India's Technology Sector in Karnata State Exempted from Labour Law on Standing Orders
The Industrial Employment (Standing Orders) Act, 1946 lays down the rules and regulations governing terms and conditions of employment.
IT and ITeS companies in the State of Karnataka (Bangalore) were required to comply with this law from April 01, 2013, due to expiry of the previous exemption.
As a result, several IT and ITeS companies submitted draft standing orders to the labour department for certification.
Industry associations worked closely with the State Government to develop model standing orders for the IT and ITeS industry.
As per notification dated January 25, 2014 issued by the Karnataka State Government, IT and ITeS companies (along with certain other knowledge based sectors) have been exempted from compliance under this law for a period of 5 years.