IT Firms Exempted from India’s Labor Laws for 2 Years

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Sept. 1 – The Indian government is exempting IT and outsourcing companies from the provisions of its labor law for two years to help firms cope with the challenging business climate, reports The Times of India.

The Industrial Employment (Standing Orders) Act 1946 (Central Act 20 of 1946) strictly outlines classification of workers, working hours and shifts, salary, leave and attendance. Companies doing business in the country have complained that its labor laws are inflexible to current market demands.

Head of HR in Infosys Technologies told The Times of India:“We have antiquated labour regulations, which do not fit the requirement of the knowledge-based industry. This reform is necessary. We do not want inspector raj here, what we want is more such reforms across industries.”