All sectors of the economy have been affected by the Corona lockdown. The $ 191 billion IT industry has also been badly affected by this. The changes caused by this epidemic may cause more than half of the IT industry’s employees to work from home. To tackle this situation, the IT industry has demanded changes in the country’s tax and labor laws. In a meeting with government officials this month, IT industry veterans said that laws needed to be changed to deal with the new reality created by Corona. He estimates that around 43 lakh people work in the IT sector in the country and half of them may have to do household chores soon.
NASSCOM is preparing a report
A top government official told our sources that the IT industry body NASSCOM has been asked to make a detailed report in this regard. This report will then be sent to the Telecom and Labor Ministry for action. The industry has also requested to extend the exemption given recently till July. It also includes relaxation in telecom rules. Accordingly, back-office companies can work from home and take their devices out of the fixed special economic zone for remote working. UB Pravin Rao, chief operating officer of Infosys and chairman of NASSCOM, said, “When you have to work from home, then you have to review many things.” Some labor laws may come in, which will need to be rectified.
Review of labor laws
NASSCOM is currently reviewing labor laws in the context of working from home and will send its report to the government next week. Officials say that labor laws need to be changed in such a way that there is no loss of both the employee and the employer. A government official said that if the laws are changed to work from home, it is possible that people would prefer to work only for a few hours instead of working 8 hours a day. This can benefit women, university students, and the disabled. Work is still going on in this regard. The IT industry contributes 8% to the country’s GDP and 46% to services exports. India exported software worth $ 147 billion in FY 2020.
The trend of work from home is increasing
NASSCOM Senior Director and Head of Public Policy Ashish Aggarwal said, “When the trend of working from home is increasing, people can work in two-three companies simultaneously. In such a situation, the government should allow employees and workers to join NPS instead of EPFO. If there is an employee in the NPS today, then tomorrow it can be a gig worker. ”He said that this requires a change in the existing labor laws so that the industry can make working hours and shift timings accordingly. Also, safety and health regulations will have to be reviewed in the workplace as the house itself will become the new workplace.
Since the lockdown was implemented in March, 90 percent of the employees in the IT industry is working from home. The government has placed IT in the category of essential services and enjoys the same exemption as SEZ and STPI. Seeing the success of this model, many big IT companies are planning to give their employees the facility to work from home. The country’s largest IT company TCS plans to provide 75 percent of its employees with work by 2025.