New to IT? Do You Need a Shops and Establishment Act Certificate and Other Labor Law Insights?

Hi Team, I have just started my career in the IT industry. I would like to know if certification of registration (under the Shops and Establishment Act) is required for IT companies, and if there are any other labor laws related to IT companies. Seniors, please help and guide me.

Thank you.

Certificate of Registration and Compliance with Labor Laws

The Certificate of Registration under the state's Shops and Commercial Establishments Act is the fundamental document that permits you to employ workmen. Simply because IT is manned by highly qualified and highly paid professionals, you cannot escape from complying with the provisions of various Acts like the EPF Act, Maternity Benefit Act, Workmen's Compensation Act, ESI Act (if situated in the implemented area), Payment of Bonus Act, Payment of Gratuity Act, etc.

Let us keep all the employees/professionals who are handling high responsibilities away from these Acts, but let us provide some social security to those who do not fall under the definition of professionals. Therefore, please get your firm registered under the Shops and Commercial Establishments Act and similar social security enactments applicable to your establishment.

Regards,
Madhu.T.K

In Tamil Nadu, the Tamil Nadu Shops and Establishments Act is in force. This Act does not require that shops, establishments, or commercial establishments be registered under this Act. Therefore, if your establishment is in Tamil Nadu, you need not take out a registration under the Tamil Nadu Shops and Establishments Act. If your establishment is situated in other states, please check the Act relating to Shops and Establishments in that state to see whether registration is required. A better option would be to consult the Labour Department of that state. As of today, there is no law relating to Shops and Establishments with all-India applicability.

Regards.

Registration Requirements Under Shops and Commercial Establishments Act

It is surprising to know that under the Tamil Nadu Shops and Commercial Establishments Act, registration of establishments (or IT establishments?) is not mandatory. However, the rules pertaining to the registration of shops and establishments in Kerala, i.e., the Kerala Shops and Commercial Establishments Act, are very stringent. The enforcement authorities, i.e., the State Labour Department, do not spare even an establishment employing one person! I believe that other states also follow the same ruling as Kerala regarding registration.

Regards,
Madhu.T.K

Dear Mr. Madhu, The Tamil Nadu Shops and Establishments Act does not have a provision for the registration of shops, establishments, or commercial establishments. Any shop, establishment, or commercial entity functioning in Tamil Nadu, ranging from small shops to large establishments like IT companies, is not required to register as there is no provision for registration.