The Department of Commerce has notified the addition of a new rule viz., Rule 43A to the Work from Home in Special Economic Zones Rules, 2006, on 19 July 2022. The new rule has been appended in response to demands from the industry for a standardized country wide provision for Work from Home (WFH) across all SEZs.

The notification under Rule 43A provides work from home for following category of employees of a unit in SEZ:

1. Employees of IT/ITeS SEZ units
2. Employees, who are temporarily incapacitated
3. Employees, who are travelling
4. Employees, who are working offsite

As per the new notification,

• WFH may be extended to maximum 50% of total employees including contractual employees of the unit.
• The Development Commissioner (DC) of SEZs has been granted flexibility to approve a higher number of employees (more than 50%) for any bona-fide reason to be recorded in writing.
• 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.
• In respect of SEZ units whose employees are already working from home, the notification has provided a transition period of 90 days to seek approval.
• SEZ Units will provide equipment and secured connectivity for the purpose of WFH to perform authorized operations of the units and the permission to take out the equipment is co-terminus with the permission granted to an employee.

After the onset of Covid 19 in 2020, many companies have adopted permanent work-from-home for various roles, while many others find significant benefits in the partial remote working approach where employees come to the office only for 2 or 3 days a week.

WFH lowers costs and long hours for employees. Companies after implementing WFH have also seen improved retention and easier recruitment. Remote companies have lower business costs because they save money not only on office space rent but also on office furniture, equipment, supplies, housekeeping, and more. The new rules issued by the Department of Commerce can be significant in standardizing the approach of companies towards WFH.