Applicabilty of Shops and establishment act on corporate office of a factory
prasant kumar swain
(Querist) 23 September 2010
This query is : Resolved
The corporate office of our company is registered an governed under factories act,whether Shops and Commercial Establishment Act is applicable in our case.
(Expert) 28 September 2010
In the case of Indian Airlines, Begumpet, ... vs E.S.I. Corporation, Hyderabad decided on 31 December, 2004, the Andhra Pradesh High Court held that “as per sub-section (4) of Section 1 of the Act, the Act in the first instance would apply to all factories including the Government factories. Therefore, an establishment to be a factory to be brought under the provisions of the Employees' State Insurance Act should have manufacturing process. If the establishment is large and only in some part of the establishment manufacturing is carried on, only that part where manufacturing process is carried on either in accordance with Section 2(12)(a) or 2(12)(b) would be factory.”
In this view of the matter, if the office of your registered factory is situated within the municipal limits where the Shops Act is applicable, the registration under Shops Act would be required, otherwise not.