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Government of Karnataka Ends Exemption for IT Industry

The Government of Karnataka is not renewing the exemption provided to the IT industry concerning the Standing Orders Act.

Applicability of Standing Orders to IT Industries

The IT industry now has to adhere to labor laws. According to Bageshree S. (Source: The Hindu, Bangalore, dated 10th Mar 2012), the Information Technology (IT) industry in the state, which has enjoyed a blanket exemption from the Industrial Employment (Standing Orders) Act, 1946 for 11 years, will now have to comply with the rules under this labor legislation. The Labour Department has decided not to renew the exemption from the Act, which the industry had sought.

This means that IT industries, like all other industries employing over 100 workers, have to define "with sufficient precision the conditions of employment under them" and make "these conditions known to the workmen employed by them." The law is strict on classifying workers, working hours and shifts, wages, leave, and attendance. The declared standing orders have to be approved by the Labour Department. "From now on, there will be no blanket exemption for the entire industry. Exemption may be given only on a case-by-case basis," said Labour Commissioner S.R. Umashankar. "The industries have six months to adopt standing orders, which have to be certified by a deputy labour commissioner," he said.

Exemption from the law was last renewed in 2009 for a period of two years. It expired on August 25, 2011. The industry has had 11 straight years of exemption on the grounds that it does not fit the requirements of a knowledge-based industry. The ITEC (IT and ITeS Employees Centre), a support group for IT professionals, and ITHI, a forum of women employees in IT and ITeS, had been campaigning against exemption from the Act.

Members of the two forums had campaigned against exemption as well as the proposal to extend the working-hour deadline for women employees from the existing 8 p.m. They had said that extending the working-hour deadline would only help IT/ITeS establishments evade their responsibilities of transportation and security for women employees until 10 p.m. ITHI had initiated an online campaign, and a petition with signatures from 700 women workers had been submitted to the Labour Secretary and the Labour Commissioner. The Karnataka State Women's Commission had also raised objections to the exemption given to the IT industry from the law on the grounds that it leaves wide room for the exploitation of women in the sector.

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Ram K Navaratna
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From India, Bangalore
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Karnataka Government's Dilemma

The Karnataka Government is left with no other alternative as a group of activists are acting quite harshly in the name of preserving Indian culture. Additionally, the women's commission's views may keep the government tied up.

Broader Engagement in the IT Sector

On the other side, it's nice that this sector would engage in more activities than just focusing on recruitment and training. Moreover, others would now have more strength to voice out and initiate various transformations or modifications on the labor front.

Compliance with Legislation

IT industries are also required to comply with all relevant legislation, regulatory standards, and codes of practice that affect the companies operating in different jurisdictions. This reflects a cordial code of conduct towards compliance with regulations, legislation, and codes of practice.

Regards,

From India, Madras
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