Confused About Bombay Shop Act vs. Factory Act for Our Units: Need Your Advice

Respected seniors, kindly give your valuable suggestions on the following topics:

Units Under the Bombay Shop Act

We started three units under the Bombay Shop Act in one building (single premises). In this unit, only the inspection process is conducted. For this process, we use one compressor for all three units.

Connection with Factory Act

We carried out these units as piece-rate job works type connected with a factory that carries out a manufacturing process. As per my knowledge, if any process (including inspection) is connected with a factory (manufacturing process), it falls under the Factory Act, not the Shop Act.

Is this correct or incorrect? Kindly provide a brief explanation. How can we avoid the Factory Act or what should we do to avoid it?

Regards,
Raju Shriname

The pertinent facts are not clear. I presume that the premises in question are where a compressor is used for the inspection of materials produced elsewhere. Mere inspection is not a manufacturing process under the Factories Act. So unless there are 10 or more employees in that premises and some manufacturing process is carried out as per the Act, then only it can be said that the premises in question is a Factory.

Regards,
KK

Compressors are used to remove any chips inside the job, as these chips are so small that they cannot be seen with the naked eye. Each unit has a workforce of up to 17 workers. The inspection process is done manually without the aid of power, such as checking go-no-go gauges and other parameters.

From,
Raju Shriname