Marketing Staff cover under Factory act or Shops & Est. Act ?? - CiteHR
Umakanthan53
Labour Law & Hr Consultant

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HI Seniors,
Can anyone please guide me that Company's Marketing staff will be covered under Factory act or Shop & Est. Act ??
We are having our manufacturing unit in Haryana and the corporate office is in Delhi. Though the Salary processing is done from the Haryana as Earlier we were having our corporate office in haryana in the same premises of Manufacturing unit and the company is registered under factory act and all employees (Manufacturing + Sales & Marketing employees) are enrolled under EPF & ESI with Haryana gvt. Later on we started our new office in Delhi and taking care of all Sales & marketing personnel from Delhi (Aprox 500 employees) who are spread-ed at PAN India . However the salary processing, EPF, ESI, LWF etc. are being submitted to Haryana Gvt. Now My Question is:
1.) While recruiting employees (Sales & Marketing) Which minimum wage i should follow Haryana or Delhi.
2.) While preparing for Leave policy/Working hours Which one should I follow Factory act. or Delhi's Shop & Establishment Act.
3.) Labour Department will treat this office under which act. (Factory act. or Delhi's Shop & Establishment Act.) in case of any issue pertaining with employee or any dispute.
Please guide me in detail with accurate fact. I will be highly thankful to you!
Regards
Rajesh Kumar
HR Manager

Dear Rajeshkumar,
Since you have got a separate Corporate Office at Delhi, the establishment-specific Labor Law is the Delhi S&E Act only. The marketing staff attached to the Corporate Office and their conditions of service etc., would be as per the provisions of the DS&E Act only and the mw fixed for employment in DS&E would be applicable to them. However, if you have got regional offices across the country the pan-India employees who are reporting to such regional offices would be covered by the respective State S&E Act which apply to the particular regional office.
Considering the particulars pertaining to the manufacturing facility, the corporate office, their different locations for manufacturing, administrative and marketing conveniences and the probable no. of employees engaged for each operations, your establishment is certainly a very large establishment having pan-India presence. As such why you try to stick to restricting the service conditions of employees of same or similar class to different laws according to their places of work? Will it not cause difficulties in the case of inter state transfers necessitated by the exigencies of work?
The statutory standards of conditions of employment are minimal only. When there are differences in the standards prescribed by the different Laws, logically and legally the more beneficial standard alone has to be preferred. Therefore, why don't you try to have an all-India standards?

Dear Rajesh kumar,
If the name of marketing staff are in roll of Factory then they will be covered under Factory act or otherwise Shop & Est. Act.

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