A.P Govt exempts IT and ITES Establishments from Certain Provisions of the AP Shops Act
The recent Notification by the Andhra Pradesh Government offers operational flexibility for IT and ITES establishments in Andhra Pradesh.
The exemption is effective for five years, until March 25, 2030.
The Notification deals with exemption around opening and closing hours of establishments, daily and weekly working hours, engaging women on nightshifts and ability to work on national and festival holidays.
The Andhra Pradesh Government has recently issued a notification offering significant operational flexibility for Information Technology Enabled Services (ITES) and Information Technology (IT) establishments. This exemption, effective from March 25, 2025, will remain valid for a period of five years, until March 25, 2030, subject to adherence to prescribed conditions.
Key Provisions of the Notification
The notification exempts IT and ITES establishments from compliance with specific sections of the Andhra Pradesh Shops and Establishments Act, 1988 (“AP Shops Act”). These exemptions include provisions related to:
Opening and Closing Hours (Section 15): Flexibility in operational hours for establishments.
Daily and Weekly Working Hours (Section 16): Waiver of limitations on daily and weekly working hours and overtime restrictions.
Employment of Young Persons (Section 21): Relaxation of restrictions on working hours for young persons.
Employment of Women (Section 23): Permission for women employees to work during night shifts, provided adequate security and transport arrangements are ensured.
National and Festival Holidays (Section 31): Establishments may offer compensatory holidays in lieu of mandatory holidays.
Termination of Employee Services (Section 47): Modifications to conditions concerning termination and severance benefits.
Conditions for Availing Exemptions
The exemptions are contingent upon compliance with specific conditions outlined in the notification, including:
Restriction of weekly working hours to a maximum of 48 hours, with overtime compensation for additional hours.
Provision of weekly days off for all employees.
Mandatory security measures for women employees working night shifts, including transport and security arrangements.
Conducting background verification and pre-employment screening for all drivers involved in employee transportation.
Establishing GPS-based vehicle monitoring systems and coordinating pick-and-drop schedules to prioritize employee safety, especially for women.
Maintaining soft copies of statutory registers in lieu of physical records.
Compliance and Consequences
Failure to adhere to these conditions may result in the revocation of exemptions without prior notice by the state government. Establishments are encouraged to ensure strict compliance to retain operational flexibility.
Conclusion
This initiative reflects Andhra Pradesh’s commitment to fostering a business-friendly environment while prioritizing employee welfare. The exemptions aim to promote collaboration and operational efficiency within IT and ITES establishments, reinforcing the state’s reputation as a progressive destination for employment and investment. However, continuous adherence to prescribed conditions is essential to sustain these benefits and enhance workplace safety. For further insights into the evolving workplace paradigm, visit
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