Karnataka’s govt plans to withdraw Standing orders law Exemption for IT sector
Official data indicates that there are about 600,000 women and 1.2 million men working for the 8,785 enterprises in the state that are involved in the biotechnology and information technology sectors.
Karnataka’s government plans to withdraw Standing orders in law Exemption for IT sector
According to media sources, the Karnataka government is apparently proposing to include technology companies in labour standards starting in May 2024, ending the exemption that this industry has enjoyed for a number of years.
A notification exempting enterprises from the Industrial Employment (Standing Order) Act, 1946, was issued by the state government on May 25, 2014. On May 25, 2019, this exemption was further extended for a further five years. If the relaxation isn’t prolonged further, it will expire in May of next year.
Official data indicates that there are about 600,000 women and 1.2 million men working for the 8,785 enterprises in the state that are involved in the biotechnology and information technology sectors.
The labour department cited concerns about lengthy working hours, ID blocking, large-scale downsizing, random termination, and sexual harassment at work as justifications for reviewing the relaxation.
IT, ITeS, business process outsourcing, and knowledge process outsourcing companies are exempt from labor laws in Karnataka. This action, which recognizes certain industries as developing ones, was taken with the intention of accelerating their growth not just in Bengaluru but also throughout the state.
The rules will apply to tech companies if the concession ends, allowing labor inspectors to monitor layoffs, closures, and retrenchments in the IT industry the same way they would in any other industry.
The news reports stated Santosh Lad, the labor minister for Karnataka, as claiming that the tech industry has been benefiting from exemptions for a number of years.
“I was presented with a proposal in 2016 while serving as the Labour Minister to not extend it. I have seen cases of unjust firing, and these workers have a very hard time finding new employment,” he stated.
Additionally, he said that the labor department was the appellate authority in cases of sexual harassment that occurred in the workplace.
“I’ll give a call to all parties involved, hear their opinions, and the government, in its wisdom, will make the right choice. It’s about time we took another look at this (the exception),” Lad was cited by the media report.
The minister declared that he will confer with the chief minister before taking any further action, and that he will not act immediately.
Additional Labor Commissioner for Industrial Relations G. Manjunath said that the industry requested an extension of the exclusions that had been put in place back in 2014.
According to him, the standing order outlines in detail the working and service conditions of employees and requires employers to follow specific procedures before ending an employee’s employment.
Under the Industrial Employment Standing Orders Act of 1946 and the Industrial Disputes Act of 1947, the standing order will protect workers in the technology industry. After the exemptions expire, the authorities will also keep an eye on fly-by-night operators, according to Manjunath.
Following the Covid-19 outbreak, officials from the Labour Department noticed an increase in the number of employee terminations by businesses. They declared that the regulations’ goal is to protect employees’ employment stability.
Chief Minister Siddaramaiah emphasized last month at the Bengaluru Tech Summit that Karnataka serves as the home base for about 750 global organizations and 5,500 IT-ITES companies.
He emphasized that the state contributed over $85 billion to the nation’s exports, highlighting its important role in the sector’s performance.
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