D'Souza, Errol creator text xu| 2005 continuing ng p.939-44. It is argued that anti-retrenchment laws end up hurting the workers they were designed to project because firms decrease their demand for labour in anticipation of surplus labour during downturns. If free contracting between workers and firms is allowed we show in an efficiency wage set up that both firms and workers can behave opportunisitically requiring third-party enforcement of employment protection legislation. - Reproduced. Labour Indian Journal of Labour Economics 180718