Ciett calls for regulatory framework to unlock potential of private ...

Press Statement
CIETT CALLS FOR REGULATORY FRAMEWORK TO UNLOCK POTENTIAL
OF PRIVATE EMPLOYMENT SERVICES IN INDIA
Indian Government should refer to ILO standards on temporary work agencies
when modernising labour market
NEW DELHI, India, March 6, 2013, At a high profile roundtable debate hosted by the Indian Staffing
Federation today, Ciett called for the Indian government to modernise its labour market and adopt a
regulatory framework for temporary agency work that embraces the labour standards provided by the
International Labour Organisation (ILO). In its Convention 181, the ILO acknowledges the positive role
well regulated private employment services play in labour markets, while ensuring the protection of
agency workers.
Fred van Haasteren, Ciett’s President, said: “With all eyes on India, it is crucial that steps are taken to
fine tune its labour regulations in line with the changing demands of India’s rapidly evolving economy.
Labour sits at the heart of India’s future growth potential. It is therefore critical that India refreshes its
regulations to unlock the full potential of the private employment services industry.”
In India, there are 1.3 million agency workers – the vast majority of whom (82%) are under the age of
30. In this country, private employment services provide a vital first introduction to work and, in some
cases, first legalised experience of work for many people.
A major issue raised during the discussion was India’s ongoing challenge with high volumes of informal
work. Research conducted by the Boston Consulting Group for Ciett in 2011 demonstrates that
countries with high levels of agency work have less illegal economic activity and that appropriate
regulation allows agency work to positively contribute to labour markets 1 .
With the right regulatory framework in place, private employment services will benefit India’s labour
market by minimising the time lag between economic upturns and job creation, reducing structural and
frictional unemployment and decrease the effect of labour market segmentation. In addition private
employment services will improve labour market intelligence and contribute to evidence based policy.
The private employment services industry has the collective power to bring about positive change to
labour markets and act as a bridge to social and economic progress. As such, over the next five years,
Ciett’s members have pledged, on a global scale, to:
‣ Support 280 million people in their job life
‣ Help 75 million young people enter the labour market
‣ Up-skill 65 million people, giving them more work choices
‣ Create 18 million more jobs
‣ Serve 13 million companies with the right talents to succeed
1 The Boston Consultancy Group & Ciett Report: Adapting to Change, page: 42

Press Statement
Also speaking at the roundtable event, Ms. Rituparna Chakraborty, Vice President, Indian Staffing
Federation, said: “If the Indian government creates an inclusive and conducive regulatory framework as
prescribed in the ILO Convention 181, private employment agencies or staffing companies as they are
known in India, will assist India’s humongous labor market transition from the informal to the formal
sector, by providing the youth of India a platform that enables them to become more employable and
secure a job that is not only fair but a decent one. The Indian Staffing Federation, with support from
best practices prevalent in other CIETT member countries around the world, will leverage the same to
ensure that the proportion of jobs in the formal sector in India increases, including contractual and
private employment agency services.”
The multi-stakeholder roundtable dialogue took place in New Delhi, with representatives from the Ciett
Board, Indian staffing industry, Trade Union, Trade bodies and the Indian Government.
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For more information regarding this debate, please contact:
Denis Pennel, Managing Director, Ciett:
Email: Denis.Pennel@ciett.org
Phone: +32 475.867.510
Notes to Editors
About Ciett
Ciett is the authoritative organisation representing the interests of the reputable private employment agencies
across the world. Recognised as such by international organisations (e.g. EU institutions, International Labour
Organisation, OECD, World Bank), Ciett represents the industry at large with 9 of the world’s largest staffing
companies as well as 47 national federations from all over the world.
Ciett operations are organised across the globe through regional entities. For instance, Eurociett represents the
private employment services in Europe, Clett&a in South America and Asiaciett in Northern and Southern
Asia/Pacific. Through their network of 179,000 branches and their 860,000 permanent employees, Ciett members
employ 12.4 million workers (daily full time equivalent) and 46 million on a yearly basis. They deliver services
through the full spectrum of human resources, including temporary agency work, recruitment, interim management,
executive search, outplacement and training.
As the voice of labour choice, Ciett promotes the vital role that private employment services play in helping
organisations, economies and individuals facilitate adaptation to change, and their capacity to increase labour
market participation, reduce unemployment, build better labour markets and deliver decent work. Members of Ciett
refuse to compete at the expense of workers’ rights and work hand-in-hand with governments and trade unions to
fight illegal work and social dumping. However, Ciett also recognises that inadequate regulation and a small
number of disreputable agencies can prevent the industry from fulfilling its potential.
About Indian Staffing Federation
Indian Staffing Federation (ISF) was set up by leading staffing companies in India with one common goal - Staffing
India's Growth. Staffing - an established form of outsourcing globally - is yet to be recognised and adopted as an
effective means of running a business in India. The Staffing Industry provides a platform for recognised
employment, work choice, even compensation, annual benefits and health benefits for the temporary workforce that

Press Statement
constitutes a sizeable segment of India’s total workforce. The purpose of ISF is to enhance long-term growth of the
staffing industry and to ensure its continued ability to make positive contributions to the economy and society. The
principal focus of the Federation's activities shall be to strengthen triangular employment relationships, in which the
staffing company is the employer of the temporary worker, who works under the supervision of the user company.
ISF spokespersons are available for interested journalists who require a quote or to explore a particular point made
in this statement. Please contact Emilee/Priyanka at 8447987530/40538239 or media@prhub.com