Labour law reform in Papua New Guinea is expected to contribute to a more stable economy.
The Director of the International Labour Organisation office for Pacific Island Countries, handed over the ILO's final report on Labour Law Reform to stakeholders in Port Moresby last week.
The work will help the Department of Labour and Industrial Relations prepare revisions of the Employment Act which was last updated in 1978.
The ILO director David Lamotte says there may be some resistance among employers but says modern labour legislation can have significant social and economic benefits.
"A business wants stability, a business wants to know what the rules are and that the rules will be applied, stability and predictably in the market place is really important to everybody."
David Lamotte says one of the drivers to improve employment legislation is that international trade agreements require compliance with labour standards.