Dual Labour Market

Meaning & Definition 

The Dual Labour Market is the term which comprised of the primary labour market, characterized by many jobs which are relatively stable, with good-paying salaries, enough opportunities for advancement and growth, versus the secondary labour market, where there are a large number of low-paying jobs, a lack of job security, and few employee benefits. HR professionals use the concept of the dual labour market to examine the unfair distribution of employees and to evaluate how employees are employed.

Importance in HR & Workforce Planning

• Supports HR in evaluating job quality and division of workers by type.
• Identifies Areas that are lacking in base pay, benefits, and job security.
• Promotes fair labour practices and inclusive HR policies.
• Supports in future-proofing and preparing for and creating strategies for talent acquisition & workforce planning.
• Encourages improved compensation and working conditions and increased skill development.

Compliance Requirements

• There is no particular statutory compliance associated with this term.
• Indian Labour Laws like the Code on Wages, 2019, and the Code on Social Security 2020, aim to equalize pay and benefits across different employment types.
• The HR Policies of an organization should promote equal opportunity and fair treatment for employees.