BANGALORE: The software industry in India's technology capital, which has been a beneficiary of benign government neglect, is concerned that the malevolent gaze of arcane rules and regulations may be falling upon it.
Employers in Bangalore, home to some of the world's most prominent software companies, are worried that a law made applicable to IT companies starting this year has the potential to cause them severe headaches at a time the young industry is going through its worst phase.
Employers in Bangalore, home to some of the world's most prominent software companies, are worried that a law made applicable to IT companies starting this year has the potential to cause them severe headaches at a time the young industry is going through its worst phase.
IT companies have enjoyed exemption from this archaic law - the Industrial Employment (Standing Orders) Act, 1946 - for more than a decade.
"This is a retrograde step. This law belongs to the 19th century and does not take into account the ground realities of a globalised world," said industry veteran TV Mohandas Pai, a former member of Infosys' leadership team who was instrumental in getting the earlier exemption.
"Originally, the exemption was secured to stop harassment from the labour department and the inspector raj."
IT companies worry they will be made to comply with what they believe are complicated and unnecessary procedures, be exposed to 'inspector raj', and end up encouraging union activity in a sector that has been largely free of labour groupings.
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