Labour and labour-related laws in micro and small enterprises: Innovative regulatory approaches

31 Mar 2008

This paper examines the application of labour law in micro and small enterprises by comparing the practices in various member States of the International Labour Organization. Micro and small enterprises (MSEs) are increasingly a major source of employment creation, and therefore a focus of economic and development policy. Job quality in MSEs, however, is often very poor. At the same time, many MSEs are unstable or short-lived, and many operate in a state of semi-formality. This has repercussions for job quality, and for broader economic development and growth. A key issue for the International Labour Organization (ILO) and for its member States is therefore how to devise a legal and regulatory environment for MSEs that promotes Decent Work, but which also facilitates economic growth.

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