Exemption for IT, ITES & Knowledge-Based Industries in Karnataka | 5-Year Relief

Exemption for IT, ITES, and Knowledge-Based Industries from Industrial Employment Act in Karnataka

The Government of Karnataka has announced an exemption for IT, ITES, and other knowledge-based industries from the applicability of the Industrial Employment (Standing Orders) Act, 1946. This exemption, initially provided in 2019, has been extended for another five years. Here’s what this means for businesses and employees in the IT sector in Karnataka.

Key Points of the Exemption

1. Internal Committee for Workplace Harassment: Each exempted establishment must set up an Internal Committee in line with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, to handle harassment complaints.

2. Grievance Redressal Committee: A Grievance Redressal Committee (GRC) must be formed, comprising equal representation from both employers and employees, to address employee complaints and grievances within a reasonable timeframe.

3. Reporting of Disciplinary Actions: Companies must report any disciplinary actions like suspension, discharge, termination, demotion, or dismissal of employees to the Jurisdictional Deputy Labour Commissioner and the Commissioner of Labour in Karnataka.

4. Compliance with Information Requests: Companies are required to promptly provide information regarding employee service conditions to the Jurisdictional Deputy Labour Commissioner and the Commissioner of Labour when requested.

5. Industrial Relations Code, 2020: If the Industrial Relations Code, 2020 is implemented, it will override this exemption, making the code applicable to all establishments.

Implications for IT and Knowledge-Based Industries

This exemption aims to foster a more flexible regulatory environment for IT, ITES, and other knowledge-based industries, promoting ease of doing business in Karnataka. By reducing the administrative burden, the government hopes to encourage growth and innovation in these sectors.

Conclusion

The extension of the exemption for IT and other knowledge-based industries from the Industrial Employment (Standing Orders) Act, 1946, highlights Karnataka's commitment to creating a supportive environment for businesses. Companies should take note of these conditions to benefit from the exemption while ensuring compliance with the stipulated requirements.

For further details, refer to the official notification issued by the Karnataka Labour Department.

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