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.

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

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

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

• 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?