Department of Commerce notifies rules for Work from Home for Special Economic Zones

The Department of Commerce has notified a new Rule, namely Rule 43A – Work from Home in Special Economic Zones Rules, 2006 across all Special Economic Zones.

The announcement was made in response to the industry’s request for a national Work From Home (WFH) policy that applies to all Special Economic Zones. Before finalising the notification, the Department of Commerce undertook many rounds of discussions with various parties

The notification under Rule 43A provides work from home for following category of employees of a unit in SEZ:

i. Employees of IT/ITeS SEZ units

ii. Employees, who are temporarily incapacitated

iii. Employees, who are travelling

iv. Employees, who are working offsite

As per the new notification, WFH may be extended to maximum 50% of total employees including contractual employees of the unit. There is flexibility granted to Development Commissioner (DC) of SEZs to approve a higher number of employees (more than 50%) for any bona-fide reason to be recorded in writing.

Work from home is now permitted for up to one year. However, upon request from units, the DC may further extend it for a further duration of one year at a time. The announcement has established a transition period of 90 days for SEZ units whose employees are already working from home to request approval.

For WFH to carry out approved activities of the units, SEZ Units will provide equipment and secured connectivity, and the authorization to remove the equipment expires concurrently with the authorization provided to an employee.