Hi all,
I am working in a manufacturing comany,where we have a shop-floor (factory) at ground floor and office on first floor.
factory will be govern by the factory act 1948,but which act will be applicable for office.
it will be factory act or shop and establishment act?
If office will be govern by s&e act then what will be the nos of paid holidays.
Plz help to solve my problem.
regards
shikha
From India, Mumbai
I am working in a manufacturing comany,where we have a shop-floor (factory) at ground floor and office on first floor.
factory will be govern by the factory act 1948,but which act will be applicable for office.
it will be factory act or shop and establishment act?
If office will be govern by s&e act then what will be the nos of paid holidays.
Plz help to solve my problem.
regards
shikha
From India, Mumbai
If office and Factory are located in the same premises, then Factories act is allplicable
If they are located in two diffrent premises, then office is covered by Shops and Establishment act.
Leave and working days will be as per shops act if it is located in a different premise
There is one more argument and I do not subscribe to that view
Even if it is located in the same premises, only those employees connected with manufacturing process will be covered by Factories Act and others not connected with manufacturing process will be covered under Shops and Establishment act.
Covered category
All in Production, maintenance,Plant services, Purcahse,Planning, Time office,Pay roll staff,Stores,Design office,quality control
Not covered
Sales and Marketing,Finance,EDP,
But generally, Inspectors accept these employees as part of Factory if they are located in the same premises. If you want to treat them different, you can . But practically it will throw lots of issues hence we recommend covering all employees under Factories act if they are located in the same premises.
Sivasankaran
From India, Chennai
368If they are located in two diffrent premises, then office is covered by Shops and Establishment act.
Leave and working days will be as per shops act if it is located in a different premise
There is one more argument and I do not subscribe to that view
Even if it is located in the same premises, only those employees connected with manufacturing process will be covered by Factories Act and others not connected with manufacturing process will be covered under Shops and Establishment act.
Covered category
All in Production, maintenance,Plant services, Purcahse,Planning, Time office,Pay roll staff,Stores,Design office,quality control
Not covered
Sales and Marketing,Finance,EDP,
But generally, Inspectors accept these employees as part of Factory if they are located in the same premises. If you want to treat them different, you can . But practically it will throw lots of issues hence we recommend covering all employees under Factories act if they are located in the same premises.
Sivasankaran
From India, Chennai
Ms.Shikha Joshi
It appears that your factory is located in Maharstra. If so, the relevant Act that needs to be looked into is the Bombay Shops and Establishments Act since Shops Acts are State Acts. Sec. 70 of the Bombay Shops Act clarifies your doubt. Sec.70 of the Bombay shops Act lays down that where any shop or commercial establishment is located within the precincts of factory and is not conencted with the manufacturing process, the Bombay Shops act will apply to such shop unless the Government by way of notification extends teh application of Factories Act to such Shop. Thismust clear your doubt.
B.Saikumar
HR &Labour Law advisor
Mumbai
09930532927
From India, Mumbai
It appears that your factory is located in Maharstra. If so, the relevant Act that needs to be looked into is the Bombay Shops and Establishments Act since Shops Acts are State Acts. Sec. 70 of the Bombay Shops Act clarifies your doubt. Sec.70 of the Bombay shops Act lays down that where any shop or commercial establishment is located within the precincts of factory and is not conencted with the manufacturing process, the Bombay Shops act will apply to such shop unless the Government by way of notification extends teh application of Factories Act to such Shop. Thismust clear your doubt.
B.Saikumar
HR &Labour Law advisor
Mumbai
09930532927
From India, Mumbai
Dear Shikha,
It is the relevance between activities which will decide weather your office will be covered under shops and est. act or Factory Act. Under Bombay Shops and Establishment Act there is proviso that where any shop or commercial establishment situate within the precincts of a factory is not connected with the manufacturing process of the factory , the provisions of this act i.e. Bombay Shops and Establishment Act shall apply to it.
Since your office and factory are in same premises it will be tedious to segregate the manufacturing activities from your office activities. You will be attracting two compliance's authorities one under S&E act and another under Factories act.
Take decision accordingly. For sake of convenience I would suggest you go for registration under Factories Act.
From India, Mumbai
It is the relevance between activities which will decide weather your office will be covered under shops and est. act or Factory Act. Under Bombay Shops and Establishment Act there is proviso that where any shop or commercial establishment situate within the precincts of a factory is not connected with the manufacturing process of the factory , the provisions of this act i.e. Bombay Shops and Establishment Act shall apply to it.
Since your office and factory are in same premises it will be tedious to segregate the manufacturing activities from your office activities. You will be attracting two compliance's authorities one under S&E act and another under Factories act.
Take decision accordingly. For sake of convenience I would suggest you go for registration under Factories Act.
From India, Mumbai
Dear Shikha, As per Factories Act, Section 2(m) factory means and includes any premises including the precincts where a manufacturing process goes on. Since your factory is at the ground floor and offices are on the second floor in the same premises, your registration under the Factories Act would suffice and there is no need to go for registration nder Shop & Establishment Act. But be sure that in your license and other reports under the Factories Act you have to include the employees working in offices too. Hope this clarifies. Regards
KK
From India, Bhopal
KK
From India, Bhopal
Hi.
The Section 2(m) of the Factories Act defines “factory” as any
premises including the precincts thereof—
(i) whereon ten or more workers are working, or were working on any
day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on with the aid of power, or is
ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or
is ordinarily so carried on.
Please, refer to the words 'premises' and 'in any part of which'.
These suggest that if manufacturing process is being carried out in
any part of the premises and the number of workers meets the
qualifying no. as stated above, then it should be covered under the
Factories Act, 1948.
From India, Haora
The Section 2(m) of the Factories Act defines “factory” as any
premises including the precincts thereof—
(i) whereon ten or more workers are working, or were working on any
day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on with the aid of power, or is
ordinarily so carried on, or
(ii) whereon twenty or more workers are working, or were working on
any day of the preceding twelve months, and in any part of which a
manufacturing process is being carried on without the aid of power, or
is ordinarily so carried on.
Please, refer to the words 'premises' and 'in any part of which'.
These suggest that if manufacturing process is being carried out in
any part of the premises and the number of workers meets the
qualifying no. as stated above, then it should be covered under the
Factories Act, 1948.
From India, Haora
Ms Shikha
I have misunderstood the facts of your query in haste, mistaking shop-floor as Shop intstead of factory. Since the factory is loacted at the ground floor and the office located on the first floor and since both are located within the same premises and precincts and also as the work of head office is connected with that of teh factory, the Factories Act is applicable as Mr.mohanty and Malik explained. I stand coprrected.
B.Saikumar
HR &Labour Law advisor
Mumbai
09930532927.
From India, Mumbai
I have misunderstood the facts of your query in haste, mistaking shop-floor as Shop intstead of factory. Since the factory is loacted at the ground floor and the office located on the first floor and since both are located within the same premises and precincts and also as the work of head office is connected with that of teh factory, the Factories Act is applicable as Mr.mohanty and Malik explained. I stand coprrected.
B.Saikumar
HR &Labour Law advisor
Mumbai
09930532927.
From India, Mumbai
Dear friend,
This query looks as much interesting as quizzical. It's really funny to think office and factory are two different entity just because they are located in diff. floors. If this arguement could be extended, almost 60-80% of establishments will go under Shops Act. What a way to interpret the law. Practically can any office could be independent of its production/sale/service activity? Come on yar, be practical as well, you got the appointment order from the Co. or from the shop ? Factory and its office is inseparable.
To cite one example, a beedi making labourer who makes beedies at his/her house and giving back the beedies produced in his/her house to their employer is also considered to be factory worker. And for your information his house and the factory are in two diff. places (even the 'within the precincts' principle is also irrelevant here - pl.refer PF Act case laws.)
kumar.s.
From India, Bangalore
This query looks as much interesting as quizzical. It's really funny to think office and factory are two different entity just because they are located in diff. floors. If this arguement could be extended, almost 60-80% of establishments will go under Shops Act. What a way to interpret the law. Practically can any office could be independent of its production/sale/service activity? Come on yar, be practical as well, you got the appointment order from the Co. or from the shop ? Factory and its office is inseparable.
To cite one example, a beedi making labourer who makes beedies at his/her house and giving back the beedies produced in his/her house to their employer is also considered to be factory worker. And for your information his house and the factory are in two diff. places (even the 'within the precincts' principle is also irrelevant here - pl.refer PF Act case laws.)
kumar.s.
From India, Bangalore
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Brief Kerla Shop & Establishment Act.pdf
FORM C- under Shop & Commercial Establishment-1 958.xls