Navigating Registration for Rented Premises: Factories Act or Shops & Establishment Act?

Registration Requirements for Rented Premises

I have recently joined a Pvt Ltd Co. in the state of U.P. It is involved in importing and manufacturing Panels & Welders (exigible under the Excise Act). The company has rented premises. I want to know whether we need to get our rented premises registered under the Factories Act, 1948 (is it mandatory)? Can we obtain registration under the Shops & Establishment Act instead of the Factories Act?

Providing ESIC Benefits

Also, we intend to provide ESIC benefits to our employees, of which there are around 10, receiving wages less than 15,000 p.m. Is there any requirement that the place must be registered under the Factories Act or the Shops and Establishment Act?

With Regards,
RB

1. Sir, you have not clarified in your remarks about the exact location where your factory is situated. Under the ESI Act, 1948, and the rules/regulations framed thereunder, the coverage is restricted to only those places where the scheme has been extended under section 1(3) of the said Act. Such places are called "implemented areas."

2. Further, for coverage under the said Act, employment of 10 or more persons is required, irrespective of whether only a very few employees (even 1 or 2) may be getting wages less than or up to Rs. 15,000 per month.

3. I suggest that you kindly contact the nearest office of ESIC, obtain the above information, and get the Code Number if the conditions of coverage are satisfied.

Dear Member,

If you have a total of 10 or more employees hired directly or indirectly and are involved in manufacturing with the aid of power, then you are required to register under the Factories Act of 1948, not under the Shop and Establishment Act.

Secondly, there is no intention to provide, as mentioned by you. However, the law states that if you have 10 or more eligible employees - meaning 10 employees whose salary is less than 15k - then you are required to obtain an ESIC code for your establishment.

Respected Shri Malik Sahib,

I think your remarks "but the law says if you have 10 or more eligible employees, which means 10 employees whose salary is less than 15k, then you are required to take the ESIC code for your establishment" as mentioned above appear to be not in accordance with the provisions of the ESI Act, 1948, as it stands at present.

I hope your good self will examine the issue afresh and advise me also suitably so that I may be able to update myself.

Dear Harsh jee,

Earlier, when the limit was 20 employees, this clause was not there. Recently, we have taken on a new code, and only then could I come to know that they are now asking for eligible employees. However, the act still states what you have mentioned. I will try to obtain the amendment and forward it to you, please.

Respected All,

Thanks, Harsh Ji and Malik Ji for the response.

@Harsh Mehta: Yes, our unit is located in an industrial area, so it is covered in the implemented area.

Also, can anyone suggest some consultants for implementing Factories Act Registration and ESIC registration?

Required a good consultant to implement ESI Compliance for a small factory (average 10 workers) located in Anand Industrial Area, Ghaziabad, U.P.

Kindly contact me through PM.