The regime of labour law in India
is centered around employment and other related issues to labour and labour
standards in India. The application of the law relates to any kind of dispute
that arises out of employment between either the employer of the employee or
employee and employee. The subject matter of the dispute is irrelevant unless
it relates to matters of employment i.e., benefits scheme, working hours, wage
revisions, termination, other standards, etc.
However, within this general legal framework of the labour laws, the Information Technology and relates ventures have been exempted by virtue of the Indian IT industries were exempted from the Industrial Employment Standing Orders Act, 1946. However, it was only recently that the government decided to extend the purview of the labour laws in India for private companies to the extent so as to cover within its ambit, enterprises and ventures based on the Information Technology Act. Its regulation by the labour law regime attracts a wide variety of conditions of operation, obligations, duties and other general standards of conduct.
Due to their earlier exemption, it is generally taken to be exempted but such is not the case. However, there do exist certain Acts of Labour Law which do not hold application (Industrial Disputes Act, 1947 and Factories Act, 1946). But the general rule is that of applicability and the caveat of exemption is tiny. Here is a brief of the laws which will apply to the IT Industries and their employees:
However, within this general legal framework of the labour laws, the Information Technology and relates ventures have been exempted by virtue of the Indian IT industries were exempted from the Industrial Employment Standing Orders Act, 1946. However, it was only recently that the government decided to extend the purview of the labour laws in India for private companies to the extent so as to cover within its ambit, enterprises and ventures based on the Information Technology Act. Its regulation by the labour law regime attracts a wide variety of conditions of operation, obligations, duties and other general standards of conduct.
Due to their earlier exemption, it is generally taken to be exempted but such is not the case. However, there do exist certain Acts of Labour Law which do not hold application (Industrial Disputes Act, 1947 and Factories Act, 1946). But the general rule is that of applicability and the caveat of exemption is tiny. Here is a brief of the laws which will apply to the IT Industries and their employees:
The Trade Unions Act, 1926:
The underlying theory of the Trade Union
Act, 1 926 is to facilitate the representation of the workmen or employees via
a platform or the coming together of all other employees in a Union. It
originates by virtue of Article 19(1)(c) of the Constitution of India, which
entitles all citizens to have a fundamental right to form associations. This
has applicability to the IT Employees as well and is thus entitled to form
unions and operate as an association.
The Payment of Gratuity Act, 1936:
The Payment of Gratuity Act, 1936:
Payment of Gratuity Act, 1936 provides
for the payment to gratuity to all employees, post service. This statute is
based on the equitable principle which is in favour of both the employer and
the employee. Gratuity entitlement under this Act is also extended to IT
employees if they fulfill the pre-conditions of continuous employment and other
necessities.
The Minimum Wages Act, 1948:
The Minimum Wages Act, 1948:
This Act applies to all workmen and ensures a
basic minimum wage, fixed by the Central or State Government, as per the
profile of the job. It essentially extends its scope and application to
commercial establishments and the employees present therein. The periods of
recession hit the IT industries to an extent that the employers drop current
recruits, cuts down salaries and other incentives. The Central legislation as
this one ensures that there is a basic minimum support to the employees in the
financially difficult times like these.
The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act, 2013:
The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act, 2013:
Solidifying from the apex court’s
judgments in the case of Vishakha State of Rajasthan, this legislation was
passed to maintain work ethics in all industries pertaining to treatment of
women. It provides for the safeguard mechanisms which must be in place in order
to ensure a safe working atmosphere for the women employees.
A blanket exemption to labour law in India for IT companies regime in India allowed them to hire cheap labour, violate work ethics and not maintain standard conditions of labour. However, a worker’s fundamental right cannot be infringed.
After the application of labour laws and the removal of blanket exemption, the regime of IT Industries has become more stringent. The only exemption which can be applied to IT industries or other industries for that matter is done on a case-to-case basis.
A blanket exemption to labour law in India for IT companies regime in India allowed them to hire cheap labour, violate work ethics and not maintain standard conditions of labour. However, a worker’s fundamental right cannot be infringed.
After the application of labour laws and the removal of blanket exemption, the regime of IT Industries has become more stringent. The only exemption which can be applied to IT industries or other industries for that matter is done on a case-to-case basis.
The industrial or labour rules of the
country are applicable
to the IT Industries, but not all the laws.
The IT industries are exempted from several labour laws that square measure applicable to alternative industries.
The IT industries attempt their utmost to avoid the
obligations that square measure obligatory on them by the law,
but no one is above the law and the fundamental
rights of an employee or associate worker can not be profaned in any case by anyone.
Also, read our blog on What to do if your previous employers do not offer you the payment dues.
Also, read our blog on What to do if your previous employers do not offer you the payment dues.
This is very informative and intersting for those who are interested in share market field.
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EaseMyTrip
Labor laws are one of the most important issues in the IT-ITES industry. The IT-ITES industry is a highly competitive and fast growing sector, with many new entrants entering the market every year. To ensure that all its employees are protected from exploitation and to enable them to work safely, there must be adequate protection for their rights against exploitation by employee laws in india
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