mumbai recognising that hybrid working is here to stay at least for some more time the commerce industry ministry has inserted a new rule 43a work from home or wfh in the special economic zone sez rule book under this 50 of all employees can be in wfh mode for higher numbers permission can be granted the latest move will enable the it and ites itenabled services sector to retain employees who are seeking flexibility several large to mediumsizes companies including heavyweights such as tcs or infosys have units in sezs while several employees from this sector preferred a hybrid work policy owing to lack of regulatory clarity many companies were seeking to bring back employees to the workplace till date different jurisdictional authorities were issuing varied guidelines and that too on a shortterm basis the ministrys notification will enable a consistent wfh policy for sez units across the countrythe new rule chalks out the categories of employees including contractual employees who will be permitted to work from home these include employees of it and ites sez units those who are temporarily incapacitated those who are travelling and those who are working offsite other requirements have also been set out eyindia tax partner pramod achuthan said the 50 limit for work from home of total employees including contractual employees with discretionary powers to approve higher limits seems to be the regulators way of striking a balance between the itites industrys demand for full flexibility and the demand of the real estate sector for getting employees back to the officethe approval for wfh will be granted for one year and may be periodically extended for one year at a time sez units will be required to maintain accurate attendance records and regularly furnish them to the regulator the rules do not seem to cover a situation where all employees may be required to work from home owing to a covid outbreak at least the proposed sez law should factor this said a consultant at an it company achuthan added in the backdrop of wfh the industry would also welcome a clarification on the availability of income tax holiday under section 10aa to avoid unnecessary litigation