The State Government has extended the exemption for IT/ITES companies from the provision of the Industrial Employment (Standing Orders) Act for a further period of five years after briefly weighing on ending the concession, according to reports.

However, the exemption is subject to certain conditions. IT/ITES, startups, animation, games, CG, telecom, BPO/KPO and other knowledge-based industries are required to set up internal committees under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act. In 2013, we formed a Grievance Committee (GRC) to handle employee grievances.

If a company takes disciplinary action against an employee, such as suspension, dismissal, layoff, demotion, or layoff, it must report it to the relevant Labor Party bureau.

Karnataka State Employers Association president B.K. Welcoming the tax exemption, Prabhakar says, “The government's move would go a long way in developing IT and ITES industries in Bengaluru and the rest of Karnataka. The association added that it had requested the government to maintain the tax exemption until the Industrial Relations Act 2020 comes into force.”

The government considered applying labor laws to technology companies but appears to have given up after hearing opposition from stakeholders. According to official data, 8,785 IT/BT companies employ around 12 million men and 6 million women.

The Ministry of Labor cited cases such as arbitrary dismissal, ID blocking, mass layoffs, layoffs and extension of working hours, and sexual harassment in the workplace as reasons for revising the relaxation measures. However, the latest notification aims to fix these issues.

Karnataka, by notification dated January 25, 2014, exempted IT/ITES/BPO/KPO companies from the scope of the Industrial Employment (Permanent Procedures) Act, 1946 and extended the period for another five years on May 25, 2019. He admitted: Growing into an emerging industry and accelerating growth in Bengaluru and the rest of the state.