Shops & Commercial Establishment Act

Hi,

Software development company registration is required under the Shops or Factory Act. Could someone please clarify this further?

Regards,
Rakesh Sharma

Dear Rakesh,

A software company should be covered under the Shops and Establishments Act.

Thank you,
J. S. Malik

Hi Malik Ji,

Thanks for clarification. Our organization has been covered under the Shops Act since 2003. However, the labor department is now requesting us to also be covered under the Factory Act. Today, I have written the letter seeking clarification.

Secondly, is there any provision in the act regarding Municipal Council areas and PSIDC limit areas? Please clarify.

Thanks in advance.

Rakesh

Dear Rakesh,

Earlier, it was covered under the shop act. Now, if due to any amendment and notification, it has changed, let us also know. Sometimes, software development might have been considered a manufacturing process.

Thanks,
JS Malik

Hi,

Right now, we have no manufacturing process. Is the second call centre covered in shops?

Regards,
Rakesh

Dear Rakesh,

It is clarified that the extension on the applicability of the Shop Act is notified by the government area-wise. Municipal areas are declared for coverage and jurisdiction of the Inspector. In Haryana, the Act applies throughout the state, whereas previously it was applicable city-wise. However, this does not mean that if your unit is now not in the committee area, the Factories Act will be applicable to you. In Haryana, BPOs are not covered under the Factories Act as the Labour Department does not consider them to be involved in any manufacturing process. Therefore, please meet the concerned senior officer of your area regarding this matter.

Regards,
R.N. Khola
Sr. Associate

Dear Patil,

Printed notices of abstracts of different labor laws such as Minimum Wages, Factories Act, Payment of Wages Act, Gratuity Act, etc., are available at bookstores in major cities of India. It is essential for you to review and determine which ones need to be displayed at the premises.

Regards,
R.N. Khola
Sr. Associate

Can anyone please tell me if a training institute for accounts also falls under the Shop & Commercial Establishment Act?