Govt. amends SEZ rules to liberalize Work From Home for SEZ units

The Department of Commerce has further amended SEZ rules to ease Work From Home for SEZ units. By amending Special Economic Zones(SEZ) rules, Department of Commerce insert a new rule 43A vide notification dated 14.07.2022 to permit Work From Home for SEZ Units. Department of Commerce further issued SOP for smooth implementation of amended SEZ rules across all SEZs vide Instruction dated 12.08.2022.

Even after amending the rules, Department of Commerce further received representations from NASSCOM as well as units and industries seeking more flexibility in WFH facility.

The subject was investigated by Department of Commerce in cooperation with stakeholders, and as a result, Regulation 43A was replaced with a new rule via notification no. GSR 868(E) dated 08.12.2022.

The salient features of the notification are as under:

1. WFH regime is significantly modified based on consultation with all stakeholders.

2. Former regime based on permissions has been converted into an intimation-based regime.

3. WFH can be provided to upto 100% of all employees of the SEZ unit.

4. WFH allowed upto 31.12.2023.

5. For units already availing WFH under earlier regime, intimation could be sent by email till 31.01.2023.

6. Units/ Industries seeking WFH in future can email an intimation on or before the date of commencement of WFH.

Compounded mode of working has became a standard now especially in IT/ITES sectors due to pandemic’s disruptions. The representatives of the IT/ITES industry had petitioned the Department of Commerce (DoC) to allow units in Special Economic Zones (SEZs) to adopt hybrid modes of operation and to provide Work From Home (WFH) facilities to employees in SEZ units. The decision was made after carefully considering the industry’s legitimate needs as well as the spectrum of benefits that such a facility may bring to the economies of Tier-2 and Tier-3 cities.