Standing Orders by IT/ITES/Software companies in Karnataka

[CS.Omkar]

Friends,

 

As you may be aware, in Karnataka, Industrial Employment (Standing Orders) Act, 1946 is applicable to every industrial establishment engaging 50 or more workmen on any day of preceding 12 months. IT/ITES/Software establishments in Karnataka were given exemption from this Act since 1999. However, the extension for this exemption expired in August 2011. Government of Karnataka, initially refused to extend this exemption, but finally extended this exemption till 31-03-2013 vide notification No. LD 201 LET 2012 dated 24th September 2012 (attached with this mail) subject to the condition that the Employers of the above establishments shall submit their draft standing orders for the certification of Labour Commissioner before 31-12-2012.

 

By 31^st December 2012, not even 5% of the IT/ITES/Software companies in Karnataka have filed their Standing Orders for certification. Principal secretary for IT and BT has requested Labour department to extend this filing deadline till 31^st January 2013 and this request for filing of SO by 31-01-2013 without any fine was under consideration by Labour department. However, notification is not found in Labour department webpage for this extension.

 

Companies missing this deadline are liable for a fine of Rs 5,000 and Rs 200 for each day of delay as per Sec 13(1) of the Industrial Employment (Standing Orders) Act, 1946.

 

Let us ensure this compliance if SO is not yet filed for certification.

 

Regards…Omkar