Karnataka exempts IT/ITeS establishments from the Industrial
Employment (Standing Orders) Act, 1946
In a significant step towards fostering an environment of
flexibility for businesses, the state government of Karnataka on
June 10, 2024 has once again exempted certain categories of
establishments including in the information technology
(“IT”) / IT-enabled services (“ITeS”)
sector from applicability of the Industrial Employment (Standing
Orders) Act, 1946 for an additional term of 5 (five) years. This
remarkable development not only empowers establishments to
implement global policies but also fuels a business-friendly
environment by streamlining operations in the state. By extending
the exemption, the government once again paves the way for a more
efficient, agile, and adaptable work environment, aligning with the
evolving needs of modern businesses. However, employers will need
to comply with certain pre-conditions in order to avail this
exemption. For a detailed