Remote Work Dilemma: Are Shop Act Rules Applicable to Non-Employee Staff?

If any staff (not an employee) is working remotely for an organizational work, such as working from home, are shop act rules applicable to that particular staff? This staff is working for the company but not under the roof for which the shop act license is issued. Kindly help and guide me as I have gotten stuck in one such case. I would appreciate your support.

How do you show wages/salary paid to a remotely working employee?

If you are the one paying bills for providing manpower, whether as an employer or contractor, you need to ensure compliance with the Shop & Establishment Act of your respective area.

If you do not engage any employee directly or through a manpower contractor/supplier, then the question of business involvement will not arise.

Thank you, Prashant Sir, for your prompt response.

We have a fixed pay of a certain amount for this staff. They have been appointed as a consultant, and this resource is working remotely to support our activities for at least 2 hours a day. However, the rules of the shop act do not apply to this staff.

Thank you so much.

Remote/close - these are secondary issues.

Is your organization big enough to be covered under ESI, PF, Gratuity, and the Bonus Act? Please ensure this first and procure the necessary coverage.

No, if he is working as a consultant, he does not need to follow your shop and establishment rules. Whether he needs to follow his own depends on his size and setup and is not your concern.