Like in the past, companies have to comply with certain conditions; trade unions oppose govt. decision

Amid opposition by trade union bodies, the IT/ITeS sector has been exempted from implementing the Industrial Employment (Standing Orders) Act, 1946, for a further period of five years by the State government.

The Standing Orders, applicable to industries across all sectors, is a labour welfare measure that seeks to establish clear understanding between the employees and management over issues pertaining to service conditions, appointment, dismissal and suspension of employees, among many others, to prevent arbitrary decisions in labour matters. In Karnataka, only the IT sector receives exemption from implementing the Standing Orders.

The exemption extended to the industry for the past two decades expired on January 24 this year, and the government issued the order to exempt the sector for a further period of five years from May 25, 2019. A notification to this effect has been issued by the Labour Department.

As the IT/ITeS companies are registered under the Karnataka Shops and Establishments Act, 1961, to which Payment of Wages Act, 1936, is attached, they come under the purview of the Standing Orders.

Besides the IT/ITeS sector, the exemption is applicable to startups, animation, gaming, computer graphics, telecom, BPO, KPO and other knowledge-based industries, the May 25 notification states. Nasscom had approached the Department of IT and Biotechnology in December last, seeking an exemption from the orders as the five-year period was coming to an end.

Riders

Like in the past, the exemption from implementing the orders has come with certain riders. They include constitution of internal committees as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013; forming grievance redressal committee to address any complaint by employees; intimating the Labour Department on disciplinary action such as suspension, discharge, termination, demotion, and dismissal; and sharing of data related to workplace when sought by the government.

However, a majority of an estimated 1,800 companies have not complied with most these conditions that were laid down in 2014, department sources said.

Expressing disappointment over the extension of exemption of the Standing Orders to the IT sector, Satyanand M., secretary of AITUC, Bengaluru, said, “Barring one consultation meeting that was not inclusive, the government did not hold discussions with all the stakeholders. It is disappointing that despite several representations to implement the Standing Orders in the IT sector by trade unions, the government has chosen to exempt the sector,” he added.

Mr. Satyananda said the Labour Department, which issues the notification, was not seriously consulted this time though the process had started. “We will seek a legal recourse against this order as it is anti-labour welfare,” he said.