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anand das (service)     20 February 2011

labor matter

In a factory premises there are two buildings- one is actual manufacturing process where workers work and in the same campus there is another building wherein administrative work is carried out.  Which rules/act will be applicable for employees working in this administartive building for leave-wages etc? Will this be as per factory act?


 4 Replies

Kirti Kar Tripathi (lawyer)     20 February 2011

Shop and Commercial establishment Act  will apply to Administrative Block's employees.

V. VASUDEVAN (LEGAL COUNSEL)     20 February 2011

Advocate Tripathi's view point is correct, provided that the administrative block is registered under the Shops & Establishment Act and  are in the payroll of the establishment - separately. If they are part of the payroll of the factory, then they would be governed by the factories act.


mothi (Personnel Officer)     21 February 2011

if the administrative block work is part of the factory"s work  & being in a common premises it is goverened as per factories act . If the two building's works is independent of each other then one is under factories act & other under Shops and establishment act.   

anand das (service)     21 February 2011

Thank you very much sirs.

Generally the factory is the primemover and administrative buildings are meant primarily to look after labor matters like their wages, leaves, benefits, legal compliances etc. There may be some purposes here and there for which administrative building is made for. But primarily it is for labor matters only.  In this case i think factory act applies provided it is not registsred under shops act.

1. But is practical to apply shops act in such cases and get shops act registration ?

2. Is it mandatory to register  administrative building under shops act if management wants the shop act to govern the administrative building?

3. What is generally done in such situations?

pls guide

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