Understanding Labour Laws in Software Companies: Do You Need a Labour Certificate?

Hello All,
What are the rules for applying labour law's in software companies ? I want details of Labour Law act.
Is it necessary for a software company to have a labour certificate.
Kindly spare all the related to this matter.
Thanks in Advance.
Regards,
Pratyush

There is no such thing as a labor certificate. Please write a few more lines.

---

In the context of employment and hiring processes, a labor certificate does not exist. Employers typically require different types of documentation or certifications from job applicants, but a labor certificate specifically is not a standard requirement. If you need further assistance or information on this topic, feel free to ask for clarification.

You are governed by the Karnataka Shops and Commercial Establishments Act. If registration is prescribed under it, take it. All other laws are applicable to you, except the IESO Act.

Apart from Shops & Establishments, you can also register your office under the Factories Act since you are in the IT industry.

In order to secure overseas orders, you need to have a Health, Safety, and Environment (HSE) Policy in place. Typically, clients insist on this policy before placing any orders due to their concern for and respect of human life.

Under the Factories Act, having an HSE Policy is mandatory.

Suresh

The Factories Act does not apply to the IT industry.

Dear Mr. Varghese Mathew,

The Madras High Court, in the matter of Cholamandalam Software Ltd., passed an order in the year 2001 stating that software companies are covered under the Factories Act, 1948.

Regards,
Suresh

Madras HC did not hold that the Factories Act is applicable to Cholamandalam Software. It was a case on the applicability of the ESI Act as a manufacturing unit. Similar decisions are from Bombay HC also. As far as the ESI Act is concerned, it is applicable to IT units by special orders of state governments as they come under commercial establishments.

Wait until the SC holds that the Factories Act is applicable to IT.