IT Taskforce

VIII. LABOUR LAWS

62. As the Indian IT product industry will increasingly have to compete with countries like Taiwan, Singapore, Korea and Philippines, the Indian Labour Laws in this limited sector should not be adverse as compared to the Labour Laws in the competing countries. In view of this, the following modifications in the Labour Law specifically applicable to the IT Products manufacturing sector, will be enacted in S-BIT Units/Zones/Habitats with due consideration to the ILO recommendations.

i) Women shall be allowed to work in three shifts subject to provisions of all the ILO specified conveniences including transportation from and to the door steps of the employee.

ii) Temporary status will apply for 720 days out of 3 years instead of 240 days out of one year as per the existing labour laws.

iii) Manufacturers will be allowed to downsize employee rolls by upto 10 percent of total employee strength in any year without permission.

iv) Contract Labour Abolition Act will not be applicable to the IT Sector.

v) In order to be able to run 3-shift/4-shift operations, labour law should allow upto 12 hour shifts without overtime as long as total number of hours worked per week averages the current norms of 48 hours per week.

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