Introduction:

In a significant development for the Information Technology (IT) and Information Technology Enabled Services (ITES) sector, the Government of Uttar Pradesh, Notification No. 1866-XXXVI-03–2024-1844430 dated 26.09.2024 has granted a two-year exemption to these industries from the applicability of Sections 6 and 7 of the Uttar Pradesh Dookan Aur Vanijya Adhisthan Adhiniyam, 1962 (U.P. Act No. 26 of 1962). The exemption, effective from the date of the notification’s publication in the state gazette, aims to address the unique operational needs of IT and ITES establishments while ensuring that employees’ rights and welfare are protected.

This blog aims to explore the implications of this exemption, the conditions attached, and what both employers and employees in the IT sector need to know.

What is the Uttar Pradesh Dookan Aur Vanijya Adhisthan Adhiniyam, 1962?

The Uttar Pradesh Dookan Aur Vanijya Adhisthan Adhiniyam (The Uttar Pradesh Shops and Commercial Establishments Act) was enacted to regulate the working conditions in shops and commercial establishments within the state. Sections 6 and 7 of the Act primarily focus on working hours, rest periods, overtime, weekly holidays, and related labour laws to protect workers from exploitation.

However, due to the nature of the IT and ITES sectors, where work often involves flexible timings, project deadlines, and round-the-clock operations, the government has granted these industries an exemption for a period of two years from the enforcement of these sections.

Key Points of the Exemption:

1. Working Hours Restrictions:

• Young persons (ages 14-18): Maximum of 6 hours per day.
• Other employees: Maximum of 12 hours per day (including rest intervals).

This condition ensures that employees, especially young persons, are not overworked while also providing flexibility for employers to meet the demands of the IT/ITES sector.

2. Rest Intervals: Employees must receive a minimum of half an hour rest after five hours of continuous work. Total work and rest periods must not exceed 12 hours in a day.

This rule ensures that workers are not subjected to long, continuous work hours without necessary breaks, safeguarding their health and well-being.

3. Overtime:

• Work exceeding 48 hours per week will be classified as overtime, entitling the employee to overtime wages.
• Overtime pay shall be at twice the ordinary rate, which includes basic wages and applicable allowances (excluding bonuses).

This provision protects workers from being exploited with excessive working hours, ensuring that extra work is compensated fairly.

4. Overtime Limit: Total overtime hours shall not exceed 125 hours in any quarter (defined as three consecutive months starting January 1, April 1, July 1, or October 1).

This provision ensures that while employers have the flexibility to require overtime work during busy periods, workers are not overburdened for extended periods.

5. Weekly Off: Every employee is entitled to a weekly day off.

This is a fundamental labour right that guarantees employees a day of rest every week.

6. Compensatory Holidays for Work on Public Holidays: If an employee works on a public holiday, they are entitled to a compensatory holiday.

This ensures that employees are not denied their legal entitlement to rest on public holidays, which could otherwise affect their work-life balance.

7. Safety Measures: Employers must ensure adequate security and transportation for women employees during night shifts.

This provision is particularly important for women working in IT and ITES sectors, where night shifts are common, ensuring their safety and security during late working hours.

Conclusion:

The exemption provided to IT and ITES establishments under the Uttar Pradesh Dookan Aur Vanijya Adhisthan Adhiniyam offers a balance between operational flexibility for employers and safeguarding the rights of employees. While it enables the IT sector to operate more efficiently and meet business demands, it also places clear responsibilities on employers to ensure that working conditions are fair and that employees are compensated for overtime and given sufficient rest.

By adhering to these guidelines, IT and ITES businesses in Uttar Pradesh can create a work environment that not only drives productivity but also promotes the health, safety, and well-being of their workforce.

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