Unions argued that Karnataka’s IT sector already has a poor track record when it comes to labour rights, making self-certification particularly dangerous in this context.
Published Nov 25, 2025 | 2:00 PM ⚊ Updated Nov 25, 2025 | 2:00 PM
An office space. Representative image. (iStock)
Synopsis: The Karnataka government’s new decision to permit all IT and ITES companies to file self-certification for labour law compliance has drawn the ire of unions working for the welfare of IT workers. Experts said that the move represents “the government’s withdrawal from its constitutional and statutory responsibility to enforce labour laws.”
The Karnataka government’s new decision to permit all information technology (IT) and IT Enabled Services (ITES) companies to file self-certification for labour law compliance has drawn the ire of unions working for the welfare of IT workers. Labour unions said the move will grant companies a free hand to violate laws without fear of scrutiny.
The concerned provision was part of the “Karnataka Information Technology Policy 2025–2030”, which was approved by the state Cabinet on 13 November.
“Startups will be allowed to submit self-certifications in the prescribed formats under the relevant acts and regulatory frameworks, ensuring compliance while minimising practical barriers,” the policy statement read.
The process, which will be facilitated through the Karnataka Startup Cell, will enable startups to “focus on growth and innovation while maintaining regulatory adherence,” it further said.
IT workers’ unions and labour law experts said that the move represents “the government’s withdrawal from its constitutional and statutory responsibility to enforce labour laws.”
“By allowing corporations to self-declare compliance, the Government and the Labour Department are abdicating their role as custodians of labour governance, enforcement, and inspection. This effectively grants corporations a free hand to violate labour laws without fear of scrutiny,” the Karnataka State IT/ITES Employees Union (KITU) said in a statement.
Labour law experts said the provision effectively dismantles the existing inspectorate system, as workers’ rights will no longer be enforced through state oversight. The government has been reduced to merely facilitating management rather than ensuring compliance.
“It is a larger picture of dismantling of labour rights and creating systems that make it easier for management,” said Avani Chokshi, an advocate and member of the All India Lawyers Association for Justice.
Explaining how the provision could affect employees, Suman Das, Convenor, IT and ITES Democratic Employees Association (IIDEA) said, “Companies will not declare truthfully whether they are complying with all the labour laws. This has to be done by the labour department. The new provision takes this away.”
Das referred to the Karnataka Shops and Commercial Establishments Act, 1961, which allows labour inspectors to conduct inspections of an establishment to check if they are complying with the law. “No such inspections will happen now (with this new provision) as the authority is being given to the company itself,” he said.
The Act also mandates that no employee in any establishment shall be required or allowed to work more than nine hours on any day and forty-eight hours in any week. If they do, they are entitled to wages at twice the normal wage. Das said that establishments wouldn’t declare whether their employees are working overtime. “They (government) say it is for ease of doing business. But who will oversee the employer?” Das asked.
Unions argued that Karnataka’s IT sector already has a poor track record when it comes to labour rights, making self-certification particularly dangerous in this context. Implementing such a provision in an industry “notorious” for violations would be deeply detrimental to workers, they said.
KITU cited issues such as excessive working hours, forced resignations, denial of leave, and unsafe workloads, warning that these practices are already taking a severe toll on the physical and mental health of lakhs of IT employees in the state.
Earlier this year, the Karnataka government planned to extend the legal maximum working hours from nine to 10 hours per day, along with raising the maximum overtime per day from one hour to two hours — thereby effectively legalising a 12-hour workday. The proposal was dropped after backlash from unions.
Additionally, several complaints of forced resignations have also come to light from employees in the tech industry, specifically in Bengaluru. In August, more than 100 employees at Tata Consultancy Services (TCS) in Bengaluru reached out to labour unions, fearing forced resignations and retrenchments after the company made a mass layoff announcement on 30 July.
The provision delivers another blow to employees, particularly since the state’s IT industry is already exempt from the Industrial Employment (Standing Orders) Act, 1946, leaving workers with even fewer formal safeguards.
The IE (SO) Act outlines the rules to be followed regarding employee recruitment, working hours, attendance, the procedure for availing leave and other benefits, and termination, among other workers’ rights. Karnataka is the only state in the country that has exempted its IT industry from this Act, justifying it as an “ease of business” matter.
Although the Karnataka labour department had earlier stated that it was contemplating discontinuation of this exemption, citing instances of unfair trade practices such as ID blocking, mass retrenchment, layoffs, extended work hours and sexual harassment at the workplace, as its reasons, the state government, through an order in 2024, extended the exemption for another five years, until 2029.
KITU claimed the decision showed the Karnataka government’s eagerness to “appease corporate interests at the cost of workers’ rights, dignity, and well-being.” “The combination of Standing Orders exemption and self-certification leaves employees with virtually no enforceable labour rights. With no binding service conditions and no government oversight, workers will be left vulnerable to unchecked exploitation,” they said in a statement.
Chokshi further claimed that the move comes in the backdrop of the Union government moving forward with the implementation of the four labour codes — Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions (OSH) Code.
As part of the Code on Social Security, employers can now self-assess cess liabilities in respect of Building and Other Construction Work, previously assessed by the notified government authority. “It reduces procedural delays and official intervention,” a release from the Press Information Bureau (PIB) said.
Additionally, the code also includes an Inspector-cum-Facilitator System that introduces randomised web-based, algorithm-driven inspections for transparency and wider compliance. “Inspectors now act as facilitators to support adherence and reduce harassment,” the release said.
However, Chokshi said the labour codes follow the same trajectory, allowing self-certification while weakening the traditional inspection system.
Implementing such measures in Karnataka’s IT sector, which has repeatedly been exempted from the Standing Orders Act, only reinforces that these reforms are not designed with workers’ interests in mind, she said.
(Edited by Muhammed Fazil.)
