Regarding Applicability Of Factories And Establishments Act On PSU - CiteHR

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

From India, Chennai
Labour Law & Hr Consultant
Partner - Risk Management
Freelancer In Hr &indirect Taxes For
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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.

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.

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.

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.

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.

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.

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?
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

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.

From India, Pune

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