EMERGENCE OF IT & ITES- EFFECTS ON THE LABOUR LAWS
India is a country having diverse religions and cultures. It becomes necessary to harmonize industrial relations in the country with respect to such diversity. India’s trade performance during 2003–04 was influenced by a number of factors which include productivity changes in the manufacturing sector, recovery of global economy and world trade, continued trade promotion and trade facilitation efforts of the government, and an appreciating Indian Rupee against the US dollar. Hence India has a wide variety of labour laws which are essential for the smooth functioning of industrial relations in the country. In today’s developing world IT has played an important role to formulate it into a new height. IT plays a role like a magnet, at one pole it is positively charged and the other is negatively charged. As such its magnetic field helps some aspects of life and affects some aspects of life. One of the most critical needs of the burgeoning Indian software industry and other outsourcing service providers is to have the flexibility and the independence to hire the most worthy of the manpower and fire the unproductive employees. There is also a growing need to draw a fine balance between the hire and fire policy of the employer and the rights of the workmen. This article proposes to discuss the Indian retrenchment laws, right of compensation of employees and applicability of these laws to Indian Information Technology (the “IT”) industry
Information Technology (IT) in a broad sense connotes that technology which is connected with information. More particularly it connotes that technology which has taken shape during the last five decades or so involving electronics. THE Indian IT industry is among the country’s fastest growing sectors. India has been able to establish itself as a competitive and quality destination for outsourcing IT & IT enabled services.
The Information Technology Enabled Services (ITES) sector is spreading in India fast, and over five lakh workers and technicians are employed in it. We welcome the development of this sector as it is providing gainful employment to educated persons in India. Several centres in India have developed a large number of call centres and consultancy offices, which are earning enormous profits. Their number is likely to swell very fast in the near future. Accordingly to uphold the network of information technology in India IT Act came into force in 2000.
The use of such technology for the storage, retrieval and dissemination of information has given rise to several legal, social and ethical problems.
EFFECTS ON LABOUR LAWS-
The direct affect of in formalisation has been deterioration in respect for labour rights. The provisions of large number of labour laws remain non-enforced. The adherence to the core labour standards remains good in paper only. The desire to get more FDI and pressure from the MNCs has caused the government to overlook violations. The ID Act which is applicable to all industrial and commercial establishments defines employee/workmen and both skilled and …