Are Labor Laws Different for IT Manufacturing Firms Compared to Traditional Manufacturing?

Hi friends,

Can anyone help me to know if the laws applicable to a manufacturing firm will be similar to those applied to an IT manufacturing firm?

Hi,

What do you mean by IT manufacturing? The moment you say it is manufacturing, then the Factories Act is applicable. Whether it is manufacturing or not, PF and ESI are applicable. Payment of Gratuity is also applicable. Additionally, you have the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Industrial Employment Standing Orders Act, and Industrial Disputes Act that are applicable.

Siva

Hi friend,

Whenever anything involving electricity with 20 or more (in the case of manufacturing) is present, it falls under the Factories Act. The following acts are applicable, inclusive of the Factories Act:

- PF Act
- ESIC Act (if coverage applies)
- Workmen Compensation Act (if ESIC is not applicable)
- Standing Order Act
- Industrial Dispute Act of 1947 (if a dispute arises)
- Contract Labour (Regulation & Abolition) - if you engage Contractors and Contract Labours
- Subsistence Allowance Act
- Gratuity Act
- National & Festival Holidays Act
- Maternity Act (if you engage women)
- Employment Exchange Act
- Women Harassment Act
- Payment Of Wages Act
- Payment of Bonus Act
- Minimum Wages Act
- Equal Remuneration Act

I believe these are the main acts applicable to a manufacturing firm.

Thanks & Regards,
B. RAVI MURUGAN
M: 098846 23097

Hello!

There are more than 20 'Labour Laws' introduced by the government and applicable to different kinds of industries and commercial establishments all over India. None of these legislations make any 'exemption' for IT industries. Therefore, undoubtedly all the 'Labour Laws' are applicable to all types of industries.

As you have rightly mentioned, the IT industry is also a 'Manufacturing Industry'. However, there is no conversion of 'raw material' to 'finished product'. Therefore, whether 'The Factories Act 1948' could be made applicable to the IT industry is a debatable question. Frankly speaking, it must be made applicable to the IT industry as it takes care of 'Safety, Health, Hygiene, Welfare' of employees. All other legislations are undoubtedly applicable to all sorts of software industries.

Labour laws such as ESI/EPF/LWF/P.tax/S & E Act/Apprenticeship Act, etc., remain the same irrespective of the IT factor. However, some IT acts may be applicable.

Thanks, Mehul Joshi (BMS, LLB, MBA, DHM) Serve HR Corporate Services www.servehrindia.com

There are 3 aspects for the applicability of the Factories Act 1948:

1. Under Section 2mi, where 10 or more than 10 workers are engaged in a manufacturing process, i.e., a manufacturing process with the aid of power.

2. Under Section 2mii, where 20 or more than 20 workers are engaged in a manufacturing process without power.

3. Under Section 85, the state government, by notification, can declare any units under the Factories Act irrespective of the number of workers.

If the Factories Act is applicable, then other laws are also applicable depending upon some other aspects.

-Raj