Labour Law & Hr Consultant
Partner - Risk Management
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I have recently reported as an Administration Manager in a PSU. When the topic of Factories and Establishment Registration came up for discussions, everybody pleaded ignorance and none of my seniors were able to say anything whether we have registered or not. I had even visited the office of Ministry of Labour. One of the officials briefed that our PSU is not covered under Factories and Establishments Act and he asked us to maintain silence and not unnecessarily rake up the issue as there was no notice from the department.

I am really doubtful how we are not covered under the Act. My head office is at New Delhi and we have offices at most of the states. Few people I had enquired are telling that they have registered under the local Factories and Establishments Act. I am really bothered. What should i do?? Mine is a premier PSU trading for more than 50 years and has been operational in this state for more than 17 years, How come they have not seen this??

Can somebody guide me??

Kind Regards,
Mr.Robin Singh
19th May 2016 From India, Chennai
The concerned office needs to be registered under the State Shops and Establishment Act.
If you check up you might get details of old registration done years ago.
Many officials in such PSU jobs pass their time and get transferred,that is one reason why such a vital legal requirement is overlooked.
Similarly you may find that the building does not have fire licenses/clearances and fire audits not being done.
Sometime if the local labour officer or shops inspector does a check and finds out lack of registration problems will come up.
Talk to your older staff and even get in touch with some agent or liaison agency versed in such affairs and who can guide you in discreet manner.
I am not surprised at this lackadaisical functioning of many PSUs.
19th May 2016 From India, Pune
First, there is nothing called factories and establishment act
Either you come under factories act
Or you come under the shop and establishment act.
You need to,provide details of what the company does, it's structure etc, for anyone to be able to advice correctly.
20th May 2016 From India, Mumbai
Dear RobinSingh,
Needless to dwell on the definitions of " factory" under the Factories Act,1948 and " establishment" under the State Shops and Establishments Act as the core of the question is relating to the registration of administrative offices of the PSU located in different States under the respective State Shops and Est. Acts. If the administrative wing of the establishment is located within the factory premises; if it is located elsewhere within the jurisdiction of Shops and Estt Act, you should get it registered under the Act.
20th May 2016 From India, Salem
Issue is how the company can now get itself registered if it has been running for years without registration under Shops and Establishment Act of the state concerned.
Organisation will have to explain reasons for delay in applying for registration.
Many similar issues welcome up under Fire Safety Act also for not following basic provisions,inspite of being a Government organisation.
It speaks volumes about culture and involvement of top management.
20th May 2016 From India, Pune
Shri Robin Singh has mentioned about Regn.under Factories & Shops & Comm.Estt.Act., But; no where it is stated whether the PSU is involved in the Mfg./Prodn. activities or making any products requiring Regn. under Factories Act. If there is no Mfg./Prodn., & it is only Trading activity, then; Regn. under State Shops & CEstt.Act will suffice.
Factory Inspectors cannot have jurisdiction where there is no Prodn.activity as defined in the Factories Act.
20th May 2016 From India, Mumbai
Dear Mr.Rao,
I am in total agreement with you on the points of non-registration so far and the inappropriate reasons for the lapse. How ever, it is always better late than never for this is an example of both poor compliance and enforcement of legal provisions. The monetary penalty or surcharge, if any levied for the belated application for registration has to be recovered from the concerned officers of the PSU so that such lapses do not occur in future.
20th May 2016 From India, Salem
I am surpised to read that Psu operating for years in various state has not been picked up on radars of the authorities so it possible anyways?What the authorities do then?
20th May 2016 From India, Vadodara
Dear members,



@ Nathrao and others...

Many a thanks for your replies.

I am so sorry that i have typed wrongly as Factories and Establishment Act. I stand corrected.. It is Shops and Establishment Act.

We would like to do the remedial action now. When i enquired with the retired people, they remember that some registration had been done. But that is long back. How come none of the sections or the succeeding bosses have not noticed that is a mystery. Even if i make a registration now, what about the previous years? Will it not be a problem? Anyway better than not never.

And we are not involved in manufacturing or production. We are into trading of several commodities. Now, suppose if we had misplaced the original Registration Certificate, how can we find out? When we visited the state labour office, they insisted for the Registration Number. But we don't know the number and they say that they cannot find out using the name of the establishment.

Is there a way to find out whether we are registered? Because I am really doubtful how such a premier PSU would have operated without a valid Shops and Establishment Certificate?

Please guide me.

Kind Regards,

Robin Singh
20th May 2016 From India, Chennai
Shops and Establishment Act registration is a one time exercise.
Kindly check it out using services of some agent who specialises in such liaison work.
Fire safety audit is done twice a year in Maharastra and report by certified fire agency is to be submitted to local fire officials.
Bigbosses are seldom concerned with such legalities.
HR/Office Service department is responsible to ensure compliance with legal requirements.
When things go smoothly no one will question lack of registration or fires safety compliances,but when something goes wrong, all the right questions will be asked to fix responsibility.
As HR do the right thing and check out discreetly state of registrations.
20th May 2016 From India, Pune
Dear Nathrao, Thanks for the guidance. I shall seek the help of a consultant as I am very sure, it would have been registered. Thanks to all.. Thanks, Robin Singh
20th May 2016 From India, Chennai
Dear Robin Singh,
The reply of the Labour Department you mentioned is the reflection of the ubiquitous lethargy and red-tapism prevalent in Govt. offices. Since registration is an one-time affair, certainly every registering authority will have a register of establishments to be kept permanent. Anyway, engage a consultant as Mr.Nathrao suggested for he will have the knack of the things getting done in time because of his influential acquaintance.
20th May 2016 From India, Salem
It is unfortunate that even for registration of your shop or establishment one has to engage a consultant.Talk of registration through internet and one click one window is not translated into reality.
I had to engage a consultant for getting an NOC though most requirements were complied with.
Lethargy and greed dominate thinking.
How will business get going if the very department which is to facilitate is itself not really helpful??
This fundamental problem has to be resolved for India to go ahead.
Or things will remain on paper and we remain stuck in a complex environment of rules and regulations.
Making government departments work optimally is the biggest challenge and that is not being addressed by any Government meaningfully.
21st May 2016 From India, Pune
Yes, Mr.Rao, this is the order of the day. Unfortunately we inherit the restrictive rules and modalities thrust upon us by a suspicious foreign ruler and continue them even after his departure. Rules are there only to guide the administrative machinery and the public to accomplish the purpose for which rules were made. But unfortunately the administrative machinery is bent upon to apply the rules only to negate the purpose for obvious reasons.
21st May 2016 From India, Salem
Thanks for the reply sir...Yes it was a mistake..I had in my subsequent posts had corrected it as Shops and Establishments Act. I can very well reveal my company's name but have not diclosed it for obvious reasons. We are a PSU and we are into trading of various commodities. Already we have checked with the local labour department office and they replied that the registration is not necessary/applicable for us as we fall under the Central Government. But i have my own doubt that though ours is a central PSu, we are a commercial undertaking. Hence registration is necessary. Any way, as our dear members have guided me, I am checking with a consultant to find out the registration number of our certificate as I am very certain that it would have been registered..but no where to be found in our records. I am indebted to the guidance you all have given me.
Robin Singh
22nd May 2016 From India, Chennai
You seem to be in the state of Tamil Nadu. To the best of my knowledge, the Tamil Nadu shop and establishment act does not provide for registration or licensing of shops and commercial establishments. That is probably why you do not have a registration number. Please get a cope of the act and check what is the actual requirements and how it dovetails with your organisation
23rd May 2016 From India, Mumbai
Dear Saswatabanerjee,
We are based in Telangana. Today i heard from my retired seniors that they had registered long time back. The sad thing is that nobody has bothered to renew or look into it and preserve a copy. It has disappeared. The labour department here said that it is not necessary. I am confused. But after detailed discussions here, we have decided to go in for a consultant for finding the registration number and renewal. Moreover the local GHMC people say that we have to get a trade license separate and renew it every year at the rate of Rs.6 per sq.ft for our office.
Robin Singh
23rd May 2016 From India, Chennai
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