We are into housekeeping and security services, wherein we provide our staff to different companies. We have our main office in Delhi and are registered there under shops and establishment.
The question is - do we need to open an office in Haryana for LWF?
If so, why? Because as per the Act, it is applicable to establishments where 10 or more employees are employed. Therefore, it is establishment-wise, not state-wise. This is similar to CLRA, where it is also establishment-wise. The Supreme Court has already held that an establishment means one roof/one office of the same company.
So in that case, just like CLRA, that establishment needs to be registered, not a branch of our company. Additionally, opening a separate branch may be a narrow interpretation of the law. Therefore, I need some clarity on this matter and, if possible, some case laws.
Replicating the applicability for ease of reference:
Applicability of the Act
This Act is applicable to a factory as defined in clause (m) of section 2 of the Factories Act, 1948, or any place which is deemed to be a factory under subsection (2) of section 85 of that Act. It includes any premises, including the precincts thereof, wherein and in any part of which any industry within the meaning of clause (j) of section 2 of the Industrial Dispute Act, 1947, is carried on. It also includes a shop or a commercial establishment within the meaning of the Punjab Shops and Commercial Establishment Act, 1958, in which, on any day, ten or more employees are employed or were employed during the preceding twelve months.
From India, Delhi
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The question is - do we need to open an office in Haryana for LWF?
If so, why? Because as per the Act, it is applicable to establishments where 10 or more employees are employed. Therefore, it is establishment-wise, not state-wise. This is similar to CLRA, where it is also establishment-wise. The Supreme Court has already held that an establishment means one roof/one office of the same company.
So in that case, just like CLRA, that establishment needs to be registered, not a branch of our company. Additionally, opening a separate branch may be a narrow interpretation of the law. Therefore, I need some clarity on this matter and, if possible, some case laws.
Replicating the applicability for ease of reference:
Applicability of the Act
This Act is applicable to a factory as defined in clause (m) of section 2 of the Factories Act, 1948, or any place which is deemed to be a factory under subsection (2) of section 85 of that Act. It includes any premises, including the precincts thereof, wherein and in any part of which any industry within the meaning of clause (j) of section 2 of the Industrial Dispute Act, 1947, is carried on. It also includes a shop or a commercial establishment within the meaning of the Punjab Shops and Commercial Establishment Act, 1958, in which, on any day, ten or more employees are employed or were employed during the preceding twelve months.
From India, Delhi
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Dear Abhishek-Sharma1, I am totally confused after reading your post. It seems to me that you have made a simple thing complex.
Clarification on LWF Office Requirement
I have not understood what you want to convey with the following points, which are reproduced in inverted commas:
"1. Do we need to open an office in Haryana for LWF?"
Why do you need to open an office for LWF? If you already have an office in Haryana with the required number of employees, then you need to register that office, i.e., establishment, in Haryana under LWF.
"2. So it is establishment-wise, not state-wise."
Please note that LWF is a state law, and each state has its own applicability, rules, and machinery. Each workplace is considered a separate establishment.
"3. Supreme Court has already held that establishment means one roof/one office of the same company."
Could you please provide the specific location and context for this information?
In simple terms, LWF is applicable to you in Haryana if you have 10 or more employees at any workplace within the jurisdiction of Haryana.
From India, Mumbai
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191Clarification on LWF Office Requirement
I have not understood what you want to convey with the following points, which are reproduced in inverted commas:
"1. Do we need to open an office in Haryana for LWF?"
Why do you need to open an office for LWF? If you already have an office in Haryana with the required number of employees, then you need to register that office, i.e., establishment, in Haryana under LWF.
"2. So it is establishment-wise, not state-wise."
Please note that LWF is a state law, and each state has its own applicability, rules, and machinery. Each workplace is considered a separate establishment.
"3. Supreme Court has already held that establishment means one roof/one office of the same company."
Could you please provide the specific location and context for this information?
In simple terms, LWF is applicable to you in Haryana if you have 10 or more employees at any workplace within the jurisdiction of Haryana.
From India, Mumbai
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