The Ministry of Commerce & Industry’s Department of Commerce has substituted the rule 43A of Special Economic Zones Rules, 2006 by notifying the Special Economic Zones (Fifth Amendment) Rules, 2022.
The substituted rule 43A eliminates the requirement for IT/ITeS entities operating from Special Economic Zones to obtain permission from the Development Commissioner for allowing work from home to the employees.
The substituted rule 43A also simplifies the regulatory requirements for implementing WFH arrangement and does away with the limit with respect to proportion of employees of SEZ units1 who can be allowed to WFH.
The Department of Commerce (“DoC”) of the Indian Ministry of Commerce and Industry has substituted the rule 43A of Special Economic Zones Rules, 2006 (“SEZ Rules”) by notifying the Special Economic Zones (Fifth Amendment) Rules, 2022 (“SEZ Fifth Amendment”) on December 8, 20222. The SEZ Fifth Amendment simplifies the complex requirements for units in Special Economic Zones (“SEZ”) which permitted their employees to work from home (“WFH”).
Previously, on July 14, 20223, the DoC had notified the Special Economic Zones (Third Amendment) Rules, 2022 (“SEZ Third Amendment”) introducing rule 43A that allowed IT/ITeS entities operating in SEZs to permit employees (including contractual employees) to WFH or any place outside the SEZ. Please see our hotline on the SEZ Third Amendment available here. This included requirements like framing...
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