Does the Factories Act 1948 Apply to BPOs in India? Exploring Legal Boundaries and Alternatives

I would like to know if the "Factories Act 1948" applies to BPOs in India. If not, what other Acts or Laws apply? If it does apply, then are there any limitations?

Thanks in advance to all those who take their time off to reply.

Gary.

Dear Gary,

In general, we see that BPOs do not carry out any manufacturing processes at their establishment as defined in section 2(k) of the Factories Act, 1948, and hence they are not covered under this Act. They are covered under the State Shops and Establishment Act. We are required to review all the Central and State labor laws considering the number of employees employed at the establishment. To finalize the list of applicable enactments, one should review the applicability clause in every enactment.

With Regards,
R.N.Khola

I would like to know if the "Factories Act 1948" applies to BPOs in India. If not, what other acts or laws apply? If it does apply, then are there any limitations? Thanks in advance to all those who take their time off to reply.

Gary.

Hi, IT and BPO will be covered under THE INFORMATION TECHNOLOGY ACT, 2000 (No. 21 OF 2000) [9th June, 2000] THE INFORMATION TECHNOLOGY [amendment] ACT, 2008. This act will apply. Amendments are only limited; you can download IT 2000. It covers the whole of IT and ITES policies that have been framed by the Indian government according to our policies. It's quite easy. It mainly covers "Digital Signature Certificate," "information asset," "licensed Certifying Authority," "subscriber identity verification method," "trusted person," and so on.

Hello!

The Factory Act 1948 may not be applicable to BPOs, as it's not a 'factory' as defined under the said Act, mainly because of the absence of a 'manufacturing' process. However, all other labor laws are applicable to BPO employees as per the requirements of each respective Act.

-V. K. Bhide

Hi all,

I want to start my own manpower outsourcing and staffing company in Guwahati. I need to know about all the documents needed to start off the same. If anybody has an idea about the documentation aspect of this manpower outsourcing business, kindly email me the details at: diganta.sarma@thotsnskills.org

Warm regards,

Diganta Sarma
ThotS n SkillS
Guwahati-6

I am not sure if number of acts given by Mr. azfar are labour laws and they have anything to do with employees employed with BPOs. Correct me if I am wrong.
Thanks

Of course, I always go with Mr. R.N. Khola, sir. He is the foremost senior and well-experienced person. He will give a very clear answer. Most of my doubts have been cleared by him. I quoted the IT Act as most people won't accept it. Most of the IT companies will follow the Shops and Establishment Act. The IT Act was created over a decade ago, but it's not strictly followed by any government. Nowadays, many states are making use of this act. For example, Syntel, a leading IT company, is following the IT Act. I received this information in my subjects, and IT HRs had discussed these acts with us. Thank you.

• What are you saying? 'IT Act is not strictly followed by any government'? Then what is this act enacted for?
• Is the IT Act a substitute for the Shops and Establishment Act in your opinion?
• Is the IT Act a 'Labour Law' concerning employees and their working conditions?