Are Non-Manufacturing LLP Firms Covered by the Shops and Establishment Act or Labour Laws?

jmanis
Could anybody guide me on whether non-manufacturing LLP firms come under the Shops and Establishment Act or Labour Laws?
umakanthan53
Dear Jmanis, a non-manufacturing Limited Liability Partnership (LLP) firm does not fall under the purview of the Factories Act, 1948. However, it can be classified as a shop or establishment, a motor transport undertaking, or a plantation, depending on the nature of the business activity conducted by it. These classifications determine which establishment-specific labor laws apply.

In short, an LLP is a business format that combines the flexibility of a partnership with the advantages of limited liability of a company at a low compliance cost. Essentially, it refers to the legal entity constitution of any business, which is not directly relevant to the application of labor laws.

Shops and Establishments Acts

Shops and Establishments Acts are state-specific labor laws enacted and enforced by the State Governments of the Union of India. Therefore, they are part of the establishment-specific labor laws of the country. If specific norms of applicability are met, every shop or establishment would be subject to the relevant labor laws such as the Employees' Compensation Act, 1923, Payment of Wages Act, 1936, EPF Act, 1952, Payment of Bonus Act, 1965, Payment of Gratuity Act, 1972, etc., as well as the Industrial Disputes Act, 1947, which applies to every industrial establishment regardless of its classification or the number of employees therein concerning matters related to industrial relations.

I hope this clarifies your doubts.
Kritarth Consulting
And in case you employ ten or more workers/employees in your establishment, add to your list of compliances compliance with the provisions of the SHWW (P, P & R) Act 2013. This will include constituting a four-member internal committee to address sexual harassment complaints, if any.

Kritarth Team
26.7.19
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