Does a Recruitment Consulting Firm Need to Follow Factory or Shop Laws?

Hello Seniors, I was wondering if a recruitment consulting firm falls under the Factories Act or the Shop and Establishment Act. Is it possible for a consulting firm (Pvt Ltd) to get away with not providing appraisal letters, salary slips, provident fund, and yet claim to be a corporate company? I would really appreciate your valuable inputs.

Regards, Slim

Recruitment Firm Compliance Under Shops Act

A recruitment firm is certainly not a factory but nevertheless an establishment under the Shops Act. It needs to comply with labor laws like P.F (Provident Fund), ESI (Employee State Insurance), etc., once it employs the prescribed number of employees, i.e., 20 employees or more.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Thank you for responding to my query. So, is it okay for me to say that it is the duty of the consulting firm to abide by the laws laid in the Shop and Establishment Act?

Thanks & Regards,
Slim

Yes, you need to comply with the Bombay Shops Act since it does not prescribe any minimum number of employees for coverage. Other acts, such as the Bombay Labour Fund Act, P.F., or ESI, apply when employing the prescribed minimum number of employees.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai