Proposal to revoke the exemption granted to IT/ITE/BPO/KPOs from the Industrial Employment (Standing Orders) Act

The Government of Karnataka, vide press note released by the Labour Department, has expressed its intention to revoke the exemption granted to IT/ITE/KPO etc. from the Industrial Employment (Standing Orders) Act, 1946. The Labour Department has cited instances of arbitrary termination, extended working hours, sexual harassment, and other unfair labour practices that raise industrial disputes, as the reason behind the decision.

The Government of Karnataka, vide notification dated 25^th January, 2014, exempted industries such as IT/ITEs, startups, animation, gaming, computer graphics, telecom, BPO and KPO from the application of the Act for a period of five years. The same had been extended for a further period of 5 years, vide notification dated, 25^thMay, 2019. Accordingly, the relaxation is set to expire in May 2024.

As of now, the Government is intent on holding consultation with concerned industry stakeholders on the proposed move. Further action will follow the outcome of the discussions.