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Andhra Pradesh extends the exemption granted to IT and ITeS establishments from the applicability of certain labour regulations

03 Apr 2025

Andhra Pradesh extends the exemption granted to IT and ITeS establishments

Partner: Veena Gopalakrishnan, Senior Associate: Vinduja Menon, Trainee Associate: Aradhana Gorur

The Andhra Pradesh government, through a notification dated 25 March 2025, has exempted all Information Technology (IT) and Information Technology Enabled Services (ITeS) establishments from the applicability of certain provisions of the Andhra Pradesh Shops and Establishments Act, 1988, for a period of five years, i.e., until March 2030. This exemption, originally introduced in 2002, has been renewed by the state government from time to time.

Accordingly, IT/ITeS establishments in Andhra Pradesh have been exempted from the application of provisions pertaining to:

  1. Opening and closing hours of an establishment (Section 15);
  2. Daily and weekly hours that an employee may work, including overtime (Section 16);
  3. Timings within which a young person can work (Section 21);
  4. Timings that a woman can work within, and the safety measures required to allow women to work the night shift (Section 23);
  5. Holidays that employees are entitled to in a year and compensatory offs (Section 31); and
  6. Conditions an employer must fulfil to lawfully terminate an employee’s employment (sub-sections 1, 2, 3 and 4 of Section 47).

However, the exemption is subject to compliance with the following key conditions:

  1. Working hours and overtime: The standard workweek must be limited to 48 hours, and overtime wages are payable for any additional hours worked.
  2. Weekly off and compensatory holidays: Employees must be given a weekly off. Employees who work on notified holidays must be provided with a compensatory holiday with wages.
  3. Safety and transportation for women working night shifts: Female employees may work the night shift (between 8.30 pm and 6.00 am), provided the employer ensures adequate security and transportation for them.
  4. Registers and returns: Employers may maintain the various registers required in soft copies, and employee returns are to be made online as directed.

The extension of this exemption to IT/ITeS establishments reflects the Andhra Pradesh government’s continued efforts to advance the IT sector’s presence in the state. In the last year, similar exemptions have been notified in other states as well, including Telangana and Uttar Pradesh. (To read our update on the Uttar Pradesh exemption extension, click here, and for Telangana, click here.)


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