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Dear Nova,
Please read the conditions of the Factory Act. If employing more than 10 with the addition of power, and if employing more than 20 without the aid of power. The IT industry falls under the Shops & Establishment Act and the Factory Act as per employment regulations. They produce output for their customers by meeting their demands, indicating a manufacturing process.
Some units located in industrial areas are governed by the Factory Act, while those in commercial areas fall under the Trade Act or Shops & Establishment Act.
May I know the location of your factory? I have evidence of an IT industry covered under the Factory Act in Gurgaon (Udyog Vihar) and another one in Delhi-Rohini under the Shops & Establishment Act.
Best Regards,
Sajid Ansari
Delhi
From India, Delhi
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Please read the conditions of the Factory Act. If employing more than 10 with the addition of power, and if employing more than 20 without the aid of power. The IT industry falls under the Shops & Establishment Act and the Factory Act as per employment regulations. They produce output for their customers by meeting their demands, indicating a manufacturing process.
Some units located in industrial areas are governed by the Factory Act, while those in commercial areas fall under the Trade Act or Shops & Establishment Act.
May I know the location of your factory? I have evidence of an IT industry covered under the Factory Act in Gurgaon (Udyog Vihar) and another one in Delhi-Rohini under the Shops & Establishment Act.
Best Regards,
Sajid Ansari
Delhi
From India, Delhi
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Dear Nova, It is a public limited company employed upto 500 employee,its comes under the Shops & establishment Act because licence issued by the local BMC only. Best Regards Sajid Ansari-Delhi
From India, Delhi
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From India, Delhi
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Hi,
Almost all acts are applicable to IT companies. They are the first to declare a holiday on May 1st - Labour Day, so you can see...
These are the following acts with which you must immediately comply:
1. Shops & Establishment Act
2. Factories Act
3. Minimum wages
4. PF & ESI
5. Gratuity and Bonus Act
6. Maternity Act
7. Contract Labour Act
8. National and Festival Holidays Act
9. Professional Tax Act
You have a cream of employees and also many support staff. Therefore, you need to comply with all statutory requirements applicable to any other labor-intensive or service industry.
However, I am really amused by what Mr. Mallik says... :-D
For example, while you cover your support staff with ESI, you might be providing health and life insurance to your top-level employees :-D
You need to understand what all the statutes expect an employer to do at a minimum level for the employees and relate these requirements to the IT industry. You will see that IT flaunts the same requirements in the form of perks and benefits beyond compare...
But, always be aware of the statutory requirements and the benefits provided by your IT company. Then you are safe.
Thanks,
Geeta
From Korea, Seoul
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Almost all acts are applicable to IT companies. They are the first to declare a holiday on May 1st - Labour Day, so you can see...
These are the following acts with which you must immediately comply:
1. Shops & Establishment Act
2. Factories Act
3. Minimum wages
4. PF & ESI
5. Gratuity and Bonus Act
6. Maternity Act
7. Contract Labour Act
8. National and Festival Holidays Act
9. Professional Tax Act
You have a cream of employees and also many support staff. Therefore, you need to comply with all statutory requirements applicable to any other labor-intensive or service industry.
However, I am really amused by what Mr. Mallik says... :-D
For example, while you cover your support staff with ESI, you might be providing health and life insurance to your top-level employees :-D
You need to understand what all the statutes expect an employer to do at a minimum level for the employees and relate these requirements to the IT industry. You will see that IT flaunts the same requirements in the form of perks and benefits beyond compare...
But, always be aware of the statutory requirements and the benefits provided by your IT company. Then you are safe.
Thanks,
Geeta
From Korea, Seoul
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All, Pl. find some useful Acts which i am saved from this discussion forum itslef. May be useful. Regards, Viju Nambiar
From France, Lille
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From France, Lille
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differnent ppl givin differnt views........confusin a fresher even more.........so plzzzzz which act is applicable 2 an IT services provider?
From India, Mumbai
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From India, Mumbai
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Dear Geeta, You have mentioned so many acts individually which are already covered under shops & establishment act. Best Regards Sajid Ansari
From India, Delhi
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From India, Delhi
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Dear Nova,
The Maharashtra Government has a special focus on the IT industry. Please visit the website and let me know if you have any queries. You can find more information on the [Industrial Policy](http://maharashtra.gov.in). Please [Search on Cite](https://www.citehr.com/results.php?q=Industrial Policy) or [Search on Google](https://www.google.com/search?q=Industrial Policy) for additional resources.
Don't get confused; review the attached documents carefully and decide the best course of action for your company and which laws are applicable to you. Make sure to follow the Shops & Establishment Act.
If you encounter any issues in Maharashtra, feel free to visit our Mumbai office in person. Our legal experts will assist you, or you can contact me at my cell number 09958404503.
Best Regards,
Sajid Ansari - Delhi
From India, Delhi
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The Maharashtra Government has a special focus on the IT industry. Please visit the website and let me know if you have any queries. You can find more information on the [Industrial Policy](http://maharashtra.gov.in). Please [Search on Cite](https://www.citehr.com/results.php?q=Industrial Policy) or [Search on Google](https://www.google.com/search?q=Industrial Policy) for additional resources.
Don't get confused; review the attached documents carefully and decide the best course of action for your company and which laws are applicable to you. Make sure to follow the Shops & Establishment Act.
If you encounter any issues in Maharashtra, feel free to visit our Mumbai office in person. Our legal experts will assist you, or you can contact me at my cell number 09958404503.
Best Regards,
Sajid Ansari - Delhi
From India, Delhi
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A very intelligent and uplifting discussion, and my compliments to all participants. Please keep it up. These are the kinds of discussions that make this forum worthwhile.
Thank you, Malik ji, for your comments in a lighter vein. It was hilarious, especially in the light of Satyam (now Mahindra Satyam).
Thank you, Sajid Ansari ji, for your valuable, factual, and legally compliant messages. Both of you are the pillars of the forum in the area of legal compliance.
Regards.
From India, Delhi
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Thank you, Malik ji, for your comments in a lighter vein. It was hilarious, especially in the light of Satyam (now Mahindra Satyam).
Thank you, Sajid Ansari ji, for your valuable, factual, and legally compliant messages. Both of you are the pillars of the forum in the area of legal compliance.
Regards.
From India, Delhi
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Apart from the various Acts, an IT company has exemptions for operating 24/7, being exempt from updating attendance and wages details manually, etc. The best thing is that if an IT company is situated in an SEZ Zone/Area, they are exempt from all labor laws as per the SEZ Policy.
Thank you!
From India
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Thank you!
From India
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Hi,
I thought it fitting to provide some clarification regarding your query.
An IT company is covered under the Shops and Commercial Establishments Act. It does not fall under the definition of a "Factory" as per the Factories Act. Secondly, you need to check the definition of "Manufacturing Process" under the Factories Act.
Once you confirm that your company does not fall under the Factories Act, and if you are located within the designated area (area defined under the Shops Act for enforcement), you should obtain registration under the Shops Act.
Among the various laws applicable, as mentioned by our peers in different posts, a couple more would be relevant due to registration under the Shops Act and other factors such as employee strength. These include the Payment of Gratuity Act, the Workmen's Compensation Act, the Contract Labour Act, the National & Festival Holidays Act, and a few others.
Regards
From India, Bangalore
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I thought it fitting to provide some clarification regarding your query.
An IT company is covered under the Shops and Commercial Establishments Act. It does not fall under the definition of a "Factory" as per the Factories Act. Secondly, you need to check the definition of "Manufacturing Process" under the Factories Act.
Once you confirm that your company does not fall under the Factories Act, and if you are located within the designated area (area defined under the Shops Act for enforcement), you should obtain registration under the Shops Act.
Among the various laws applicable, as mentioned by our peers in different posts, a couple more would be relevant due to registration under the Shops Act and other factors such as employee strength. These include the Payment of Gratuity Act, the Workmen's Compensation Act, the Contract Labour Act, the National & Festival Holidays Act, and a few others.
Regards
From India, Bangalore
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dear sirs, I am sridhar working as an accountant. I would like to know how to enoll an employee (new) into EPF schemes. Please guide us.
From India, Nalgonda
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From India, Nalgonda
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Labr laws for Vendor compliance Management.pdf
Statutory Compliance of a Industrial or Commercial Unit.xls