Exemption for IT & ITES Companies under Telangana S&E Act | 4-Year Relief Explained

Exemption for IT and ITES Companies under Telangana's S&E Act: What You Need to Know

The Telangana government has announced vide notification no. G.O.Ms.No. 5 an exemption for all Information Technology Enabled Services (ITES) and Information Technology establishments from certain provisions of the Telangana Shops and Establishments (S&E) Act, 1988. This exemption will be in effect for four years starting from May 30, 2024. Below, we break down what this means for businesses and employees in the IT sector.

Key Points of the Exemption

• Weekly Working Hours: Employees can work up to 48 hours per week. Any hours worked beyond this will be eligible for overtime pay.

• Weekly Off: Every employee must receive a weekly day off.
• Night Shifts for Young and Women Employees: Companies can employ young and women employees during night shifts if they provide adequate security and transportation to and from their residences.
• Employee Identification: All employees must have identity cards, and companies should ensure all welfare measures are in place as per the rules.
• Holiday Compensation: Employees working on notified holidays must be given a compensatory holiday with pay.
• Driver Screening: Companies must gather and verify the bio-data of each driver, including their driving license, photographs, address, and contact details.
• Transport Security: Companies must carefully plan pick-up and drop-off routes to ensure no woman employee is the first to be picked up or the last to be dropped off. Security guards for night shift vehicles are recommended.
• Random Checks: Supervisors must randomly check vehicles on various routes to ensure compliance with safety measures.
• Control Room: Companies should have a control room or travel desk to monitor vehicle movements.
• Revocation of Exemption: The government reserves the right to revoke these exemptions at any time without prior notice if the stipulated conditions are not met.
• Record Maintenance: Companies are exempt from maintaining statutory registers in hard copy. Soft copies will be recognized as sufficient compliance.
• Integrated Registers and Returns: Companies must maintain integrated registers and file integrated returns as per previous government orders.

Implications for IT and ITES Companies

This exemption is a significant step aimed at easing regulatory burdens and supporting the growth of the IT sector in Telangana. By reducing compliance costs and providing flexibility in operations, the government hopes to attract more IT businesses to the state.

Conclusion

The Telangana Labour Department exemption for IT and ITES companies under the S&E Act reflects its commitment to fostering a business-friendly environment. Companies in the sector should take note of these changes and ensure they comply with the conditions to benefit from this exemption.

For further details, refer to the official notification issued by the Labour Employment Training & Factories (LET&F) Department of Labour Telangana.