100% WFH allowed for IT units in SEZs

On Thursday, India approved 100% work from home (WFH) for employees in IT and ITES special economic zones, extending the WFH regime by one year until December 2023. This decision aligns with the demands of the IT and tech industry for more flexible work from home rules. Under the updated regulations, units are no longer required to obtain prior permission; instead, they only need to inform about their intention to implement WFH.

The Ministry of Commerce and Industry has made significant changes to Rule 43A of the SEZ Rules, 2006. According to the new rules, units planning to adopt WFH can simply email an intimation on or before the commencement of WFH. The permission for WFH is granted until December 31, 2023, and is applicable to all employees of the unit. The ministry stated in a notification that the WFH facility may cover all employees of the units.

A government official described the liberalization of the WFH regime as a significant step, achieved through consultations with stakeholders. Nasscom, in a tweet, hailed it as a major move toward improving the ease of doing business, stating that the simplified rules enable the IT BPM industry in SEZ to operate in a flexible hybrid work model.

According to the latest rules, WFH is permitted until December 31, 2023, and units currently utilizing WFH under the previous regime can notify their intention by email until January 31, 2023. Unlike before, these units are not required to submit lists of employees working from home; however, they must maintain a database. The development commissioner retains the authority to request the database for verification when necessary.