Defination Between SHops & Establish Act And Factory Act

Dear Gentlemen,

We have an office at Sakinaka for sales, service, and repair of laptops, desktops, printers, and scanners, and we are covered under the Shops and Establishment Act. However, the Factories Inspector is now requesting us to obtain a Factory Act License after visiting us. Could you please guide us on whether it is compulsory for us to obtain a Factory Act License?

Your prompt assistance is greatly appreciated as they have given us a 2-day notice.

Thank you,
HSA

Dear Gentlemen,

We have an office at Sakinaka for Sales & Service, specializing in repairing laptops, desktops, printers, and scanners. We are currently covered under the Shops & Establishment Act. Recently, the Factories Inspector visited us and notified us that we need to obtain a Factory Act License as our office is considered a repairing unit and should fall under the Factories Act.

Could you please guide us on whether it is mandatory for us to acquire a Factories Act License? We kindly request your assistance as we have been given a notice of only 2 days.

Your prompt help in this matter would be greatly appreciated.

HSA

Dear Member,

As stated by you, your work of repairing comes under the definition of the 'manufacturing process' as given under section 2(k) of The Factories Act, 1948. If, at the same time, you are employing the required number of workers for coverage under the Factories Act, then you are covered by the Act. Sometimes, Shops Inspectors register without delving into the manufacturing process details or due to misrepresentation of facts before the Inspector.

Opinion/comments submitted as requested.

With Regards,
R.N.Khola

Dear Gentlemen,

We have an office at Sakinaka - Sales & Service, specializing in the repair of Laptops, Desktops, Printers, and Scanners. We are currently covered under the Shops & Establishment Act. Recently, the Factories Inspector visited us and advised us to obtain a Factory Act License, stating that our office is a repair unit and should be covered under the Factories Act.

We seek guidance on whether it is mandatory for us to obtain a Factories Act License. Please assist us promptly as we have been given a 2-day notice.

HSA

Dear Ekta,

Please put your query on a separate thread or on a similar thread as this relates to the definition of shops and factories.

With Regards,
R.N.Khola

Dear Hemant,

The nature of the work being carried out in your workshop would likely be construed and interpreted as "Manufacturing Process." If you also employ 10 persons, you will be covered by the Factories Act, and you will be required to obtain a Factory License. (I am presuming that you do use power for the repairing activities).

Vasant Nair

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Hello forum!

I find this quite useful. Thanks, Mr. Kola and Mr. Vasant. Can you please solve my query? Currently, I have 5 laborers and a part-time accountant in my small-scale factory of brass building materials, in which I mostly do the labor work on the materials received. Are we covered under the Factory Act? If yes, what things should I take care of? Currently, I'm maintaining material in/out vouchers, salary register, present/overtime register, bonus/leave compensation register, and books of accounts.

Dear Anand,

If you are qualifying the parameters, then you have to register under the Factory Act. So don't hesitate to abide by Indian laws.

Regards,
Shaikh