Understanding Acts vs. Rules: Do I Need Both for My Organization's Compliance?

Understanding the Difference Between an Act and Rules

I need to know what the difference is between an Act and Rules. For example, if I have to implement the Shops and Establishment Rules for my organization, do I not need to implement the Shops Act as well?

The rules cannot exist independently of the Act. The Act contains substantive provisions, and the rules specify the procedure on how to implement the main provisions of the Act. The government, which frames the rules, draws its power to frame the rules from the Act itself. For example, Sec.12 of the Contract Labour Act (CLR Act) stipulates that a contractor employing contract labour of 20 or more shall obtain a license under the Act. It does not go into detail as to how to obtain it. The rules framed under the CLR Act stipulate how to obtain it. Therefore, the Act and the rules are like milk and curd but not chalk and cheese.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
[Phone Number Removed For Privacy Reasons]

"Act" means a law, and "Rules" are its procedures. If your organization comes under the Shops & Establishments Act, you have to follow all the rules under it.

Can there be a case where I don't need to implement the Act since my organization does not come under its purview, but I still need to follow and adhere to the rules?

I have corrected the spelling and grammar errors in your text. I have also ensured proper paragraph formatting with a single line break between paragraphs. If you have any more text that needs correction, feel free to share!

So basically, if I am following the rules of a specific act, do I need to register for the act as well?

Yes, if your organization comes under the S & E Act, then you have to register under the same.

The Shop and Establishment Act and Rules are applicable to shops and establishments as defined within the Act. Both shop owners and establishment managers are required to adhere to the provisions outlined in the Act and Rules. While a shop may differ from an establishment, the obligations to follow the same Act and Rules apply to both.

Regards,
D. Gurumurthy HR/IR Consultant

Understanding the Difference Between an Act and Rules

Rules are part of an Act. An Act provides the scope, and rules provide the executive power. You need to implement the Shops and Establishment Act as per the guidance given by the Shops and Establishment Rules.

There are substantive laws as well as procedural laws. For example, the IPC is a substantive law, while the CrPC and the Evidence Act are procedural laws.

So, one is about what and why, while the other is about how. Substantive law always provides what needs to be done and why it needs to be done. Procedural law provides how to do and implement it.

In view of this, Acts are substantive laws, and Rules are procedural laws. Any Act, like the S & E Act or the Minimum Wage Act, provides the substantive need, but Rules provide how to cater to these needs.

I think I got the idea of why & how the S & E Act & Rules are there.

Regards, Sanjay