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ARTICLE · 06 JUNE 2019

Karnataka Extends Exemption To It Establishments From Coverage Under Industrial Employment (Standing Orders) Act 1946

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The Notification mandates that the Exempted Establishments comply with certain conditions to enjoy the benefits of the exemption granted therein.

IndiaEmployment and HR

On 25 May 2019, the Government of Karnataka (Government) issued a notification (Notification) extending the exemption granted to knowledge-based industries – including information technology (IT), information technology enabled services (ITES), start-ups, animation, gaming, computer graphics, telecom, business process outsourcing and knowledge process outsourcing (together referred to as Exempted Establishments)– from the application of the Industrial Employment (Standing Orders) Act 1946 (IESO Act) for an additional period of 5 years with effect from the date of the Notification. The Government has been granting such exemptions to the Exempted Establishments for several years, the last of such notifications having been issued on 25 January 2014.

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