Prachi B
Is it mandatory for IT company

1) to get Shop and Establishment Certificate

2) to display Abstract on the notice board

3) to maintain
- Employee register
- Wage register
- Register of loan / Recoveries
- Attendance register
- Register of rest days / Leave account of employees / Leave with wages

4) to give bonus as per Bonus Act

Labour Law & Hr Consultant
Labour Laws & Ir
Prachi B
Hr And Office Manager


Dear Prachi,

Any industry or business related activity done in an organised manner through the paid employees subject to the control and supervision of the employer and the systematic co-operation of the employees would come under the purview of the labor laws. Even organization's engaged in social service or non-profit organization are subject to the labor laws of the country. That being the general position, it would have been better had you given the reasons for your query. IT and ITES sectors have emerged as major source of employment to millions of techincally qualified persons and they contribute lots of money to the State Exchequre by means of taxes and other charges. The constant research and development undertaken by such establishments lead to technological development in all other sectors. Therefore, the regulation of the conditions of employment in this sector through appropriate legislations is inevitable.
So an emphatic ' YES ' is the answer to all your queries.

From India, Salem

Dear Member,
In general IT companies are covered under the S&E Act which is a state Act. You are to see that in which of the state you are running your IT Company & then go through that state Shops & Establishment Act to see whether you are covered under the definition of Shop & establishment. After examination of the coverage of your company you are to see whether you are to have RC under that Act. After examination of the applicability of the various labour Laws you are to display abstracts of LL as mentioned in the Rules. For maintaining the registers you are to go through applicable LL Rules. If you are employing 20 or more persons then you will also be covered under the Payment of Bonus Act, 1965.

From India, Delhi

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