The Ministry of Commerce and Industry (Department of Commerce) issued the Special Economic Zones (Fifth Amendment) Rules, 2024, through a notification dated December 26, 2024. These rules, which amend the Special Economic Zones Rules, 2006, came into effect upon their publication in the Official Gazette. A key highlight of this amendment is the extended allowance for hybrid work arrangements under Rule 43A, ensuring greater flexibility for employees working outside the Special Economic Zone (SEZ).
Extension of Hybrid Work Provisions
Rule 43A was initially introduced to permit hybrid work arrangements for employees of SEZ units, with provisions applicable until December 31, 2024. However, the Fifth Amendment Rules have extended this period up to December 31, 2027. This move ensures that employees working in Information Technology (IT) and IT-enabled services, those temporarily incapacitated, employees traveling, and those working offsite can continue to work from locations outside the SEZ based on the unit’s requirements.
Categories of Employees Eligible for Hybrid Work
The amendment specifies the categories of employees allowed to work outside the SEZ, including:
- Employees in Information Technology (IT) and IT-enabled services.
- Employees who are temporarily incapacitated.
- Employees who are traveling.
- Employees working offsite.
- Any other employees as determined by the unit.
Operational Guidelines for Hybrid Work
For a unit to implement hybrid work, it must notify the Development Commissioner via email before the hybrid work facility begins. While units are not required to submit an employee list, they must maintain records of employees permitted for hybrid work. This list should be made available for verification as needed.
Impact of the Amendment
The extension of hybrid work provisions reflects the government’s acknowledgment of evolving workplace dynamics and the importance of flexible work models in boosting productivity. This decision supports businesses operating in SEZs while maintaining compliance and oversight.
Conclusion
The Special Economic Zones (Fifth Amendment) Rules, 2024, mark a significant step in modernizing work arrangements within SEZs. By extending hybrid work permissions, the government reinforces its commitment to fostering a balanced and flexible work environment for employees and units alike.
