The Industrial Employment Act protects employees from arbitrary suspension, discharge, termination, demotion, and dismissal.
The Karnataka government has once again exempted the IT/ITeS sector from the Industrial Employment (Standing Orders) Act, 1946, for five years despite stiff opposition from trade unions and other labour rights organisation. Other than IT/ITes, the other sectors that have been given exemption are startups, animation, gaming, computer graphics, telecom, BPO, KPO and other knowledge-based industries. The Industrial Employment Act is important as it protects employees from arbitrary suspension, discharge, termination, demotion, and dismissal. While there is opposition from trade unions, the exemption was sought by trade bodies like NASSCOM. The exemption for the IT/ITeS was in place for the last 20 years, ending January 24. On May 25, a new notification was issued, extending the exemption for another five years. Like the previous two decades of this exemption, companies have been asked to form internal committees per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and other employee grievance redressal forums. Companies also have to mandatorily inform the Labour Department in case of any such action. “Barring one consultation meeting that was not inclusive, the government did not hold discussions with all the stakeholders. It is disappointing that despite several representations to implement the Standing Orders in the IT sector by trade unions, the government has chosen to exempt the sector,” told The Hindu. He added, “We will seek a legal recourse against this order as it is anti-labour welfare.” The argument put forward by trade bodies was that unlike traditional factory jobs, the IT sector has robust HR policies and everybody has an opportunity to be heard. “Companies have devised robust internal employee feedback mechanisms which have been evolving over the years. Every employee has a right to be heard, and has access to open door policies, 360-degree feedback, escalation metrics, etc, for grievance redressal.” an earlier statement of NASSCOM said.
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