In a significant development, the Ministry of Commerce and Industry has extended the hybrid work model for employees working in Special Economic Zone (SEZ) units until December 31, 2027. This policy amendment, under sub-rule (3) of Rule 43A of the SEZ Rules, 2006, reflects a forward-thinking approach to adapting workforce policies to meet the demands of a rapidly changing business landscape.
Initially introduced to address the unique operational challenges posed by remote working needs, the hybrid model has proven to be a cornerstone of flexibility for companies operating in SEZs. Employees have been empowered to work from locations beyond SEZ premises, a move that has unlocked significant potential for businesses, especially those serving cross-border clients.
As the previous mandate was set to expire on December 31, 2024, there was growing concern about the uncertainty this might bring to businesses relying on remote and hybrid work models. Recognizing this, the US-India Strategic Partnership Forum (USISPF) spearheaded advocacy efforts with the Ministry of Commerce and Industry, highlighting the critical need for continuity. USISPF advocated for a longer extension, proposing a three-year period to provide much-needed stability. The Ministry’s approval of this recommendation marks a significant win for industry stakeholders, ensuring businesses in SEZs can continue leveraging the hybrid model as a strategic advantage.
The decision to extend the hybrid work model to December 31, 2027, is more than just a policy adjustment—it is a recognition of the evolving nature of work and a commitment to keeping India’s SEZs at the forefront of global competitiveness. It solidifies the country’s position as a global outsourcing hub, aligns workforce policies with international best practices, and fosters an employee-centric culture that prioritizes flexibility and productivity.
