Karnataka IT employees' union opposes government's decision to extend exemption from labour laws for tech firms

According to government estimates, nearly 18 lakh professionals are currently employed across 8,785 IT/BT firms in Karnataka.

Karnataka State IT/ITeS Employees Union (KITU) on June 12 opposed state government's decision to extend the exemption provided to the IT/ITeS sector from the Industrial Employment (Standing Orders) Act for another five years, until 2029.

According to a circular dated June 10, the Karnataka government stated that the exemption would cover IT, ITeS, startups, animation, gaming, computer graphics, telecom, and BPO industries.

Also, read: Bengaluru: Karnataka IT employees' union demands labour dept to end exemption for tech firms under Industrial Employment Act

In March 2024, KITU staged a protest in front of the labor commissioner’s office (Karmika Bhavana), demanding that the state government end the exemption provided to the IT/ITeS sector. State labour minister Santosh Lad had stated last year that the government may not provide the exemption.

"The government's decision to continue the exemption comes despite the concerns raised by the KITU regarding the failure of companies to comply with the conditions laid down during the previous exemption," said Sooraj Nidiyanga, general secretary, KITU.

"On March 16, KITU led a march with hundreds of IT sector employees, urging the labour commissioner to refrain from extending the exemption for the IT/ITES sector under the Standing Orders Act due to non-compliance by companies. Despite assurances from the labour commissioner to consider both sides, the government unilaterally extended the exemption for another five years, disregarding the concerns of 20 lakh employees. KITU has also filed a writ petition in the Karnataka High Court against this decision" he said.

According to government estimates, nearly 18 lakh professionals are currently employed across 8,785 IT/BT firms in Karnataka.

Karnataka had granted exemptions to IT, ITeS, business process outsourcing, and knowledge process outsourcing firms from labour regulations. On January 25, 2014, the state government issued a notification exempting companies from the Industrial Employment (Standing Order) Act, 1946. This exemption was further extended for an additional five years on May 25, 2019.

The exemption is subject to several conditions, including the establishment of an internal committee in accordance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, Redressal) Act 2013. It also requires setting up a grievance redressal committee with equal representation from both employers and employees, notifying the concerned labor authorities about any disciplinary actions against employees (such as suspension, discharge, termination, demotion, or dismissal), and being prepared to provide details on employee service conditions when sought by the government.