Andhra Pradesh Introduces Regulatory Relaxations for IT and ITES Establishments

Posted On - 28 April, 2025 • By - King Stubb & Kasiva

Through Government Order dated March 25, 2025, the Government of Andhra Pradesh has granted a conditional exemption to Information Technology (IT) and Information Technology Enabled Services (ITES) establishments from compliance with specific provisions under the Andhra Pradesh Shops and Establishments Act, 1988. The exemption, valid for a period of five years, has been introduced with a view to fostering a business-conducive environment for the technology sector while maintaining essential labour protections.

The exempted provisions include those governing opening and closing hours (Section 15), daily and weekly working hours (Section 16), special provisions relating to employment of young persons (Section 21) and women (Section 23), holidays (Section 31), and termination and related procedures (Section 47, sub-sections 1 to 4).

However, these exemptions are accompanied by stringent conditions to safeguard employee welfare. Employers are required to ensure that:

  • Weekly working hours do not exceed 48 hours, with statutory entitlement to overtime wages for any work beyond the limit.
  • Women employees working night shifts are provided with adequate security and safe transportation to and from their residence.
  • Compensatory holidays are provided in lieu of duty performed on notified public holidays.
  • Digital maintenance of statutory registers is permissible, thereby streamlining compliance with record-keeping requirements.

This progressive compliance framework is emblematic of the State Government’s attempt to balance regulatory flexibility for enterprises with non-negotiable standards of employee welfare. The initiative is expected to further ease doing business in Andhra Pradesh while safeguarding key rights of the workforce engaged in high-growth digital services sectors.

The Andhra Pradesh Government’s exemption framework provides regulatory relief to the IT/ITES industry, backed by enforceable safeguards aimed at maintaining employee welfare and operational compliance.