Parliament Question: Violation of Labour Laws by IT Companies

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO. 2453 TO BE ANSWERED ON 03.08.2026 VIOLATION OF LABOUR LAWS BY IT COMPANIES 2453. ADV. ADOOR PRAKASH: Will the Minister of LABOUR AND EMPLOYMENT be pleased to state: (a)whether the Government is aware of the violation of Labour Laws by IT Companies by mass termination of employees without prior notice and if so, the details thereof; (b)whether the Government has any plan to implement regulatory measures to address the violation of labour laws by the IT companies; and (c)if so, the details thereof? ANSWER MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE) (a) to (c): “Labour” as a subject falls in the Concurrent List. Based on their respective jurisdiction as demarcated in the Industrial Relations Code, 2020, Central and State Governments take actions to address the issues of the workers and protect their interests. In the establishments that lie in the jurisdiction of Central Government, the Central Industial Relations Machinery (CIRM) is entrusted with the task of maintaining good industrial relations and protecting the interest of workers including in matters relating to termination, retrenchment or lay-off and its prevention. The data pertaining to the private sector are maintained by the respective State Governments. The Industrial Relations Code, 2020 contains various provisions to safeguard workers' rights and job security, including statutory safeguards in the form of mandatory notice period, retrenchment compensation and provision for retrenched workers to be given preference in re-employment are applicable for all retrenched workers. The Code also introduces Workers Re-skilling fund for training of retrenched workers for the first time with a view to providing financial support to retrenched workers to utilize that amount for his re-skilling. The Negotiating Unions/Negotiating Councils have been brought under the statutory provisions to strengthen collective bargaining. Further, the industrial establishments having 300 or more workers are required to seek prior permission of the appropriate government for lay-off, retrenchment and closure. *****