The Karnataka Government has exempted IT, ITES, startups, animation, gaming, computer graphics, telecom, and other knowledge-based industries ("Industries") from application of the Industrial Employment (Standing Orders) Act, 1946 ("IESO Act") for five years from June 6, 2014. The IESO Act applies if 50 or more workmen are employed by an organization in the preceding 12 months. It requires organizations to draft standing orders, covering aspects like working hours, layoff, and retrenchment, which is further required to be certified by the relevant labour authority.
Industries would be required to be compliant with the following, irrespective of the exemption mentioned above:
- Industries must comply with the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013 ("POSH Act").
- A grievance redressal committee ("GRC") must be constituted as required under Section 9(C) of the Industrial Disputes Act, 1947 ("IDA"), applicable to establishments with 20 or more workmen. Non compliance penalties are lower, but establishing a GRC is advisable for organizations with 50 or more workmen.
- Industries must inform the jurisdictional deputy labour commissioner and commissioner of labour in Karnataka about employee dismissals, terminations, suspensions, and discharges, and provide relevant information if requested by labour authorities. T
- hese exemptions will apply until the Industrial Relations Code, 2020 is enacted. Recent reports suggest that the Ministry of Labour may notify the labour codes soon.
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