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Trilegal Update | Uttar Pradesh exempts IT and ITeS establishments from certain labour laws

20 Nov 2024

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Partner: Veena Gopalakrishnan, Senior Associate: Archita Mohapatra, Associate: Monazza Sajid

The Government of Uttar Pradesh, through a notification dated 26 September 2024, has exempted information technology (IT) and IT-enabled services (ITeS) establishments from the applicability of certain provisions of the Uttar Pradesh Dookan Aur Vanijya Adhishthan Adhiniyam, 1962 (i.e., the Shops and Establishments legislation for Uttar Pradesh) for a period of two years. This relaxation is aimed at providing IT/ITeS establishments flexibility in managing their workforce by exempting them from applicable provisions on hours of work, overtime, and spread over of working hours in a day.

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

  • Working hours and spread over: Employees should not work for more than 12 hours in a day, including rest intervals. Employees should be given a rest interval of half an hour after five hours of continuous work.
  • Overtime pay: Employees working beyond 48 hours in a week are entitled to overtime wages at twice the ordinary rate. The total number of overtime hours should not exceed 125 hours per quarter.
  • Weekly off and compensatory time off: Every employee should be provided a weekly off. Employees required to work on notified public holidays are entitled to compensatory holiday in lieu of such work.
  • Safety and transportation for night shifts: Employers are required to ensure adequate security and transportation arrangements for female employees working during night shifts.

This exemption is a significant move to boost the IT/ITeS establishments in Uttar Pradesh. It reflects the government’s efforts to support the operational flexibility of this sector while ensuring that health and safety conditions of employees are protected. Notably, similar exemptions to the IT/ITeS establishments have been granted previously in other states such as Telangana and Gujarat.


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