Karnataka IT sector to come under the labour department’s ambit

Unfair practices in several IT/ITeS companies, like arbitrary termination, ID blockage, mass retrenchment, sexual harassment, and increase in working hours, have come to the notice. 
Bagmane Tech Park. (File Photo)
Bagmane Tech Park. (File Photo)

BENGALURU: Alleged unfair trade practices in the information technology (IT)/information technology-enabled services (ITeS) sector have led the State Government to contemplate bringing companies in this segment in Karnataka under the ambit of the state labour department.

Several cases of alleged unfair practices in several IT/ITeS companies, like arbitrary termination, ID blockage, mass retrenchment, sexual harassment, and increase in working hours, have come to the notice of the labour department, said Additional Labour Commissioner Dr G Manjunath, who pointed out that they have referred those cases to the labour and industrial courts.

The IT/ITeS firms have been given an exemption from the Karnataka Industrial Employment (Standing Orders) Act 1946 over many years as they were considered ‘sunrise industries’. It was extended for five years on May 21, 2019. But now, the government is thinking of not continuing the same and bringing those companies under the department’s purview to protect the interests of those working in such companies.

In Karnataka, nearly 18 lakh people work in 8,785 IT/ITES firms. Post-Covid, many such cases of unfair labour practice have been registered with the department and it is necessary to enforce the Industrial Employment (Standing Orders) Act 1946 to effectively resolve such grievances and provide job security to those working in the sector, the officer said. 

‘Will help sector staff’

Additional Labour Commissioner Dr G Manjunath said that as per the directions of Labour Minister Santosh Lad, they will hold consultations with the stakeholders as the government is contemplating discontinuing the exemption.

Karnataka State IT/ITeS Employees Union General Secretary Sooraj Nidiyanga termed it as a positive step as it would help employees working in the sector. The association, which has 10,000 members, has been fighting against the exemption given to the sector, he said.

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