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IT Employees in Karnataka protest for being exempted from Industrial Employment Act


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According to government estimates, there are approximately 1.8 million professionals currently employed across 8,785 IT/BT firms in the state of Karnataka, India.

The Karnataka State IT/ITeS Employees Union (KITU) recently expressed their opposition to the state government’s decision to extend the exemption provided to the IT/ITeS sector from the Industrial Employment (Standing Orders) Act. This exemption, which was set to expire, has now been extended for another five years until 2029, according to a circular dated June 10.

The exemption covers various industries, including IT, ITeS, startups, animation, gaming, computer graphics, telecom, and BPO. However, KITU has raised concerns about the failure of companies to comply with the conditions that were set during the previous exemption period.

In March 2024, KITU organized a protest in front of the labor commissioner’s office, demanding that the state government put an end to the exemption for the IT/ITeS sector. The state labor minister, Santosh Lad, had previously indicated that the government might not continue the exemption. Despite KITU’s concerns and protests, the government unilaterally extended the exemption for another five years, disregarding the concerns of approximately 2 million employees.

Sooraj Nidiyanga, the general secretary of KITU, stated that the government’s decision to continue the exemption was in disregard of the concerns raised by the union. KITU has filed a writ petition in the Karnataka High Court against this decision.

The exemption was initially granted on January 25, 2014, when the Karnataka government issued a notification exempting IT, ITeS, business process outsourcing, and knowledge process outsourcing firms from the Industrial Employment (Standing Orders) Act of 1946. This exemption was further extended for an additional five years on May 25, 2019.

The exemption is subject to several conditions, including the establishment of an internal committee in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, Redressal) Act of 2013. It also requires the formation of a grievance redressal committee with equal representation from both employers and employees. Additionally, companies must notify the relevant labor authorities about any disciplinary actions taken against employees and be prepared to provide details on employee service conditions when requested by the government.

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