The Associated Chambers of Commerce and Industry on Thursday suggested changes in labour laws to make them more investment-friendly, even though it rejected the 'hire and fire' policy.

"We do not favour the 'hire and fire' policy, but want flexibility in managing human resources," Assocham President Mahendra K Sanghi said at a meeting with Labour Minister Sis Ram Ola in New Delhi.

Advocating changes in labour laws for optimal utilisation of human resources for higher productivity and efficiency, he said a social security cover should be provided to the workers to ensure their well-being.

The chamber said economic policies should be supplemented with employment policy for growth of domestic industry as well as to encourage foreign investment in new ventures.

It called for modifying the obsolete labour laws to make them more customer focused and business and employee-friendly.

Moreover, provision for monitoring and implementation of these laws should also be spelt out.