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malikjs
167

Dear all
i have one query for your suggestions.a software development company prepare,develop and sell software in market.whether it should be covered under factories act as a manufacturing company or shop and est act as service industry.
tks
js malik

From India, Delhi
rajasekar16
59

Its come under shop and est act. Our is shop & est act we are into the same field which you have mentioned above. Regards Rajasekar
From India, Madras
Madhu.T.K
4193

Many such organisations are registered under the Shops & Establishments Act. But I am with the opinion that such concerns should come under the Factories Act. A kind of manufacturing activity is being carried out in software development also. It is not confined to rendering of some intangible service but developing and bringing to a shape of usable good. In fact Shops and Establishments Act is expected to cover only such organisations which carries out trading activities.
Regards,
Madhu.T.K

From India, Kannur
R.N.Khola
363

Dear Members,
When the Appropriate Govt./ Chief Inspector of Factories does not considering these I T & I T Enabled Industries as doing any manufacturing process under the Factories Act,1948 then why should we stress for coverage under this Act. The Labour Deptt. Shop Act wing is doing registration under the Shops & Commercial Establishment Act. Govt. must have also examined the matter at their level. Members are requested to tell us whether in other states the I T units are covered under the Factories Act,1948.
Regards
R.N.Khola

From India, Delhi
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From India, Bangalore
amol nakve
Dear sir,
In this case no raw material are converted(manufactured) into finish product.
I think that is the reason software companies are not fall into purview of The Factories Act 1948.
Regards
Amol


Madhu.T.K
4193

Many state amendments in Factories Act and also the basic Act itself permitting women to work during night shifts were made with a view to providing such benefits to IT industry. There has been a clear nexus between IT sector and Factories Act in policy decisions concerning such permission by the appropriate authorities. In many court decisions quashing prohibition laid down in section 66 (1) (b) of the Factories Act, special reference of IT sector could be understood.
Regards,
Madhu.T.K

From India, Kannur
prach2010
17

Hi Malik, I agree with Rajasekar, IT companies should be covered under 'Shop & Establishment Act'. I am in similar sector & my company is covered under 'Shop & Est' Act. Regards, Prachi
From India, Mumbai
Girija77
Hi Madhu, Can you pls let me know the Publishing companies like 'India Today Group' also comes under Shops and Establishment act? Rgds Girija
From India, Bangalore
Madhu.T.K
4193

Registration under the respective State Shops and Establishments Act is a labour department registration for the establishment whereas the terms and conditions of service of working journalists and news paper employees will be governed by a separate Act, viz, the Working Journalists and other Newspaper employees (Conditions of service) and Miscellaneous Provisions Act, 1955. Under this Act, some special treatment is given to newspaper employees. Accordingly, the minimum period of service for eligibility for gratuity is three years (whereas it is 5 years for all employees other than in newspaper establishments) and minimum notice period as required under ID Act for retrenchment of an Editor is six months and for others in the news paper industry is three months. Regards, Madhu.T.K
From India, Kannur
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