50% of SEZ employees can work from home

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MUMBAI: Recognizing that hybrid working is here to stay, at least for some more time, the commerce and industry ministry has put in place a new rule – 43A (Work From Homeor WFH) — in special economic zone ,SEZ) Manual. Under this, 50% of all employees can be in the employee WFH way. Higher numbers may be allowed.
The latest move will enable IT and ITES (IT-enabled services) sector to retain employees who are demanding flexibility. Many large to medium-sized companies, including giants like TCS or Infosys, have units in SEZs. While many employees in this sector preferred a hybrid work ethic, the lack of regulatory clarity led many companies to seek to bring employees back to the workplace. Till date, officers of different jurisdictions were issuing various guidelines and that too on short term basis. The notification of the ministry will enable a coherent WFH policy for SEZ units across the country.
The new rule chalks out categories of employees (including contract employees) who will be allowed to work from home. These include employees of IT and ITeS SEZ units, those who are temporarily disabled, those who are traveling and those working offsite.
Other requirements have also been prescribed. EY-India tax partner Pramod Achyutana The regulator’s way of striking a balance between the demand for full flexibility and the demand for full flexibility of the IT/ITES industry is the 50% limit of total employees (including contractual employees) with discretionary powers to allow higher limit to work from home. appears to be. Real estate sector to bring employees back to the office. ,
Approval for WFH will be given for one year and may be extended by one year from time to time. SEZ units will be required to maintain accurate attendance records and regularly submit them to the regulator. A consultant with an IT company said, “The rules do not cover a situation where all employees may be required to work from home, due to a covid outbreak, at least the proposed SEZ law has to be a factor. should.”
“In the backdrop of WFH, the industry would also welcome clarification on the availability of income tax holiday under section 10AA to avoid unnecessary litigation,” Achuthan said.

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