IT companies free of labour laws for 2 years

With IT firms buffeted by today’s turbulent times, the government has offered a helping hand. Reciprocating their needs, it has exempted IT/ITES and software establishments from the provisions of Industrial Employment (Standing Orders) Act 1946 (Central Act 20 of 1946) for two years. These laws are strict on classifying workers, their working hours and shifts, the wages payable, besides other archaic rules on leave and attendance. Every establishment mandatorily needs to classify workmen like — permanent; probationers; badlis; temporary; casual and apprentices . Working hours for all classes of employees in each shift should be exhibited in English and in principal languages of workmen employed, on notice boards. Publication of holidays, notices specifying the wage rate payable to all employees also to be displayed .The Act also empowers the government to impose penalties to the tune of Rs 5,000 on the employer who fails to submit or modify the draft standing orders.