Is the Industrial Employment Act Relevant to IT? Seeking Clarity on Applicable Laws

Dear HR Professionals,

I have recently joined the IT industry with a workforce of 125+. Could you please clarify if the Industrial Employment (Standing Orders) Act, 1946 is applicable to the IT industry? Additionally, I would appreciate information on Acts that are applicable to the IT industry and those that are not.

Regards,
Uma

Applicability of the Industrial Employment (Standing Orders) Act to IT Companies

In certain states, the Industrial Employment (Standing Orders) Act has been extended to establishments covered by the Shops and Commercial Establishments Act. Recently, the Government of Karnataka has directed all IT companies (with employment exceeding 100) in the state to draft and certify Standing Orders within six months.

However, in many other states, since the State Rules of the Standing Order Act have not been applied to shops and commercial establishments, IT companies are not currently obligated to have certified standing orders. Nevertheless, if an establishment believes it should have standing orders to clarify the relationship between the employer and employees (considered the main objective of Standing Orders), it can draft standing orders in consultation with employees or their representatives and implement them. Moreover, many companies have an HR Manual or Employee Handbook, which serves as another form of Standing Orders.

Regards,
Madhu.T.K

In Gujarat, the Industrial Employment (Standing Orders) Act rules are applicable when 10 or more employees are employed. Please read the Industrial Employment (Standing Orders) Act in Gujarat.