Karnataka Govt May Revoke Labour Law Exemption For IT Sector In 2024
The Karnataka Government is mulling over deliberations to roll back the labour law exemptions granted to the IT sector in the state.
Time and again, cases of unfair practices by employers in the sector have come to light before the state authorities. Non-applicability of the (Standing Order) Act, 1946 means IT companies in the sector were free to employ their own policies on working hours, terminations, and grievance mechanisms.
This led to the abuse of the exemption rather than enjoying the immunity provided to the sector. The exemption was first notified in 2014 to promote the growth and ease of compliance and doing business for IT firms in Karnataka.
As the directive turns 10 years old in 2024, consultations with the stakeholders will determine the relevance and utility of the exemption going forward.
