Special Economic Zones: Operational Adjustment of Labour Law

Labour law regimes worldwide have undergone a metamorphosis on account of their inextricable relation with the labour market which in turn is influenced by the prevailing economic thought. The mid-eighties witnessed a marked shift in the dominant economic thought from demand side to supply side economic theory. Export processing zones or special economic zones established with a view to promote export oriented economic growth constitute an overzealous expression of this shift. In tune with this trend, labour law, as operationalised in special economic zones in India manifests adjustment of workers’ rights to the need of economic growth euphemistically called ‘development’. The intention to exclude application of labour law in these zones reflected in the Bill introduced by the then minister of Commerce and Industry is being realised despite the outright rejection of such exclusion by the legislature and its substitution by a norm upholding the applicability. The following piece presents the saga of normative ways and mechanisms adopted for such a structural adjustment of labour law within special economic zones