Work from Home for SEZ Unit introduced vide SEZ (Third Amendment) Rules, 2022

Work from Home for SEZ Unit introduced vide SEZ (Third Amendment) Rules, 2022

Ministry of Commerce and Industry, Department of Commerce (SEZ Section) Government of India have issued a Notification for Amendment in SEZ Rules, 2006 dated 14^th July 2022. In this regard, the important highlights of the said Notification are as follows:

• Previous guidelines on Work from Home (‘WFH’) – In this background and in view of the Covid situations the Development Commissioner SEEPZ-SEZ have issued guidelines regarding WFH time to time as no time limit are given under Rule 43 of SEZ Rule 2006. The authorities vide guidelines/revision for WFH order dated 22^nd March 2022 have decided to start work from office in the phased manner i.e., w.e.f. 01.07.2022 the units should work from office with at least 50% of the capacity and w.e.f. 01.09.2022 the unit should function with 100% of the capacity from office
• However, the Central Government have amended the SEZ Rules, 2006 now onwards said as SEZ (Third Amendment) Rules, 2022 effective from the date of publication in the Official Gazette i.e., from 14^th of July 2022
• Rule 43A – Work from Home shall be inserted vide the above Notification. Rule 43A permits the SEZ units to allow following employees to WFH or from any place outside the SEZ unit subject to permission from the Development Commissioner (‘DC’) through 15 days advance email or physical application
  • Employees of the IT/ITES SEZ units
  • Employees, who are temporarily incapacitated
  • Employees, who are travelling; and
  • Employees, who are working offsite

• Validity of the permission – The DC may grant the permission for the WHF to the SEZ unit for a period of 1 year from the date of application, which can be further extended for not exceeding one year at a time
• Terms and Condition of the permission from DC –
  • The employees permitted for WFH under rule 43A shall perform the work related to the services approved to the SEZ unit and its projects
  • Export revenue from the work of the employees permitted for WFH shall be accounted for the unit to which the employee is tagged
  • In case the employee ceases to be the part of the project of SEZ unit. The SEZ unit should un-tag the same employee from the unit and surrender his/her identity card as per sub-rule (2) of rule 70
• No of employees allowed to WFH – Maximum 50% of the total employees (including the contractual employees) are allowed for the WFH. However, the DC may approve a higher number too in case of bona-fide reason in writing
• Permission for temporary removal of goods (laptops etc.) –
  • With the prior permission from the Specified Officer the unit may provide to an employee working from home such goods like laptops, computers, video projection system, other electronic and secure connectivity network (VPN), virtual desktop infrastructure to establish connection with the SEZ unit
  • Such goods will temporarily transfer to DTA without payment of duty or IGST subject to following the procedure stated in point no. 13 of the attached notification
• SEZ units, where its employees working from home before the date of commencement of the SEZ (Third Amendment) Rules, 2022 shall submit proposal for the permission from the DC within 90 days from the date of such commencement i.e., ninety days form 14^th of July 2022