Hello All,
I would like to know whether the Industrial Disputes Act is applicable to IT companies or if IT companies come under the purview of the Shops and Establishments Act.
Please reply with your inputs.
Regards,
Vijoy
From India, Thiruvananthapuram
I would like to know whether the Industrial Disputes Act is applicable to IT companies or if IT companies come under the purview of the Shops and Establishments Act.
Please reply with your inputs.
Regards,
Vijoy
From India, Thiruvananthapuram
The purposes of these Acts are different. The Shops and Establishments Act aims to regulate working hours, welfare of employees, security measures, health, and other basic requirements of employees employed in an establishment. This Act does not deal with how to settle disputes between or among employees, employers, and employees. The Industrial Disputes Act, however, provides for different machinery for the settlement of disputes, procedures to be followed in connection with dispute settlement, and laying off and closing down of establishments, procedures for retrenchment of employees, and so on. A factory covered under the Factories Act or an establishment covered by the Shops and Establishments Act will have to follow the ID Act only to find remedies for lay off, closure, termination of workmen, etc.
As far as the IT sector is concerned, I do not think that it is exempted from the operation of the provisions of the ID Act. If establishments in an IT firm employ workmen and if they work for profit, they are supposed to follow labor laws as well. Certainly, certain concessions are offered to them. But these concessions are for the benefit of the economy and for giving employment opportunities to Indians, not to deter any rights of employees or drain the capital of India.
Regards,
Madhu.T.K
From India, Kannur
As far as the IT sector is concerned, I do not think that it is exempted from the operation of the provisions of the ID Act. If establishments in an IT firm employ workmen and if they work for profit, they are supposed to follow labor laws as well. Certainly, certain concessions are offered to them. But these concessions are for the benefit of the economy and for giving employment opportunities to Indians, not to deter any rights of employees or drain the capital of India.
Regards,
Madhu.T.K
From India, Kannur
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