Atul GuptaPartner
Parvathy TharamelCounsel
Tania GuptaAssociate
Key Developments
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Telangana government renews exemption for IT/ITeS establishments from certain labour laws
The Telangana government had exempted Information Technology (IT)/IT enabled services (ITeS) establishments in 2013 from certain provisions of the Telangana Shops and Establishments Act, 1988 (Telangana S&E Act) for a period of five years, subject to certain conditions. This exemption was renewed twice until 29 May 2023. The state government recently renewed the exemption again with effect from 30 May 2023, through a notification dated 15 November 2023. The renewed exemption is valid for only one year, unlike previous instances where the exemption was for five years.
Under this notification, IT/ITeS establishments are exempted from provisions related to opening and closing hours of establishments, daily and weekly working hours, prohibition on engaging women employees in night shifts, and grant of mandatory and festive holidays. These exemptions are subject to certain conditions, including providing the prescribed transport and security to women employees. Employers who do not fulfil the conditions set out in the notification may lose the benefit of the exemption, which can be revoked without prior notice.
IT/ITeS establishments are also exempted from maintaining hard copies of statutory registers under the Telangana S&E Act and can maintain them digitally instead.
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Haryana High Court quashes law guaranteeing 75% reservation for local candidates in private sector jobs
The Haryana High Court (in the case of IMT Industrial Association and another v State of Haryana and another), recently held that the Haryana State Employment of Local Candidates Act, 2020 is unconstitutional and ineffective from the date it purported to come into force. This law provided for 75% reservation for candidates domiciled in Haryana in private sector jobs where the salary is less than INR 30,000 per month.
The Court held that the State cannot direct private employers to do what has been forbidden under the Constitution of India and it cannot discriminate against individuals on account of which state they come from. In other words, the Court disallowed negative discrimination against non-domiciled citizens. Article 35 of the Constitution specifically prohibits state governments from legislating on subjects related to Article 16(3), which gives the Parliament the exclusive power to set residency conditions for employment opportunities. Accordingly, the Court held that once there is a bar under the Indian Constitution, there is no reason for the state to require private employers to employ local candidates, and doing so would lead to similar enactments in various states providing similar protection for their residents.
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Manipur Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2021 comes into force with retrospective effect
On 2 November 2023, the government of Manipur notified the Manipur Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2021 with effect from 29 June 2021, replacing an older legislation.
The statute lays down obligations for employers on working hours, leave, overtime, welfare facilities, maintenance of returns and records, etc. It prohibits discrimination against any woman worker in matters of recruitment, training, transfer, promotions, or wages. Employees occupying positions of confidential, managerial, or supervisory character are exempted from the provisions of this Act.
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Tamil Nadu government publishes draft amendments introducing registration requirements under the Tamil Nadu Shops and Establishments Rules, 1948
The Tamil Nadu government published draft amendments to the Tamil Nadu Shops and Establishments Rules, 1948 on 9 October 2023 to introduce new provisions which include:
- the process for registration of commercial establishments through the web-portal of the labour department;
- requiring online information to be provided by existing commercial establishments regarding details such as nature of business, headcount, etc., to the inspector of the area in which the establishment is located;
- providing at least one first-aid box per every 150 persons at every establishment, which must be readily accessible during all working hours and should contain basic first-aid related materials to treat minor injuries.
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Central government amends the rules on hybrid working under the Special Economic Zones Rules, 2006
The Ministry of Commerce and Industry recently notified the Special Economic Zones (Fourth Amendment) Rules, 2023 (Rules) to amend Rule 43A of the Special Economic Zones Rules, 2006. Units can now permit their employees to work from any place outside the Special Economic Zone (SEZ), subject to fulfilment of revised conditions which include:
- informing the development commissioner (DC) by email that hybrid work is permitted;
- maintaining and submitting for verification to the DC a list of employees who are permitted hybrid work; and
- providing employees with duty-free goods such as computers etc., that are necessary for hybrid work and may be taken outside the SEZ without payment of duty, etc.
However, the Rules do not define ‘hybrid work’ or the proportion of time that must be spent in the workplace to qualify as hybrid instead of fully remote. Employees covered include employees: (a) of IT/ITeS SEZ units, (b) who are temporarily incapacitated, (c) who are travelling, and (d) who are working offsite.
