Labour Laws Compromised for Start Up’s and IT/ITES Companies in Karnataka

The new entrepreneurs of Karnataka will have an exemption on a series of labour laws. This step has been proposed to encourage the spirit of entrepreneurship in the state.

Even the IT/ITES industry is not required to follow the Industrial Employment (Standing Orders) Act, 1946 for next 5 years as declared by Science & Technology Minister of Karanataka, Shri S.R. Patil. Not only this, the knowledge based organizations are exempted to follow the working hours regulations as stipulated in the Karnataka Industrial Employment Rules, 1946 and barred from strikes and shut down.

The PF amount and ESI of Rs.2000 per employee per month will be reimbursed by the Government for two years for all new employment created in tier two and three cities.

However the clause for sexual harassment remains applicable.

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