[Opinion] Work from Home Guidelines for eligible units of SEZ – An Overview

[2022] 142 taxmann.com 337 (Article)

A. Introduction

1. The COVID-19 pandemic made working from home (WFH) the new way of working. During the pandemic, the Companies adopted WFH to reduce spread of the virus but now the WFH has become part of the day-to-day life. As the pandemic eases, the Companies are adopting a new hybrid virtual model that combines remote and on-site work, with some staff working on-site and some working from home. The Companies see several benefits of hybrid model including talent retention, increase productivity etc.

2. Employees in SEZ have during pandemic worked from home when there was no specific guidelines/procedure was available under the Act. The companies have formulated their own guidelines and ensured that all the assets like laptop removed from SEZ are used for authorized operation of the SEZ unit.

3. The Government has now introduced Rule 43A of the Special Economic Zones (Third amendment) Rules, 2022 which lays down the guidelines for WFH. The Instruction No. 110 dated 12/08/2022 gives details of procedure etc. to be complied with. It must be ensured that the guidelines are followed so that there is no dispute on the benefits availed by SEZ unit on the assets procured for SEZ.

4. The provisions can be bifurcated into eligibility, procedure for approval, application for permission, removal of assets and maintenance of records. These are briefly discussed in the following paras.

B. Eligible Employees

1. Eligible units:
The following employees of a Unit are covered for WFH –

• • • Employees of the Information Technology and Information Technology enabled Services Special Economic Zone units;
    • Employees, who are temporarily incapacitated;
    • Employees, who are travelling;
    • Employees, who are working offsite.

2. Maximum quantum of employees:
Maximum 50% of the total employees can WFH. Fifty percent will be computed based on the monthly employee data of a unit for the previous month. This will include contractual employees of the unit. The Rule 43A(8) of the Special Economic Zones (Third amendment) Rules, 2022 permits Development Commissioner to approve higher number of employees for any bonafide reasons in writing.

C. Procedure for approval

The procedure can be described in the following steps:

(i) The unit shall formulate a scheme for WFH. The scheme will lay down the nature of employees, name of assets required for each employee, nature of work, etc.
(ii) The application should contain covering note and shall give following details:

(a) Date of application;
(b) Total number of employees including contractual, at the Unit;
(c) Whether WFH Scheme is for all employees at the unit or for particular categories of employees
(d) In case the WFH scheme intends to cover 50% or any higher percentage, the details of all the employees intended to be covered shall be provided.
(e) An undertaking that the Unit shall ensure attendance at the Unit based on the percentages provided in the Scheme and as may be approved. The Unit may internally decide how the WFH is to be implemented subject to adherence to the approved percentages. The details of the internal plans are not required to be submitted;
(f) Details of such employees who would be eligible to opt for WFH; (vii) Duration for which permission for WFH is required (permission can be sought for a maximum of one year at a time)

The attachment submitting the WFH Scheme with the application being submitted should be an excel sheet containing the following columns:

(a) Name and designation of all Employees eligible to opt for the WFH Scheme;
(b) SEZ/Unit ID Card No. of such Employees;
(c) Validity / Expiry date of the SEZ/Unit ID Card;
(d) Details of Laptop / other assets assigned to such Employees;
(e) Duration for which the permission for WFH is required (In case it is different from the general duration for which permission is sought).

(iii) The approval will be granted by the Development Commissioner within 15 days. The SEZ instruction dated 12/08/2022 in para 6 specifies that if no communication is received, the application is deemed to be granted. The permission granted by the Specified Officer shall be valid for one year. It can be extended for every period of one year.
(iv) The employees WFH shall work as per the services approved for the unit that is they must work for the authorized operation of the unit.

D. Time limit for submission of application

If the units have implemented WFH as on 14/07/22 they should submit a proposal for permission within 90 days that is by 12/10/2022. The unit must produce the records which are maintained for removal of assets by the unit, if required by authority.

Click Here To Read The Full Article