Telangana IT Sector Gets Exemption from Shops & Establishments Act

The Commissioner of Labour, Telangana vide a notification dated June 07, 2024, bearing reference number G.O. Ms. No. 5 (“Notification”), has exempted all Information Technology Enabled Services (“ITeS”) and Information Technology (“IT”) establishments in Telangana from the provisions of the following sections of the Telangana Shops and Establishments Act, 1988 (“S&E Act”):

• Sections 15 (Opening and Closing Hours);
• Section 16 (Daily and Weekly Hours of Work);
• Section 21 (Special Provision for Young Persons);
• Section 23 (Special Provision for Women); and
• Section 31 (Other Holidays).

The State Government of Telangana has exercised their powers recognized under Section 73(4) of the S&E Act and has granted the exemption to the ITeS and IT establishments for a period of 4 (four) years, which shall be deemed effective from May 30, 2024, subject to certain conditions.

Conditions For Exemption

The ITeS and IT establishments will be eligible to be exempted from the scope of the S&E Act, if they fulfil the following conditions:

1. Weekly Working Hours: Weekly working hours of an employee shall be 48 (forty-eight) hours. If any employee works beyond 48 (forty-eight) hours, such employee shall be entitled to overtime wages.
2. Weekly-Off: Every employee shall be given at least one day as a weekly-off.
3. Compensatory Holiday: If in the event an employee works on the notified holidays, every such employee shall be entitled to a compensatory holiday with wages in lieu of the notified holidays, as provided under the provision of Section 31(2) of the S&E Act.
4. Night Shift: The management is permitted to engage young and women employees during the night shift subject to provision of providing adequate security during their employment and to and fro transport from their respective residences.
5. Identity Cards: Every employee shall be provided with identity cards and all other welfare measures to which they are entitled as per the applicable rules.
6. Safety Compliances:
• Establishments shall obtain bio-data of each driver and conduct pre-employment screening of the antecedents of all drivers employed on their own or through out-sourcing. Details such as driving license, photographs, address, telephone / mobile numbers of drivers shall be available with the respective companies.
• The schedule and route of the pick-up and drop shall be decided by the supervisory officer of the company on every Monday (if Monday is a holiday, the next working day in the week). In case of exigencies, change of drivers / routes / shifts shall be allowed only with the prior knowledge of the supervisory officers / employees.
• Contact numbers and address of the women employee shall not be disclosed to unauthorized persons.
• Careful selection of routes shall be made in such a way that no women employees shall be picked-up and dropped last.
• It is advisable for the companies to employ security guards for night shift vehicles.
• Designated supervisors of the company shall randomly check the vehicle on various routes.
• Companies shall have a control room / travel desk for monitoring vehicle movements.
• The time after / before which security should be provided to women employees for cab drop-offs / pick-ups should be specified.
7. Record Maintenance: General exemptions from maintenance of various statutory registers in hard copies and recognition of soft copy of registers.

It is pertinent to note that in the event of violation of the conditions stipulated above or even otherwise, the exemption granted under this Notification may be revoked by the Government of Telangana at any time without any further notice.

Conclusion

The recent Notification permitting the exemption of the ITeS and IT establishments from the scope of certain provisions of the S&E Act represents a significant step forward by the Government of Telangana. This initiative by the Telangana Government promotes flexible working hours for women employees, thereby enhancing women's participation in the workforce. Additionally, the Notification mandates that companies implement robust safety and security measures, ensuring a secure and conducive working environment. This progressive move not only empowers women but also contributes to a more inclusive and diverse workforce, fostering economic growth and innovation in the IT-based companies. By prioritizing the well-being and protection of female employees, the Government of Telangana underscores a commitment to gender equality and workplace safety.