Industrial Employment Act 1946: Does It Apply to Shops with Workmen?

Is the Industrial Employment Standing Orders Act 1946 applicable to shops and establishments where workmen are employed?

Yes, it is applicable to all establishments in which the required number of employees are employed. The general rule is 100 employees, but in many states, the threshold for coverage is 50 employees.

Please refer to the respective state rules as well as the nature of the industry. In many states, it is applicable, and in a few states, it is not applicable. Additionally, in IT sector states like Karnataka and Maharashtra, there are special exemptions under MSO.

Yes, in Karnataka, a special exemption was given to IT companies. In general, all establishments to which the Payment of Wages Act is applicable would come under the Industrial Employment Standing Orders Act as well.