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Archana Venkat

Proposed amendment focuses mainly on work hours of ITES cos

Chennai , Sept. 25

The Tamil Nadu Government is likely to amend the Tamil Nadu Shops and Establishments Act to suit the information technology enabled services (ITES) industry, said a source who was part of a group that recently interacted with the Government.

At present, ITES companies come under the Shops and Establishments Act and face restrictions on work hours and other infrastructure related issues.

The proposed amendment focuses mainly on work hours of ITES companies.

According to recommendations, ITES organisations are to be given full authority to decide on work hours, "off" days and over-time related issues. Under the present Shops and Establishments Act, ITES companies may work up to 60 hours a week and the workers will have to be given a weekly off.

Recommendations are based on a recent white paper presented by the Federation of Indian Chambers of Commerce and Industry-Tamil Nadu State Council (FICCI-TNSC).

Other recommendations include enforcing a moral code (to ensure that employees are not overburdened with work) and formation of trade unions.

An official, who was part of the committee that drafted the white paper, told Business Line that unions would give ITES companies a platform to negotiate with the Government besides keeping the welfare of employees in mind.

The Government's role, post amendment of the Act, would be to ensure that ITES organisations do not misuse the authority they were given.

FICCI is expected to play a role in amendment of the Act. Sources say the Government is likely to take up this issue post local body elections in the State. If the Act is amended, Tamil Nadu will be the first State in India to have an Act tailored to suit the ITES industry.

More Stories on : Industrial Policy | IT-enabled Services | Tamil Nadu

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