Looking at the labor conditions in Japan, it seems that the labor practices in Japan are distinctly different from the rest of the developing nations. Since the 1950s the labor markets in Japan have demonstrated a variety of distinctive features, the most noted of them all is ‘lifetime employment’. This practice is especially beneficial for workers as they are hired directly from schools and retained in the organization until the age of 55 years. The age has recently been revised to 60 years. The lifetime guarantee does not demand any contract to be signed by the worker and is estimated to cover more than one-third of the entire workforce. Instead of recruiting blue-collar workers and managers at their mid-career levels, organizations prefer to promote their workers from within2. This illustrated the attempts made by the governments and organizations towards safeguarding the jobs of workers in both nations. However, the extent to which they have been successful would be explored in details in the present study. However, it must also be accepted that the external shocks which organizations are confronted with impacts employment levels considerably with the firms undertaking downsizing strategies and restructuring their employment policies.The industrial relations laws have always been shaped by the Indian Government. Some of the laws worth mentioning in this context are the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and Industrial Disputes Act, 1947. One of the distinctive features of the industrial relations law in India is that it does not provide any provision for the trade unions to be recognized as agents of collective bargaining. The mere registration of the union under TUA does not make an independent and legitimate representative of the workers in the organization.