Regulating Work from Home
Bhumesh Verma
International Corporate Lawyer | M&A | Foreign Investments | Contracts | Managing Partner @Corp Comm Legal | Adjunct Professor | Solution Provider
Work From Home (WFH) was a relatively unknown phenomenon in India, before the dawn of Covid19 era. Anyone claiming to WFH was presumed to be unemployed or underemployed or making excuses for no work.
However, the scenario changed for good ever since the pandemic struck - ?the way companies function has drastically changed as many companies have adopted work from home (WFH) for longer tenure than strictly required due to lockdowns, travel and crowding restrictions imposed during the worst phase of the pandemic.
In last two years, corporate world has witnessed an unprecedented surge in adoption of WFH model or hybrid model (combination of WFH/Work from office).
Recognising the changed order and mindset, the central government has officially recognized the need to have a dedicated framework for WFH and issued relevant rules with respect to WFH. In this regard, a new rule 43A has been incorporated incepted in Special Economic Zones Rules, 2006 to establish guidelines with respect to WFH.
This ruling will provide WFH option for a certain category of employees and is a reflection of representation of various industries to have a uniform WFH policy that will be applicable throughout India.
Key guidelines by the central government for WFH:
Maximum period allowed for WFH is one year in a special economic zone (SEZ) – The said period can be further extended for a period of one (1) year by a company upon special request to the concerned authorities
Maximum cap on employees who are allowed to avail WFH or company can grant to its employees to WFH is 50% - Power to extend WFH beyond this 50% limit is granted to Department Commissioner for SEZs – If companies intend to grant WFH to more than 50% workforce they need to get approval of such commissioner
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Such employees shall include:
a)???Contractual employees
b)??Employees whose nature of work involves travelling and works offsite
c)???Temporarily incapacitated employees
d)??Employees of IT/ITeS SEZ units
A Window of 90 days is provided to SEZ units (whose employees already permitted to WFH) to get required approval. Equipment and secured internet connectivity required to WFH will be provided by SEZ units to perform business and professional operations of SEZ units.
Looks like WFH is here to stay and the government will have to expand the scope of these guidelines into other segments of business activity outside SEZ units.
Source : ndtv.com
Legal / Regulatory / Compliance Professional - Airport Infrastructure / Airlines / Energy logistics / Commercial Real -Estate
2 年Is there any such WFH guidelines for outside SEZ employees ?
Professor (Finance & Economics)
2 年Thanks for posting