Struggling to Identify Which Laws Apply to Your IT Firm? Seeking Guidance from Experienced Professionals

Dear Seniors, How can we determine which businesses or companies fall under the purview of specific laws? I am currently working with an IT firm and am having trouble identifying the applicable laws we should adhere to. Please provide guidance.

Regards,
Ashama

Mandatory Registration Under Factory Act or Shop and Establishment Act

Is it mandatory for every organization to get registered under these laws (Factory Act or Shop and Establishment Act)? If not, then which companies come under this category?

It is important for organizations to understand the legal requirements regarding registration under the Factory Act or Shop and Establishment Act to ensure compliance with the law. The specific criteria for registration may vary depending on the size, nature of business, and location of the company. It is advisable for organizations to consult legal experts or relevant authorities to determine whether registration is mandatory for their specific circumstances.

Is it mandatory for every organization to get registered under laws such as the Factory Act or Shop and Establishment Act? If not, then which companies come under this category?

Position

Is the organization/establishment you are associated with an Industrial Establishment, a Commercial Establishment, a Government Establishment or Department, or an NGO? If you specify, a specific clarification will be on its way to you.

Regards,
Kritarth Team
Kritarth Consulting Private Limited
21.11.2014
Bengaluru L C

Thanks for the reply. It is a private company with around 20 employees and is an international software consulting company.

Impact of Being an International Company

Also, I would like to know if being a multinational corporation (MNC) or international company prevents them from following these laws.

Dear Ashama Aggarwal,

The laws of the land apply to all business activities within the shores of India, a sovereign nation, just as they do in the comity of nations worldwide. Is your "private" company not registered under the Companies Act 1956 as a body corporate/legal entity? Does your company operate a bank account for payables and receivables? Have you not been issued a proper employment/appointment letter? Do you not avail of PF, gratuity, ESI privileges, as well as leave, off, or national holidays? There are numerous multinationals operating in India, much like many Indian companies operating offshore.

In fact, your employer is legally obligated to implement the newly enacted law, namely the "Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act 2013," and the rules framed thereunder, gazetted on 9 Dec 2013, as stipulated in Section 19. Failure to do so properly and faithfully can result in penalties, including a fine of up to Rs. 50,000 and potential cancellation of business licenses/permissions.

In conclusion, please ensure that the employer takes note that "ignorance of laws is no bliss." We are here to help.

Regards,
Kritarth Team

Kritarth Consulting Private Limited

Bengaluru, New Delhi, Jamshedpur Learning Centers

21 Nov 2014.