Navigating Statutory Compliance: Does the Factory Act or Shop Act Apply Here?

Hi Pari,

I am currently employed with a construction company that serves as a vendor for Reliance, Airtel, and Tata. Our primary focus is on blowing and trenching work, specifically involving underground wiring.

I have a query regarding the statutory compliance that should be adhered to in this scenario. I am unsure whether the Factory Act or the Shop and Establishment Act applies in this situation.

I would appreciate it if you could provide a prompt response.

Regards,
Pari

Clarification on Statutory Compliance for Underground Wiring Projects

Your post is not clear to me. I infer that the principals mentioned are Telecom Companies. Whether the "underground wiring" is to be done within any existing structure like a building or under any open stretch of land connecting different points of use?

Whatever it is, in the first place, you have to comply with the provisions of the Contract Labour (R&A) Act, 1970, as a contractor if you are employing 20 or more contract laborers in the work of every principal mentioned.

Secondly, the people employed in your administrative office only will come under the purview of the State's Shops & Establishment Act.

Thank you, sir, for your guidance and support. My company is in the optical fiber network (telecom field). I am confused about whether we should follow the BOCW Act or the Shop & Establishment Act. Currently, we are handling five projects in five different places for two different telecom companies, namely Airtel and Reliance. In each project, we have hired 15-20 blue-collar employees and 3-5 white-collar employees. Some projects have fewer than 20 employees, while others have more than 20 employees. In that case, should we follow the Contract Labour Act or not?

One more thing, as you mentioned that in the administrative office, we have to follow the State Shop and Establishment Act. Then, where do we follow the BOCW Act? I am confused. Please guide me.

Regards, Pari

Your organization's nature of business, as can be inferred, involves wiring, cabling, digging, civil, and related activities. If so, your company falls under the State Shops and Establishments Act. However, there are other Acts and Rules applicable; you cannot stop at this point only. It would bring clarity if the agreement with your principals is referred to. You are not engaging in any building construction activity, which I presume at this point in time. If we read the Act as the name of the Building Act... Therefore, you should revisit the agreement and can repost with a specific query again.

You can write/call again for a final response to your query.

Regards, RDS Yadav
Director, Future Institute of Engineering and Management Technology
Labour Law Adviser
[Email Removed For Privacy Reasons]

Yes, Ranjan Pari, you have to follow the provisions of BOCW Act in addition to other applicable Acts with respect to the nature of activity, mode of employment of labor, and place of employment.

First of all, thank you very much for replying to my queries. As per our conversation, I understand that I need to follow the BOCW, Labour Act, and Shop & Establishment Act. After gaining knowledge about these Acts, I conducted a detailed analysis and related them to my company's profile. This process helped me find most of the answers to my questions.

Although some questions still linger in my mind, I prefer not to ask them now. I believe that before raising any further questions, I should revisit these acts to enhance my understanding.

Thank you for your support and guidance.

Regards,
Pari Ranjan