Umakanthan53
Labour Law & Hr Consultant
Kritarth Consulting
Posh Programs; Hr Management Consultants

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What is the difference between factory Act and Shop and Establishment Act please suggest.
From India, New Delhi
Factory Act applies to and Covers Industrial Establishments/Undertaking Whereas the Shops & Esta Acts apply to and cover Commercial Establishments.
Single Purpose of both the Legislation is to i) "Define with sufficient precision, the Terms & Conditions of Employment and ii) Make them Known to the Workers/Employed Persons & Others.
Kritarth Team of HR & IR Mgt Professionls
19 Feb 2019

From India, Delhi
Had the poster mentioned what prompted him to raise this question whether out of academic interest or the problem,if any of overlapping application of both the Acts to his establishment, it would have been easier to answer accordingly.
The difference is distinguishable from the very nomenclatures of both the Acts.
In the first place, the Factories Act,1948 is a Central Act mostly administered by the State Governments by formulating the State Factories Rules in tune with the provisions of the Act.
It was originally passed in the wake of industrialisation of the country during the British Rule to regulate the conditions of work in factories and amended/replaced according to practical reasons and as such considered on the whole to be "the mother of Indian Labor Laws" whereas the Shops and Establishments Acts are a later addition to labor laws and they are passed and enforced by the State Governments in their respective geographical jurisdictions. Their main objective is to regulate the conditions of work in shops and commercial establishments in urban areas and engage in trading and other related commercial activities.
Any specific premises including its precincts thereof where any manufacturing process is carried with or without power by employing certain minimum no of labor is a factory and falls under the exclusive jurisdiction of the Factories Act,1948 not withstanding its other incidental activities. On the other hand, an establishment under the Shops and Establishments Act is a place where the activities of sales, purchase of goods or any commercial services like banking, forwarding are done by employing people for hire or reward and includes places of public amusement, administrative offices of commercial undertakings etc.
Since the Factories Act,1948 and the State Shops and Establishments Acts are establishment-specific labor legislations, though the establishments covered exclusively by these two Acts are also covered by other Labor Laws like the Employees Compensation Act,1923, the Payment of Wages Act,1936,the Industrial Disputes Act,1947, Industrial Employment(Standing Orders)Act,1946, the Minimum Wages Act,1948, the ESI Act,1948, the EPF Act,1952, the Maternity Benefit Act,1961, the Payment of Bonus Act,1965, the Payment of Gratuity Act,1972 etc., in respect of the employment matters exclusively dealt with by them.

From India, Salem
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