Soical Compliance Auditing
Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Compliance Expertise In Labour Laws &
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.
21st June 2009 From India, Delhi
21st June 2009 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.
22nd June 2009 From Korea, Seoul
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.
22nd June 2009 From India, Delhi
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.
23rd June 2009 From India, Delhi
23rd June 2009 From India
I thought it fit to fill in some blanks in the replies to your query.
An IT company is covered under shops and commercial establishments act. It does not fit into the definition of " Factory" under Factories Act. Secondly you have to check the definition of "Manufacturing Process" under Factories Act.
Once you are sure it does not come under the Factories Act, if you are situated within the implemented area ( area defined under the Shops Act for enforcement of the Shops Act) then you should obtain the registration under the Shops Act.
OF the various laws applicable as listed by our friends in the various posts, a couple more would be applicable- because of registration under Shops Act and otherwise because of employee strength.
These are the Payment of Gratuity Act, the WC Act, The Contract labour Act, The National & Festival Holidays Act etc, to add a few more.
13th August 2009 From India, Bangalore
#AnonymousHi, What forms are to be submitted every year by a factory to the labour department?
17th February 2018 From India, Bengaluru