There are restrictions in working hours for establishments covered under the Shops and Establishments Act in various states. Are such limitations applicable to IT-BPO companies also?
The opening hours and closing hours are prescribed under the Shops and Establishments Act. So, the establishments cannot operate outside the hours prescribed.

some states like Maharashtra,Karnataka,Tamil Nadu, etc.have given exemption to IT/ ITeS establishments. In these states, such companies can straightaway operate beyond the limit. In other states, they can apply for, quoting the reasons,and get the exemption from the appropriate authority to keep open their establishments on 24X7 basis. Exemption can also be obtained to provide weekly off to each employee on rotation basis.

Several of these companies are subsidiaries of MNCs and hence they require their employees to adhere to the US or European timings. Can it be done within the framework of law?
Yes. This can be done. In the states where the exemption is already available, they can fix up the working hours in such a manner it suits to US / European timings. In other states, they need to obtain exemption order from the appropriate authority.

The Shops and Establishments Act of various states restricts employment of women in the night shift, but women are employed in large numbers in IT-BPO companies. Is there any special exemption available for these companies?
Exemption is available in certain states like Tamil Nadu, Andhra Pradesh,Karnataka, Maharashtra, etc. In other states, provisions are given in the Shops and Establishments Act for getting permission for allowing the women employees to work in the night shifts. In addition, certain precautions like providing adequate security, transport facility, etc., are to be taken in case if women employees are required to work during the night.

What about the leave provisions applicable to companies in IT-BPO sectors?
These companies will fall under the scope of respective state's Shops and Establishments Act. Therefore, the leave facilities as per the provisions of such Act are to be extended to the employees besides weekly and National and Festival holidays.

Are the IT-BPO companies free from inspection by the labour department?
All companies including IT-BPO companies are subject to inspection by the labour department at regular periodicity. Some of the states have introduced self-certification system. So, the inspection will not be so frequent like in other establishments. In case if there is any complaint received, the labour authority can make an inspection and take appropriate action. Hence these companies are subject to, and are not fully freed from inspection.

Do the indirect employees engaged by the IT-BPO companies for software development activities, data entry activities, call centre activities etc fall under the definition of contract labourers under CLRA Act?
Yes, these employees will be considered as contract workers unless they fall under the exception. The Contract Labour (Regulation & Abolition) Act will govern the conditions of employment of these employees. Besides, other legislation like PF, ESI, etc. will also be applicable. The contractor is liable under these legislations, as immediate employer, in respect of these employees. If he fails to comply, the principal employer will have vicarious liability.