Navigating Compliance: Do We Need Both Factory and Shop Act Forms for Our Showroom?

Dear Sir/Madam,

In one of our units of automobile sales and service in Tamil Nadu, we are covered under the Factories Act and are maintaining all the required forms and procedures as per the Act. However, today we received a notice stating that we also need to maintain all the labor forms as the showroom is covered under the Shops and Establishment Act.

Notes:
1. The showroom and service center are located in the same compound.
2. The Factory approval blueprint includes the showroom.

Seniors and colleagues, please provide me with your clarity and views on this matter.

Thank you.

Dear Aruli, this is a common situation of overlapping jurisdiction of two separate labor laws. Once the Factories Act, 1948 becomes applicable to a premise, including the precincts thereof, automatically any other establishment-specific law like the Shops and Establishments Act would not become applicable. I think there must be some communication gap, and the Inspector under the TNS&E Act might not have been properly informed of the fact that the entire premises, including the Showroom Area, have already been approved under the Factories Act as a factory. There may have been a failure on your part to maintain all the registers and notices in respect of those employees engaged in sales activities under any Act.

In view of the above facts, your single premises covering both sales and service of the products of your merchandise will not come under the TNS&E Act, 1947. It would be better to inform the concerned Inspector under the TNS&E Act of the fact that the entire premises are already covered under the Factories Act, 1948.

Dear Aruli,

You can share a photocopy of the "Factory Plan" as proof with the concerned inspector.

Any office/showroom attached to a factory is covered under the Factories Act, 1948.

Please check whether you have considered showroom employees as part of the total manpower when paying the license fees or not.

Suresh