Indian IT majors seek law school help for labor rules amendments

Leading Indian IT firms have sought help from one of the country’s foremost law schools for proposals to amend the six decade labor laws in India.

Quoting the professor of law and registrar at the National Law School of India University (NLS), V Nagaraj, a news website reports that the group of Indian IT companies, including Infosys Technologies Ltd., International Business Machines Corp. (IBM), Wipro Technologies Ltd., Hewlett-Packard Co. and a number of others, has engaged the services of the (NLS) to recommend the proposed changes in the existing labor rules.

An amendment to the existing labor laws in India has become essential as the Industrial Disputes Act was implemented on April 1, 1947 when manufacturing was the most prominent business activity in the country. Thus, the prevalent labor law is intended to look after the interests of the workers and serve as a guide to settle industrial rows. Nagaraj pointed out that the operational set up in the IT and BPO sectors are entirely different vis-à-vis their problems and expectations as this sector is a global industry.

Meanwhile, the NLS will review the issues especially pertinent to the industry and appraise if a distinct Bill, like those for the plantation employees and member of the media, is necessary or a modification of the existing labor laws would be sufficient to address the needs of the IT and BPO sector. Presently, Nagaraj and five students of the NLS are working on the project and are expected to submit a draft proposal by five months. The final recommendations will be submitted another three months later. According to Nagaraj, once the NLS submits its suggestions, the IT lobby will be required to take up the issue with the Government of India to transform the recommendations into legislation.

Earlier, the IT and BPO industry had urged the government to exclude the employees of the IT/ITeS sector as well as executives receiving higher salaries from the classification of ‘workman’ under the Industrial Disputes Act. In addition, the IT and BPO sector is demanding that the government amend the existing labor law on issues like retrenchment, night shifts for women employees as well as including the provision of working from home. Presently, the Industrial Disputes Act solicits the IT and BPO firms to give first choice to discharged employees while they are hiring again. In addition, the existing law does not permit women to work after 11 pm even with particular consent.

While an HR executive with one of the IT firms claimed that they were seeking the amendments with a view to facilitate the efficient performance of the companies, as they are already providing the best means that are far superior compared to the regular facilities mentioned in any existing labor laws. Nagaraj, on the other hand, opined that the government was unlikely to concede the demand of the IT/ITeS industry to keep out its employees from the category of ‘workman’ since the Indian Constitution safeguards the interests of the workers. His views were endorsed by a prominent Delhi High Court advocate who said that there is no need to provide special treatment to the IT/ITeS industry as it is not separate from any other industry. He felt that the move by the IT and BPO firms was merely an endeavor to evade the liabilities stipulated by the Industrial Disputes Act.