are IT. companies exempted from the regulations under the karnataka shops and establishment act?
From India, Bangalore
From India, Bangalore
No.I think it is practically exempted from Standing Orders Act. Varghese Mathew
From India, Thiruvananthapuram
912From India, Thiruvananthapuram
dear sir - thank you for your message. my doubt arose because section 3(1)(t) seems to confer exemption on IT companies. would request for clarification.
From India, Bangalore
From India, Bangalore
Their is no exemption of IT & ITES from Karnataka Shops & Commercial Est Act. Their is an exemption of SOFTWARE companies from certification of STANDING ORDERS for further 5 years GEM
From India, Bangalore
From India, Bangalore
Dear Gopalan,
The Standing Orders Act is applicable to “industrial establishments” employing a minimum of 100 workmen. Certain State Governments, like Maharashtra and Karnataka, have enhanced the scope of the statute and made it applicable to establishments employing 50 or more employees.
In 1999, the State Government of Karnataka had exempted companies in the IT and ITeS sectors from the applicability of the Standing Orders Act for 2 years. The exemption continued to be extended thereafter, every 2 years, until August 2011. The State Government has not issued a similar extension thereafter.
The Industrial Employment (Standing Orders) Act 1946 (SO Act) requires employers to define and inform workers of the terms and conditions of employment on their premises. Information technology (IT) and IT-enabled service (ITeS) companies in Karnataka have enjoyed a blanket exemption from the SO Act. The last notification granting an exemption to such establishments was issued in August 2009. This exemption was valid for a period of 2 years and expired in August 2011. However, upon its expiry, the exemption was not renewed and these establishments were expected to draft and submit their standing orders for certification of the Labour Commissioner. Consequently, IT/ITeS establishments in Karnataka with 50 or more workmen now have to comply with the SO Act and ensure that their employee policies/handbook are as, or more beneficial, than the model standing orders and get it certified after following the prescribed procedure.
Through a notification dated 24 September 2012 the Government of Karnataka had briefly extended this exemption to IT, ITES and Software Establishments from all provisions of the SO Act until 31 March 2013, on the condition that these establishments submit draft standing orders for certification, by 31 December 2012. This additional window period was intended to allow these establishments sufficient time to draft and submit standing orders in accordance with the provisions of the SO Act.
The labour authorities have also stated their willingness to allow the IT/ITES industry on the whole to come up with a standard set of standing orders that are suited to the industry. Should such a standard set of standing orders be created and be accepted by the labour authorities, then IT companies could use that as a benchmark with respect to their own standing orders.
I hope this would clarify the issue for you.
Regards
Raju Bhatnagar
From India, Bangalore
The Standing Orders Act is applicable to “industrial establishments” employing a minimum of 100 workmen. Certain State Governments, like Maharashtra and Karnataka, have enhanced the scope of the statute and made it applicable to establishments employing 50 or more employees.
In 1999, the State Government of Karnataka had exempted companies in the IT and ITeS sectors from the applicability of the Standing Orders Act for 2 years. The exemption continued to be extended thereafter, every 2 years, until August 2011. The State Government has not issued a similar extension thereafter.
The Industrial Employment (Standing Orders) Act 1946 (SO Act) requires employers to define and inform workers of the terms and conditions of employment on their premises. Information technology (IT) and IT-enabled service (ITeS) companies in Karnataka have enjoyed a blanket exemption from the SO Act. The last notification granting an exemption to such establishments was issued in August 2009. This exemption was valid for a period of 2 years and expired in August 2011. However, upon its expiry, the exemption was not renewed and these establishments were expected to draft and submit their standing orders for certification of the Labour Commissioner. Consequently, IT/ITeS establishments in Karnataka with 50 or more workmen now have to comply with the SO Act and ensure that their employee policies/handbook are as, or more beneficial, than the model standing orders and get it certified after following the prescribed procedure.
Through a notification dated 24 September 2012 the Government of Karnataka had briefly extended this exemption to IT, ITES and Software Establishments from all provisions of the SO Act until 31 March 2013, on the condition that these establishments submit draft standing orders for certification, by 31 December 2012. This additional window period was intended to allow these establishments sufficient time to draft and submit standing orders in accordance with the provisions of the SO Act.
The labour authorities have also stated their willingness to allow the IT/ITES industry on the whole to come up with a standard set of standing orders that are suited to the industry. Should such a standard set of standing orders be created and be accepted by the labour authorities, then IT companies could use that as a benchmark with respect to their own standing orders.
I hope this would clarify the issue for you.
Regards
Raju Bhatnagar
From India, Bangalore
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SELF-CERTIFICAT E PROFORMA UNDER THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958.doc
Shops & Establishment Act 1961 - Karanataka.pdf