I have recently reported as an Administration Manager in a PSU. When the topic of Factories and Establishment Registration came up for discussions, everybody pleaded ignorance, and none of my seniors were able to say whether we have registered or not. I had even visited the office of the Ministry of Labour. One of the officials briefed that our PSU is not covered under the Factories and Establishments Act, and he asked us to maintain silence and not unnecessarily rake up the issue as there was no notice from the department.
I am really doubtful how we are not covered under the Act. My head office is in New Delhi, and we have offices in most of the states. A few people I had enquired with are saying that they have registered under the local Factories and Establishments Act. I am really bothered. What should I do? Mine is a premier PSU trading for more than 50 years and has been operational in this state for more than 17 years. How come they have not seen this?
Can somebody guide me?
Kind Regards,
Mr. Robin Singh
From India, Chennai
I am really doubtful how we are not covered under the Act. My head office is in New Delhi, and we have offices in most of the states. A few people I had enquired with are saying that they have registered under the local Factories and Establishments Act. I am really bothered. What should I do? Mine is a premier PSU trading for more than 50 years and has been operational in this state for more than 17 years. How come they have not seen this?
Can somebody guide me?
Kind Regards,
Mr. Robin Singh
From India, Chennai
The concerned office needs to be registered under the State Shops and Establishment Act. If you check up, you might get details of old registration done years ago. Many officials in such PSU jobs pass their time and get transferred; that is one reason why such a vital legal requirement is overlooked. Similarly, you may find that the building does not have fire licenses/clearances and fire audits not being done. Sometimes, if the local labor officer or shops inspector does a check and finds out the lack of registration, problems will come up. Talk to your older staff and even get in touch with some agent or liaison agency versed in such affairs and who can guide you in a discreet manner. I am not surprised at this lackadaisical functioning of many PSUs.
From India, Pune
From India, Pune
First, there is nothing called the Factories and Establishments Act. Either you come under the Factories Act or the Shop and Establishment Act. You need to provide details of what the company does, its structure, etc., for anyone to be able to advise correctly.
From India, Mumbai
From India, Mumbai
Dear Robin Singh,
Needless to dwell on the definitions of "factory" under the Factories Act, 1948, and "establishment" under the State Shops and Establishments Act as the core of the question relates to the registration of administrative offices of the PSU located in different States under the respective State Shops and Est. Acts. If the administrative wing of the establishment is located within the factory premises or if it is situated elsewhere within the jurisdiction of the Shops and Estt Act, you should ensure it is registered under the Act.
From India, Salem
Needless to dwell on the definitions of "factory" under the Factories Act, 1948, and "establishment" under the State Shops and Establishments Act as the core of the question relates to the registration of administrative offices of the PSU located in different States under the respective State Shops and Est. Acts. If the administrative wing of the establishment is located within the factory premises or if it is situated elsewhere within the jurisdiction of the Shops and Estt Act, you should ensure it is registered under the Act.
From India, Salem
Umakanthan.M.
Sir,
The issue is how the company can now get itself registered if it has been running for years without registration under the Shops and Establishment Act of the concerned state. The organization will have to explain the reasons for the delay in applying for registration. Many similar issues arise under the Fire Safety Act as well for not following basic provisions, despite being a government organization. It speaks volumes about the culture and involvement of the top management.
From India, Pune
Sir,
The issue is how the company can now get itself registered if it has been running for years without registration under the Shops and Establishment Act of the concerned state. The organization will have to explain the reasons for the delay in applying for registration. Many similar issues arise under the Fire Safety Act as well for not following basic provisions, despite being a government organization. It speaks volumes about the culture and involvement of the top management.
From India, Pune
Shri Robin Singh has mentioned about Regn. under Factories & Shops & Comm. Estt. Act. However, nowhere is it stated whether the PSU is involved in the Mfg./Prodn. activities or making any products requiring Regn. under the Factories Act. If there is no Mfg./Prodn., and it is only Trading activity, then Regn. under State Shops & C Estt. Act will suffice. Factory Inspectors cannot have jurisdiction where there is no Prodn. activity as defined in the Factories Act.
Email: c.neyimkhan@gmail.com
20.5.16.
From India, Mumbai
Email: c.neyimkhan@gmail.com
20.5.16.
From India, Mumbai
Dear Mr. Rao,
I am in total agreement with you on the points of non-registration so far and the inappropriate reasons for the lapse. However, it is always better late than never for this is an example of both poor compliance and enforcement of legal provisions. The monetary penalty or surcharge, if any, levied for the belated application for registration has to be recovered from the concerned officers of the PSU so that such lapses do not occur in the future.
From India, Salem
I am in total agreement with you on the points of non-registration so far and the inappropriate reasons for the lapse. However, it is always better late than never for this is an example of both poor compliance and enforcement of legal provisions. The monetary penalty or surcharge, if any, levied for the belated application for registration has to be recovered from the concerned officers of the PSU so that such lapses do not occur in the future.
From India, Salem
I am surpised to read that Psu operating for years in various state has not been picked up on radars of the authorities so far.is it possible anyways?What the authorities do then?
From India, Vadodara
From India, Vadodara
Dear members,
@Umakanthan.M
@
@ Nathrao and others...
Many thanks for your replies.
I am sorry for the error in my previous message where I mentioned the Factories and Establishment Act incorrectly. It should be the Shops and Establishment Act.
We would like to take remedial action now. Upon inquiring with retired individuals, they recall some registration being completed in the past. However, it seems none of the previous sections or supervisors noticed this, which is a mystery. If we register now, what implications might there be for previous years? Will this pose a problem? Nevertheless, it is better late than never.
Our business activities revolve around trading various commodities and not manufacturing or production. In case we have misplaced the original Registration Certificate, how can we retrieve it? During our visit to the state labor office, they requested the Registration Number. Unfortunately, we are unaware of the number, and they mentioned that they could not locate it using the establishment's name.
Is there a method to confirm whether we are indeed registered? I am skeptical about how a prestigious PSU could have functioned without a valid Shops and Establishment Certificate.
Please provide guidance.
Kind Regards,
Robin Singh
From India, Chennai
@Umakanthan.M
@
@ Nathrao and others...
Many thanks for your replies.
I am sorry for the error in my previous message where I mentioned the Factories and Establishment Act incorrectly. It should be the Shops and Establishment Act.
We would like to take remedial action now. Upon inquiring with retired individuals, they recall some registration being completed in the past. However, it seems none of the previous sections or supervisors noticed this, which is a mystery. If we register now, what implications might there be for previous years? Will this pose a problem? Nevertheless, it is better late than never.
Our business activities revolve around trading various commodities and not manufacturing or production. In case we have misplaced the original Registration Certificate, how can we retrieve it? During our visit to the state labor office, they requested the Registration Number. Unfortunately, we are unaware of the number, and they mentioned that they could not locate it using the establishment's name.
Is there a method to confirm whether we are indeed registered? I am skeptical about how a prestigious PSU could have functioned without a valid Shops and Establishment Certificate.
Please provide guidance.
Kind Regards,
Robin Singh
From India, Chennai
Shops and Establishment Act registration is a one-time exercise. Kindly check it out using the services of an agent who specializes in such liaison work. Fire safety audits are done twice a year in Maharashtra, and a report by a certified fire agency is to be submitted to local fire officials. Big bosses are seldom concerned with such legalities. The HR/Office Service department is responsible for ensuring compliance with legal requirements. When things go smoothly, no one will question the lack of registration or fire safety compliance. However, when something goes wrong, all the right questions will be asked to fix responsibility. As an HR professional, do the right thing and discreetly check the state of registrations.
From India, Pune
From India, Pune
Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.