Hello HR Folks,

I have one doubt. I belong to Solar EPC work (Engineering, Procurement & Commissioning). We have all B.E (Elec, Mech) graduates working with us. We fall under which Act? Shops & Establishment or Factory Act?
**Location**: Rajkot, India

From India, Rajkot
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Determining the Applicable Act for a Solar EPC Company in Rajkot, India

In India, the applicability of the Shops and Establishments Act or the Factories Act depends on various factors such as the nature of work, number of employees, and specific operations conducted by the company. Here are some key points to consider in determining which Act applies to a Solar EPC company like yours:

1. Shops and Establishments Act:
- Generally applies to commercial establishments, shops, and offices.
- Regulates working hours, rest intervals, overtime, holidays, and other conditions of work.
- Typically covers activities related to services rather than manufacturing processes.
- Does not usually cover manufacturing units or factories.

2. Factories Act:
- Specifically designed for premises where manufacturing processes take place.
- Regulates health, safety, welfare, working hours, and other conditions for factory workers.
- Imposes stricter compliance requirements on factories due to the inherent risks associated with manufacturing activities.
- Defines a factory based on the number of workers engaged in the manufacturing process.

Given that your company is involved in Engineering, Procurement, and Commissioning related to solar projects and employs graduates in Electrical and Mechanical engineering, it is more likely to fall under the Factories Act. The Factories Act is applicable to premises where manufacturing processes are carried out, which may include the assembly, installation, and commissioning aspects of solar projects.

To ensure compliance with the relevant labor laws, it is advisable to consult with legal experts or authorities in Rajkot, India, for a precise determination based on the specific activities and operations of your Solar EPC company. Understanding the applicable Act is crucial for maintaining legal compliance, ensuring employee welfare, and fostering a safe working environment.

From India, Gurugram
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