India: new rule allows 50% of employees to work from home in Special Economic Zones

On 19 July, India’s Ministry of Commerce & Industry, Department of Commerce published a new rule, Rule 43A that allows up to 50% of employees of businesses operating in special economic zones (SEZs) to work from home. In India, SEZs benefit from a special status that gives them certain tax exemptions, the goal being to attract foreign investment as well as boosting exports. New rule 43A on working from home applies to all employees, including contractual employees, of businesses based in SEZs. India has more than 350 SEZs with some two million employees, which contribute more than 25 percent of India’s exports. SEZ Development Commissioners, who have authority in these zones, will nevertheless be able to increase the proportion of employees allowed to work remotely. “Work From Home is now allowed for a maximum period of one-year. However, same may further be extended for a period of one year at a time by the DC on the request of units,” the departmental notification also states. It will be up to the individual companies to provide the equipment and ensure remote working connections are adequate. Most of India’s SEZs are home to information technology sector service providers, software manufacturers, and manufacturers of electronic components and printed circuit boards.