Indian state mulls ending IT sector’s labor law exemption
BENGALURU, INDIA — The Government of Karnataka in India is considering ending the labor regulations exemption granted to information technology (IT) and information technology-enabled services (ITeS) companies within the state, bringing them under the purview of the labor department.
The move comes following numerous complaints of unfair practices in the sector. Karnataka’s Additional Labor Commissioner, G Manjunath, stated that issues like arbitrary termination, ID blocking, mass layoffs, extended work hours, and sexual harassment have been reported.
Currently, the IT industry enjoys exemptions from the Karnataka Industrial Employment (Standing Orders) Act 1946 to encourage growth in these sectors.
However, with an estimated 1.8 million employees in over 8,700 IT/ITES companies in Karnataka, the government believes it is now necessary to step in.
Officials plan to talk with industry stakeholders before deciding whether to discontinue the exemption when it expires in May 2024. Labor Minister Santosh Lad also supports ending the exemption to protect employee rights.
Meanwhile, employee unions welcomed the prospect of tighter controls. Sooraj Nidiyanga of the 10,000-member Karnataka State IT/ITeS Employees Union said it would help safeguard workers’ rights.
