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surya
Dear Team, I would like to know whether the Research & Development- Thane Maharashtra Unit shall register, under the Shops and Establishment Act, or Factory Act, as we are doing only chemical R&D activities on kg scale only. Pls help me out in this regard.
From India, Mumbai
Madhu.T.K
4193

If the R&D department is separated from the factory by means of a boundary then the R&D shall have separate registration under the States’s Shops and Commercial Establishments Act
From India, Kannur
raghunath_bv
149

HI Surya,
The classification of your Research & Development (R&D) unit in Thane, Maharashtra, under the Shops and Establishment Act or the Factory Act depends on various factors, including the nature of your operations and the number of employees you have.

Shops and Establishment Act:
This act generally applies to commercial establishments, shops, and offices.
If your R&D unit primarily involves desk-based research, documentation, administrative work, etc., and does not involve manufacturing or production processes, you may be considered a commercial establishment.
If you have a small team and do not engage in large-scale manufacturing activities, registering under the Shops and Establishment Act might be more appropriate.

Factory Act:
The Factory Act typically applies to units engaged in manufacturing processes.
If your R&D activities involve chemical processes, even on a small scale, it might be considered manufacturing, especially if it involves handling, storage, and use of chemicals.

If you have a larger workforce and engage in activities that can be classified as manufacturing, you may need to register under the Factory Act.
It's important to consider the following steps:

Evaluate the nature of your operations:
Determine whether your activities are more in line with research and development or if they involve significant manufacturing processes.

Consult with a Legal Advisor:
Seek advice from a legal expert or consultant who is well-versed in local labor laws and regulations in Maharashtra. They can provide specific guidance based on your operations.

Local Authorities:
Contact the local labor department or relevant authorities in Thane, Maharashtra, to get specific information about the requirements and regulations that apply to your R&D unit.

Employee Count:
Consider the number of employees you have. In some cases, the Shops and Establishment Act may have specific employee count thresholds.

Compliance with Safety and Environmental Regulations:
Ensure that you comply with all safety and environmental regulations related to chemical handling and storage, regardless of which act you register under.

Compliance with relevant laws is crucial to avoid legal complications in the future. Always seek professional advice for your specific situation.
Regards

From India, Bangalore
Madhu.T.K
4193

You have advised that you should consult with the local authority to decide whether the R&D will come under Shops Act or Factories Act. Why?

You also said that "......Shops and Establishment Act may have specific employee count thresholds." Under which section is it mentioned??

From India, Kannur
aussiejohn
658

Madhu T K

Unfortunately many of Dr Raghunath's replies to questions are generated by ChatGPT. There are several well known problems with using AI in situations like this including limited knowledge, particularly in what exactly it has been trained in. It also knows nothing after 2021, can provide inaccurate information, and also makes up answers. It does not provide any sources for it's answers to enable checking. It can be a useful tool, but must be used very carefully and all information must be checked for accuracy.

I have attended three webinars on ChatGPT and AI in the last week, and have gained a very useful insight into the possible uses for this tool, but also the many problems with it.

I guess one good thing about it is the fact that it makes stuff up. That alone will enable university lecturers to fail students easily for cheating by using ChatGPT to write assignments.

From Australia, Melbourne
aussiejohn
658

Surely the company's legal advisers can advise the OP on matters regarding these laws. That's what they pay them to do, i.e, keep the company compliant with all acts and laws and provide the the necessary advice in cases like this.
From Australia, Melbourne
Madhu.T.K
4193

Ok, that is why posts are similar and some common comments like " Consult a legal adviser" ect would come always without reference to the question. I don't think ChatGPT and AI would be useful to find a practical solution for a problem especially when a customised solution is required.
From India, Kannur
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