Mar 20, 2024

Working Hours Exemption for IT, ITES and Financial Companies in Gujarat

The Government of Gujarat vide notification dated February 5, 2024 (“Notification”) introduced exemptions under the Gujarat Shops and Establishments (Regulation of Employment And Conditions of Service) Act, 2019 (“GSE Act”), effective for a period of 2 years.

All IT, ITES and Financial Services establishments have been exempted from applicability of Section 12 (Fixing hours of work) and Section 14 (Spreadover) of the GSE Act, giving employers greater flexibility to determine working hours of their employees.

To qualify for this exemption, establishments must adhere to all conditions under the GSE Act, including but not limited to, paying employees for overtime work, limiting overtime hours to a total of 125 hours in 3 months, ensuring compliance with applicable safety and welfare measures, etc.

It is imperative for businesses to thoroughly review their operations in light of this Notification and ensure strict adherence to the prescribed conditions in order to avail the exemption.

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