Karnataka Government issues notification proposing to extend exemptions given to IT / ITES Companies from Standing Orders for a further period of 5 years i.e. till 2024

In a recent Notification ( To be published in the Karnataka Gazette), and in continuation of its previous Notification No. LD 53 LED 2013 dated 25-01-2014,the Government of Karnataka has exempted IT / ITES / Startups / Animation / Gaming / Computer Graphics / Telecom / BPO / KPO / other knowledge based industries from the applicability of the Industrial Employment (standing Orders) Act, 1946 (Central Act of L946 for a further period of 5 years from the date of this Notification being published in the Gazette.

The IT/ITeS etc. establishments will be eligible for the exemption only if they are adhering to the following conditions:

  • Constituted 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.

Background:

The leading players in the IT and ITeS industry has always represented that the Standing Orders are grossly outdated and not conductive to the functioning of the industry. The representative of body of the IT companies National Association of Software & Service Companies (NASSCOM) made representations before the Government of Karnataka, and the Government of Karnataka considering the such representations granted exemption from complying with the compliances arising out of the Standing Orders provided the companies are complying the conditions mentioned above.

SourceLabour Department, Government of Karnataka

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