Karnataka Government Extends Exemption for IT/ITES and Knowledge-Based Industries

In a recent development aimed at fostering growth and flexibility in Karnataka’s burgeoning IT/ITES and knowledge-based industries, the state government has extended the exemption from the Industrial Employment (Standing Orders) Act, 1946. This move, outlined in Notification No. LD 328 LET 2023, grants a further five-year exemption period, continuing from the date of publication in the Official Gazette. This notification was published on June 10, 2024.

Under this exemption, IT/ITES, startups, animation, gaming, computer graphics, telecom, BPO, KPO, and other knowledge-based establishments are relieved from certain provisions of the Act, with conditions to ensure fair workplace practices. Notably, companies are required to establish internal committees for addressing sexual harassment complaints and grievance redressal committees (GRC) to handle employee grievances promptly. Additionally, employers must inform the labor authorities of any disciplinary actions taken against employees.

This extension underscores the government’s commitment to promoting a conducive environment for innovation and growth in Karnataka’s vital tech and knowledge sectors, aligning regulations with the evolving dynamics of modern workplaces.