Reforming the Labor Administration in Bhutan

In January 2007, Bhutan took an important step toward modernizing its labor market. The "Labor and Employment Act of Bhutan" 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-à-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. Pema Wangda, head of Bhutan's Department of Labor, discusses the reforms.

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