A representation on extending exemption to IT/ITES sector under the Industrial Employment Standing Orders Act (Karnataka)

A representation on extending exemption to IT/ITES sector under the Industrial Employment Standing Orders Act (Karnataka) was sent to Dr. S. Selvakumar, Principal Secretary, Commerce & Industries Department, Skill Development, Entrepreneurship & Livelihood Department, Government of Karnataka, Mr. Mohammad Mohsin, Principal Secretary, Labour Department, Government of Karnataka, Dr. Ekroop Caur, Secretary, Department of Electronics, Information Technology, Biotechnology and Science & Technology, Government of Karnataka & Ms. Gunjan Krishna, Commissioner for Industrial Development & Director of Industries & Commerce, Government of Karnataka on February 28th, 2024. The representation was with reference to a recent news item – “Karnataka to Hold Talks to Bring IT Companies under Labour Laws” . Labour laws are applicable to the IT and ITES Establishment as applicable to the establishments registered under the Karnataka Shops and Commercial Establishments Act. However, the Government of Karnataka has exempted the IT and ITES Establishments only from the provisions of the Industrial Employment (Standing Orders) Act. The exemption was first granted in the year 2009 and it has been extended. The notification dated 25.05.2019 would expire on 24.05.2024. Press report indicates that the Government proposes to consult with IT, BT companies and Trade Unions and other stakeholders to explore the possibilities of withdrawing the exemption provided to Information Technology (IT, ITES, BPO’s) companies from the Industrial Employment (Standing Orders) Act 1946. The industry requests the Government to not proceed with the proposal to withdraw the exemption granted to the IT and ITES Establishments from the provisions of the Industrial Employment (Standing Orders) Act & the exemption from the applicability of the Industrial Employment (Standing Orders) Act may be further extended from 25.05.2024 for a period of two years with a specific condition that if the Industrial Relations Code is implemented, the exemption granted to the IT and ITES Establishment stands withdrawn.