### Labour Laws in India Applicable To IT Companies
The recent and on-going economic down surge has resulted in a large number of IT jobs being cut and hiring strictures being put in place, both of which, quite understandably, have not gone down well with the young IT professionals the country churns out every year. There is a misconception among the people that the labour laws of the country do not apply to IT Industries but this is not true. Almost all the labour laws which are applicable to any other industry are also applicable to IT Industry.
**This is true that the Factories Act, 1946, the Industrial Disputes Act, 1947 and certain State labour laws do not apply to IT Industries but apart from that, all the other labour laws are applicable to IT Industries as well.
-The state governments have been given the power that they can exempt any particular industry from the laws which are made by the Central Government regarding the labour or industrial laws under section 14 of the Indian Employment Standard Orders Act, 1946.
-The state government using this power do exempts the IT Industries from the Industrial Employment Standard Order Act, 1946.
-The IT industries do not include their employees under the definition of “workman” stated in the Indian Industries Act, 1965 in order to get exempted from the liabilities which arise after that.
-The Trade Unions Act, 1926 : Employers as well as employees strongly believe that employees of IT Company do not have the right to form a Trade Union. However, nothing is further from the truth than this. The Fundamental Right to form associations or unions is accorded to all citizens under Article 19 (1) (c) of the Constitution of India and therefore, like all citizens, even IT employees can form and/or join Trade Unions.
-Shops & Establishments Act : IT companies in a particular State are covered within the definition of ‘commercial establishments’ under the The Shops & Establishments Act of the State.(please refer the state act to knows leave applicability).
-The Payment of Gratuity Act, 1972
-The Employees’ Provident Fund & Miscellaneous Provisions Act, 1952
-The Employees’ Compensation Act, 1923
-The Employees’ State Insurance Act, 1948: Now, if an employee is covered under the ESI Act on account of his salary being under the Rs. 15,000/- cap, he is not eligible to receive benefits under The Employees Compensation Act, 1923. In a Commercial Establishment, therefore, employees who are below the Rs. 15,000/- cap shall be eligible to benefits under the ESI Act and those above, shall be covered by The Employees Compensation Act, 1923.
-The Contract Labour (Regulation & Abolition) Act, 1970 : The Contract Labour Act is applicable in case if the Commercial Establishment employs its personnel through a Service Provider for carrying out various jobs such as Security, cleaning, loading-unloading etc. The registration of an establishment under this legislation is mandatory. In case the Service Provider employs 20 or more workers, registration of the Contractor is also mandatory.
-The Payment of Bonus Act, 1965
-Equal Remuneration Act, 1976 : As per notification number S.O. 144 (E), dated 02 March1977, ‘Data processing and tabulating services’ are covered under the ambit of the Act bringing IT and ITES industries under the sweep of the Act.
-The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 : A private sector establishment before filling up any vacancy in any employment in that establishment shall notify that vacancy to such employment exchanges as may be prescribed.
-The Minimum Wages Act, 1948
-The Maternity Benefit Act, 1961
-The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013
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Regads,
Amit