S & E Law: Exemption for IT, ITES Establishments in Telangana

The Telangana government has extended the exemption provided to IT and IT-enabled services establishments in the state from certain provisions of the Telangana Shops and Establishments Act, 1988, for a further period of four years with effect from May 30, 2024.

With this, exemption is granted to said establishments from provisions of Sections 15, 16, 21, 23 and 31 of the Act. Section 15 prohibits establishments from opening earlier or closing later than such hour as prescribed by the government. As per Section 16, employees cannot be asked to work for more than eight hours in any day and 48 hours in any week. Sections 21 and 23 contain special provisions for young persons and women; while young persons cannot be asked to work before 6 am and after 7 pm, women cannot be required to work in the establishment before 6 am and after 8:30 pm. Section 31 specifies that employees are entitled to nine holidays in a year on which the establishments have to remain closed.

However, the exemption is subject to conditions as prescribed under the notification dated June 7, 2024. These conditions include payment of overtime wages for work done beyond the weekly working hour limit of 48 hours, providing weekly off to employees, provision of adequate security during the course of employment and to and fro transport if young and women employees are engaged during night shifts, compensatory holidays to be provided to employees for working on notified holidays, etc. In case of non-compliance with these conditions, the exemption orders may be revoked at any time without prior notice.

Such an exemption has been extended multiple times over the years. The one-year exemption granted vide notification dated November 15, 2023, ended last month and the relaxation provided by the present notification will take effect on May 30.