Is the Factory Act of 1948 Applicable to Corporate Offices? Seeking Clarity

As I know, under the Factory Act of 1948, establishments are eligible if they employ more than 10 employees with the aid of power or 20 without the aid of power, where the manufacturing process occurs. Kindly help me to know if the Factory Act will be applicable in the head office or corporate office of its respective factory.

Regards,
Paras Thakur
MBA-HR

If the manufacturing process is not taking place in your head office or corporate office, then your head office or corporate office is not covered under the Factory Act. Instead, your head office or corporate office is covered under the Shop & Establishment Act.

However, if any type of manufacturing process is being carried out in your head office or corporate office, it will be covered under the Factory Act.

If you need further clarification, please revert.

Regards

You may be aware that the quantum of the fee for the application for registration depends upon the maximum number of persons employed during the year and the maximum amount of power (in terms of horsepower) installed or proposed to be used. If your Head Office or Corporate Office is located in the same premises where your factory is carrying out the manufacturing process and you have included the persons working in your Head Office or Corporate Office while applying for registration and have been sharing a common power meter, then the provisions of the Factory Act will apply to your Head Office or Corporate Office as well. Be cautious and ensure that while filling the application form for registration, the full name of the factory is mentioned in Column 1, specifically mentioning EXCLUDING Head Office or Corporate Office, as the case may be.

Clarification on Gratuity

Regarding the clarification with regard to Gratuity, Sh. Kuldeep Rawat has provided the correct position of the provisions under the Payment of Gratuity Act.

Regards,
BS Kalsi
Contributing Member