By way of an update, state of Telangana (Hyderabad) and Karnataka (Bangalore) have provided major relaxations to IT/ITeS establishments in the state.

Hyderabad: The Government of Telangana through notification dated June 7, 2024 (“Notification”) has provided exemption to all IT/ITeS establishments in Hyderabad from certain provisions of Telangana Shops and Establishments Act, 1988 (“TSE Act”) subject to certain conditions.

The Notification exempts IT/ITeS establishments from the following relevant TSE Act provisions until May 30, 2028:

a. Section 15: Opening and closing hours

b. Section 16: Daily and weekly hours of work

c. Section 23: Special provision for women

d. Section 31: Other holidays

Conditions for exemption:

i.    Weekly working hour limit to be 48 hours, beyond which overtime pay will apply

ii.   Employees must be given a weekly off

iii.  Employers need to comply with conditions for engaging female employees at night, such as:

• Female employees may be engaged in night shift subject to provision of adequate security and transport from their residences – time for transport provision to be specified by employer (suggested time between 8.00 pm – 6 am)
• Employers to obtain bio-data of drivers employed and obtain their license, photo and contact details
• Schedule of pickup and drop to decided on each Monday and route changes permitted with prior knowledge or supervisory officer / employees
• Telephone number of female employees not to be disclosed to unauthorised individuals
• A female employee should not be picked up first or dropped last
• Employer may provide security guard for night shift vehicles; designated supervisors to conduct random checks on night shift vehicles of various routes
• Employer to have control room/ travel desk for monitoring vehicle movements

iv.   Employees are to be provided identity cards and other welfare measures as per applicable laws

v.    Employees working on notified holidays under TSE Act must be provided a compensatory holiday

The stipulated conditions shall not be detrimental to existing working conditions of employees of exempted establishments. Employers are required to file integrated registers and maintain integrated returns under labour laws, as prescribed earlier by Telangana government.

Non-compliance with the aforesaid conditions may lead to revocation of the exemption.

Bangalore: The Government of Karnataka through notification dated June 10, 2024 has exempted all IT/ITeS establishments from application of Industrial Employment (Standing Orders) Act, 1946 (“SO Act”) until June 10, 2029.

The SO Act requires employers to draft and adopt certain standing orders, in alignment with the state model standing orders. As such, the law was intended for manufacturing sector employers and is often considered by tech employers as unsuitable for a dynamic tech workplace.

Conditions for exemption:

i.    The employer must constitute an internal committee as per Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

ii.   The employer must constitute a grievance redressal committee in a prescribed manner.

iii.  The employer needs to intimate information regarding disciplinary action against its employees to the local Deputy Labour Commissioner and Karnataka Commissioner of Labour

iv.  Any information required by labour authorities need to be promptly and fully submitted within the time-frame prescribed

Once the Industrial Relations Code, 2020 is implemented, it will apply to all employers.