Curious About IT Companies: Do They Fall Under the Factory Act or Shops & Establishments Act?

S Anuradha

Hi Seniors,

I am working in a software company, and I would like to know under which act IT companies fall - the Factory Act or the Shops & Establishments Act? Kindly share the details. Thanks in advance.

Regards,
Anuradha

Parikshit Roy

Hi Anuradha,

IT companies come under the Shop & Establishment Act of the respective state.

Regards,
Parikshit

D.GURUMURTHY

Software companies do not produce or manufacture any products. Therefore, the company is not considered a factory under the Factories Act. It is classified as an establishment engaged in IT business, and thus falls under the Shops and Establishments Act.

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