Karnataka Government is yet to issue directions to renew / extend exemptions given to IT/ITeS Companies on Standing Order/s ; initial exemptions stands expired on 25.01.2019

In an Order dated 25.01.2014, the Government of Karnataka had exempted IT / ITeS establishments from the applicability of the Industrial Employment (Standing Orders) Act, 1946 provided they comply with the following:

  • Constitute an Internal Committee to deal with complaints w.r.t. sexual harassment.
  • Set up a Grievance Redressal Committee to deal with complaints of employees in a time bound manner.
  • Intimate the concerned labour officer of competent jurisdiction of labour department regarding cases of disciplinary action, suspension, discharge, termination, demotion, dismissal, etc., of employees.
  • Promptly submit information regarding service conditions of employees to the concerned labour officer of competent jurisdiction or Commissioner of Labour, Karnataka, as and when sought for.

This exemption order was effective since 25th January, 2014 with a validity of 5 years. In effect this Order expired on 25th January, 2019. However, till date the Department has not yet issued any renewal / extension order to this effect.

We have connected with the Department of Labour, Karnataka and were informally informed that as of now the Order is deemed to have expired as no renewal orders have been made by the Department till now. On inquiring of the possible extension / renewal date, the Department did not reply. All we got to know is that the final outcome of the same is expected to be officially communicated shortly.

We have also come across some newspaper articles which mention that the State government is currently examining a proposal on granting one more extension to the exemption given to IT/ITeS companies on Standing Orders and has asked the companies to file compliance reports for four conditions laid down in the notification. However, we have not seen any official order directing this.

In the meanwhile, till the Government decides on the final outcome, we would advise you to continue to abide by the four conditions basis which this exemption is availed by you.

We will keep you posted on the developments in this regard.

SourceLabour Department, Government of Karnataka (Unofficial)

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