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DO IT employees come under Labour law?

The IT industries do not include their employees under the definition of “workman” stated in the Indian Industries Act, 1965 in order to get exempted from the liabilities which arise ……………???

What Are The Labour Laws that Apply to The Indian Information Technology Industry

Labour laws are the laws which deal with the employment and labour related issues. Labour laws deal with the disputes between the employer and employee, regarding wages, pension, insurance of employees etc. In India labour Laws are also known as Industrial Laws or Employment Laws due to the fact that it deals mostly with the employment, wages and termination issues of labours working in industries.

Do Labour Laws apply to IT Industries ?

There is a misconception among the people that the labour laws of the country do not apply to IT Industries but this is not true.

· Almost all the labour laws which are applicable to any other industry are also applicable to IT Industry.

· This is true that the Factories Act, 1946, and certain State labour laws do not apply to IT Industries but apart from that, all the other labour laws are applicable to IT Industries as well.

· The state governments have been given the power that they can exempt any particular industry from the laws which are made by the Central Government regarding the labour or industrial laws under section 14 of the Indian Employment Standard Orders Act, 1946.

· The state government using this power do exempts the IT Industries from the Industrial Employment Standard Order Act, 1946.

· The IT industries do not include their employees under the definition of “workman” stated in the Indian Industries Act, 1965 in order to get exempted from the liabilities which arise after that.

The Indian Employment Standard Orders Act, 1946

The Trade Unions Act, 1926 was passed with the objective to make the establishing and functioning of the trade unions proper and systematic.

The Payment of Wages Act, 1936

The Minimum Wages Act, 1948

The Payment of Gratuity Act, 1972

The Maternity Benefit Act, 1961

The Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act, 2013


Common Problems Faced by the IT Employees

The problems faced are :

· The employees are working more than the prescribed working hours but are still not getting any overtime payment.

· Many call centres and other ITES companies are forcing the employees to work frequently in night shifts without any extra payment or compensation.

· The IT and ITES industries are governed by the conditions and environment which is to be created by the industries for its employees.

· The IT and ITES industries do not clarify the definition of workers or labours which gives them their rights.

· Many of the IT and ITES Industries have to give maternity benefits to women which have been provided by law to them.


The industrial or labour laws of the country are also applicable to the IT Industries, but not all the laws. The IT industries have been exempted from many labour laws which are applicable to other industries but the laws applicable to them must be adhered to at all times.

Role of Karma Management Global tech :

Labour Laws are applicable to any Organization that does business in India , thereby setting out the terms and conditions of employment. The business can be anything, whether it is a manufacturing organization, or trading organization or shop and establishment. All the related statutory compliances address the legal rights of, and restrictions on, working people and their organizations. Most importantly, it covers the workplace health and safety with good environmental conditions. . Further, the labour laws also focus on employment standards, including general holidays, annual leave, working hours, unfair dismissals, minimum wage, layoff procedures and severance pay and many other issues related to employer and employee and the various compliance requirements therein required to be adhered to.

Karma Management Global Consulting Solutions Pvt. Ltd. is one of the foremost Labour Law Consultant in Mumbai , operating on PAN India basis and having about 200 staff on its rolls for managing effectively the statutory compliances or HR compliances of over 300 clients in India and a good number of prestigious clients abroad as well, as a means of expanding beyond the territories of India.

Karma Management Global Tech Company, being in the field for about 17 years as a Labour Law Consultant, is well versed in managing the complex world of statutory compliances for any type of Global Organization or Domestic Organization, given the vast potential of its resources and the capabilities that it has on hand with complete automation process undertaken for giving accurate end to end delivery and results as per stipulated time frame.

Please contact our Marketing Compliance Team to help you service all the labour laws applicable to you as an Industry !

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