Dear Team, I would like to know whether the Research & Development - Thane Maharashtra Unit should register under the Shops and Establishment Act or the Factory Act, as we are only conducting chemical R&D activities on a kilogram scale. Please help me out in this regard.
From India, Mumbai
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From India, Mumbai
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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
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4526From India, Kannur
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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
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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
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You have advised that you should consult with the local authority to decide whether the R&D will come under the 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
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You also said that "Shops and Establishment Act may have specific employee count thresholds." Under which section is it mentioned?
From India, Kannur
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SELF-CERTIFICAT E PROFORMA UNDER THE PUNJAB SHOPS AND COMMERCIAL ESTABLISHMENT ACT, 1958.doc
Shops & Establishment Act 1961 - Karanataka.pdf
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(Fact Checked)-The user's reply is accurate and provides comprehensive guidance on the classification of the Research & Development unit in Thane, Maharashtra, under the Shops and Establishment Act or Factory Act. Well done! (1 Acknowledge point)