Hi Ujwala,
SHOPS AND ESTABLISHMENTS ACT:
This is an Act to consolidate and amend the law relating to the regulation of conditions of work and employment in shops, commercial establishments, restaurants, theatres, and other establishments, and for matters connected therewith. It decides:
1) Make provision of some more conditions to be complied with by employers in cases of termination of services of employees.
2) Entrust the functions of judicial authorities under the Act to Departmental officers to render speedy relief to the employees under provisions of the Act; and
3) Provide for more stringent punishment to the offending employers to act as a deterrent to prevent abuse of the various welfare provisions of the enactment. Even though an establishment of a factory is registered under the Factories Act, it still requires registration under the Shops Act since it comes under "Commercial Establishment" under Sec. 2(5) of Act 20 of 1988 in AP.
This Act differs from state to state.
THE FACTORIES ACT:
The Factories Act, 1948, is a comprehensive piece of legislation covering all aspects regarding factories. The Indian Factories Act (Act 15 of 1881) did not contain suitable provisions for inspection and enforcement. With the growth of factory organizations, there was a demand for a stricter piece of legislation. In 1890, the Government of India appointed a Factories Commission. On their recommendations, the Factories Act (Act 11 of 1891) was passed. The advent of electricity in the last decade of the 19th century created new conditions in factories. Inquiries were conducted by the Freer Smith Committee and Factory Labour Commission in 1907 on the conditions of labor in factories. On the recommendation of these committees, the Factories Bill was introduced in 1909, which became law in 1909. Restrictions on hours of work were introduced for the first time.
As large-scale expansion of industrial activities took place in the 19th century, there occurred serious industrial unrest in the industry. The Indian Factories Act was amended in 1911, 1923, 1926, 1931, 1935, 1937, 1940, 1941, 1944, 1945, 1946, and in 1947, amendments took place as per the necessity prevailing in the industrial sector. The main object of the amendments is not only to consolidate the law relating to working conditions in factories but also to introduce certain important new features.
The existing law applies to industrial establishments where a manufacturing process is carried on with the aid of power and where twenty or more persons are working.
It is proposed that the law relating to factories should be made applicable to all industrial establishments employing ten or more workers where power is used and twenty or more workers in all other cases.