employee Productivity Scale’. The two tools, known collectively as ‘The M.L.S. Framework on Employee Productivity’, have been devised by the author to study the average levels of employee productivity in nations and companies. Fourthly, the paper investigates into the relationship between the standard maximum number of work hours under labour laws in countries and employee productivity and analyses the reasons behind such relationship. Finally, it concludes that work hour regulations that put a ceiling on maximum standard work hours do not harm employee productivity. On the contrary, such regulations have a positive influence on employee productivity.

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