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Karnataka Govt extends exemption to the IT-BPM sector from Employment Standing Order Act for 5 years till 2029
Karnataka Govt extends exemption to the IT-BPM sector from Employment Standing Order Act for 5 years till 2029

June 18, 2024

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Pursuant to nasscom’s effort, the Government of Karnataka has extended the exemption to the IT-BPM industry from the Industrial Employment (Standing Order) Act, 1946 for a duration of 5 years, till June 10, 2029 or till such time as the Industrial Relations Code, 2020 is implementedPlease see the attached exemption notification. 

This exemption is crucial for the IT-BPM industry as the provisions of the Industrial Employment (Standing Order) Act are incompatible with the nature and operations of the industry’s working and impose significant compliance burden and inflexibility.

Standing orders covers specific service conditions applicable for workmen such as classification of workmen – permanent, temporary, apprentices, fixed term employees; manner of intimating periods and hours of work, holidays, pay-days, and wage rates; shift working; attendance and late coming; procedure for availing leave and holidays; termination of employment including notice period; procedure for handling misconduct, etc.

It is important to note that nasscom has also worked with the industry and the government to help draft the model standing order for the services sector under the Industrial Relations Code, 2020. These are compatible with the services industry’s working and should hopefully remove the requirement for our industry to seek periodic exemptions. These would come into effect once the labour codes are implemented.

For any further details on the above matter, please write to sudipto@nasscom.in with a copy to policy@nasscom.in.


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20240610_Karnataka_SO_Exemption_Notification.pdf

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