Understanding the Factory Act vs. Shop Act: Key Differences and Registration Steps

Difference Between the Factory Act and the Shop Act

What is the difference between the Factory Act and the Shop Act, and what is the procedure for both new registrations? Please clarify briefly.

Regards

Please find the attachment. Maybe it will satisfy your queries.

Regards

First of all, you need to know that any organization that falls under the Factory Act does not fall under the Shop Act. For your organization, it will be either under the Factory Act or the Shop Act.

Regards

Both are different. The Factory Act covers manufacturing establishments, whereas the Shops & Establishment Act covers any shop or establishment where 10 or more employees are working.

Hope this solves your query.

Thanks,
Lokesh

Applicability of the Factories Act and Shops and Establishments Act

The Factories Act is applicable to any premises where a manufacturing process, such as making articles, polishing articles, repairing them, or converting any raw material into a finished product, is carried out. It applies if the premises employ 10 or more workers in such a manufacturing process when power is used, or 20 or more if no power is used.

In contrast, the Shops and Establishments Act applies to any premises where only trading and commercial activities are carried out, but no manufacturing activity is conducted. Thus, the Factories Act cannot cover a shop, and the Shops Act cannot cover a factory.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai