The Government of Haryana has issued a major regulatory relaxation for the state’s rapidly expanding digital and knowledge-driven industries. Through a notification dated 20 November 2025 , the Labour Department has exempted a wide range of IT and IT-enabled businesses from the applicability of the Industrial Employment (Standing Orders) Act, 1946 for a period of five years.
This decision is intended to support innovation-centric sectors such as IT, ITES, Startups, Animation, Gaming, Computer Graphics, Telecom, GCCs, BPOs, KPOs, and other knowledge-based industries, enabling them to operate with greater flexibility in a competitive global environment.
The exemption, however, is accompanied by strict worker-protection conditions to ensure transparency, accountability, and fair employment practices.
Industries Covered Under the Exemption
The notification applies to the following sectors:
- IT / IT Enabled Services (ITES)
- Startups
- Animation and Gaming
- Computer Graphics
- Telecom
- Global Capability Centres (GCCs)
- Business Process Outsourcing (BPO)
- Knowledge Process Outsourcing (KPO)
- Other knowledge-based industries operating within Haryana
These sectors are no longer required to comply with the provisions of the Industrial Employment (Standing Orders) Act, 1946, which typically mandates formal standing orders governing service conditions, misconduct rules, and disciplinary procedures.
Conditions Attached to the Exemption
The exemption is not unconditional. To safeguard employee rights and maintain transparent workplace governance, the State Government has prescribed four mandatory compliance measures:
1. Mandatory Internal Committee Under POSH Act
Every establishment must constitute an Internal Committee (IC) as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.
This includes compliance with all rules related to prevention, redressal, reporting, and awareness on sexual harassment.
2. Mandatory Grievance Redressal Committee (GRC)
Each exempted establishment must set up a Grievance Redressal Committee with equal representation from employers and employees.
The committee must:
- Address all types of employee complaints
- Resolve grievances within a reasonable timeframe
- Ensure transparency and accountability in decision-making
3. Reporting of Disciplinary Actions
Companies must report all major disciplinary actions—including suspension, termination, dismissal, discharge, or demotion—to:
- The Jurisdictional Deputy Labour Commissioner
- The Labour Commissioner, Haryana
This ensures administrative oversight despite the regulatory relaxation.
4. Mandatory Submission of Service Condition Information
Employers must promptly provide any details sought by state labour authorities regarding employee service conditions.
Information must be submitted fully and within the timeframe specified by:
- Jurisdictional Deputy Labour Commissioner
- Labour Commissioner, Haryana
The notification also clarifies that if the Industrial Relations Code, 2020 is implemented, the provisions of the IR Code will apply to all such establishments, overriding this exemption.
Why the Exemption Matters
Haryana is home to major IT and startup clusters in Gurugram and other cities. The exemption is expected to:
- Improve ease of doing business
- Encourage innovation and investment
- Reduce bureaucratic compliance loads
- Support startups and emerging tech sectors
- Align state policy with global industry demands
At the same time, mandatory committees and reporting mechanisms ensure that worker welfare and grievance processes remain intact.
Conclusion
The Haryana Government’s decision to exempt IT and knowledge-driven industries from the Industrial Employment (Standing Orders) Act, 1946 for five years represents a balanced approach—granting operational flexibility to high-growth sectors while preserving essential employee safeguards.
By combining regulatory relaxation with mandatory committees, oversight mechanisms, and future alignment with the Industrial Relations Code, the state aims to create an enabling environment for business without compromising worker protections.