NEWS – The Karnataka government extends exemption from the Industrial Employment (Standing Orders) Act for IT/ITeS industries till 2029.It Includes IT, ITeS, startups, animation, gaming, computer graphics, telecom, and BPO industries.

HIGHLIGHTS

Background

• Historical Context: The sectors have been exempt from the Act since 2014, with the last extension in 2019.
• Labour Department Concerns: In December, the Karnataka labour department considered discontinuing the exemption due to unfair trade practices.

Conditions of Exemption

• Sexual Harassment Committee: Companies must constitute an internal committee as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition, Redressal) Act 2013.
• Grievance Redressal Committee: Must include an equal number of employer and employee representatives.
• Disciplinary Actions Reporting: Companies need to inform labour authorities about disciplinary actions like suspension, discharge, termination, demotion, or dismissal.
• Service Conditions Reporting: Companies must be ready to furnish details on service conditions when requested by the government.

Employment and Sector Impact

• Employment Figures: Approximately 18 lakh professionals employed across 8,785 IT/BT firms in Karnataka.
• Post-Covid Complaints: Increased complaints from tech professionals about unfair trade practices led authorities to consider removing exemptions.

Implications

• For Employees: Exemption means lesser protection compared to what the Act provides.
• For Companies: Maintaining the exemption facilitates ease of business, reduces operational constraints, and lowers costs.
• Balancing Act: The exemption aims to balance job security and employee safety with business operational flexibility and development.