Korgaonkar K A
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Rkore77@gmail.com
Assistant Hr & Admin

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Mine is a Partnership firm with 15 workers, factory at Thane, Maharashtra since 30 years. Manufacturing engineering equips. HP use is 80
We are also registered with esic and pf
Mine querry is i had recently tried to renew the factory license for 2016 which got rejected with reasons that we have only 15 workers and we do not come under the factory act.
As the payment was done online. i would like to know do we have to register for shop establishment license if not factory license.
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dear sir,
as per the company you have register the license for shop and establishment act if the company has 20 or more employees we have to register the factories act
Kind Regards,
Sathyanarayanan T
Senior Advisor – HR Compliance
NI Consulting Services Private Limited
Human Resources | Business Advisory | Information Technology
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Adding my view is that as you are saying that you are trying to renew your factory license. it means you are already registered under the said act. so why they are denying to renew that license under the said Act , is confusable. because if you registered under the factories Act then dept. must be renew your license.
Second if you are not registered under the Factory Act then try to some concern Act . but first clear all thing as like are u a new set up ? are you already registered under the factory act and want to renew your license ?
Dear ANNONYMOUS,
Your factory is from Thane, Maharashtra.
As per Maharashtra Amendment 2015, Factories Act is now applicable in Maharashtra when you have workers 20 with the aid of power or 40 without the aid of power.
Since you have less than 20 workers, you are no longer fall under Factories Act now and therefore your application for renewal is rejected by authority.
You need to apply for cancellation of your Licence under the circumstance.
Dear Korgaonkar Sir, Agreed with you as what you said but according to me this is only when you want to get registration of your establishment under the factory act. Its never mention in the act about the worker strength for renewal of a license under the said act.
Dear O.B.Gautam ji,
It is a general Law that once you fall under any Law, you will be continued under it forever even though your employee strength falls below the threshold. But consequent upon the said amendment, the FA is now applicable wherein manufacturing process is carried out with more than 20 / 40 workers as the case may be. This means, on the date of said amendment if you are having less than 20 / 40 workers, FA is not applicable to you.
Even I came across a letter from Factory Department addressing Factory Occupiers / Managers informing them that they have less than 20 / 40 workers and the Act is not applicable to them now. And therefore, the licence issued to them will be cancelled by department and the name of factory will be deleted from the record of department.
My question to you, when the department rejects your renewal stating the reason you have only 15 workers and you do not come under the factory act, why you worry?
Dear Seniors
Though I am junior but I want to share my views on this platform. Koregaonkar Sir rightly said in the above comment, even we had also received the same letter stating that Our license will be cancelled as the employee strength was not as per their requirement. But We have submitted them a letter at factory office in which we mentioned in fact requested that due to low production we have less manpower so in coming days we are going to increase our production and for that we will hire more workers.As we have a very good relation with Factory Inspector our license is not cancelled by them. So you can try the same if you want.
Thanks
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