The Indian Information Technology (IT/ITeS) industry has been one of the most successful sectors in recent economic history of our country. The sector encompasses everything from high-end Research and Development and Software application development to IT enabled services like BPO, KPO and even data-entry operations and customer support operations. The industry is employing more than 25 lakh people and is contributing over 6% of GDP. The sector is unique in attracting some of the most highly qualified professionals in India and provides some of the best working conditions. Unfortunately, it is also unique in the way it seeks exemptions from practically every laws in this country! Be those the labour, corporate or taxation laws.
Exemption from labour laws is sought by industries who wish to operate with a high degree of flexibility. Exemptions are provided by the Government on the condition that the industry would take responsibility for self-regulation and maintain the highest standards and best practices in its operations and processes. While this in itself offers great manoeuvrability for companies that have to negotiate unpredictable market conditions, it also puts the workers under great risk and pressure. To make matters worse, the situation becomes far more serious when fraudulent companies and individuals start operating under the same umbrella of lax labour laws and take advantage of them to engage in illegal and unethical practices cheating large number of IT job aspirants and professionals.
IT industry has been plagued off late by the menace of employment frauds and career scams. These scams have been in various forms, shapes and sizes, including cash-for-job, interview scams, fake offer letters, denial of salaries, shop-shutdowns, false job specifications, recruitment scams etc. Many unsuspecting and helpless job seekers have fallen prey to such unscrupulous elements and organized groups. It is high time that such fake companies, middlemen and brokers are brought to book and appropriate actions are initiated to stop mushrooming of such fraudulent entities and practices. In the context of high unemployment in the country among educated youth, a large section of job seekers are vulnerable to such frauds. Thus, it becomes utmost important to be vigilant and take stern action against the perpetrators of such crime so that spreading of such activities and more people falling prey to such frauds can be avoided. Such scams are seriously eroding the reputation of the industry, leaving many young career aspirants cheated, robbed and victimized, that an industry-wide cleanup operation has to be initiated with highest priorities.
Labour laws and regulations are put in place to ensure healthy relation between the employers and the workforce and to safeguard the employees from undue exploitation at their workplace. Many checks and balances are designed to prevent fraudulent individuals and groups taking people for a ride by establishing illegal and fake entities with the sole intention of robbing money. However, many times, slackness in enforcement of these regulations and inadequate implementation strategies and practices have lead to widespread unhealthy practices in the IT industry. Taking into consideration the special nature and needs of the IT industry, adequate laws and regulations need to be put in place and should ensure strict enforcement and flawless implementation of existing rules to strongly deal with corrupt practices in the industry. The fraudulent elements have also been encouraged by factors like absence of appropriate laws, loopholes in the existing rules, blanket exemption from certain industry and labour laws, lenient attitude by law enforcing authorities towards violating individuals and enterprises etc. Whether existing laws are sufficient to deal with the corrupt or need fresh rules and regulations and how to ensure adequate enforcement mechanism is put in place and effectively monitored are all important questions that need to be addressed.
