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Which acts are applicable to an IT company in India?
From India, Mumbai
Soical Compliance Auditing
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Compliance Expertise In Labour Laws &
+2 Others


Dear Nova,
Please read the condition of factory act,if employed more than 10 with add of power & if employed more than 20 without aiding of power.
IT industry comes under the Shops & establishment (as per employment) & factory act and they are generating output to their cutomer by providing satisfaction as per their demands means there is manufacturing process.
Some of the unit situated in Industrial area are covered under factory act and the industry situated in commecial area are covered under trade act/shops & establishment act.
May i know the location of your factory.I have evidences of IT industry one covered under factory act in Gurgaon9Udhyog Vihar) and other one in Delhi-Roohini under shops & establishment Act.
Best Regards
Sajid Ansari-Delhi

From India, Delhi

Dear Nova, It is a public limited company employed upto 500 employee,its comes under the Shops & establishment Act because licence issued by the local BMC only. Best Regards Sajid Ansari-Delhi
From India, Delhi


Almost many acts are applicable to IT companies, they are the first to declare a holiday on May 1st - Labour day and so you can see ...

These are the following acts which you must immediately comply with -

1 - Shops & Establishment act

2 - Factories ACt

3 - Minimum wages

4 - PF & ESI

5 - Gratuity and bonus act

6 - Maternity act

7 - Contract labour act

8 - National and festival holidays act

9 - Professional tax act

You have a cream of employees and also so many support staff too. So you need to comply with all statutory requirements as applicable to any other labour intensive or service industry.

But I am really amused with what Mr.Mallik says...:-D

For example whereas you cover your support staff by ESI , you might be giving health and life insurance to your super boss employees :-D

You need to understand what all the statute is expecting an employer to do at minimum level for the employees and relate the requirements to IT industry. You will see IT flaunts the same requirements in the form of perks and benefits beyond compare...

But all the time be aware of the statutory requirements and the vis a vis benefits provided by your IT company. Then you are safe.



From Korea, Seoul
All, Pl. find some useful Acts which i am saved from this discussion forum itslef. May be useful. Regards, Viju Nambiar
From France, Lille
Attached Files (Download Requires Membership)
File Type: doc esic_172.doc (134.5 KB, 119 views)
File Type: doc factories_act_1948_157.doc (85.0 KB, 124 views)
File Type: doc ppf_147.doc (31.0 KB, 111 views)


differnent ppl givin differnt views........confusin a fresher even plzzzzz which act is applicable 2 an IT services provider?
From India, Mumbai

Dear Geeta, You have mentioned so many acts individually which are already covered under shops & establishment act. Best Regards Sajid Ansari
From India, Delhi

Dear Nova,
The Maharastra Govt have special focused on IT industry ,please go through the website and let me know incase you have any quiries.
Industrial Policy <link updated to site home> ( Search On Cite | Search On Google ) .
dont gets confused,read the attached documents property and decide yourself what is the best way for your company and what law is applicable for you.
Follow shops & establishment act.
Incase you find any problem in Maharastra,you can personallty visit to our Mumbai office and you will get help from our legal experts or call at my cell#09958404503.
Best Regards
Sajid Ansari-delhi

From India, Delhi
Attached Files (Download Requires Membership)
File Type: doc bombay_shops_and_establishment_act_1948_959[1].doc (39.5 KB, 90 views)
File Type: pdf Labour department.pdf (515.3 KB, 406 views)

Raj Kumar Hansdah

A VERY INTELLIGENT and UPLIFTING discussion and my compliments to all participants. Please keep it up. These are the kinds of Discussions that makes this forum worthwhile.
Thank you Malik ji for ur comments in lighter vein. It was hilarious esp. in the light of Satyam (now Mahindra Satyam).
Thank you Sajid Ansari ji for your valuable, factual, legally compliant messages.
Both of you are the pillars of the forum in the area of Legal Compliance.

From India, Delhi
Apart from the various Act, IT Company has got the excemption also for 24*7 working hours, excempted from update the attendance and wages details manually etc. and the best thing is that if IT Company is situated in SEZ Zone / Area then they are excenpted form all Labour Laws as per the SEZ Policy
From India
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