Umakanthan53
Labour Law & Hr Consultant
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Dmc123
Legal Consultancy
+1 Other

Sir,
I wanted to know that which kind of employee comes under labour law.
Our company registered in Factory act, having 45 employees.
20 in Production (15 ITI, Other helper , and )store
Other 25 (Sales, Design, Accounts, HR,IT, Commercial, extra) Salary between 30k to above 1 lac.
Only production employees comes under labour law or office also.
Please reply me asap.
Thanks
Regards
Alka Singh
17th July 2017 From India, Delhi
At the outset, I would restrict my reply to the query with reference to the term " worker" as defined u/s 2 (l) of the Factories Act,1948. For the purpose of interpretation of the term, one should read it together with the definitions of "factory" and "manufacturing process".All those employed directly or indirectly in any manufacturing process or any other kind of work incidental to or connected with the manufacturing process or the subject of the manufacturing process are workers. If the administrative or other office is situated within the premises wherein a manufacturing process is being carried on the entire area will be treated as factory and all the people employed therein would be included in the numerical criterion required for the Act's application. Salary/wages is not a determinant in this connection. However, if any of them have to perform their work normally outside the premises, they will not be workers under the Act for its purpose. Therefore, the 20 people directly engaged in the manufacturing process and all others doing their work within the premises like accounts, HR, IT, DESIGN, WATCH AND WARD are workers under the Factories Act.

Since the post has started with a blanket question, I would also like to add that the application of Labour Law in general would depend upon the purpose of a particular Law, salary/wage and the capacity/ status of employment of the employees.For example, any employee irrespective of his employment capacity/status and salary would be eligible for gratuity under the Payment of Gratuity Act,1972, if it applies to the establishment. The Industrial Disputes Act,1947 would apply to all employees who fall within the ambit of the definition of the term " workman" for the purpose of protection of the employment rights ensured therein.
17th July 2017 From India, Salem
1. Dear member, I think, you have raised an important issue, but I think, in order to see as to in which sphere a particular labour law is applicable or enforceable is defined and laid down in said law itself. It is good aspect that the legislature has defined and laid down the coverage or applicability of a particular labour law based on the requirements or nature of that law itself and no uniform principles/rules have been laid down. For example under ESI Act, 1948 coverage threshold is 10 or more persons, but its implementation is restricted to only implemented areas. This Act is applicable in J & K also. On the other hand, applicability of EPF & M P Act, 1952 starts as and when a particular establishment engages 20 or more persons, but its applicability is extended to all areas in India except J & K. Therefore, for making compliance under various labour laws, the employer is required to go through all labour laws, decide its applicability and requirements accordingly.

2. 2nd National Labour Commission in its report in the year 2002 had recommended for merger /amalgamation of all such labour laws in the Central list into 4 separate codes and I think, present Central Govt. has made draft Labour Codes on some labour laws, but so called amendments/unification of labour laws is being strongly opposed by the Trade Unions on different grounds and I think, the contentions/arguments of Trade Unions appears to be correct and genuine upto some extent. I think, it will take long time for the Central governments to decide the issue of unification of all labour laws in its jurisdiction.
18th July 2017 From India, Noida
Dear Mr. Harsh,
All your blue collar workers will be covered by Labour Laws. In fact, most of the labour laws are applicable once the strenghth of the employees crosses 20, therefore the Employees Provident Fund Act, ESI Act, Payment of Bonus Act, Industrial Disputes Act, Payment of Gratuity Act, of course Factories Act, Payment of Wages Act, Minimum Wages Act , Maternity Benefit Act, and Industrial Employment Standing orders Act, Prevention of Sexual Harassment of women at workplace Act, Contract Labour Regulation and Abolition as also all other Acts will be applicable to your Factory.
20th July 2017 From India, Pune
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