Does the Factories Act Apply to IT/ITES Companies Under the Shops & Establishment Act?

Applicability of the Factories Act to IT/ITES Companies

Does the Factories Act become applicable to IT/ITES companies which are otherwise covered under the Shops & Establishment Act?

Regards

The Factories Act cannot be applicable to the IT sector because IT companies are involved in software development and not in manufacturing any product. Hence, the IT/ITes companies are covered under the Shops and Commercial Establishment Act.

Regards,

As of now, the Factories Act is not applicable to IT firms. However, in July 2012, the Bombay High Court held that IT firms are considered factories for the ESI Act. The question of whether IT qualifies as a factory is currently before the Supreme Court. The outcome of this case is uncertain at this point.

Regards