Understanding the Key Differences Between the Shops & Establishments Act and the Factory Act: What Should You Know?

What is the difference between the Shops & Establishments Act and the Factory Act?

In general, the Shops and Establishment Act applies to commercial establishments such as shops, hotels, restaurants, offices, etc., and regulates aspects like working hours, overtime, holidays, and working conditions for employees in these establishments. On the other hand, the Factory Act is specifically designed for manufacturing units or factories and focuses on ensuring the health, safety, welfare, and working conditions of workers employed in factories. The Factory Act typically has more stringent regulations compared to the Shops and Establishments Act due to the nature of work in factories involving machinery and potential hazards.

Dear Friend,

The Factories Act is applicable to all factories engaged in manufacturing processes with more than 9 persons with power or 20 employees without power. The Shops and Establishments Act applies to all shops and establishments.

What exactly do you want to know? Can you be more specific?

Siva

Shop and establishment license is important to get a PF license. We have to apply for a PF license.

Can someone tell me which act will be applicable for contractors carrying out highway/bridge construction with direct labor.

Anil R.