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Telangana extends exemption from certain labour laws for IT/ITes establishments

14 Jun 2024

The Telangana government has extended the exemption from some labour laws for IT/ITes establishments for four years. This allows flexible work hours and night shifts but requires overtime pay, weekly off, compensatory holidays, and safety measures for night shifts. Establishments that fail to comply will lose the exemption.

Partner: Apeksha Mattoo, Counsel: Rina Goyal, Associate: Prachi Kulkarni

Information Technology (IT) and IT-enabled services (ITes) establishments operating in Telangana were exempt from the applicability of certain provisions of the Telangana Shops and Establishments Act, 1988 until 30 May 2024. On 7 June 2024, the state government has extended this exemption for another four years starting from 30 May 2024. This exemption is aimed at providing IT/ITes establishments flexibility in operating their business while simultaneously managing their workforce and accordingly provides relaxation from rules on opening and closing hours, daily and weekly working hours, engaging women and young persons in night shifts, and working on national and festive holidays.

To enjoy these relaxations, IT/ITes establishments must ensure that the following conditions are fulfilled:

1. Overtime pay and weekly off: The weekly working hours of employees will continue to be 48 hours and employees must be paid overtime wages for any additional work hours. Every employee must also be given a weekly off.

2. Compensatory holiday: If required to work on national holidays or festivals, that is, notified holidays, employees must be given a paid compensatory holiday.

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Telangana extends exemption from certain labour laws for IT/ITes establishments

Partner: Apeksha Mattoo, Counsel: Rina Goyal, Associate: Prachi Kulkarni

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