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SEZ Update: Hybrid work model extended till December 2024 for employees of IT-ITeS units in SEZ
SEZ Update: Hybrid work model extended till December 2024 for employees of IT-ITeS units in SEZ

November 8, 2023

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Dear All,

The Department of Commerce, Ministry of Commerce and Industries (MoCI) has enabled hybrid working model for the Information Technology – Information Technology enabled Services (IT-ITeS) units operating in Special Economic Zones (SEZs) for a period up-to December 31, 2024. As requested by us, the latest notification shifts away from “Work from Home” to “Hybrid Working”.  Earlier, units were allowed to work from home or any other place outside of SEZ till December 31, 2023.

We have engaged with our industry as well as the real estate industry to understand the way forward on this as over the last one year, the trend of employees returning to offices has risen significantly. As per industry feedback, it will take some more time for the transition to stabilise. Without an explicit enablement, industry would have been required to comply with 100% work from office as a way of working from January 1, 2024 and that would have placed most of the industry operating out of the SEZs under hardship.

All other conditions for implementing hybrid work model remain consistent with those outlined in last year's notification, viz

  • A Unit can allow its employees to work from any place outside the SEZ till December 31, 2024, subject to the condition that the unit continues to operate from the premises as per their Letter of Approval.
  • The unit is required to intimate the Development Commissioner (DC) of the SEZ by email before hybrid work model is adopted.
  • A list of employees who have been permitted hybrid work model should be maintained by the unit and should be submitted to the DC only when requested.
  • The Unit must ensure that export revenue of the resultant products/ services is accounted for by the unit to which the employee is tagged.
  • Where an employee ceases to be a part of the project of the Unit, the employee shall be un-tagged from the unit and the unit will surrender the identity card as per Rule 70(2) of SEZ Rules.
  • The Unit may provide duty-free goods (like laptop, desktop, or other electronic equipment needed) to an employee. The same will be allowed to be taken out of SEZ (on a temporary basis) without payment of duty or integrated GST.
  • The temporary removal of such duty-free goods will be allowed for a period commensurate with the validity of the facility for work from home, beyond which the applicable duty will need to be paid by the unit.  

Copy of the notification is attached for your reference. 


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Hybridworkmodel_notification.pdf

Tejasvi

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