Bengaluru: Karnataka IT employees’ union demands labour dept to end exemption for tech firms under Industrial Employment Act

Protesters demanded the state government to end the exemption given to the IT/ITeS sector from the Industrial Employment (Standing Orders) Act.

KITU president VJK Nair and general secretary Sooraj Nidiyanga met the labour commissioner and submitted a memorandum demanding the same.

“The IT/ITeS Sector, which employs more than 20 lakh workers in Karnataka, has obtained exemption from the applicability of the IE(SO) Act on more than four occasions. The last exemption was granted on May 25, 2019, and is set to expire by May 25, 2024,” said Nair.

Karnataka State IT/ITeS Employees Union (KITU), a registered union of IT/ITeS sector employees in Karnataka, demanded the government not to renew the exemption anymore as the employers have not complied with the four conditions imposed on them while obtaining the exemption.

“As per the conditions for granting the exemption, firstly, each establishment needs to constitute an ‘Internal Committee’ as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act 2013 and rules made thereunder. The conditions mandate the constitution of a Grievance Redressal Committee by every establishment. The condition also compels every establishment to intimate the labor department regarding cases of disciplinary action, discharge, termination, demotion, dismissal, etc.,” said Nidiyanga.

“However, all these conditions are blatantly violated by the establishments, and thousands of employees are discharged without notice or enquiry, laid off, and retrenched wholesale without complying with the legal requirement to seek permission of the appropriate government under the Industrial Disputes Act,” he added.

“KITU has raised a number of disputes in such circumstances and found that in none of the cases, employers comply with the requirement to intimate the government about actions taken as referred to in condition III of the Exemption Order.

On these grounds, KITU asserts that the regulations of conditions of service governing the IT/ITeS/knowledge-based industries shall be defined precisely with the participation of employers and employees in the process. This can only be achieved by ending the exemption and invoking the provisions of the IE(SO) Act, and suitably adapting it to the requirements of the IT/ITeS/Knowledge Industry” said Nidiyanga.

He said Karnataka State IT/ITeS Employees Union also filed a writ petition in the Karnataka High Court challenging the exemption.

Meanwhile, the state government is contemplating bringing companies in this segment in Karnataka under the ambit of the state labor department.

According to government estimates, currently nearly 18 lakh professionals are 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.